BIS Clarifies Controls for Certain Circuits Exported Under Gov’t Contracts

A new rule released by the Bureau of Industry and Security clarifies certain export controls on radiation hardened integrated circuits -- including computer and telecommunications equipment using those circuits -- and expands the availability for a license exception that can be used to export certain microelectronics under contracts with the U.S. government.

BIS said the interim final rule, effective March 13, is partly meant to “remove export control obstacles” involving “official business” of the government, including the Defense and Energy departments. The agency is accepting public comments on the changes through April 12.

The revisions and clarifications are meant to better support the Pentagon’s Strategic Radiation Hardened Electronics Council, a body that helps make sure the government has enough access to certain electronics. The 26-page rule amends the Export Administration Regulations to “clarify the scope of controls” on radiation hardened integrated circuits, including certain equipment “incorporating such radiation hardened integrated circuits,” BIS said. It also “addresses certain scenarios” involving circuits that are “acquired, tested, or otherwise used” by or for the U.S. government, and “affirms the availability” of License Exception GOV, which authorizes certain exports to employees and agencies of the U.S. government.

BIS also is expanding how License Exception GOV can be used for certain microelectronics exports that are “in furtherance of a contract” with the U.S. government. “This change will remove the obstacle of obtaining export authorization that currently hinders contract performance work in producing microelectronics items subject to the EAR by, for or at the direction of USG, where some exports, reexports or transfers (in-country) between onshore and offshore ‘development’ or ‘production’ partners may transpire,” the rule said.

The rule also revises language governing certain integrated circuits acquired by the U.S. government, which BIS said will give industry more guidance about “the classification” of those circuits when the government is involved in the "fabrication" of the integrated circuit, "such as testing or modification requests.” BIS said it added “two example scenarios to help the public understand the provisions of this new paragraph."

The agency said it’s expecting “the burden hours associated with these” changes to remain unchanged “because the revisions in this rule are intended to preempt future licensing delays and volume” faced by the government and contractors “rather than address current license application burden.”