BIS Adds 3 Entities as China VEUs
The Bureau of Industry and Security has issued a final rule, effective October 12, 2010, which amends the Export Administration Regulations to add three entities in China and identify their respective eligible items for export and reexport and transfer (in-country) under Authorization Validated End-User (VEU).
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Authorization VEU Allows Certain CCL Exports, Etc. Without License
Authorization VEU is a mechanism to facilitate increased high-technology exports to companies in eligible destinations that have a verifiable record of civilian uses for such items. VEUs may obtain certain eligible commodities, software and technology on the Commerce Control List (except those controlled for missile technology or crime control reasons) without having to wait for their suppliers to obtain export licenses from BIS.
In addition to U.S. exporters, Authorization VEU may be used by foreign reexporters as well as by persons transferring in-country, and does not have an expiration date. Currently, VEUs are located in China and India.
Three Entities, Eligible Destinations/Facilities Added to VEU List
BIS’ final rule amends Supplement No. 7 to 15 CFR Part 748 to designate as VEUs: (1) Hynix Semiconductor China Ltd. (HSCL); (2) Hynix Semiconductor (Wuxi) Ltd.(HSMC); and (3) Lam Research Corporation.
BIS also lists the following names and addresses of the eligible destinations/facilities for these new VEUs as follows.
HSCL:
Hynix Semiconductor China Ltd.
Lot K7/K7-1, Export Processing Zone
Wuxi, Jiangsu, PR China
HSMC:
Hynix Semiconductor (Wuxi) Ltd.
Lot K7/K7-1, Export Processing Zone
Wuxi, Jiangsu, PR China
Lam:
Lam Research (Shanghai) Service Co.
1st Floor, Area C
Hua Hong Science & Technology Park
177 Bi Bo Road
Zhangjiang Hi-Tech Park
Pudong, Shanghai, China 201203
Lam Research Shanghai Co., Ltd.
No. 1 Jilong Rd.
Room 424-2
Waigaoqiao Free Trade Zone
Shanghai, China 200131
Lam Research International Sarl (Shanghai TSS)
c/o HMG Logistic (Shanghai) Co., Ltd.
No.55, West Shang Feng Road
Tangzhen, Pudong New Area
Shanghai, China 201203
Lam Research Shanghai Co., Ltd. (Shanghai WGQ Bonded Warehouse)
No. 55, Fei la Road
Waigaoqiao Free Trade Zone
Pudong New Area, Shanghai, China 200131
Lam Research Co., Ltd. (Beijing Branch)
Room 322 Dadi Mansion
No. 18 Hongda Beilu
Beijing Economic & Technological Development Area
Beijing, China 100176
Lam Research Co., Ltd. (Wuxi Representative Office)
5E, Bldg. C
International Science & Technology Park
#2 Taishan Road, WND
Wuxi, Jiangsu, China 214028
Lam Research International Sarl (Wuxi EPZ Bonded Warehouse)
c/o HMG WHL Logistic (Wuxi) Co., Ltd.
F1, Area 4, No. 1, Plot J3
No. 5 Gaolang East Road
Export Processing Zone
Wuxi, China 214028
Lam Research Co., Ltd. (Wuhan Representative Office)
Room 1810, Guanggu International Building B
456 Luoyu Road
East-Lake Hi-Tech Development Zone
Wuhan City, Hubei Province, China 430074
Lam Research International Sarl (Wuhan TSS)
c/o HMG Wuhan Logistic Co., Ltd.
1st -- 2nd Floor, No. 5 Building
Hua Shi Yuan Er Road
Optical Valley Industry Park
East-Lake Hi-Tech Development Zone
Wuhan City, Hubei Province, China 430223
ECCNs Eligible for Export, Reexport, or Transfer
BIS' final rule also amends Supplement No. 7 to 15 CFR Part 748 to include certain Export Control Classification Numbers (ECCNs) under which items may be exported, reexported or transferred (in-country) to these entities under Authorization VEU, as follows.
HSCL and HSMC:
Equipment for the manufacturing of semiconductor devices or materials classified under
ECCNs:
| 3B001.a | 3B001.b | 3B001.c | 3B001.d | 3B001.e | 3B001.f. |
Lam:
Items classified under ECCNs:
| 2B230 | 2B350.c | 2B350.d | 2B350.g | 2B350.h |
| 3B001.c1 | 3B001.e1 | 3D001 | 3D0022 | 3E0013 |
BIS May Conduct On-Site VEU Reviews
To ensure appropriate facilitation of exports and reexports, on-site reviews of validated end-users may be warranted pursuant to 15 CFR 748.15(f)(2) and section 7(iv) of Supplement No. 8 to 15 CFR Part 748. If such reviews are warranted, BIS will inform China’s Ministry of Commerce.
1Limited to parts and components.
2Limited to “software” specially designed for the “use” of stored program controlled items classified under ECCN 3B001.
3Limited to “technology” according to the General Technology Note for the “development” of equipment controlled by ECCN 3B001.
(See ITT's Online Archives or 01/20/09 news, 09012025, for BP summary of BIS' announcement of an agreement with China on Authorization VEU program procedures.
See ITT’s Online Archives or 05/10/10 news, 10051036, for BP summary of BIS’ recent addition of AMD China to the Authorization VEU list.)
(D/N 100727314-0350-01, FR Pub 10/12/10)