fbpx
DB Schenker - Now That's Logistics
  • English
  • Insights
  • Shipping & Logistics
  • Digitalization
  • Trade
  • Industries
    • Aerospace & Defense
    • Automotive
    • Beverages
    • Chemical
    • Consumer
    • Electronics
    • Fashion & Retail
    • Healthcare & Pharma
    • Industrial
    • Marine Parts
    • Oil & Gas
    • Semi Conductor & Solar
No Result
View All Result
  • Insights
  • Shipping & Logistics
  • Digitalization
  • Trade
  • Industries
    • Aerospace & Defense
    • Automotive
    • Beverages
    • Chemical
    • Consumer
    • Electronics
    • Fashion & Retail
    • Healthcare & Pharma
    • Industrial
    • Marine Parts
    • Oil & Gas
    • Semi Conductor & Solar
No Result
View All Result
DB Schenker - Now That's Logistics
No Result
View All Result
Home Shipping & Logistics Trade Advisory

What You Need to Know About the Changes to the DCS (Destination Control Statement)

November 15, 2016
Think Global – Act Local
Share on FacebookShare on Twitter

On November 15th, the regulations mandating destination control statements (DCS) changed and now include several modifications to existing rules that shippers must follow when exporting goods from the U.S.  A legal statement required by the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR), the DCS states that the goods being exported are destined to the country indicated in all the shipping documents. Put simply, the statement clarifies that the buyer of the goods won’t take them and forward them to another country.

There are two different sets of rules governing DCSs, neither of which has been changed or updated in many years. The purpose of the DCS has historically been to alert parties outside the U.S. that receive the item that it was subject to the EAR or ITAR, the item was exported in accordance with the EAR or ITAR, and that diversion contrary to U.S. law was prohibited.

Two Areas of Interest for Shippers

The updates to DCS  were introduced in May of 2015 in a proposed rule entitled Revisions to the EAR, Harmonization of the Destination Control Statements. Effective November 15th, the EAR (§ 758.6—Destination control statement and other information furnished to consignees) no longer includes a requirement to add the DCS on the air waybill, bill of lading, or other export control documents. Instead, it limits the requirement of the new version of the DCS to the commercial invoice.

The two primary changes that shippers should be aware of include:

§ 758.6 – Destination control statement & other information furnished to consignees.

The exporter must incorporate the following information as an integral part of the commercial invoice whenever items on the Commerce Control List  (all ECCN’s except EAR99) are shipped, unless the shipment may be made under License Exception BAG or GFT or the item is designated as EAR99:

(1) The following statement: “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” and

Include when applicable:

(2) The ECCN(s) for any 9×515 or “600 series” “items” being shipped (i.e., exported in tangible form).

§ 123.9 Country of ultimate destination and approval of re-exports or retransfers.

(1) The exporter must incorporate the following information as an integral part of the commercial invoice, whenever defense articles are to be shipped, retransferred, or re-exported pursuant to a license or other approval under this subchapter:

(i) The country of ultimate destination;

(ii) The end-user;

(iii) The license or other approval number or exemption citation; and

(iv) The following statement: ”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.”

 

(2) When exporting items subject to the EAR pursuant to a Department of State license or other approval, the U.S. exporter must also provide the end-user and consignees with the appropriate EAR classification information for each item. This includes the ECCN or EAR99.

The only exception of  when the DCS is required on the air waybill, bill of lading, or other export control documents (i.e. manifest) relates specifically to ITAR (International Traffic in Arms) goods that falls under the 22 CFR ITAR Exemptions Pursuant to §126.16 (j) Defense Trade Cooperation Treaty between U.S & AU, §126.17 (j) Defense Trade Cooperation Treaty between US & UK or §126.6 Foreign-owned military aircraft and naval vessels, and the Foreign Military Sales Program. These ITAR DCS statements must continue to be printed on the on the transport document when applicable.

Measuring the Impacts 

The new DCS rules will have an impact on all exporters that are required to file this documentation when shipping goods overseas. The responsibility falls on the part of the commercial invoice preparer or the exporter to comply with the rules, as it is solely their responsibility to place the DCS on the commercial invoice.

