U.S. FAQs concerning additional export controls, certain advanced computing and semiconductor manufacturing items from China

BIS will continue to accept public comments on the rule until December 12, 2022.

BIS will continue to accept public comments on the rule until December 12, 2022.

The Bureau of Industry and Security (BIS) of the U.S. Commerce Department released guidance in the form of “frequently asked questions” (FAQs) concerning the interim final rule 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.

Read the FAQs [PDF 307 KB] (October 28, 2022)

Background

According to the BIS release, the advanced computing and semiconductor manufacturing equipment rule addresses U.S. national security and foreign policy concerns in two key areas:

  • The rule imposes restrictive export controls on certain advanced computing semiconductor chips, transactions for supercomputer end-uses, and transactions involving certain entities on the entity list.
  • The rule imposes new controls on certain semiconductor manufacturing items and on transactions for semiconductor development and production end uses.

The advanced computing rule was published as an interim final rule with a request for comments. Read TaxNewsFlash. While the advanced computing rule went into effect on the dates indicated (in October 2022), BIS will continue to accept public comments on the rule until December 12, 2022. BIS will use the public comments to revise or refine the rule if appropriate, and will also evaluate the questions and add to or amend the set of FAQs.

Topics covered

The FAQs are organized under the following headings:

  • General questions
  • Definitions
  • Deemed exports/reexports
  • “U.S. person”
  • Licensing and license review policy
  • Encryption
     

For more information, contact a professional with KPMG’s Trade & Customs services:

Doug Zuvich
Partner and Global Practice Leader
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
E: jlmcloughlin@kpmg.com

Andy Siciliano
Partner and National Practice Leader
E: asiciliano@kpmg.com

Steve Brotherton
Principal and Global Export and Sanctions Leader
E: sbrotherton@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
E: labad@kpmg.com

Irina Vaysfeld
Principal
E: ivaysfeld@kpmg.com

Amie Ahanchian
Principal
E: aahanchian@kpmg.com

Christopher Young
Principal
E: christopheryoung@kpmg.com

Gisele Belotto
Principal
E: gbelotto@kpmg.com

George Zaharatos
Principal
E: gzaharatos@kpmg.com

Andy Doornaert
Managing Director
E: adoornaert@kpmg.com

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.