`[Federal Register Volume 90, Number 9 (Wednesday, January 15, 2025)]
[Rules and Regulations]
[Pages 4544-4584]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-00636]



[[Page 4543]]

Vol. 90

Wednesday,

No. 9

January 15, 2025

Part XI





 Department of Commerce





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 Bureau of Industry and Security





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15 CFR Parts 732, 734, 740, et al.





Framework for Artificial Intelligence Diffusion; Interim Final Rule

  Federal Register / Vol. 90, No. 9 / Wednesday, January 15, 2025 / 
Rules and Regulations  

[[Page 4544]]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 732, 734, 740, 742, 744, 748, 750, 762, 772, and 774

[Docket No. 250107-0007]
RIN 0694-AJ90


Framework for Artificial Intelligence Diffusion

AGENCY: Bureau of Industry and Security, Department of Commerce.

ACTION: Interim final rule; request for comments.

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SUMMARY: With this interim final rule, the Commerce Department's Bureau 
of Industry and Security (BIS) revises the Export Administration 
Regulations' (EAR) controls on advanced computing integrated circuits 
(ICs) and adds a new control on artificial intelligence (AI) model 
weights for certain advanced closed-weight dual-use AI models. In 
conjunction with the expansion of these controls, which BIS has 
determined are necessary to protect U.S. national security and foreign 
policy interests, BIS is adding new license exceptions and updating the 
Data Center Validated End User authorization to facilitate the export, 
reexport, and transfer (in-country) of advanced computing (ICs) to end 
users in destinations that do not raise national security or foreign 
policy concerns. Together, these changes will cultivate secure 
ecosystems for the responsible diffusion and use of AI and advanced 
computing ICs.

DATES: 
    Effective date: This rule is effective January 13. 2025.
    Compliance date: As explained in the SUPPLEMENTARY INFORMATION 
section, exporters, reexporters, and transferors are not required to 
comply with the changes made in this rule until May 15, 2025, except 
that paragraphs 14, 15, and 18 of supplement no. 10 to part 748 have a 
delayed compliance date of January 15, 2026.
    Comment due date: Comments on revisions and additions in this rule 
are strongly encouraged and must be received by BIS no later than May 
15, 2025.
    Saving clause: Shipments of items removed from eligibility for a 
License Exception or export, reexport, or transfer (in-country) without 
a license (NLR) as a result of this regulatory action that were en 
route aboard a carrier to a port of export, reexport, or transfer (in-
country), on May 15, 2025, pursuant to actual orders for export, 
reexport, or transfer (in-country) to or within a foreign destination, 
may proceed to that destination under the previous eligibility for a 
License Exception or export, reexport, or transfer (in-country) without 
a license (NLR), provided the export, reexport, or transfer (in-
country) is completed no later than on June 16, 2025.

ADDRESSES: Comments on this rule may be submitted to the Federal 
rulemaking portal (www.regulations.gov). The regulations.gov ID for 
this rule is: BIS-2025-0001. Please refer to RIN 0694-AJ90 in all 
comments.
    All filers using the portal should use the name of the person or 
entity submitting the comments as the name of their files, in 
accordance with the instructions below. Anyone submitting business 
confidential information should clearly identify the business 
confidential portion at the time of submission, file a statement 
justifying nondisclosure and referring to the specific legal authority 
claimed, and provide a non-confidential version of the submission.
    For comments submitted electronically containing business 
confidential information, the file name of the business confidential 
version should begin with the characters ``BC.'' Any page containing 
business confidential information must be clearly marked ``BUSINESS 
CONFIDENTIAL'' on the top of that page. The corresponding non-
confidential version of those comments must be clearly marked 
``PUBLIC.'' The file name of the non-confidential version should begin 
with the character ``P.'' Any submissions with file names that do not 
begin with either a ``BC'' or a ``P'' will be assumed to be public and 
will be made publicly available through https://www.regulations.gov. 
Commenters submitting business confidential information are encouraged 
to scan a hard copy of the non-confidential version to create an image 
of the file, rather than submitting a digital copy with redactions 
applied, to avoid inadvertent redaction errors which could enable the 
public to read business confidential information.

