BIS Advisory Group Drafting Papers on FDP Rule, Chip Controls Challenges

June 21, 2024 by Ian Cohen|Export Controls

A government technical advisory committee is working on two reports about compliance challenges posed by the Bureau of Industry and Security's foreign direct product rule and its semiconductor export controls.

A member of the BIS Regulations and Procedures Technical Advisory Committee said during a meeting this week that one report will cover “areas that need to be refined” within the FDP rule, which places export license restrictions on certain foreign-made items that are made with U.S.-origin software or technology. The report will discuss various “interpretive issues,” a lack of “adequate guidance” and ”diligence limitations,” the RPTAC member said.

The other paper will ask BIS to clarify “certain areas” of its recently updated chip controls (see 2310170055 and 2404010020), including through potential guidance. “There's some ambiguity there that we feel like needs to be addressed,” the person said.

The RPTAC plans to present both papers to BIS.