diversion os when controlled goods are are sold by a u.s. exporter course hero

What exports require a destination control statement?

Jan 24, 2013 · Illegal Diversion Emerging As Top Export Control Issue. According to U.S. export officials, one of the most significant export control issues facing U.S. companies today is illegal diversion risk. Simply defined, illegal diversion is when your company sells a product to a foreign customer (say in the U.A.E.) and that customer resells the product without your knowledge in a …

Why did exports of the United States exceed imports by 419 billion?

The current law that controls the export of goods from a U.S. manufacturer to a foreign buyer also controls the re-export of those goods beyond the boundaries of the country of the ... "Diversion" is when controlled goods are sold by a U.S. exporter to an importer in ... Course Hero member to access this document. Continue to access. End of ...

What happens when exports and imports are equal in an economy?

The principal mission of the ECOs is to ensure that controlled items entering the region are used in accordance with U.S. export control laws. Compliance verification is accomplished through targeted end-use checks and by working with the host governments and local businesses to ensure that they understand and comply with U.S. export control laws.

How can an exporter avoid delays in the port of departure?

In the context of antitrust law, illegal diversion refers to practices that prevent the discovery of the ultimate recipient of goods. For example, Export Administration Regulations (EAR) apply to transactions that involve parties who are listed on the Unverified List (UVL). The UVL identifies parties who has previously been involved in a transaction in which a pre-license check (PLC) or …

How to prevent export violations?

Preventing Potential Export Violations 1 Be aware of compliance regulations. 2 Familiarize yourself with laws and regulations that may impact your area of exporting. 3 Know your customers. 4 Know what penalties you face for breaking the law.

What is destination control statement?

The Destination Control Statement is a legal statement required by the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR) stating that the goods you are exporting are destined to the country indicated in all the shipping documents. It is a necessary legal boundary clarifying what happens to shipments, ...