US implements new export controls on quantum computing and other advanced technologies
Date of publication: September 10th, 2024
Overview
The Bureau of Industry and Security (BIS) has implemented new export controls on advanced technologies, including semiconductor, quantum, and additive manufacturing items, for national security and foreign policy reasons. This regulatory update introduces new Export Control Classification Numbers (ECCNs) to the Commerce Control List (CCL), revises existing ECCNs, and establishes new license exceptions and worldwide license requirements. This interim final rule is effective from September 6, 2024. These controls are the product of extensive discussions with international partners.
Key changes
1. New eccns and revisions
- New ECCNs Added: 2B910, 2D910, 2E903, 2E910, 3A901, 3A904, 3B903, 3B904, 3C907, 3C908, 3C909, 3D901, 3D907, 3E901, 3E905, 4A906, 4D906, and 4E906.
- Revised ECCNs: 2E003, 3A001, 3B001, 3C001, 3D001, 3D002, 3E001, 4D001, and 4E001.
2. New reasons for control:
- National Security (NS): Worldwide control for specified items.
- Regional Stability (RS): Worldwide control for specified items.
3. License exceptions
- License Exception IEC: Authorizes exports and reexports to specified destinations with equivalent technical controls. Eligible items and destinations are detailed in the License Exception IEC Eligible Items and Destinations document, available on the BIS website.
Impact on stakeholders
- Exporters and Reexporters: Must review and update compliance programs to align with the new ECCNs and license requirements.
- Technology Developers: Should assess the impact of deemed export controls on hiring practices and R&D activities, particularly for quantum computing and semiconductor technologies.
- International Partners: Countries with equivalent technical controls may benefit from the new License Exception IEC, facilitating collaboration and innovation.
Reporting requirements
- Annual Reporting for GAAFET and Quantum Technologies: Entities must submit annual reports for exports, reexports, and transfers authorized under the General License. The first report is due 60 days after the publication date, with subsequent reports due annually.
- Termination Reports: Entities must report the termination of employment for foreign persons with access to specified technologies within 30 days of the termination.
Conclusion
In this IFR, BIS is implementing worldwide export controls on specific types of items, including:
- Quantum Computing Items: quantum computers, related equipment, components, materials, software, and technology that can be used in the development and maintenance of quantum computers.
- Advanced Semiconductor Manufacturing Equipment: tools and machines that are essential for the production of advanced semiconductor devices.
- Gate All-Around Field-Effect Transistor (GAAFET) Technology: technology that produces or develops high-performance computing chips that can be used in supercomputers.
- Additive Manufacturing Items: equipment, components and related technology and software designed to produce metal or metal alloy components.
These regulatory updates reflect the U.S. commitment to harmonizing export controls with international partners to protect national security and advance foreign policy objectives. Clients are encouraged to review the detailed ECCNs and ensure compliance with the new controls and reporting requirements.
Since this is an interim final rule, the BIS is requesting comments on the new regulations and their potential impacts. Please submit your comments through the Federal rulemaking portal at www.regulations.gov, referencing RIN 0694–AJ60. The deadline for submissions is November 5, 2024.
For more information on how ONESOURCE Global Trade solutions can assist you in managing sanctions and export controls, please contact your Account Manager or Client Services Manager.