Export Controls on Advanced Computing and Semiconductor Manufacturing Items Expanded

The Bureau of Industry and Security has issued a rule expanding to Macau the export controls it imposed in October 2022 on China.

The October 2022 rule imposed additional export controls on certain advanced computing semiconductor chips (chips, advanced computing chips, integrated circuits), transactions for supercomputer end uses, and transactions involving certain entities on the Entity List. It also adopted additional controls on certain semiconductor manufacturing items and transactions for certain IC production end-uses.

BIS now states that because of Macau’s position as a special administrative region of China it is now adding Macau as a destination to which a license will be required to prevent the diversion to China of items determined to be critical to protecting U.S. national security and foreign policy interests. It is also adding Macau to the advanced computing and semiconductor foreign direct product rules.

Shipments of items removed from license exception eligibility or eligibility for export, reexport, or transfer (in-country) without a license to or within Macau as a result of this rule that were on dock for loading, on lighter, laden aboard an exporting carrier, or en route aboard a carrier to a port of export on Jan. 17 may continue to the 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. 16. Any such items not actually exported, reexported or transferred (in-country) before midnight on Feb. 16 will require a license.

The comment period on the October 2022 rule remains open until Jan. 31. BIS intends to publish a subsequent rule to respond to the comments received, including additional updates to the export controls it imposed.

For more information on these export restrictions, please contact attorney Kristine Pirnia at (202) 730-4964 or via email.