BIS Clarifies Notification And Licensing Requirements For Updated Semiconductor, Advanced Computing Export Controls

On December 29, 2023, the Commerce Department's Bureau of Industry and Security (BIS) issued Frequently Asked Questions (FAQs) concerning the agency's recently updated semiconductor and advanced computing export controls. In addition to technical commentary, the FAQs offer important guidance on understanding and navigating BIS's new notification and licensing requirements.

Notably, these FAQs curb any assumption that transactions eligible for the Notified Advanced Computing (NAC) license exception will enjoy routine authorization at the end of the 25-day review period. BIS intends to review notified transactions for national security concerns, and, where such concerns arise, will still require a specific license even if the advanced computing item under review satisfies the parameters set out under NAC eligibility requirements. BIS's national security assessment may be based on a number of factors "including the type of item, quantity, and the end user/end use."