U.S. MECHANISMS FOR THE CONTROL OF EXPORTS AND OF TRANSSHIPMENTS OF U.S. EXPORTS TO COMMUNIST CHINA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP62-00647A000200070007-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 9, 2016
• Document Release Date: July 10, 2000
• Sequence Number: 7
• Content Type: REPORT

Approved For Release 2000/08/23 : CIA-RDP62-00647A000200070007-7
?r-sbipsut Controls
Mechanisms for the Control of Ex orts and o
All direst or ladirest shipments from or tbrev?b the U.S. to
Communist China require validated apart licenses. The U.S. policy
Li to dewy all applications for shipmentato Communiet China.
2. All goods desigmated ky the U.S. to be of primary or secondary strategic
importanse require validated lioonses for shipment outside the Western
Hemisphere. In addition to earful screening of appliestions in the
licensing agency (CII?), the U.S. requires on items of primary strategic
importanee, assuranses from Western luropean countries against trans?
shipment or shipmmnt of identical items to the Soviet 'Mos (including
Communist China), Whin *elk assumes* ars not fortheonimg, the met
sesurity advantage must be on the side of the U.S. before such shipment
is approved.
For oartain problem areas, Npcts1 assurances are required to assure
against diversion or tr.na.hipmsnt to the Soviet bloc. (For example.
(1) the Vienna Screening Coomittee met pass on U.S. exports to
Austria* (2) A Swiss Rue Import Certificate (Swiss Govt guarantee
against transshipment) is required prior to granting a U.S. Validated
Export License for the shipment of goods to Switzerland, (3) end-us
checks are required in many areas to ascertain that the goods can be
and will be used as specified in the license application).
A "Wateh List' is maintained in the U.S. licensing agency of known and
suspected violators of U.S. export control regulations and their
applications are either denied or given very careful scrutiny prior to
eppromal.
When s license is approved for the export of omtrolled commodites,
the Dill of Lading and Commercial Invoice is stamped with a notice
to all *to handle these documents that transshipment or illegal
diversion is in vielation of U.S. law.
Cartons Prooedures
1 Every sammedity exported from ths U.S. must be covered by as authenticated
stappers Import doilaration. The authentication is executed by a member
of the U.S. Customs Service who checks all pertinent document* against
the actual cargo. In the first 11 months of 1951, 272 seisures of illegal
shipments mere medo.
Peet.Shipment Activities,
1. The CI? postomudits licenses used for the actual export against the
one granted originally to assure &paint agy changes, additions, or other
illegal acts subsequent to granting the license.
*DOC Exempt Letter On File*
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-MI
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.9.
oration on possible violations of U.S. export control regulations
is sought abroad by OIT enforsoment officers, State Department missions,
sad IQ missions in various foreign covntriev?
In the event of ow illegal activity, enforcement procedures are
ivvoked? Tbeee procedures vary from administrative orders which deer
licensing privileges to both the domestic and foreign firms to
criminal proceedings in serious cases. In 1951, OTT isaved 31 charging
letters vhish resulted in 18 administrative orders denying lieensing
privileges and in referral of 7 oases to the Justioe Department for
criminal proeeestione
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? 110,kcohnniassforthControlo'rteando
TrshilubiPiehtv or DiversonsoofU.S.IxPortat-Gaildhlit Chin
Extensive pre-shipment and port of exit procedures seek to inenre that
all direct or indirect ehipments from or through the United States are
denied to Communist Chine. In addition to these procedures, special
assurances are required frosWestern Iuropeen countries that the U.S. items
exported, or identdeal items, will net be shipped to the Soviet bloc
(including Communist China). When such assurances are not forthcoming,
the net sesurity advantage mast be on the side of the U.S. before the
license is approved.
After iihipmmat from the United States, certain other procedures are
utilised to insure somplissee, including (1) specific notice an the bill of
lading and the commercial invoice that diversion contrary to U.S. law is
prohibited, (2) securing information fron OX? enforcement 'Mews, State
Department missiams abroad* end fC11 missions in various foreign countries
as violations of United States export control reguletions, end t3) compliance
proceedings against violater..
Approved For Release 2000/08/23 : CIA-RDP62-00647A000200070007-7