United States of America: Bureau of Industry and Security adopted guidance on general prohibition 10 under export administration regulations for Chinese advanced-computing integrated circuits

On 13 May 2025, the U.S. Bureau of Industry and Security (BIS) adopted guidance on the application of General Prohibition 10 (GP10) under the Export Administration Regulations (EAR) to advanced-computing integrated circuits (ICs) developed by entities in the People’s Republic of China (PRC). GP10 under the EAR bans financing or servicing activities when a party knows or suspects a violation of the EAR is occurring or likely to occur. The guidance applies to companies involved in the design, production, use, or distribution of ICs classified under Export Control Classification Number 3A090, particularly those linked to PRC-headquartered firms, including Huawei. BIS highlighted that ICs are presumed to have been developed or produced using controlled U.S.-origin software, technology, or manufacturing equipment, potentially in violation of U.S. export controls. It was also highlighted that engaging in GP10-restricted activities, including the use, sale, or transfer, without BIS authorisation, could trigger enforcement actions, including criminal and administrative penalties. The guidance also highlights the risk of dealings involving entities on the Entity List with Footnote 1 or 4 designations. The Entity List flags foreign parties needing licences for certain exports, with Footnote 1 or 4 designations triggering extra controls on foreign-produced items under the EAR. While unauthorised use may result in severe consequences, BIS clarifies that acquisition for the sole purpose of technical evaluation or destructive testing will not lead to enforcement.