In essence, the new rules grant more responsibility to the shipper to provide the end users and the consignee with more detailed information. “They have to provide the EAR with the correct classification information and ensure that the recipients of the commercial invoice are aware of the DCS,” says Ivelisse James, DB Schenker’s Senior Regional Manager, Americas of Trade Advisory Services & Trade Compliance.

Shippers should have documented written proof that they’ve notified both the end user and the ultimate consignee (the two may not be the same entity/person) when there is a DCS for the specified commodity  being shipped.

“The real change in the rules is that not only does the information have to be present on the DCS,” Ivelisse  explains, “but the shipper has to make sure the end user and the ultimate consignee as noted in the document process also have been informed”

As a party in the international transportation global supply chain, there is assistance available to you so that you can remain in compliance while maneuvering through the complex regulatory requirements.  DB Schenker Trade Advisory Services is  -here to guide your company  through the new DCS changes and other  upcoming regulatory requirements anticipated throughout 2017. Please contact us or visit our website today to learn more about our various efficient and effective Trade Advisory Solutions Tools available.

 

If you want to streamline your compliance, then you need to speak to a global logistics expert. To find out more, visit our website or

Phone: +1 (844) 724-8723 (in USA)
Phone: +1 (516) 690-2171 (outside USA)
TradeSolutionsUS@dbschenker.com

 

Tags: ComplianceExportTrade Advisory
Next Post

5 Ways DB Schenker’s Newly Modernized NYC Luxury Goods Facility is a Game-Changer

RECOMMENDED

Top 15 Ports in The Americas

Top 15 Ports in The Americas

March 16, 2018
Fast Facts: What You Need to Know About Chile’s Port of Valparaíso

Fast Facts: What You Need to Know About Chile’s Port of Valparaíso

December 19, 2022
Top 15 Ports in the Americas 2019

Top 15 Ports in the Americas 2019

June 24, 2019
Thought Leadership Updates with David Buss

Thought Leadership Updates with David Buss

January 4, 2024

TRENDING

DB Schenker awarded Excellence in Value Creation by Cisco

September 27, 2016
The Port of Manzanillo — Poised for Growth

The Port of Manzanillo — Poised for Growth

May 15, 2018
3 Things You Need to Know about Importing Chocolate

Three Things You Need to Know about Importing Chocolate

February 2, 2017
Thought Leadership Updates with Joe Jaska

Thought Leadership Updates with Joe Jaska

December 18, 2023
DB Schenker Recognizes its Valuable Team Members on Employee Appreciation Day

DB Schenker Recognizes its Valuable Team Members on Employee Appreciation Day

March 4, 2022
DB Schenker Logo

DB Schenker is the world's leading global logistics provider, delivering over 150 years of premium performance and transportation solutions. One call gets our customers on the fast track to nearly 2,000 locations in all of the world's most important economic regions.

Contact Us

United States
+1 (800) 225-5229 (in USA)
+1 (602) 458-6200 (outside USA)
www.dbschenker.com/usa
Canada
+1 905 676 0676
www.dbschenker.com/ca

Categories

Visit Us

• DB Schenker Americas
• DB Schenker Canada
• DB Schenker Careers
• DB Schenker USA
• Trade Advisory Solutions

Follow Us

• LinkedIn
• Twitter USA
• Twitter Canada
• Facebook

© 2022 Schenker Americas, Inc. | Privacy Policy

We use cookies in order to optimize our website and continually improve it. By continuing to use this site, you are agreeing to our use of cookies. You can find further information on cookies in our privacy policy. Accept
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
No Result
View All Result
  • Insights
  • Shipping & Logistics
  • Digitalization
  • Trade
  • Industries
    • Aerospace & Defense
    • Automotive
    • Beverages
    • Chemical
    • Consumer
    • Electronics
    • Fashion & Retail
    • Healthcare & Pharma
    • Industrial
    • Marine Parts
    • Oil & Gas
    • Semi Conductor & Solar
  • pt-br Português
  • fr Français
  • es Español
  • en English

© 2022 Schenker Americas, Inc. | Privacy Policy