United States of America: Bureau of Industry and Security adopted industry guidance on preventing diversion of advanced computing integrated circuits

On 13 May 2025, the U.S. Bureau of Industry and Security (BIS) adopted industry guidance to prevent the unauthorised diversion of advanced computing integrated circuits (ICs) subject to export controls since October 2022. The guidance highlights the risk of ICs enabling military-intelligence and weapons of mass destruction (WMD) applications, particularly in China and Macau, and flags diversion tactics involving transhipment, disguised end users, and misuse of data centres. BIS provided a list of red flags and due diligence measures, including verifying incorporation dates, ownership structures, and data centre capabilities, to help exporters identify and mitigate evasion risks. It also warned that exports or support involving Artificial Intelligence model training for parties in Country Group D:5, including China, without proper licensing may trigger enforcement actions or lead to Entity List designations, even in the absence of a formal violation.