other person on behalf of any carrier, shall issue a Bill of Lading which provides for delivery of cargo subject to the provisions of this paragraph (b) at any foreign port except a port located in the country of (i) the ultimate consignee, or (ii) the intermediate consignee, named in the authenticated Shipper's Export Declaration.

(2) Delivery of cargo. No carrier shall deliver such cargo to any other country at the request or option of the shipper, consignor, exporter, purchaser, or ultimate consignee, or their agents, or any other person having custody or control of the shipment, without prior written authorization from the Office of Export Control to the carrier or its agent.

(3) Diversion. No shipper, consignor, exporter, purchaser or ultimate consignee, or their agents, or any other person, shall, without prior written authorization from the Office of Export Control to the carrier or its agent:

(i) Divert any cargo to any country of ultimate destination other than that named in the authenticated Declaration or in the Bill of Lading described in paragraph (c) of this section; or

(ii) Request or demand that any carrier or its agent divert such cargo from the country of ultimate destination named in any of such documents. In addition, no agent of any carrier shall instruct or authorize the master of the vessel to divert any such cargo to any other country of ultimate destination without such prior written authorization from the Office of Export Control.

(4) Optional ports on Bill of Lading. No carrier of such cargo shall issue a Bill of Lading providing for delivery to the ultimate consignee named in the authenticated Declaration at optional ports where one of such optional ports is in a country not named as the country of ultimate destination in the license or Declaration, unless written authorization has been granted by the Office of Export Control. However, where the authenticated Declaration provides for delivery of cargo consisting of commodities or technical data subject to this paragraph (b) to optional intermediate consignees located in ports in different countries, the carrier may issue a Bill of Lading providing for delivery at such optional ports.

(c) Statement regarding ultimate destination on Declaration, Bill of Lading, and Commercial Invoice—(1) Applica

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bility. The provisions of this paragraph (c) apply to:

(i) A shipment made under a general license where a Declaration is required to be presented to the Collector of Customs, except for General Licenses BAGGAGE, TOOLS OF TRADE, GIT, GTDP, and GTDS; and

(ii) A shipment made under a validated license.

NOTE: 1. United States territories and possessions. While the Bureau of the Census requires Shipper's Export Declarations in order to obtain statistical information regarding shipments to certain territories and possessions of the United States, these shipments are not exportations controlled by the Office of Export Control. Therefore the provisions of this paragraph (c) are inapplicable to shipments to such territories and possessions of the United States as Puerto Rico or the Panama Canal Zone.

NOTE: Shipments to Canada. The provisions of paragraph (c) of § 379.10 are not applicable to any exports intended for consumption in Canada, except shipments of the technical data described in § 385.2(c) (5) of this chapter; since all other exports to Canada require neither a general nor a validated license. However, these provisions are applicable to shipments of any commodities through Canada to other foreign countries.

(2) Destination control statements. An appropriate destination control statement" shall be entered on all copies of the Declaration presented for authentication to the Collector of Customs, in accordance with the provisions set forth below, for all shipments subject to the provisions of this paragraph (c).

(i) The following statement shall be entered on the Declaration covering an exportation under either a validated or general license, other than General Licenses BAGGAGE, TOOLS OF TRADE, GIT, GTDP, or GTDS, with the blank space filled in with the name of the country of ultimate destination set forth in the Declaration "; unless, instead of this statement, an appropriate statement as provided in subdivision (ii) or (iii) of this subparagraph has been entered:

11

These commodities licensed by the United States for ultimate destination (name of country). Diversion contrary to United States law prohibited.

11 Where the country of ultimate destination is Viet-Nam, the destination control statement shall be filled in as required by § 373.68 of this chapter, regardless of the country designation shown on the Shipper's Export Declaration, and regardless of whether the shipment is made under a validated or a general license.

NOTE: Notification of permissive reexportations. In some instances the destination control statement used by an exporter or his agent for a specific shipment may indicate that the shipment cannot be reexported to a destination to which the ultimate consignee or purchaser wishes to sell or distribute the commodities. The reexportation provisions of the Export Regulations (§§ 371.4 and 372.12 of this chapter) may nevertheless permit the reexportation. In this situation the exporter, without obtaining written approval of the Office of Export Control, may inform the foreign importer or other party in possession of the commodities, that distribution or resale may be made in accordance with the reexportation provisions where applicable. In all other instances, written approval shall be obtained from the Office of Export Control.

