Anti-Diversion Clause

DEFINITION of 'Anti-Diversion Clause'

A regulation that prevents exported goods from going to destinations not approved by the government. In the United States, the Department of Commerce's Bureau of Export Administration requires commercially exported goods to be accompanied by a destination control statement saying that the goods are only authorized for export to certain locations and that U.S. law prohibits their diversion. The latter part of this statement is the anti-diversion clause.

BREAKING DOWN '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 also certifies that to the best of the shipper's knowledge, the shipment is headed to its stated destination. National security, nonproliferation and foreign policy are some of the reasons why a country's government may be concerned with controlling its exports. In the United States, most exports of items on the Commerce Control List must contain a destination control statement.

RELATED TERMS
  1. Export

    A function of international trade whereby goods produced in one ...
  2. Export Incentives

    Monetary, tax or legal incentives designed to encourage businesses ...
  3. Net Exports

    The value of a country's total exports minus the value of its ...
  4. Net Exporter

    A country or territory whose value of exported goods is higher ...
  5. Net Importer

    A country or territory whose value of imported goods is higher ...
  6. Export Trading Company - ETC

    An independent company that provides support services for firms ...
Related Articles
  1. Markets

    Understanding Net Exports

    Net exports are the difference between a country’s exports and imports.
  2. Markets

    Growth and Politics In Exports

    An export is a good or service that is shipped from one country to another for sale or trade.
  3. Markets

    Interesting Facts About Imports And Exports

    Imports and exports exert a profound influence on the consumer and the economy. Learn what affects these figures, and in turn how these figures affect the economy.
  4. Markets

    Understanding Terms of Trade

    Terms of trade measures a country’s trading efficiency.
  5. Markets

    China’s Stock Market Tumbles on Weak Export Data

    China's exports declined by 25.4% in February, imports also dropped by 13.8%, with trade surplus declining to $32.6 billion in February from $63.29 billion in January
  6. Markets

    South Korea - King of Exports

    Read about one the most important and successful exporting countries in the world, and learn more about the types of products it exports.
  7. Markets

    The Biggest Losers From China's Slowdown

    A look at how China's slowdown is impacting countries around the world.
  8. Trading

    Weakest Currencies against the U.S. Dollar in 2015

    The U.S. dollar has been pummeling other currencies, largely due to falling global commodity prices. Here are the worst performing currencies of 2015.
  9. Markets

    Japanese Exports Down for Fifth Consecutive Month

    Japan is an export driven economy and is expected to fall into another recession if exports continue to wither.
  10. Markets

    Japan’s Exports Continue Losing Streak in March

    The Japanese policy makers are deeply concerned about the appreciating yen. Even a rise of 10% in the local currency this year will diminish the exports.
RELATED FAQS
  1. What statements can be used on a Bill of Lading?

    Read about statements that can appear on a bill of lading for items shipped by ocean, land and air as well as some financial ... Read Answer >>
  2. What is a trade deficit and what effect will it have on the stock market?

    A trade deficit, which is also referred to as net exports, is an economic condition that occurs when a country is importing ... Read Answer >>
  3. Why do long-term care insurers require the loss of two Activities of Daily Living ...

    Find out why an importing or exporting merchant might turn to a banker's acceptance to help facilitate an international trade ... Read Answer >>
  4. What country is the world's largest exporter of goods?

    Learn about the rapid economic growth China has experienced in recent years and how the country grew into the world's largest ... Read Answer >>
  5. How are net exports influenced by the crowding out effect?

    Discover how an increase in U.S. government borrowing to finance deficits can influence the net exports of U.S. companies ... Read Answer >>
  6. What is a forward contract against an export?

    Understand forward exchange contracts in exporting, and learn the purpose of using a forward contract and its advantages ... Read Answer >>
Hot Definitions
  1. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  2. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  3. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  4. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  5. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  6. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
Trading Center