BIS Publishes Interim Rule for Export Administration Regulations

On January 18, 2023, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) published Interim Final Rule 88 Fed in the Federal Register. Registration 2821 amends the Export Administration Regulations (EAR) (15 CFR Part 730-774) by adding Macau to recent restrictions implemented on certain advanced computing and semiconductor manufacturing items destined for China. This interim final rule is effective January 17, 2023. Parties wishing to submit comments to BIS on this interim final rule must do so by January 31, 2023.

Background

On October 13, 2022, BIS issued an interim final rule amending the EAR to impose certain controls on advanced computing integrated circuits (ICs), computer commodities containing such ICs, and certain semiconductor manufacturing items. and other changes to the EAR to provide appropriate controls over these items, including certain activities of US Persons. See our previous warning about that rule here. This new interim final rule adds Macau to the same restrictions that came into force for China in the October 13, 2022 rule.

New Macau Control

Specifically, this new rule adds Macau to the scope of the Regional Stability (RS) Regulations paragraph for seven Export Control Classification Numbers (ECCNs): 3A090, 3B090, 3D001, 3E001, 4A090, 4D090. , and 4E001. The rule also adds Macau to the general restrictions on the use of these RS-controlled ECCN License Exceptions in § 740.2(a)(9) and Macau to § 742.6(a)(6 and (b)( Add to 10) Part of the RS control structure implemented by the 13 October 2022 rule.

The rule also adds Macau to the destination scope of the Advanced Computing Foreign Direct Products (FDP) Regulations and Supercomputer FDP Regulations in § 734.9. Similarly, this rule adds Macau as an additional destination for end-use control under §§ 744.6 (Restrictions on Certain Activities of U.S. Persons) and 744.23 (Supercomputer and Semiconductor Manufacturing End-Uses).

Finally, the Regulation amends General Order No. 4 of Supplement No. 4. By adding 1 to Part 736, from 21 October 2022 to 7 April 2023, Macau is permitted to export, reexport, transfer domestically, and export from abroad to the scope of the Temporary General License (TGL). Add integration, assembly (installation), inspection, testing, quality assurance, and distribution of items covered by ECCN 3A090, 4A090, and related software and technology of ECCN 3D001, 3E001, 4D090, or 4E001; Items that are computers, integrated circuits, electronic assemblies or components, and related software and technology specified elsewhere in Supplement No. 1) to part 774.