Harmonized Destination Control Statement

 In Industry Insider, Trans-Border Global Freight Systems, Inc.

Dear Valued Clients,

As of November 15, the two main U.S. Government agencies with export controls in place – the Bureau of Industry and Security (BIS) and the Department of State, will have officially enforced a harmonized Destination Control Statement (DCS).

To refresh everyone’s memory, the current DCS (as it stands) is mandated by both the Export Administration Regulations (EAR – under the BIS) and the International Traffic in Arms Regulations (ITAR – under the Department of State). The purpose of the DCS, in its simplest form, is to attest that the items being exported are destined to a country indicated on the export control documents, and that diversion contrary to U.S. law is prohibited.

After many discussions between the agencies themselves, as well as with the exporting community, both the BIS and Department of State have decided to make both statements identical as stated in the Federal Register. Exporters can now use one single statement if their goods fall under the jurisdiction of either the EAR or ITAR.

Container Cargo freight ship with working crane loading bridge in shipyard at Blue sky for Logistic Import Export Zone

The new DCS is now as follows (at a minimum):

“These items are controlled by the U.S. Government and authorized for export only to the country of ultimate destination for use by the ultimate consignee or end-user(s) herein identified. They may not be resold, transferred or otherwise disposed of, to any other country or to any person other than the authorized ultimate consignee or end-user(s), ether in their original form or after being incorporated into other items, without first obtaining approval from the U.S. government or as otherwise authorized by U.S. law and regulations.”
Some key points to follow about the DCS:
  • The DCS is not required for all transactions under the EAR – generally only for non-EAR99 items. More info on DCS requirements for items subject to the EAR can be found in Title 15, Part 758.6.

As always, we encourage all exporters to review these new requirements and to make any necessary internal adjustments, etc. Trans-Border is readily available to offer assistance and guidance as need be. If you have any additional questions about these new amendments, please contact Trans-Border’s Export Compliance Manager, Yateen Patel, via email, or by calling 800-493-9444.

Thank You & Have A Freight Day!