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

Description

Industry and Security Bureau closed consultation on foreign-produced direct product rule additions and refinements to controls for advanced computing and semiconductor manufacturing items

On 31 January 2025, the Department of Commerce's Bureau of Industry and Security (BIS) closed consultation on the interim final rule (IFR) regarding the Foreign-Produced Direct Product Rule Additions and Refinements to Controls for Advanced Computing and Semiconductor Manufacturing Items. The consultation aimed to gather feedback on the effectiveness of the revisions and potential impacts on global technology supply chains. The IFR, which became effective on 2 December 2024, with a delayed compliance date of 31 December 2024 for certain controls, introduced revisions to the Export Administration Regulations (EAR). It included 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 implemented controls for high bandwidth memory (HBM), crucial for advanced computing and AI applications, and clarified the treatment of software keys. The IFR also added eight new Red Flags to assist exporters in identifying transactions that may raise national security concerns.

Original source

Scope

Policy Area
International trade
Policy Instrument
Export ban
Regulated Economic Activity
semiconductors, software provider: app stores, software provider: other software
Implementation Level
national
Government Branch
executive
Government Body
central government

Complete timeline of this policy change

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2024-12-02
in consultation

On 2 December 2024, the Department of Commerce's Bureau of Industry and Security (BIS) issued the i…

2025-01-31
processing consultation

On 31 January 2025, the Department of Commerce's Bureau of Industry and Security (BIS) closed consu…