How is the pre-existing DCS paradigm frustrating for exporters?

 

The purpose of a DCS is to notify international parties as to the compliance of the exported defense article with applicable EAR and ITAR regulation, and to ensure that the relevant parties are further notified as to the illegality of diverting the exported article.

 

Under the pre-existing DCS paradigm, exporters of defense articles are required to include a DCS on several different export control documents in accordance with either or both of the EAR and ITAR regulations.

 

Multiple export documents.

Existing EAR and ITAR regulations require that exporters include a DCS on several different export documents, including the bill of lading, the air waybill, the commercial invoice, among others.  With several different documents requiring a DCS, this increases the cost of compliance for exporters quite significantly.

 

Confusion as to DCS application.

It is not uncommon for exporters to move mixed shipments of defense articles that are subject to both EAR and ITAR regulation.  When moving mixed shipments, many exporters have been concerned as to the DCS requirements – EAR and ITAR regulations each demand different DCS language, and as such, ensuring compliance can be confusing.  Exporters may find themselves confused as to which DCS to include on their export documentation.

Posted on September 1st, 2016 by admin
Filed under: EAR, ITAR