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BIS Issues Final Rule on Cosmetic VEU Changes; Edits Some China VEUs

The Bureau of Industry and Security issued a final rule on readability changes to the structure of the Validated End User supplement, revisions and deletions to a group of Validated End Users located in China, and to update the list of eligible items for another Validated End User. The rule is effective June 3. BIS modified Supplement 7 to part 748 to improve the display and readability of the list of Validated End Users, their respective eligible items and destinations. The changes should result in significant time and cost savings for Validated End Users, and “are expected to further facilitate exports to civilian end-users in [China],” BIS said.

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The changes to specific VEUs listed in the final rule are:

  • Addition of Shanghai Huahong Grace Semiconductor Manufacturing Corporation, Ltd. (HHGrace). The rule also includes destinations and end-items approved for export to the corporation.
  • Removal of two end users: Grace Semiconductor Manufacturing Corporation (GSMC) and Shanghair Huahong NEC Electronics Company, Ltd. (HHNEC). The companies are deleted from the VEU because they merged to form the Shanghai Huahong Grace corporation.

The rule also updates the list of eligible VEU items for CSMC Technologies Corporation (CSMC), removing Export Control Classification Numbers 3B001.c.1.a and 3B001.c.2.a from CSMC’s list of eligible items. The change was made “at the company’s request,” rather than out of BIS concern, the rule said. It reflects changes to the Commerce Control List from a September 2010 rule.

(Federal Register 6/3/13)