October 25 Chip Rules Corrected & Clarified

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BIS has published corrections and amendments to the October 25 2023 Semicinductor and Advanced Computing Rules. This rule corrects inadvertent errors in those rules and makes additional clarifications for the two rules.

China has expressed strong opposition to the latest U.S. revised rules on semiconductor export rules, saying that it will disrupt the global semiconductor market as well as cooperation between enterprises.

On October 25, 2023, the Bureau of Industry and Security (BIS) published in the Federal Register the interim final rules (IFR), “Export Controls on Semiconductor Manufacturing Items” (SME IFR) and “Implementation of Additional Export Controls: Certain Advanced Computing Items; Supercomputer and Semiconductor End Use; Updates and Corrections” (AC/S IFR).

Changes include: 

Revisions to § 740.8 Notified Advanced Computing (NAC) and Advanced Computing Authorized (ACA), with a particular emphasis on Macau-linked entities.

This rule also adds a new paragraph (a)(3) to clarify that for ECCNs 5A002.z, 5A004.z, or 5D002.z, all License Exception Encryption commodities, software, and technology (ENC) requirements under § 740.17 of the EAR must also be met for eligibility under License Exceptions NAC or ACA.

Revisions to § 744.23.  This rule amends paragraph (c) of § 744.23 to state that License Exceptions in § 740.2(a)(9)(i) and (ii) of the EAR may overcome the license requirements imposed by § 744.23(a)(4) and (a)(3)(i) of the EAR, respectively.

Revisions to § 744.6 Restrictions on specific activities of “U.S. persons.”   BIS is adding EUV masks (ECCN 3B001.j) and associated software and technology to the control in paragraph (c)(2)(iii) for SME, because it was unintentionally excluded from controls.    EUV masks are required for lithography and lithography is a critical technology for advance- node IC production.

Restoring controls for ECCNs that contain .z paragraphs. This rule restores controls in the license requirement table of ECCNs 3A001, 3D001, 3E001, 4A003, 4A004, 4A005, 4D001, 4E001, 5A002, 5A004, 5D002, and 5E002, by removing the exceptions for .z paragraphs from the national security (NS), missile technology, nuclear proliferation, and/or crime control license requirement paragraphs.

F. Maintaining the status quo for license exception eligibility for certain destinations

G. Revisions to 3A001

H. Revisions to ECCN 3D001.

I. Revision to ECCN 3E001 license requirements and reasons for control.

J. Addition of missing paragraph 4A090.b.

K. Revisions to ECCN 4E001.

L. Revisions to ECCN 5D002 and 5D992.

M. Revisions to ECCN 5E992 and 5E002.

N. Revision to supplement no. 6 to part 774 – Sensitive List.

II. “Export Controls on Semiconductor Manufacturing Items” (SME IFR) (88 FR 73424,  October 25, 2023)

A. Corrections to ECCN 3B001 and 3B991.  In ECCN 3B001, this rule corrects the scientific unit in paragraphs d.4.d.2 by replacing 13.33 kPa with 13.33 Pa; and in paragraph d.5 replacing 450 Mpa with 450 MPa.

B. Revision of § 744.23(a)(4).  BIS is revising the scope of the exceptions for masks in § 744.23(a)(4)(i), because it unintentionally excepted EUV masks in 3B001.j, as well as equipment in 3B991.b.2.

C. Clarification to BIS responses to certain public comment topics.

 

Implementation of Additional Export Controls:

Certain Advanced Computing Items; Supercomputer and Semiconductor End Use; Updates and Corrections; and Export Controls on Semiconductor Manufacturing Items; Corrections and Clarifications

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