(ii) Instead of the statement set forth in subdivision (i) of this subparagraph, the following statement may be substituted with the blank spaces filled in as instructed below, except where the shipment is made under General License GMS:

These commodities licensed by the United States for ultimate destination (name of country) and for distribution or resale in (name of country or countries). Diversion contrary to United States law prohibited.

(a) If the exportation is made under a general license, other than General Licenses BAGGAGE, TOOLS OF TRADE, GIT, GMS, GTDP, or GTDS, insert the name of the country to which the shipment is being made in the first blank space and the following words in the last blank space, "any destination except Soviet Bloc,12 Communist China, North Korea, Macao, Hong Kong, Communist controlled areas of Viet-Nam, or Cuba unless otherwise authorized by the United States".

(1) If the commodity being exported requires a validated license for shipment to Poland (including Danzig) and Rumania, these countries shall be included in the list of prohibited destinations set forth in the last blank space of the statement.

(2) If the commodity being exported does not require a validated license for shipment to any destination included in the list of prohibited destinations, the

12 As used in the destination control statement, the term "Soviet Bloc" means all destinations in Country Groups Y and Z (see § 370.1 (g) of this chapter). It will be noted that Poland (including Danzig), Rumania, and Yugoslavia are not included in Country Groups Y and Z.

destination may be deleted from the list of prohibited destinations set forth in the last blank space of the statement.

(b) If the exportation is made under a validated license, insert in the first blank space the name of the country shown on the license as country of ultimate destination. In the last blank space, insert the names of the countries shown on the license as approved destinations for distribution or resale. If no country is shown on the license as approved for distribution or resale, insert the word "none" in the last blank space.

NOTE: The Note following the destination control statement set forth in subdivision (1) of this subparagraph is also applicable to requests for permission to distribute or resell where the statement set forth in this subdivision (ii) is used.

(iii) Where a shipment is made under a general license, other than General Licenses BAGGAGE, TOOLS OF TRADE, GIT, GMS, GTDP, or GTDS, the following statement 13 may be entered on the Declaration instead of the statements set forth in subdivisions (i) and (ii) of this subparagraph:

United States law prohibits disposition of these commodities to the Soviet Bloc, Communist China, North Korea, Macao, Hong Kong, Communist controlled areas of Viet Nam, or Cuba, unless otherwise authorized by the United States.

(a) If the commodity being exported requires a validated license for shipment to Poland (including Danzig) and Rumania, these countries shall be included in the list of prohibited destinations set forth in the last blank space of the statement.

(b) If the commodity being exported does not require a validated license for shipment to any destination included in the list of prohibited destinations, the destination may be deleted from the list of prohibited destinations set forth in the last blank space of the statement.

NOTE: The Note following the destination control statement set forth in subdivision (1) of this subparagraph is also applicable

13 As used in the destination control statement, the term "Soviet Bloc" means all destinations in Country Groups Y and Z (see § 370.1(g) of this chapter). It will be noted that Poland (including Danzig), Rumania, and Yugoslavia are not included in Country Groups Y and Z. The words "and Laos" may be inserted at the exporter's discretion in the destination control statement after the entry of "Viet-Nam."

to requests for permission to distribute or resell where the statement set forth in this subdivision (iii) is used.

(3) Statement on Bill of Lading. (1) (a) No carrier by water, land, or air shall issue, and no licensee, shipper, consignor, exporter or consignee, or their agents, or any other person, shall prepare or procure a Bill of Lading covering an exportation of a commodity with respect to which a Declaration has been authenticated by a Collector containing the applicable statement set forth in subparagraph (2) of this paragraph, unless all copies of such Bill of Lading, including all nonnegotiable and office copies except as provided in subdivision (ii) of this subparagraph, shall contain the same statement in clearly legible form.

(b) The destination control statement provisions apply to all exportations by mail for which a Declaration is required. However, since Bills of Lading are not issued for exports by mail, a destination control stataement is required only on the Declaration and the commercial invoice.

(ii) In the case of shipments by air (other than airmail or air parcel post) the provisions of subdivision (i) of this subparagraph are applicable to: (a) any Air Waybill issued by a consolidator (indirect carrier) for an exportation included in a consolidated shipment; or (b) any Air Waybill issued by a carrier or other person covering an exportation not included in a consolidated shipment. The provisions of subparagraph (2) of this paragraph do not apply to a "Master" Air Waybill issued by a carrier to cover a consolidated shipment.

