adds 18 new Export Control Classification Numbers (ECCNs) and revises nine ECCNs. Many of these new/revised ECCNs are similar or identical to controls implemented by the UK and certain European countries earlier this year;
imposes a worldwide license requirement on the exports, re-exports, or transfers (in country) for many of the newly controlled items, along with limitations on the use of certain license exceptions;
introduces a new license exception, called License Exception Implemented Export Controls (License Exception IEC), for countries that have implemented equivalent controls for specific items; and
minimizes the impact on deemed exports and re-exports, depending on the technology, to new and/or existing employees and contractors, through various grandfathering clauses, exclusions, and a new general license (GL) under General Order No. 6.
new and continuing licensing obligations, most of which are effective immediately, but compliance requirements for exports, re-exports, and transfers (in-country) of quantum items specified in ECCNs 3A901, 3A904, 3B904, 3C907, 3C908, 3C909, 3D901 (for 3A901.b, 3B904), 3E901 (for 3A901, 3A904, 3B904, 3C907, 3C908, 3C909), 4A906, 4D906, or 4E906 to destinations in Country Group A:1 are delayed until November 5, 2024.
new reporting obligations for exports, re-exports, and transfers and deemed exports and re-exports occurring after September 6, 2024, with the first such report due by November 5, 2024.
quantum computing items, including quantum computers, and related equipment, components, materials, software, and technology used in their development and maintenance (ECCNs 3D901, 3E901, 4D906, or 4E906);
advanced semiconductor manufacturing equipment, featuring the tools and machines crucial for producing advanced semiconductor devices (ECCNs 3B001, 3B903, 3D907);
GAAFET technology necessary for innovation in high-performance computing chips that can be used in supercomputers (ECCN 3E905); and
additive manufacturing items, which cover equipment, components, and related technology and software designed for producing metal or metal alloy components as well as specific coating technology (ECCNs 2B910, 2D910, 2E903, 2E910).
All of the items classified under the new ECCNs and a selection of related equipment, software, and technology under the revised ECCNs are controlled for export and re-export worldwide for national security (NS) and regional stability (RS) reasons.
There is a presumption of approval when the export or re-export is to countries in Country Group A:1, A:5, and A:6 and a presumption of denial for destinations in Country Group D:1 or D:5; all other destinations will be reviewed on a case-by-case basis.
While the new requirements are effective immediately, those entities exporting certain quantum computing items2 have a delayed compliance period for exports, re-exports, and in-country transfers to Country Group A:1 destinations under NS and RS controls to complete license applications or implement internal compliance procedures for relevant ECCNs by November 5, 2024.
GAAFET technology (ECCN 3E905): The new GL includes a grandfathering clause for deemed exports and re-exports (including future updates) to foreign person employees or contractors of Country Group D:1 or D:5 nationality who were hired on or before September 6, 2024, subject to new reporting obligations.
Quantum technologies and software (ECCN 3D901, 3E901, 4D906, or 4E906): Deemed exports and re-exports to foreign person employees or contractors of Country Group D:1 or D:5 nationality are authorized by the new GL, subject to additional special reporting obligations.
Dry etch equipment: There is a full deemed export and re-export license requirement exclusion from NS and RS license requirements for technology or software in ECCNs 3D001, 3D002, and 3E001 for anisotropic dry plasma etch equipment and isotropic dry etch equipment in 3B001.c.1.a and c.1.c. This aligns with the exclusions implemented in an earlier rule, ''Export Controls on Semiconductor Manufacturing Items.''6
Excluding ECCN 3E905, all remaining new ECCNs:7 Grandfathering clauses for license requirements for NS and RS apply to deemed exports or re-exports of source code or technology, including for future developments and updates, to employees or contractors already employed as of September 6, 2024, including foreign national employees or contractors whose most recent country of citizenship is a D:1 or D:5 country.
Software and technology for newly classified items: There is a limited exclusion from license requirements imposed under NS and RS controls for deemed exports and re-export for certain source code or technology captured by the following ECCNs 2D910, 2E910, 3D001, 3D901, 3D907, 3E001, 3E901, 3E905, 4D906, and 4E906. The limited exclusion applies to deemed exports or re-exports to foreign persons whose most recent citizenship or permanent residency is not a Country Group D:1 or D:5 country.
The exporting entity must make annual reports to BIS regarding a) its end users in Country Group A:5 or A:6, and b) employees and contractors who are citizens of or permanent residents of Country Group D:1 or D:5 countries receiving deemed exports or deemed exports pursuant to the GL grandfather clause.
An entity with deemed exports of ECCN 3E905 must also file a termination report within 30 days of the voluntary or involuntary termination of foreign national employees and contractors who are citizens of or permanent residents of Country Group D:1 or D:5 countries.
Entities that released covered quantum software or technology to foreign persons of Country Group D:1 or D:5 nationality are responsible for submitting annual and termination reports to BIS.
Termination reports are due within 30 days of a covered foreign person's last day with the host company or university.