FOR FURTHER INFORMATION CONTACT: 
    For general questions contact: Hillary Hess at 202-482-2440 or 
[email protected].
    For technical questions contact:
    Category 2: Sean Ghannadian at 202-482-3429 or 
[email protected].
    Category 3: Carlos Monroy at 202-482-3246 or 
[email protected].
    Category 4: Aaron Amundson at 202-482-0707 or 
[email protected]].

SUPPLEMENTARY INFORMATION:

I. Background

    BIS is amending the EAR to enhance and refine its framework for 
applying export controls to regulate the global diffusion of the most 
advanced artificial intelligence (AI) models and large clusters of 
advanced computing integrated circuits (ICs) to protect U.S. national 
security and foreign policy interests. Specifically, BIS is expanding 
existing controls on advanced computing ICs controlled under ECCNs 
3A090.a and 4A090.a and the corresponding .z items and imposing new 
controls on the model weights of certain advanced closed-weight dual-
use AI models controlled under newly created ECCN 4E091. Background on 
these changes, which follow extensive U.S. government consideration of 
the impact of advanced dual-use AI models on U.S. national security and 
foreign policy interests, is detailed below.
    The Export Control Reform Act of 2018 (ECRA), 15 U.S.C. 4801, et 
seq., emphasizes that national security ``requires that the United 
States maintain its leadership in the science, technology, engineering, 
and manufacturing sectors, including foundational technology that is 
essential to innovation.'' ECRA also commands that BIS's rules be 
``transparent, predictable, and timely,'' and have ``the flexibility to 
be adapted'' in light of evolving circumstances. Given that this rule 
imposes new global requirements on a rapidly developing industry that 
is central to innovation, BIS has determined that it can best further 
the United States's technological leadership, and provide transparency 
and predictability to affected stakeholders, by delaying the compliance 
date of this rule, as outlined in the DATES section. Such delay will 
allow stakeholders time to familiarize themselves with the rule, and to 
provide comment on it, before compliance is required.

a. Risks and Benefits of Advanced AI Models

    Over the past decade, AI models have shown striking performance 
improvements across many domains, including reasoning, coding, and 
image and voice recognition and creation. These performance 
improvements create numerous direct applications, such as text 
generation and computer code-assistance, and can increasingly support 
AI agents that are able to interact with digital and physical systems, 
increasing the ability of laypeople to, for example, write code or use 
scientific tools that previously required specialized skills.

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Performance improvements may continue as AI developers increase the 
scale and efficiency of their models.
    Experts from across the U.S. government have determined that as the 
capabilities of these models continue to improve, they will enable 
malicious actors to engage in activities that pose profound risks to 
U.S. national security and foreign policy objectives. As the Office of 
the Director of National Intelligence has assessed, AI models have the 
potential to enable advanced military and intelligence applications; 
lower the barriers to entry for non-experts to develop weapons of mass 
destruction (WMD); support powerful offensive cyber operations; and 
assist in human rights violations, such as through mass surveillance. 
See Feb 5, 2024, Office of the Director of National Intelligence, 
Annual Threat Assessment of the U.S. Intelligence Community. For 
example, a dual-use AI model trained on data describing the functions 
and mechanics of chemical compounds or biological sequences could lower 
barriers to the development of chemical or biological weapons by 
providing protocols and troubleshooting information that would enable 
non-experts to design and produce such weapons at low cost. Similarly, 
the Department of Homeland Security has determined that advancements in 
AI may lower the barriers to entry for WMD development for both state 
and non-state actors and thus enhance malicious actors' ability to 
conduct attacks that threaten U.S. national security. See April 26, 
2024, Department of Homeland Security Report on Reducing the Risks at 
the Intersection of Artificial Intelligence and Chemical, Biological, 
Radiological, and Nuclear Threats.
    At the same time, experts from across the U.S. government have 
determined that, in the hands of validated entities operating under 
secure conditions, dual-use AI models have the potential to create 
significant economic and social benefits in the United States and 
across the globe. As BIS explained in a previous rule, dual-use AI 
models hold the potential to increase access to healthcare, education, 
and food and assist with combatting complex problems such as climate 
change. See Expansion of Validated End User Authorization: Data Center 
Validated End User Authorization, 89 FR 80,080 (Oct. 2, 2024). For 
example, under the right conditions, advanced AI models could be an 
enabler toward achieving Sustainable Development Goals, such as by 
boosting productivity in the pharmaceutical industry, strengthening 
climate resilience by improving climate modelling, and helping expand 
access to education by providing personalized tutors in a wide range of 
subjects. The United States is committed to the full implementation of 
the 2030 Agenda for Sustainable Development and Sustainable Development 
Goals.
    In other words, advanced AI models both pose unique threats to U.S. 
national security and foreign policy and have the potential to unlock 
unique economic and social benefits. As President Biden explained in 
remarks made to the United Nations General Assembly on September 24, 
2024, AI will transform ``our ways of life, our ways of work, and our 
ways of war.'' As well as profound benefits, President Biden noted, AI 
brings ``profound risks,'' from ``disinformation to novel pathogens to 
bioweapons.'' President Biden's National Security Memorandum on 
Advancing the United States' Leadership in Artificial Intelligence; 
Harnessing Artificial Intelligence to Fulfill National Security 
Objectives; and Fostering the Safety, Security, and Trustworthiness of 
Artificial Intelligence, issued on October 24, 2024, similarly 
explained the promise and perils of AI. ``AI,'' it stated, ``if used 
appropriately and for its intended purpose, can offer great benefits. 
If misused, AI could threaten United States national security, bolster 
authoritarianism worldwide, undermine democratic institutions and 
processes, facilitate human rights abuses, and weaken the rules-based 
international order.'' Importantly, such ``harmful outcomes could occur 
even without malicious intent if AI systems and processes lack 
sufficient protections.''