(4) Statement on commercial invoice. No licensee, shipper, or consignor, exporter, or agent thereof, or any other person, shall prepare or issue any commercial invoice with respect to any shipment of commodities subject to the provisions of this paragraph (c), including shipments by mail unless such invoice or invoices, and all copies thereof, shall contain on the face thereof the same destination control statement in clearly legible form. This statement shall be an applicable statement as set forth in subparagraph (2) of this paragraph.

(5) Release of custody by carrier. No carrier shall release custody of commodities covered by the provisions of this paragraph (c) to any party (including an agent, on-carrier, or any other person) without surrender by that party, to

the carrier, of a copy of the Bill of Lading bearing on its face the applicable destination control statement set forth in subparagraph (2) of this paragraph, unless either:

(1) Simultaneously with the release of the commodities, the carrier delivers to such party a written copy of the destination control statement, contained in the carrier's copy of the Bill of Lading covering the shipment. The written copy shall identify the shipment by Bill of Lading number, name of carrier, voyage or flight number, date, and port of arrival. In addition, the carrier shall secure either a signed receipted copy of the written statement or other equivalent written evidence that the statement has been delivered by the carrier; or,

(ii) The regulations of the importing country require the carrier to deliver the commodities directly into the physical possession and control of Customs or other government agency for delivery to the consignee or his agent. Under these circumstances the carrier need not give to or receive from the Customs or other government agency, or the consignee or his agent, any document bearing the destination control statement.

(6) Documents not requiring statements. (1) Shipper's Export Declarations, Bills of Lading, and commercial invoices prepared and issued in the United States to cover exportations are the only shipping documents affected by the destination control provisions. Such documents as consular invoices, Inland Bills of Lading covering movements to port, letters of credit, ship's manifests, packing lists, dock receipts, and warehouse receipts do not require the destination control statement.

(ii) The exporter has the primary responsibility for assuring the entry of the destination control statement on the Declaration, the Bill of Lading, and the commercial invoice whether or not he prepares all of these documents. forwarder, carrier, or other party prepares or issues these documents he also is responsible for seeing that a correct statement is placed on the documents.

If a

(7) Determination by agent of appropriate statement. (1) Where a freight forwarder, carrier, or other agent of the exporter undertakes to prepare a Declaration or a Bill of Lading without having in his possession a copy of the commercial invoice the determination as to which destination control statement is applicable will depend on whether the

shipment is being exported under a validated or a general license. Where the shipment is made under a validated export license, the appropriate statement to be used may be determined from the license.

(ii) For a shipment made under a general license, an understanding must be reached between the exporter and his carrier, forwarder or other agent as to which destination control statement shall be used. While a carrier has no obligation to determine which destination control statement, if any, is required on a Declaration, he must see that the same destination control statement which appears on the latter document also appears on the corresponding Bill of Lading before the contract of carriage is issued. Since the primary purpose of the destination control statement is to provide advice to the importer with respect to the United States reexportation provisions which apply to a specific transaction, the effectiveness of the regulation will be lessened if one statement appears on the commercial invoice and a different statement appears on the Bill of Lading.

(8) Preprinted statement. A destination control statement may be preprinted on Shipper's Export Declarations, Bills of Lading, or commercial invoices. However, only one of the three destination control statements in this paragraph (c) of the Comprehensive Export Schedule may be preprinted on any one of these documents.

(9) Two or more statements applicable to a shipment. If one Bill of Lading is issued for two or more individual shipments and two or more destination control statements are applicable to these shipments, the applicable destination control statement should be entered beneath each shipment or group of shipments to which it applies. However, in some cases a Bill of Lading may use a single freight tariff classification to describe several commodities which, for export control purposes, require the use of more than one form of the destination control statement. If in such a case it is impracticable to attempt to separate the commodities on the Bill of Lading into the different export control groups and enter the appropriate destination control statement below each group, the most restrictive form of statement applicable to any of the groups shall be used on the Bill of Lading for the entire shipment. The commercial invoice

and Shipper's Export Declaration should, nevertheless, segregate the commodity groups and contain the proper destination control statement for each group. If the face of the export license indicates that the commodities are licensed only for the country of ultimate destination, the shipper may use the first statement (see subparagraph (2) (i) of this paragraph); or, if he desires to do so, he may use the second statement (see subparagraph (2) (ii) of this paragraph) with the word "none" inserted in the last blank space. If the face of the export license indicates that the commodities are licensed for country of ultimate destination, and for distribution or resale to other countries the shipper should use the second statement with the names of the countries to which distribution or resale is authorized inserted in the last blank space. In all cases the countries shown in the last blank space shall include only those authorized on the face of the license.

