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.
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