United States of America: Industry and Security Bureau opened consultation on foreign-produced direct product rule additions and refinements to controls for advanced computing and semiconductor manufacturing items

On 2 December 2024, the Department of Commerce's Bureau of Industry and Security (BIS) issued the interim final rule (IFR) regarding the Foreign-Produced Direct Product Rule Additions, and Refinements to Controls for Advanced Computing and Semiconductor Manufacturing Items and opened a public consultation period open until 31 January 2025. The IFR, effective from 2 December 2024, with a delayed compliance date of 31 December 2024 for certain controls, introduces revisions to the Export Administration Regulations (EAR). It includes new Foreign Direct Product (FDP) rules targeting advanced semiconductor manufacturing equipment (SME) and entities involved in the production of "advanced-node integrated circuits" (ICs). Additionally, it implements controls for high bandwidth memory (HBM), necessary for advanced computing and AI applications, and clarifies the treatment of software keys. The IFR also adds eight new Red Flags to assist exporters in identifying transactions that may raise national security concerns. Stakeholders are invited to submit comments electronically via the Federal rulemaking portal, with a clear marking for any business confidential information. The consultation aims to gather feedback on the effectiveness of the revisions and potential impacts on global technology supply chains.