Government Makes Computer Chip Exports Even More Bureaucratic Nightmare
Published Date: 1/16/2025
Rule
Summary
Starting January 16, 2025, companies making or handling advanced computing chips need to follow new steps to double-check their supply chains and keep U.S. security strong. Foundries and chip testers get clearer rules and a little extra time until January 31, 2025, to get everything right. Plus, the government extended the deadline to share feedback until March 14, 2025, so everyone has a chance to weigh in.
Analyzed Economic Effects
7 provisions identified: 0 benefits, 5 costs, 2 mixed.
New Broad License Requirement for Foundries/OSATs
If you are a front-end fabricator (foundry) or an OSAT company, the rule imposes a broader license requirement for ICs classified under ECCN 3A090.a for exports, reexports, or transfers worldwide unless one of three specific ways to overcome the license requirement is met. The rule references Note 1 to 3A090 and Sec. 742.6(a)(6)(iii)(A) as the locations of this requirement.
Creation of 'Approved' IC Designer and OSAT Lists
The rule creates supplement no. 6 (approved IC designers) and supplement no. 7 (approved OSAT companies) to part 740 and lists specific initial companies by name. Attestations from companies on these lists can be used to overcome the presumption that an item meets ECCN 3A090.a.
Quarterly Reporting Requirement for Front-End Fabricators
Front-end fabricators producing ICs under ECCN 3A090.a for authorized IC designers must submit quarterly reports to BIS. The first report is due May 31, 2025 and must cover exports, reexports, and transfers (in-country) from January 31 through April 30, 2025; subsequent quarterly deadlines are May 31, August 31, November 30, and February 28 for the preceding quarters.
Limitations on License Exceptions AIA and ACM
License Exceptions AIA (Sec. 740.27) and ACM (Sec. 740.28) are revised so that three specified ECCNs (including 3A090.a) are eligible for those exceptions only if the items are designed by an approved or authorized IC designer as defined in supplement no. 6 to part 740 and Note 1 to ECCN 3A090.a.
Transitional Rules for 'Authorized' IC Designers
Prior to April 13, 2026, authorized IC designers include those headquartered in Taiwan or destinations in Country Group A:1 or A:5 (excluding entities headquartered in Macau or Country Group D:5) that agree to submit information in Sec. 743.9(b). After April 13, 2026, authorized IC designers must also submit an application to become approved IC designers, and any company deemed an authorized IC designer after that date will cease to be authorized 180 days after submitting its application to become approved.
New KYC Vetting Form and Red Flag Rules
The rule adds a Know-Your-Customer (KYC) vetting form (supplement no. 2 to part 743) that front-end fabricators must use; any unresolved 'Yes' answers on the form are treated as Red Flags and require additional due diligence before proceeding. The form covers legitimacy, screening against the Consolidated Screening List, and other transaction red flags.
Effective and Compliance Dates for New Requirements
The IFR is effective January 16, 2025, but exporters, reexporters, and transferors are not required to comply with the new requirements added by this rule until January 31, 2025. The compliance date applies only to EAR text revised by this rule.
Your PRIA Score
Personalized for You
How does this regulation affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Key Dates
Take It Personal
Get Your Personalized Policy View
Start a Free Government Policy Watch to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.
Already have an account? Sign in