b. AI Diffusion Policy Review

    Recognizing both the benefits and the risks of advanced AI models, 
the Department of Commerce (Commerce) has engaged in an extensive and 
ongoing policy process with partners across the U.S. Government to 
consider strategic, tailored, and effective controls on the diffusion 
of advanced AI technology to entities and destinations around the 
world. In October 2022, BIS imposed a first set of controls to certain 
destinations with the aim of preventing certain foreign military and 
intelligence services from obtaining the ability to indigenously 
develop advanced weapons modeling and advanced AI capabilities, by 
imposing restrictions on their access to advanced computing ICs and 
certain semiconductor manufacturing equipment (SME) used to manufacture 
advanced computing ICs and other advanced-node ICs. BIS determined that 
those foreign military and intelligence services would use advanced AI 
to improve the speed and accuracy of their military decision making, 
planning, and logistics, as well as their autonomous military systems, 
such as those used for cognitive electronic warfare, radar, signals 
intelligence, and jamming. See Implementation of Additional Export 
Controls: Certain Advanced Computing and Semiconductor Manufacturing 
Items; Supercomputer and Semiconductor End Use; Entity List 
Modification, 87 FR 62,186 (Oct. 13, 2022). BIS also determined that 
those military and intelligence services would use advanced AI 
surveillance tools, enabled by efficient processing of huge amounts of 
data, to monitor, track, and surveil citizens, among other purposes, 
without regard for human rights. See id. Accordingly, BIS controlled 
both the advanced computing ICs and the SME used to manufacture the 
controlled ICs.
    Since then, BIS has continuously evaluated and updated BIS's 
controls to ensure that they remain as targeted and effective as 
possible to protect U.S. national security and foreign policy In 2023, 
BIS updated the technological parameters on its advanced computing 
controls and broadened the scope of destinations to which those 
controls apply to cover countries of concern not captured by the 2022 
controls. BIS also imposed worldwide license requirements for advanced 
computing ICs and certain semiconductor end-uses when conducted on 
behalf of entities headquartered in Country Group D:5 or Macau. In 
2024, BIS made clarifications to the scope of the AI and SME controls 
and, recognizing the importance of facilitating the responsible 
diffusion of advanced AI technology, expanded Authorization Validated 
End User (VEU) to enable data centers to receive VEU authorizations, 
which allow entities in locations subject to license requirements to 
receive controlled items through a streamlined process subject to 
security conditions. BIS's work in this area is consistent with U.S. 
foreign policy to support global development.
    Over the past year, BIS has engaged with national security and 
foreign policy experts from across the U.S. Government--including 
interagency export control partners in the Departments of Defense, 
Energy, and State, as well as the Intelligence Community--to study 
whether and how additional controls on advanced AI technologies would 
advance U.S. national security and foreign policy. As explained below, 
they began by studying the risks and benefits that would arise if the 
most advanced AI models or the items necessary for developing them were 
allowed to diffuse through destinations across the

