US BIS Computing Due Diligence

Updated on: Feb 18, 2025

Latest Event


  • Feb. 2025 Fed Reg Correction
  • On Feb. 14, 2025, US BIS issued correcting amendment in federal register; revised Export control classification no. (ECCN) 3A090 to correct license requirement added.
  • Effective Feb. 11, 2025; comments on correction must be received by Mar. 14, 2025.

On Jan. 16, US BIS revised EAR re integrated circuits due diligence.

  • US BIS issued interim final rule revising Export Administration Regulations (EAR) with additional due diligence procedures re advanced computing integrated circuits (ICs).
  • Also revises EAR to clarify previously issued advanced computing and semiconductor manufacturing export controls, including extending comment period, see #235371.
  • Amends EAR regulations under 15 CFR 734, 15 CFR 736, 15 CFR 740, 15 CFR 742, 15 CFR 743, 15 CFR 744, 15 CFR 748, 15 CFR 762, 15 CFR 772, and 15 CFR 774.
  • Interim Final Rule Summary
  • Previous export controls designed to prevent malicious actors in People's Republic of China and elsewhere from obtaining critical technology that could threaten US security.
  • This interim final rule updates the EAR to enhance the effectiveness of these controls.
  • Addresses common request for more detailed guidance on how to conduct due diligence to confirm that an IC does not exceed the EAR performance thresholds.
  • Focuses on providing front-end fabricators with objective, bright-line rules to assist in better identifying transactions with potential risk for diversion contrary to US interests.
  • Enhances due diligence procedures to ensure new customers are vetted by front-end fabricators prior to providing ICs that may meet advanced computing control levels.
  • Improves reporting for transactions involving newer customers with heightened risk.
  • Assists foundries and outsourced semiconductor assembly and test companies in complying with EAR provisions concerning advanced computing ICs in supply chain.
  • Effectiveness
  • The effective date of this rule is Jan. 16, 2025; exporters, re-exporters, and in-country transferors are not required to comply with new requirements until Jan. 31, 2025.
  • Consultation
  • Comments must be received on the interim final rule on or before Mar. 14, 2025
  • Feb. 2025 Fed Reg Correction
  • On Feb. 14, 2025, US BIS issued correcting amendment in federal register; revised Export control classification no. (ECCN) 3A090 to correct license requirement added.
  • Effective Feb. 11, 2025; comments on correction must be received by Mar. 14, 2025.
Regulators
US BIS
Entity Types
Corp
Reference
90 FR 9604, 2/14/2025; 90 FR 5298, 1/16/2025; RF Docket 250108-0013, 1/15/2025; RIN 0694-AJ98; Citation: *15 CFR* 734, 736, 740, 742, 743, 744, 748, 762, 772, 774;
Functions
AML; Compliance; Financial; Legal; Operations; Registration/Licensing; Risk; Sanctions; Technology
Countries
United States of America
Category
State
N/A
Products
Commodities; Corporate; Payments
Rule Type
Final
Regions
Am
Rule Date
Jan 16, 2025
Effective Date
Mar 14, 2025
Rule ID
240622
Linked to
Reg. Last Update
Feb 14, 2025
Report Section
US Investment