U.S. additional export controls, certain advanced computing and semiconductor manufacturing items from China
Amending the Export Administration Regulations (EAR)
Amending the Export Administration Regulations (EAR)
The Bureau of Industry and Security (BIS) of the U.S. Commerce Department today released for publication in the Federal Register an interim final rule [PDF 565 KB] amending the Export Administration Regulations (EAR) to implement controls on advanced computing integrated circuits, computer commodities that contain such integrated circuits, and certain semiconductor manufacturing items.
- BIS is also expanding controls on transactions involving items for supercomputer and semiconductor manufacturing end uses. For example, the rule expands the scope of foreign-produced items subject to license requirements for 28 existing entities on the entity list that are located in China.
- In addition, specific activities of “U.S. persons” that “support” the “development” or “production” of certain integrated circuits in China require a license.
- Lastly, to minimize short-term effect on the semiconductor supply chain from the rule, a temporary general license will permit specific, limited manufacturing activities in China related to items destined for use outside China. BIS is identifying a model certificate that may be used in compliance programs to assist, along with other measures, in conducting due diligence.
There will be a public briefing on the rule and associated actions on October 13, 2022. BIS released for publication in the Federal Register details on the procedures for accessing the public briefing [PDF 251 KB].
For more information, contact a professional with KPMG’s Trade & Customs services:
Doug Zuvich |
John L. McLoughlin |
Andy Siciliano |
Steve Brotherton |
Luis (Lou) Abad |
Irina Vaysfeld |
Amie Ahanchian |
Christopher Young |
Gisele Belotto |
George Zaharatos |
Andy Doornaert |
Jessica Libby Principal E: jlibby@kpmg.com |
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.