The Bureau of Industry and Security has issued a final rule that, effective Oct. 17, expands the list of items that may be exported to Korean companies Samsung and SK Hynix for their semiconductor fabrication facilities in China under the validated end-user authorizations for those facilities. Such exports will now include all items subject to the Export Administration Regulations except extreme ultraviolet equipment and specially designed parts, components, software, and technology necessary for the development or production of NAND memory (for Samsung) and dynamic random access memory (for SK Hynix).
According to BIS, this rule allows these companies to continue their operations in China.
VEUs are designated entities located in eligible destinations to which eligible items may be exported, reexported, or transferred (in-country) under a general authorization instead of a license. Eligible destinations of VEUs may obtain eligible items without the need for the VEUs’ supplier to obtain an export or reexport license from BIS. Eligible items vary among VEUs and may include commodities, software, and/or technology, except items controlled for missile technology or crime control reasons on the Commerce Control List.
For more information on exports to VEUs and how to ensure your company is in compliance with applicable rules, please contact attorney Kristine Pirnia at (202) 730-4964 or via email.
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