Anti-Diversion Clause – Definition

Cite this article as:"Anti-Diversion Clause – Definition," in The Business Professor, updated January 11, 2020, last accessed August 11, 2020, https://thebusinessprofessor.com/lesson/anti-diversion-clause-definition/.

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Anti-Diversion Clause Definition

The anti-diversion clause is a law that prohibits exported products from being shipped to places not approved by the government. This means that there are authorized designations for exported goods, exporters are nor permitted to divert the goods to other locations outside the approved ones.

The Department of Commerce’s Bureau of Export Administration is the United States’ agency saddled with the responsibility of preventing exported goods from being shipped to wrong and unauthorized destinations. This agency carries out its function effectively bu ensuring that a destination control statement is attached to exported goods in the United States.

A Little More on What is an Anti-Diversion Clause

The destination control statement must be attached to every commercially exported product in the United States. This statement contains the authorized locations for certain exports, any diversion of these exports to other locations is illegal. The Anti-diversion clause is the federal law that prohibits the shipment of exported goods to other locations different from where they were authorized. The destination control statement also indicates that the shipper is aware of the authorized location for the exported goods.

The anti-diversion clause prevents exported products from being shipped to and sold in unauthorized places. It is a restriction that the government places on exports for official and security reasons. Diversion of exported goods poses certain threats to a country, these threats include the proliferation of unwanted goods and threats to national security. Every government holds the control of exports highly important, there are certain laws that help government control exports effectively. The Department of Commerce’s Bureau of Export Administration in the United States ensures that exports have a destination control list. The bill of lading is another document that functions like a destination control statement because it specifies the authorized destination of exported goods.

Reference for “Anti-Diversion Clause”

https://www.investopedia.com/terms/a/anti-diversion-clause.asp

www.businessdictionary.com/definition/anti-diversion-clause.html

https://www.export.gov/article?id=Antidiversion-Clause

https://financial-dictionary.thefreedictionary.com/Anti+Diversion+Clause

Academics research on “Anti-Diversion Clause”

Complying with the Law at Home and Abroad, Hopkins, R. A. (2017). Complying with the Law at Home and Abroad. In Grow Your Global Markets (pp. 171-183). Apress, Berkeley, CA.

The strange career of the dormant commerce clause and international trade law in the Great Lakes antidiversion regime, Tarlock, A. D. (2006). The strange career of the dormant commerce clause and international trade law in the Great Lakes anti-diversion regime. Mich. St. L. Rev., 1375.

AntiDiversion Rules in Antidumping Procedures: Interface or Short-Circuit for the Management of Interdependence, Vermulst, E., & Waer, P. (1989). Anti-Diversion Rules in Antidumping Procedures: Interface or Short-Circuit for the Management of Interdependence. Mich. J. Int’l L.11, 1119.

The international joint commission and great lakes diversions: indirectly extending the reach of the Boundary Waters Treaty, Dan, T. A. (2008). The international joint commission and great lakes diversions: indirectly extending the reach of the Boundary Waters Treaty. Wayne L. rev.54, 1671.

Antidiversion Measures Under the Trips Protocol on Public Health-a Commentary, Hong, A. S. K. (2008). Anti-diversion Measures Under the Trips Protocol on Public Health-a Commentary. SAcLJ20, 217.

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