(d) Notice and prohibition against diversion (1) Distribution of copies of statement. Whenever a commercial invoice shall be issued containing the destination control statement prescribed in paragraph (c)(2) of this section above, the shipper or other person issuing such invoice shall promptly send copies thereof to:

(i) The ultimate consignee and the purchaser named in the authenticated Declaration;

(ii) The intermediate consignee; and (iii) Any other persons named in the invoice who are located in a foreign country.

Nothing herein contained shall be construed to limit the persons or classes of persons to whom such invoices and Bills of Lading are usually and customarily sent in the course of export trade. The shipper or other person issuing the commercial invoice may either omit all reference to price or sales commission from the copy of the invoice sent to any of the above-named persons, provided such invoice otherwise adequately identifies the shipment; or, in lieu of a copy of the commercial invoice, such person may send a copy of the Bill of Lading containing the destination control statement prescribed in paragraph (c) (2) of this section.

(2) Commercial invoices not containing a statement. Whenever a forwarding agent receives from the exporter a

copy of a commercial invoice which does not contain the destination control statement prescribed by paragraph (c) (2) of this section, he shall notify the exported in writing that the statement has been omitted. In addition, he shall request written assurance from the exporter that the destination control statement has been properly entered on all copies of the commercial invoice and that any person who received an invoice without the statement has been informed in writing of the restrictions set forth in the applicable statement. Further, the forwarding agent shall either enter the appropriate destination control statement on his copy of the invoice or return it to the exporter for proper completion. The forwarding agent shall also keep and make available for inspection, in accordance with the provisions of § 381.11 of this chapter, a copy of his notification to the exporter and the original of the exporter's assurance to him. (The Export Regulations contain further record keeping requirements (see § 381.11 of this chapter).)

(3) Conduct after receiving notice. After receiving an invoice, Bill of Lading, or any other document containing the notification of the prohibition against diversion set forth in one of the destination control statements provided by this § 379.10, or after receiving an oral notification of such prohibition, no person (including the ultimate consignee, intermediate consignee or on-forwarding carrier) so notified shall divert, transship or reexport or cause to be diverted, transshipped or reexported any commodity described in the document of notification or referred to in the oral notification to any country not authorized in such notification.

(e) Proof of notice. In any administrative compliance proceeding brought by the Office of Export Control, evidence of the sending of such invoice or Bill of Lading, or other form of notification of the prohibition against diversion to any person, shall constitute prima facie proof of his receipt thereof and of notification that the commodities have been licensed for a particular country of ultimate destination and may not be lawfully diverted to any other country. addition, proof of the sending of such notice to the intermediate consignee shall be deemed notification of such prohibition to the ultimate consignee and purchaser.

In

(f) Unloading of cargo at a port in other than intermediate or ultimate country of destination. Nothing contained in the Export Regulations shall be deemed to prohibit a carrier from unloading cargo at a port in other than the intermediate or ultimate country of destination shown on the authenticated Declaration where, for reasons beyond the control of the carrier as set forth in standard provisions of the Carrier's Bill of Lading (such as, act of God, perils of the sea, damage to the carrier, strikes, war, political disturbances, or insurrection), it is not feasible to deliver the cargo at the licensed port of destination. Whenever cargo is unloaded at a port in any country other than the intermediate or ultimate destination shown on the Declaration because of any of the reasons set forth in this paragraph (f), except where the cargo may be exported under a general license directly from the United States to such country:

(1) The carrier shall promptly, and within 10 days from the date of unloading such cargo, report the facts with respect thereto to the nearest American consul and to the agent of the carrier located in the United States. Within 10 days after the receipt of such notice by the agent of the carrier in the United States, such agent shall transmit a copy of the report to the Office of Export Control. This report shall consist of a copy of the manifest of such diverted cargo, together with a statement of the place of unloading and the name and address of the person in whose custody the commodities or technical data were delivered.

(2) The exporter of such commodities or technical data shall, upon notice from the Office of Export Control of such diversion, promptly, and within 10 days, notify the Office of Export Control of the proposed disposition of the commodities or technical data.

(3) No person, including the exporter, the licensee, any consignee, or the carrier and any agent or person acting on its behalf, shall take any steps to effect delivery or entry of the commodities or technical data into the commerce of the country where unloaded without prior approval of the Office of Export Control. The carrier shall take steps to assure that such commodities or technical data are placed in custody under bond or other guaranty not to enter the commerce of such country or any country other than the countries of the ultimate and intermediate consignees shown on