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Commerce Regulatory Agenda Includes Proposal for Chip Control Exclusion

The Commerce Department published its fall 2023 regulatory agenda for the Bureau of Industry and Security, including proposed rules involving its export controls for semiconductors and semiconductor equipment.

One new rule would request public comments on certain exclusion notes for certain integrated circuits currently controlled under the Commerce Control List. BIS said it’s preparing to propose two new exclusion notes to two Export Control Classification Numbers “that would exclude certain integrated circuits that would otherwise be within the scope” of those ECCNs. The agency said their technical characteristics, along with the “types of items they are used in,” might justify an exclusion. BIS is hoping to issue the rule in March.

The agenda also newly mentions a final rule involving its Oct. 7, 2022, China-related chip controls and its updated controls released Oct. 17, 2023 (see 2310170055). The rule is expected in January. BIS recently extended the public comment deadline for the two China-related chip export control rules released in October (see 2312120055) and said it also plans to release a rule tweaking both of those rules in January (see 2312120055).

Another new final rule could make changes to export and reexport controls under the Export Administration Regulations for Nicaragua. BIS said the changes would make its export regulations “consistent with U.S. policy.” The agency expects to issue the rule in March.

The agenda also mentions a new proposed rule, expected this month, to make revisions to License Exception APR (Additional Permissive Reexports).

Another notable proposed rule could amend the agency's "600 series" items to better "clarify" the restrictions that apply to items related to military vehicles, vessels of war, submersible vessels, oceanographic equipment and auxiliary and miscellaneous military equipment. That rule is expected in June.

Another proposal would update and clarify certain provisions in License Exception AVS (Aircraft, Vessels and Spacecraft). BIS is hoping to issue the rule in February.

Agenda Highlights

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

Proposed Rule Stage
License Exception AVS Updates and Clarifications
Restrictions on Shipments to Aircraft and Vessels or to Installations and Facilities Located in International or Foreign Waters or in Antarctica
Commerce Control List: Amendments to Controls Related to Military Vehicles, Vessels of War, Submersible Vessels, Oceanographic Equipment, and Auxiliary and Miscellaneous Military Equipment
Commerce Control List Changes due to Revisions to Categories V, X and XI of the U.S. Munitions List (USML)
Review of Commerce Control List for Items Transferred From United States Munitions List Categories IV and XV
Section 1758 Technologies: Proposed Controls; Request for Comments
Revision to Country Groups
Proposed Amendments to End-Use and End-User Based Export Controls, Including U.S. Persons Activities Controls, and Human Rights Controls
Request for Comments Concerning the Imposition of Export Controls on Certain Brain-Computer Interface (BCI) Emerging Technology
Crime Controls for Human Rights Concerns on the Commerce Control List
Chemical Weapons Convention Regulations: Mandatory Electronic Submission of Declarations, Reports, and Amendments through the Web-Data Entry System for Industry (Web-DESI)
*Proposed Exclusion Notes for Certain Integrated Circuits
*Allied Governments Favorable Treatment: Proposed Revisions to License Exception Additional Permissive Reexports
*Proposed Enhancements and Simplification of License Exception Strategic Trade Authorization (STA)
*Taking Additional Steps to Address the National Emergency With Respect to Significant Malicious Cyber-Enabled Activities
Final Rule Stage
Export Administration Regulations: Corrections and Clarifications
Updated Statements of Legal Authority for the Export Administration Regulations
Modification of License Exception Additional Permissive Reexports (APR)
Additional Protocol Regulations: Establishment of a Mandatory Electronic Submission Requirement for Reports
Authorization of Certain "Items" to Entities on the Entity List in the Context of Specific Standards Activities
Export Administration Regulations: Corrections and Clarifications
Commerce Control List: Amendments to Reflect Updates to the Australia Group Common Control Lists
Export Administration Regulations: Implementation of Wassenaar Arrangement 2023 Plenary Agreements
Revision of Licensing Requirements of Certain Cameras, Systems, or Related Components
Clarifications of Availability and Expansion of Restrictions on Availability of License Exception Strategic Trade Authorization Under the Export Administration Regulations
Export Administration Regulations: Corrections and Clarifications
Revisions to the Export Administration Regulations Based on 2018, 2019, 2021, and 2022 Missile Technology Control Regime Plenary Agreements; Revisions to License Exception Eligibility
Imposition of Restrictions on Exports, Reexports and Transfers (In-Country) to Persons Whose Property and Interests in Property are Blocked Pursuant to Executive Order 14024
Section 1758 Technology Export Controls on Instruments for the Automated Chemical Synthesis of Peptides
Implementation of Additional Export Controls: Certain Advanced Computing Items and Semiconductor Manufacturing Items; Supercomputer and Semiconductor End Use; Updates to the Controls and Corrections
Implementation of 2022 Wassenaar Arrangement Decisions
Additions of Entities to the Entity List
Additions of Entities to the Entity List
Additions to the Entity List
Corrections to the EAR
*Export Controls on Semiconductor Manufacturing Items; Entity List Modifications
*Revisions to Certain Australia Group Controls and Reasons for Control
*Revisions to Export and Reexport Controls under the Export Administration Regulations: Nicaragua