On October 25, 2023, the Bureau of Industry and Security (BIS) issued an interim final rule in the Federal Register regarding additional export controls on advanced computing items, supercomputer end use, and semiconductor end use. The interim final rule addresses comments received in response to an interim final rule issued by the agency in October 2022. The rule’s complete name is “Implementation of Additional Export Controls: Certain Advanced Computing Items; Supercomputer and Semiconductor End Use; Updates and Corrections.” It is also referred to as the “AC/S IFR.”

In addition to addressing comments received, the rule revises the Export Administration Regulations (EAR) to “make the controls more effective and less burdensome, including by correcting and clarifying the controls to more effectively achieve the policy objectives identified in the October 7 IFR,” which is formally known as “Implementation of Additional Export Controls: Certain Advanced Computing and Semiconductor Manufacturing Items; Supercomputer and Semiconductor End Use; Entity List Modification.”

Amendments include:

• Revision of Export Control Classification Number (ECCN) 3A090 to simplify the control;
• Expansion of Regional Stability (RS) controls to additional Country Groups; and
• Expansion of Foreign Direct Product (FDP) rule to additional Country Groups.

BIS is seeking public comments on the interim final rule, which is largely effective November 17, 2023. Comments are due to BIS by December 18, 2023.

The October 2023 AC/S IFR can be found at this link or by carefully copying the URL below and pasting it into your browser:
https://www.federalregister.gov/documents/2023/10/25/2023-23055/implementation-of-additional-export-controls-certain-advanced-computing-items-supercomputer-and?utm_campaign=subscription+mailing+list&utm_medium=email&utm_source=federalregister.gov

The October 2022 interim final rule, also known as the October 7 IFR, can be found at this link or by carefully copying the URL below and pasting it into your browser here:
https://www.federalregister.gov/documents/2022/10/13/2022-21658/implementation-of-additional-export-controls-certain-advanced-computing-and-semiconductor