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

Thursday, May 29, 2014
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued a final rule that, effective May 29, makes the following revisions to existing authorizations for validated end-users Samsung China Semiconductor Co. Ltd. and Semiconductor Manufacturing International Corporation in China.

- The address of the eligible Samsung China facility is updated, though the facility itself has not moved.

- A facility in Beijing is added to the list of eligible destinations for SMIC, bringing the total to five.

- Certain types of mass spectrometers (ECCN 3A233) are added to the list of eligible items for SMIC.

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 general 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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