Background

The Bureau of Industry and Security has issued a final rule that, effective Dec. 5, removes Semiconductor Manufacturing International Corporation as a validated end-user in China. BIS states that this change is being made at the company’s request and not in response to activities of concern.

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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