State, Commerce Propose to Harmonize Destination Control Statements for Exports
The Commerce and State Departments proposed rules to harmonize the destination control statements for both the Export Administration Regulations and the International Traffic in Arms Regulations. Commerce’s Bureau of Industry and Security and State’s Directorate of Defense Trade Controls are asking for industry to comment on the proposals by July 6. The change would impact all EAR exports, aside from those with license exceptions for baggage (BAG) and gift parcels and humanitarian donations (GFT).
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Export Control Reform (ECR), the effort to transfer control for dual-use items from the ITAR to EAR, has significantly increased the number of shipments that include both EAR and ITAR items, both agencies said in the concurrent proposals. The mixed shipments have caused confusion for industry in choosing which control statement to use in each shipment, or whether to use both statements. The harmonized control statements will alleviate that burden, said the agencies.
The new statement would read as follows: “These items are controlled and authorized by the U.S. Government for export only to the specified country of ultimate destination for use by the end-user herein identified. They may not be resold, transferred or otherwise disposed of, to any other country or to any person other than the authorized end-user or consignee (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.”
The harmonization is part of a broader ECR effort to create a unified export control list, as opposed to continuing to operate under the Commerce Control List and the U.S. Munitions List. That would require legislation, but BIS and DDTC are moving toward that goal with administrative changes such as this proposal, said the agencies.
The BIS rule (here) would also require Export Control Classification Numbers on commercial invoices and contractual documentation for “600 series” exports. The control statement, as well as the commercial invoice and contract, are the most likely pieces of documentation to reach the ultimate consignee, said BIS. The DDTC rule (here) also revises licensing exemption language in ITAR to “clarify when exports may be made to or on behalf of an agency of the U.S. government without a license.”
Stakeholders may submit comments to BIS through mail, publiccomment@bis.doc.gov (0694-AG47 in the subject line) and www.regulations.gov (identification number BIS-2015-0013). Those that prefer to comment to DDTC, may do so through DDTCPublicComments@state.gov (“ITAR Amendment – To or on behalf of” in the subject line) and www.regulations.gov (identification number 1400-AC88).
(Federal Register 05/22/15)