Bureau of Industry and Security (BIS) is implementing export controls on several semiconductor, quantum, and additive manufacturing items with an interim final rule published September 6th. This rule
To harmonize controls with like-minded countries, the new controls, include a limited number of deemed export requirements in the sectors of quantum computers, materials, and related electronic assemblies; aerospace technology; and integrated circuit “development” or “production.”
While not currently controlled by the relevant multilateral regime, pursuant to ECRA Section 1758(c)(1), the United States shall pursue addition of these technologies to the list of items controlled by the relevant multilateral export control regime.
The rule implements the "Wassenaar Minus One" agreements allies have found necessary to continue arms control plurilaterally, with Russia a pariah staate.
To identify items for which controls are harmonized with the Implemented Export Controls (IEC) of international partners, and to distinguish between such items and those items controlled through multilateral regimes, BIS is establishing a new framework in the EAR..
BIS is implementing worldwide export controls on specific types of items, including:
IEC items will be identified in the 900 series of the CCL, Such items have worldwide license requirements and more limited license exception availability as compared to the ECCNs implementing multilateral regime controls.
• License Exception IEC will authorize exports and reexports to specified destinations whose governments have implemented equivalent controls on the same items as the United States. BIS has posted on its website HERE a table that lists IEC eligibility status for countries and items.
• Finally, this rule amends certain existing ECCNs. For these items, rather than establish new ECCNs, BIS is revising the item’s current ECCN, even if such entry was initially adopted as a multilateral ECCN.
BIS encourages the public to comment on: 1) this framework for IEC, especially as it may impact supply chains and compliance programs; 2), the scope and clarity of the new ECCNs; and 3) the scope of the license exceptions.
BIS also seeks public comment on the deemed export requirements in this rule and the potential impacts that a deemed export control would have if it was applied to the quantum items.
This authorization supports collaboration and innovation in those technologies for countries that have implemented equivalent technical parameters for these items in their export controls..
BIS is adding License Exception IEC to authorize exports and reexports to and among, and transfers (in-country) within, specified countries that have implemented export controls for items subject to the National Security and Regional Stability worldwide controls.
This rule includes grandfathering clauses, allowing the continued and future access to “technology” and “software” (including for future advancements or versions of the same “technology” and “software”) that require a license for national security or regional stability reasons in the EAR for foreign person employees and contractors that already have access to such “technology” or “software” and are employed by an entity as of the effective date of this rule.
This rule implements a full deemed export and deemed reexport license requirement exclusion from license requirements in alignment with the exclusion established by the rule entitled “Export Controls on Semiconductor Manufacturing Items." A limited deemed export and deemed reexport license requirement exclusion applies to quantum items and scanning electron microscopes.
Noting that " offshore companies are becoming increasingly attractive places to pursue a career in quantum computing, driven both by increases in public and private investments internationally, but also uncertainty in the ability to work in the United States due to immigration policies," the rule authorizes deemed exports and deemed reexports of quantum technology and software to foreign persons whose most recent country of citizenship or permanent residency is a destination specified in Country Group D:1 or D:5.
"While the license requirements for deemed exports and deemed reexports of quantum technology and software only apply to foreign persons whose most recent country of citizenship or permanent residency is a destination specified in Country Group D:1 or D:5, this hardship would be devastating to the continued progress of future developments in the quantum field, which depends on foreign person employees from these destinations," BIS notes.
| Filed on: 09/05/2024 at 8:45 am Scheduled Pub. Date: 09/06/2024 FR Document: 2024-19633 |
FR Document: 2024-19633 Citation: 89 FR 72926 |
PDF Pages 72926-72956 (31 pages) Permalink |
This interim final rule establishes new controls on advanced technologies consistent with international partners and creates the new License Exception “Implemented Export Control” (IEC) that authorizes exports of certain items to destinations in the circumstances described in the rule. As a result of this rule, the following change will be made to the Automated Export System (AES) in order for exporters and authorized agents to successfully report electronic export information in the AES.
The Addition of Export Control Classification Numbers (ECCN)
ECCNs 2B910, 2D910, 2E903, 2E910, 3A901, 3A904, 3B903, 3B904, 3C907, 3C908, 3C909, 3D002, 3D901, 3D907, 3E901, 3E905, 4A906, 4D906, and 4E906 will be added to the AES ECCN reference table.
Note: By using any of the License Exceptions or “No License Required” (NLR), you are certifying that the terms, provisions, and conditions described in the Export Administration Regulations (EAR) have been met.
A New License Code has been added to the AES
An update has been made to AES to create a new License Code C70 Implemented Export Control (IEC) that authorizes exports, reexports and transfers (in-country) to and by countries that have implemented equivalent technical controls for these newly added items. License Exception IEC allows the export, reexport and transfer (in- country) of these items to Canada, France, Germany, Italy, Japan, Spain, and the United Kingdom as described in part 740 of the EAR.
AES filers must adhere to the following new reporting when using C70 (IEC) to prevent the return of fatal errors from AES.
Please refer to §740.24 Implemented Export Control (IEC) and §740.2 of the EAR for additional restrictions for this license exception.
A complete list of all the AES License Codes and reporting instructions for these types can be found at https://www.cbp.gov/document/guidance/aestir-appendix-f-license-and-license-exemption-type-codes
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