Anti-Diversion Clause

AAA

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.

INVESTOPEDIA EXPLAINS '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. Free Trade Area

    A group of countries that invoke little or no price control in ...
  2. Tariff

    A tax imposed on imported goods and services. Tariffs are used ...
  3. Trade War

    A negative side effect of protectionism that occurs when Country ...
  4. Export

    A function of international trade whereby goods produced in one ...
  5. Import

    A good or service brought into one country from another. Along ...
  6. Quota

    A government-imposed trade restriction that limits the number, ...
Related Articles
  1. The Dark Side Of The WTO
    Economics

    The Dark Side Of The WTO

  2. What Is International Trade?
    Personal Finance

    What Is International Trade?

  3. Globalization: Progress Or Profiteering?
    Economics

    Globalization: Progress Or Profiteering?

  4. What Is The World Trade Organization?
    Economics

    What Is The World Trade Organization?

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center