Workshop A — Updating Compliance Around the Evolving Advanced Computing and Semiconductor Rule: Demystifying October 2023 Rule Updates, TGLs, Impacted ICs and Gap Analysis

Nov 12, 2024 9:00 am – 12:30 pm

Nathaniel B. Bolin
Partner
K&L Gates LLP

Hector Rivera
Senior Director, Export and Sanctions Compliance
Qualcomm Technologies Inc.

Workshops are offered In-Person only


  • Updating licensing requirements for items controlled under ECCNs 5A002, -992, 3A090 and .z
  • 5A002.z or 5D002.z
    • All license requirements for 5A002 and 5D002 applies to 5A002.z and 5D002.z under NS1, AT1 and EI controls
    • New RS control (§ 742.6(a)(6)(iii)): Additional license requirements for Group D:1, D:4 and D:5 (excluding any destination also specified in Country Group A:5 or A:6) countries
  • 5A992.z or 5D992.z
    • New RS control (§ 742.6(a)(6)(iii): Additional license requirements for Group D:1, D:4 and D:5 (excluding any destination also specified in Country Group A:5 or A:6) countries
    • NAC/ACA license exception eligibility
  • Category 5 Part 2.z Licensing Policy
    • Presumption of denial
    • Presumption of approval
    • Case-by-Case license review
  • Restrictions on US persons activities:
    • All support for Advanced-Node IC requires an US export license
    • Any engagement with a Chinese facility which has the manufacturing capability described in the Advance-Node Integrated Circuits requires an export license regardless the engagement with the facility
  • Chipset Controls: Understanding the ECCNs
    • 3A090.a.1(TPP 4800+) always controlled to D:1/D:4/D:5 and Macau/D:5 HQ’d companies, wherever located
    • 3A090.a.2 (TPP<4800) controlled where designed/marketed for datacenter use. Otherwise, excluded from control for non-datacenter
    • 3A090.b controlled for datacenter use for D:1/D:4/D:5 and Macau/D:5 HQ’d companies, wherever located. Non-datacenter use excluded from control
  • Temporary General License
    • Production versus R&D; development of the chipsets themselves.
    • Internal terminology: “validation,” “engineering,” “platform development.”
    • Are there implications in the omissions?
    • Language and translation challenges
    • Testing control tools: Is test and validation a separate restricted end use? – Ultimately end use is out of China
  • Compliance Implementation and Practices
    • Determining what is restricted: Focus areas
      • Sales restrictions
      • Sales education
      • Factory operations
      • Consumer
  • Implications of BIS Guidance that Consumer products are not a priority