The head of the Bureau of Industry and Security this week called on companies to double down on their export compliance and due diligence efforts, saying the agency is reaching out to exporters to make sure they’re catching red flags and monitoring for possible export control evasion.
Chip export news
The U.S. is pushing foreign governments to stop their semiconductor companies from servicing certain advanced chip tools under pre-existing contracts with Chinese customers, Bureau of Industry and Security Undersecretary Alan Estevez said.
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The Bureau of Industry and Security recently completed a round of interagency review for a final rule to make tweaks, clarifications and corrections to its recent chip export control updates released in October (see 2310170055). BIS sent the correction rule to the Office of Information and Regulatory Affairs Nov. 27 (see 2311280005), and the review was completed March 21. BIS has said the agency is looking to clarify several issues that exporters have raised since the controls were updated and correct other provisions that “may not have fully hit the mark we intended” (see 2311060067, 2311160044 and 2401260051).
The Census Bureau this week alerted export filers about two new license codes in the Automated Export System for License Exception Notified Advanced Computing (NAC), the exception introduced last year by the Bureau of Industry and Security for certain exports of semiconductors that fall just below the agency’s most recently updated chip control parameters (see 2311200042 and 2401030053). Companies using the license exception and exporting certain chips must submit notifications to BIS with data about the chip, including its total processing performance, the name of the exporter and other parties to the transactions, and the volume and value of the shipment.
China’s Semiconductor Manufacturing International Corp. “potentially” violated U.S. export control laws by producing 7 nanometer computing chips with American equipment it obtained before the Bureau of Industry and Security imposed updated export controls on chip-making tools last year, BIS Undersecretary Alan Estevez said.
China’s Commerce Ministry urged the U.S. against placing new export controls on companies linked to Huawei after hearing the U.S. is reportedly considering adding them to the Commerce Department’s Entity List.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
A trade association representing ASML, Applied Materials and other major semiconductor companies called on the EU to keep any new export controls narrowly targeted and abandon its plans for an outbound investment screening mechanism, saying new restrictions would be a “major interference” for the chip industry. It also cautioned European lawmakers about introducing new supply chain reporting obligations that would place too big a burden on industry.
Governments could eventually require companies to monitor their sensitive semiconductor equipment shipments by using location tracking features, which could help industry better conduct due diligence and improve government export enforcement, said Chris Miller, an expert on semiconductor technology policy and history.