BIS Regulatory Agenda Includes Plans to Finalize New China Chip Controls in March

The Commerce Department published its fall 2022 regulatory agenda for the Bureau of Industry and Security, including one new rule that will finalize new chip export controls against China and others that could revise chemical weapons reporting requirements, the Export Administration Regulations and the Entity List.

BIS mentioned a new final rule to finalize its October interim final rule that introduced a broad set of new export controls to restrict China’s ability to acquire advanced computing chips and manufacture advanced semiconductors (see 2210070049). A BIS official in December said the agency planned to issue a final version of the rule after reviewing public comments and potentially making some changes (see 2212140038), although Undersecretary Alan Estevez said he expects any revisions to be minor (see 2212060059). The comment period for the interim final rule ends Jan. 31 (see 2212050068), and the agency plans to issue the final rule in March.

The agenda also mentioned a new proposed rule that could create a “mandatory electronic submission requirement” for annual declarations, reports and amendments under the Web-Data Entry System for Industry (Web-DESI) for the Chemical Weapons Convention Regulations. This requirement would also apply to “submissions of the No Changes Authorization Form and Change in Inspection Status Form under the CWCR provisions that describe the declaration requirements applicable to the production by synthesis of unscheduled discrete organic chemicals (UDOCs),” BIS said. “The Web-DESI mandatory electronic submission requirement would not apply in certain situations in which BIS would authorize paper submissions of declarations, reports, and amendments.” Electronic submissions also wouldn’t be required for “advance notifications of exports and imports of Schedule 1 chemicals (to, or from, other States Parties) or to reports of inspection-related costs.”

BIS also mentioned several new rules that will make changes to the EAR. One final rule, expected in March, will revise the regulations to “protect U.S. national security and foreign policy interests.” Another final rule to update the EAR is expected in May, while a third final rule, which was expected in December, will update the list of countries imposing “substantially similar export controls” on Russia and Belarus. Those countries are exempt from certain licensing requirements under the foreign direct product rule for Russia and Belarus.

The agency also made several new mentions of rules that are expected to revise and update the Entity List and Unverified List. One final rule, which was due in December, will add new entities to the Entity List and designate a new entity as a military intelligence end-user. Other final rules, due this month and in February, will also add new entities to the Entity List. Another final rule, expected this month, will make changes to the UVL.

Agenda Highlights

Highlights of the BIS rulemakings that are at the pre-rule, proposed or final stages are below. New items are marked with an asterisk (*).