End-user and consignee statements

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1. The PRC End-User Statement

The Export Administration Regulations (EAR) require a People’s Republic of China (PRC) End-User Statement for certain license applications, unless an exception or the permitted substitute applies (15 CFR 748.10(a)). It is required for cameras under Export Control Classification Number (ECCN) 6A003 that need a license to the PRC for any reason and are worth more than $5,000. It is also required for computers that need a license to the PRC for any reason, whatever their value. And it is required where commodities needing a license to the PRC for any reason on the Commerce Control List (CCL) total more than $50,000.

The notes to the rule explain how the thresholds work (15 CFR 748.10(a)). If an order meets them, the statement is required, and an order may not be split into several applications to avoid it. Items that do not need a license are left out of the value thresholds. Where an application includes 6A003 cameras and other licensed items, the camera value counts toward the $50,000 threshold. The Bureau of Industry and Security (BIS) may require a statement case by case even where the thresholds are not met. The requirement does not apply to the Hong Kong Special Administrative Region. The general exception for consignees and purchasers that are foreign governments or agencies does not extend to the government of the PRC (15 CFR 748.9(c)(1)(ii)). Other general exceptions, such as those for software or technology and for temporary exhibit or testing, still apply (15 CFR 748.9(c)(1)).

2. Obtaining and completing the PRC statement

Where a statement is needed, the applicant asks the importer to obtain one covering all items on the application that need a license to the PRC for any reason (15 CFR 748.10(b)(1)). Statements are issued and administered by Export Control Division I of the Department of Mechanic, Electronic and High Technology Industries in the PRC Ministry of Commerce (15 CFR 748.10(b)(2)). The BIS website gives current contact information.

The applicant’s name must appear on the statement as applicant, supplier or order party (15 CFR 748.10(c)(1)). The statement is signed by an official of that division with the ministry’s seal (15 CFR 748.10(c)(2)). It gives the names of the importer and exporter, the end user and end use, the commodity description, quantity and dollar value, and the importer’s signature and date. A contract title and number are optional. The applicant should give the consignee the CCL commodity description and, for a new commodity, a catalog or specifications.

3. Using the PRC statement

One statement may cover more than one purchase order and more than one item (15 CFR 748.10(d)(1)). Where it supports several applications, the applicant should ensure their total quantities do not exceed those on the statement. Once the PRC government issues it, no one may correct, add to or alter it (15 CFR 748.10(d)(2)). Any needed changes are noted in a separate statement kept by the applicant. The statement is valid until the quantities on it have been shipped (15 CFR 748.10(d)(3)).

4. The Statement by Ultimate Consignee and Purchaser

For all countries other than the PRC, a Statement by Ultimate Consignee and Purchaser is required if the application includes 600 Series Major Defense Equipment needing a license for any reason (15 CFR 748.11(a)(1)). For the PRC, it may be used in place of the PRC End-User Statement for replacement parts and components worth $75,000 or less for servicing previously exported commodities (15 CFR 748.11(a)(2)).

The requirement does not apply if the applicant is the same person as the ultimate consignee and the required statements are in Block 24 (15 CFR 748.11(a)(3)). That exemption does not cover separate entities, such as parent and subsidiary or affiliated firms. Orders may not be split to avoid the requirement, and BIS may require the statement case by case.

5. Who signs and how

The ultimate consignee and purchaser complete a statement on company letterhead or Form BIS-711 (15 CFR 748.11(b)(1)). If they are the same entity and use letterhead, one statement is enough (15 CFR 748.11(b)(2)). If they are separate, each prepares and signs its own (15 CFR 748.11(b)(3)). A single Form BIS-711 can carry both signatures (15 CFR 748.11(b)(4)).

Responsible officials must sign (15 CFR 748.11(b)(5)(i)). A responsible official has personal knowledge of the information, authority to bind the party, and power to control the use and disposition of the licensed items. Signing authority may not be delegated to anyone whose authority is not inherent in an official position with the party (15 CFR 748.11(b)(5)(ii)). The signer may be in the United States or abroad, and the official title is included.

The information must be true and correct to the best of the parties’ knowledge (15 CFR 748.11(b)(5)(iii)). If the facts or intentions change after the statement is sent, a new statement goes promptly to the applicant. A signed statement may not be corrected or altered. If it is incomplete or incorrect, a new one is prepared and signed. The required content is in supplement no. 3 to part 748 (15 CFR 748.11(c)).

6. Validity of the consignee statement

If the statement is obtained before the application and supports one or more applications, the first application must be submitted within one year from the date it was signed (15 CFR 748.11(d)(1)(i)). All later applications supported by the same statement must be submitted within four years of the last signature by the consignee or purchaser (15 CFR 748.11(d)(1)(ii)).

Both statements are support documents under the general rules, so the applicant may usually apply before receiving a copy but may not ship until it has one (15 CFR 748.9(e)(1)). The general rules on support documents are covered in support documents for license applications.

Key terms

PRC End-User Statement	A statement issued by the PRC Ministry of Commerce.
Statement by Ultimate Consignee and Purchaser	A statement signed by the foreign parties, on letterhead or Form BIS-711.
600 Series Major Defense Equipment	Items that trigger the consignee statement requirement.
Responsible official	A signer with knowledge, authority and control over the items.
Order splitting	Dividing an order to avoid a requirement, which is prohibited.

Every statement above links to the document behind it. The full source list for this piece is on the sources page.

This page describes public United States government programs for general information. It is not legal, regulatory or procurement advice, and it does not address the facts of any particular case.

How Sentfore supports this

End-user documentation is part of every controlled transfer. Sentfore works at the delivery end of defense programs in difficult environments, providing secure movement, protective security, facilities and life support. Requirements can be sent through the contact page.