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BIS Expands Microprocessor Military End-Use and End-User Control

Wednesday, December 17, 2014
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued a final rule that, effective Dec. 17, makes the following amendments to the microprocessor military end-use and end-user control in the Export Administration Regulations.

- expands the scope of microprocessors subject to the control to harmonize with technological advances to microprocessor chips

- expands the scope to include related software and technology for the development and production of these chips

- adds a prohibition on the use of license exceptions (including license exception ENC) and otherwise expands license requirements for exports, reexports or transfers (in-country) of microprocessors subject to the military end-use and end-user restriction

- expands the scope of controls to cover in-country transfers to prohibited military end-users or end-uses even if a transaction is licensed for a particular destination

BIS states that shipments of items removed from license exception eligibility or eligibility for export, reexport or transfer (in-country) without a license as a result of this rule that were on dock for loading, on lighter, laden aboard a carrier or en route aboard a carrier to a port on Dec. 17 pursuant to actual orders to a destination may proceed to that destination under the previous license exception eligibility or without a license so long as they have been exported, reexported or transferred (in-country) before Feb. 17, 2015. Any such items not actually exported, reexported or transferred (in-country) before midnight on Feb. 17 will require a license in accordance with this rule.

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