FAQs Updated for BIS Semi Rules

December 29, the Bureau of Industry & Security published a series of updates to the Frequently Asked Question (FAQs) associated with the October 7th, 2022 and October 17, 2023 Semiconductor Rules.

The Interim Final Rules (IFRs) amend the Export Administration Regulations (EAR) to implement more effective export controls on semiconductor manufacturing equipment (SME), advanced computing items, and supercomputers, addressing national security concerns. 

FAQ Topics include:

1. General Impact and Flexibility: BIS acknowledges the potential public benefits of cross-border cooperation in technology, maintaining flexible licensing policies to authorize collaborations while mitigating diversion risks. Adjustments to control scopes and exclusions have been made to facilitate this.

2. Expanded License Requirements: The expansion of license requirements for SME now includes 21 countries beyond the PRC and Macau. This discrepancy in numbers is due to Cyprus's effective removal from Country Group D:5.

3. Worldwide Controls Exclusion: Exports to the United States are not included in worldwide controls as the definitions for “export” and “reexport” exclude shipments to the U.S.

4. Technical Specifications for Semiconductor Control: Clarification on measuring die size, counting die area, and specifics for different architectures are provided. For example, the area of the whole nonseparable logic die is considered, and all levels of a 3D logic die should be counted.

5. License Exception Notified Advanced Computing (NAC): Details regarding when NAC notification is required, what information should be included in submissions, and limitations on the number of items and parties in a notification are outlined. It's clarified that approval is only valid for the specific exporter who submitted the application.

6. Electronic Export Information Filing: Instructions on how to fill out the EEI Filing for License Exception NAC, including the use of specific codes and how to handle .z items, are provided.

7. Supercomputer, Advanced-node Integrated Circuits, and SME End Use Controls: Clarifications on the scope of end-use controls for SME, including exclusions for certain EAR99 items and requirements for technology transfers related to the production of integrated circuits.

8. U.S. Persons Activities Controls: Details on the applicability and exclusions of controls for U.S. persons, with a focus on eliminating discrimination against U.S. person employees of non-U.S. entities.

9. Regional Stability (RS) Controls and .z ECCNs: Mandatory AES EEI filing for .z category items for all countries, including transactions below the USD 2500 threshold, and requirements for item descriptions in filings.

[FAQ Document]