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Changes to Expedited High-Tech Exports to Validated End-User in China

Wednesday, November 20, 2013
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued a final rule that, effective Nov. 20, revises existing authorizations for validated end-users Samsung China Semiconductor Co. Ltd., Semiconductor Manufacturing International Corporation and SK hynix Semiconductor in China.

- Two items (ECCNs 2B350.i.3 and 3A233) are added and one item (ECCN 2B350.i.4) is removed from the list of eligible items for Samsung China.

- A facility in Shenzhen is added to the list of eligible destinations (which now total four), and two items (ECCNs 2B350.d.3 and 3C003) are added to the list of eligible items, for SMIC.

- The addresses of the facilities used by SK hynix China and SK hynix Wuxi are updated.

Authorization VEU is a mechanism to facilitate increased high-technology exports to companies in China and India that have a verifiable record of civilian end-uses for such items. End-users qualified as VEUs are eligible to receive a wide range of specified items on the Commerce Control List under this authorization instead of under individual transaction-specific export licenses. Eligible items may include commodities, software and technology, except those controlled for missile technology or crime control reasons.

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