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Did you know that per 15 CFR 758.6, a destination control statement is required on the invoice, bill(s) of lading or other export control documents accompanying shipments from US origin? This is required for all exports of items on the Commerce Control List that are NOT classified as EAR99, unless the export can be made under a license exception (BAG-baggage or GFT- Gifts as defined in part 740 of the EAR).
Currently, the statement must say at a minimum: “These commodities, technology or software were exported from the United States in accordance with the Export Administration Regulations. Diversions contrary to U.S. law is prohibited” (15 CFR 758.6).
These regulations have been revised and the requirement will change. The new changes to 15 CFR 758.6 will be effective on November 15, 2016. According the Federal Register published on August 17, 2016, the final rule implements changes which were proposed on May 22, 2015. The stated goal of these revisions is “Harmonization of the Destination Control Statements.” Per the summary of the Federal Register entry, “This final rule revises the destination control statement in 758.6 of the Export Administration Regulations (EAR) to harmonize the statement required for the export of items subject to the EAR with the destination control statement in 22 CFR 123.9(b)(1) of the International Traffic in Arms Regulations" (ITAR).
The revised regulation clearly states “The exporter must incorporate the following information as an integral part of the commercial invoice whenever items on the Commerce Control List are shipped (i.e., exported in tangible form), unless the shipment (i.e., the tangible export) may be made under License Exception BAG or GFT (see part 740 of the EAR) or the item is designated as EAR99.” Yes it is similar to what we have already discussed in the opening paragraph. However, note the language is specifying that the “exporter” must action this requirement.
The new statement as defined in revised 15 CFR 758.6 effective November 15, 2016 is: “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.”
Are you ready to meet this requirement? JAS Forwarding USA Inc. Compliance Team is working to ensure that our bill of lading’s language has been adjusted to comply with these revised regulations. We can help you too. Contact us today and let’s work on some risk management together!
The recent June 12, 2024, Federal Register notice added three entities to the UFLPA Entity List showing increasing focus on three additional commodities. The entities which were added are suspected of working with the Xinjiang Uyghur Autonomous Region to recruit, transport, transfer, harbor or receive forced labor or Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the Xinjiang Uyghur Autonomous Region.
The areas of increased focus include shoe and shoe materials, frozen seafood, vegetables, quick frozen convenience food and other aquatic food, and electrolytic aluminum, graphite carbon, and prebaked anodes.
To read more, check out the full register notice linked below.
On June 24, 2024, the Assistant Secretary of Commerce, Matthew S. Axelrod signed a settlement agreement with an exporter for violations of EAR. The violations occurred because of forty-two different shipments over the course of 4 years which were classified under ECCNs 1C353. These instances were subject to export licenses, but no licenses were obtained prior to exportation.
The exporter has a compliance team and upon recognition of the issue, submitted a voluntary self-disclosure. To read more details, check out the link below.
On June 3, 2024, the BIS imposed a civil penalty of $44,750 for violations of the antiboycott provisions of the Export Administration Regulations (EAR). In the press release, Assistant Secretary for Export Enforcement, Matthew S. Axelrod said “Our antiboycott rules against furnishing prohibited information and failing to report boycott-related requests apply with the same force even when another U.S. company is the one making the information requests.” He goes on to say “U.S. companies are reminded to be vigilant in examining all transaction documents, regardless of the source, to ensure terms and conditions comply with our antiboycott rules.”
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