Effective Nov. 15, 2016, the EAR and the ITAR no longer have separate DCS language, but instead use a harmonized DCS. Also, the newly harmonized DCS is only required on the commercial invoice and not on all export control documents. These changes will eliminate possible confusion exporters may have in determining which DCS to use when a shipment contains goods subject to both the EAR and the ITAR. The changes are part of President Obama’s Export Control Reform (ECR) initiative, and were issued on Aug. 17, 2016 in final rules by the U.S. Commerce Department Bureau of Industry and Security’s (BIS) and the U.S. Department of State Directorate of Defense Controls (DDTC).
The final rules also clarify that the DCS is only required on tangible shipments. However, the agencies recommend that if a commercial invoice exists for an intangible item, it is good practice to include the DCS. Exporters must include the DCS on the commercial invoice for any shipment of items on the Commerce Control List (CCL), unless the shipment is made under license exceptions BAG or GFT. Exporters must also include the DCS on the commercial invoice for any shipment of items on the United States Munitions List (USML).
In addition to the DCS, the commercial invoice must list the ITAR classification for all items and the Export Control Classification Number (ECCN) for all 9x515 or 600 series items. Additionally, if both ITAR items and EAR items are shipped together under a DDTC authorization, all ECCNS must be noted on the invoice, including items that are categorized as EAR99.
The harmonized DCS 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.
The final rules are available at http://www.bis.doc.gov/index.php/regulations/federal-register-notices#fr54721.