The Bureau of Industry and Security recently issued a guidance document clarifying that a license is required to export advanced computing items to entities headquartered in Country Group D:5 or Macau or with an ultimate parent company headquartered in any of those countries, even if the entities themselves are located outside those countries.
BIS states that this license requirement was first introduced in November 2023, implemented via an end-user control in section 744.23(a)(3) of the Export Administration Regulations, and applied to all advanced computing items (e.g., those specified in ECCNs 3A090.a and .b, 4A090.a and .b, and related .z paragraph items).
In January 2025 the artificial intelligence diffusion rule transferred the requirement for these “.a” items from section 744.23(a) into section 742.6 as part of a new worldwide license requirement. However, BIS then announced in May 2025 that it would not be enforcing the AI diffusion rule’s new compliance requirements.
In response to subsequent questions, BIS is now affirming that the license requirement established in November 2023 is still being enforced for “.a” advanced computing items to Country Group D:5- and Macau-headquartered entities located outside of destinations that were subject to a license requirement prior to the AI diffusion rule. Specifically, a license requirement continues to apply under section 742.6(a)(6)(iii)(A) of the EAR to all destinations outside the U.S. for these advanced computing items when they are for entities headquartered in, or whose ultimate parent company is headquartered in, Country Group D:5 or Macau.
BIS adds that because this license requirement predates the AI diffusion rule, the agency’s non-enforcement policy with respect to the destination-based license requirements for these advanced computing items under section 742.6(a)(6)(iii)(A) applies only to the extent they are not for entities headquartered in or that have ultimate parent companies headquartered in Country Group D:5 or Macau. As a result, exporters should continue to seek BIS licenses for such transactions unless an applicable license exception is available.
BIS adds that bona fide operators of data centers that are otherwise engaged in activities consistent with the EAR are not required to cease the ongoing use, storage, disposal, or servicing of advanced computing items because of this guidance, until further notice from BIS.
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