Background

The Bureau of Industry and Security has issued an interim final rule implementing worldwide export controls on the following critical and emerging technologies.

- quantum computers, related equipment, components, materials, software, and technology that can be used in the development and maintenance of quantum computers

- tools and machines essential for the production of advanced semiconductor devices

- gate all-around field-effect transistor technology, which produces or develops high-performance computing chips that can be used in supercomputers

- additive manufacturing items, including equipment, components, and related technology and software designed to produce metal or metal alloy components

This rule also (1) establishes new license exception IEC (implemented export controls), which will allow license-free exports of subject items to countries implementing equivalent national controls (a table listing IEC eligibility status for countries and items is available here), (2) implements certain exclusion clauses for deemed exports (i.e., the sharing or release of controlled technology or source code to a foreign person within the U.S.) and reexports to avoid disrupting ongoing research and development, and (3) adds a general license for deemed exports/reexports of certain technology/software, subject to annual reporting requirements.

Most provisions of this rule are effective as of Sept. 6 and comments are due by Nov. 5. However, compliance for exports of quantum items to certain destinations is not required until Nov. 5 to allow for the submission of license applications and revisions to internal compliance procedures.

For more information on this rule and how it may affect your business, please contact Kristine Pirnia at (202) 730-4964 or via email.

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