Final Rule for Destination Control Statements Fast Approaching

November 8, 2016
By Sue Nans

clock faded over person writing

Effective November 15, the Bureau of Industry and Security (BIS) and the U.S. Department of State (DOS) will enforce new requirements for the destination control statements needed under the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR). The revisions will combine both destination control statements, used for EAR and ITAR, to make one statement. This will help to alleviate perceived concerns for exporters of non-600 series and non-9×515 ECCNs under the EAR.

The new destination control statement will be required on your commercial invoice. If you have cut commercial invoices for shipments in advance and have not integrated the new statement, you will need to revise those invoices.

The revised statement reads,

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), either 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.

Next Steps

In order to remain compliant follow these steps,

  1. Read through the regulations. Here are the Federal Register notices to aid in your review.
  2. Change your invoices NOW so any shipments expected to be exported by November 15 will be in compliance with the new regulations.
  3. Contact your Mohawk customer service representative as soon as possible regarding any questions about how to prepare for shipments expected to be exported November 15 or later.

It is imperative that you update your invoices NOW, as there is a high probability that waiting for the effective date, or not taking any action at all, will cause Customs to detain your shipments from reaching your customers.

Sue Nans is Export Compliance Manager for Mohawk Global Logistics.