BIS Issues Clarification on Advanced Computing and Semiconductor Manufacturing Rules

On April 4, 2024, the Department of Commerce's Bureau of Industry and Security (BIS) published an interim final rule in the Federal Register, clarifying two previously published interim final rules regarding export controls on "semiconductor manufacturing items" and "certain advanced computing items."

The rule separates the newly created "Notified Advanced Computing (NAC)" license exception into two separate license exceptions. NAC will remain for authorization of certain advanced computing exports that require notification to BIS, while the "Advanced Computing Authorized (ACA)" license exception will authorize items subject to the advanced computing controls "that do not require a notification to BIS."

Additional changes include:

• Clarification on the NAC notification process;
• Re-establishment of certain controls for Export Control Classification Numbers (ECCNs) with a ".z" paragraph; and
• Several clerical updates to the Export Administration Regulations (EAR) to incorporate the changes outlined in this interim final rule.

The interim final rule became effective on April 4, 2024, and comments are due by April 29, 2024.

The interim final rule can be found here:
https://www.federalregister.gov/documents/2024/04/04/2024-07004/implementation-of-additional-export-controls-certain-advanced-computing-items-supercomputer-and