Anti-Diversion Clause
The anti-diversion clause is a U.S. government regulation that prohibits exported goods from being shipped to unapproved destinations. The bill of lading or other documents of such products will display official wording (called the destination control statement) that the license of the exporter is not valid except for specified receivers of the goods. The anti-diversion clause is a U.S. government regulation that prohibits exported goods from being shipped to unapproved destinations. The Bureau of Industry and Security under the Department of Commerce requires commercially exported goods to be accompanied by a destination control statement. This document states that the goods are only authorized for export to certain locations and that U.S. law prohibits their diversion.
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In practice, you may see "anti-diversion" shortened to "diversion."
Understanding the Anti-Diversion Clause
The destination control statement and anti-diversion clause must appear on the invoice and ocean bill of lading or air waybill that accompanies the exported goods. The statement certifies that to the best of the shipper's knowledge, the shipment is headed to its stated destination. National security, nonproliferation treaties and foreign policy are some of the reasons why a government may be concerned with controlling its exports. In the U.S., most exports of items on the Commerce Control List must contain a destination control statement.
Diversion occurs when products are sold in unauthorized places. These restrictions could be for a number of reasons, including sanctions, trade issues and consumer safety concerns. When concerns arise, certain categories of goods are identified as those most likely to be illegally diverted to a restricted country. The bill of lading or other documents of such products will display official wording (called the destination control statement) that the license of the exporter is not valid except for specified receivers of the goods.
Anti-diversion worries are a fairly standard concern for companies exporting domestic goods.
Related terms:
Air Waybill (AWB)
An air waybill (AWB) is a document that accompanies goods shipped by an international air courier to provide detailed information about the shipment. read more
Antitrust
Antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. read more
Bill of Lading
A bill of lading is a legal document between a shipper and carrier detailing the type, quantity, and destination of goods being shipped. read more
Carmack Amendment
The Carmack Amendment amends the Interstate Commerce Act of 1877 and limits the liabilities of carriers to loss or damage of the property itself. read more
Cost, Insurance, and Freight (CIF)
Cost, insurance, and freight (CIF) is a method of exporting goods where the seller pays expenses until the product is completely loaded on a ship. read more
Claused Bill of Lading
A claused bill of lading shows a shortfall or damage in the delivered goods. It is also called a dirty bill of lading or foul bill of lading. read more
Inland Bill of Lading
An inland bill of lading is a contract signed between a shipper and a transportation company for the overland transportation of goods. read more
Through Bill of Lading
A bill of lading that allows the transportation of goods both within domestic borders and through international shipment. read more