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world. Simultaneously, they engaged with technical experts to 
understand the most effective means for controlling the diffusion of 
those items to address the risks. This rule details a multi-part 
control structure aiming to both reduce the risk that countries of 
concern (Country Group D:5 and Macau) obtain the most advanced AI 
models and enable validated entities to access the benefits of those 
models, while protecting national security.
i. Impact of AI Diffusion on National Security and Foreign Policy
    The proliferation of advanced AI models throughout the world will 
affect U.S. national security and foreign policy interests in three 
fundamental ways.
    First, exporting advanced AI models, or the means to produce them, 
to any destination outside the United States increases the risk of 
theft or diversion to countries and end users of concern. Although the 
degree of risk varies between different destinations and end users, 
there is risk even when the end user is a validated entity and the 
destination is a U.S. ally with a robust export control system. These 
risks may be most acute at the constantly advancing frontier of AI 
development--the largest and most advanced models available at any 
given time.
    Second, it will be impossible to realize the full economic and 
social benefits of advanced AI models unless validated entities outside 
the United States are able to obtain large quantities of advanced 
computing ICs or advanced AI models themselves. Such entities may be 
able to discover beneficial applications that U.S. firms alone will 
not, and they may increase the likelihood that the benefits of advanced 
AI models reach people across the world. The Export Control Reform Act 
of 2018 (ECRA) states that export controls should be ``tailored to 
focus on those core technologies . . . capable of being used to pose a 
serious national security threat to the United States,'' so BIS 
considered the need to appropriately tailor potential controls to 
address national security concerns without unduly burdening the 
economic and social benefits of access by foreign entities to advanced 
AI models and advanced computing ICs. 50 U.S.C. 4811(2)(G) and (5). In 
cases in which such entities are located in destinations that present a 
risk of diversion or misuse, BIS and its interagency export control 
partners can account for that risk with appropriate mitigation 
measures.
    Third, U.S. national security requires that the United States 
maintain technological leadership in the global AI industry. 
Specifically, ECRA notes that maintaining technological leadership is a 
core national security interest and that the impact of export controls 
on technology leadership must be continuously evaluated (50 U.S.C. 
4811(3)). BIS has determined that to maintain U.S. leadership in the 
field of AI, U.S. developers of advanced AI models may need to build 
large clusters of advanced computing ICs outside the United States. 
They may also need to store their models at facilities abroad to ensure 
that they can provide high quality services to validated foreign 
customers.
    Therefore, BIS determined that U.S. national security and foreign 
policy require the regulation of the global diffusion of advanced AI 
models. However, such controls must be tailored to enable economically 
and socially beneficial uses of advanced AI models and to maintain U.S. 
technological leadership as described above.
ii. Means for Responsibly Controlling AI Diffusion
    AI models are software programs that comprise a series of 
mathematical operations. When a user enters data into the program, the 
program executes those operations on the input data to produce 
outputs--information, analysis, or media. The design of these 
operations and their arrangement (known as the model's architecture) 
determines the nature and quality of the model's outputs.
    The first step in developing an AI model is to design the model's 
architecture and write it into computer code. However, the initial 
structure does not transform inputs into meaningful outputs. This means 
that before the model has been exposed to a high volume of real-world 
data, its outputs will be largely meaningless.
    The next step is to ``train'' the model. Training involves feeding 
large quantities of data into the model while using optimization 
algorithms to evaluate the quality of the program's outputs and improve 
its performance. These algorithms systematically adjust numerical 
parameters called ``model weights'' that weight the results of certain 
operations more or less heavily than others. As the training 
progresses, these weights are gradually optimized to allow the model to 
produce higher quality outputs for its intended tasks. The weights that 
result from the training process are valuable intellectual property, 
because basic model architectures and supporting code are often either 
publicly documented or subject to reverse engineering through a process 
that may be significantly easier than training a new set of model 
weights.
    Training today's most advanced AI models, including Large Language 
Models (LLMs), requires large clusters of advanced computing ICs 
capable of handling large quantities of data and models containing 
large numbers of parameters. Progress in AI models has resulted partly 
from dramatic increases in the computing power and training data used 
to develop the largest AI models. Leading AI developers have increased 
the computing power and data used to produce their largest models by 
many orders of magnitude over the last decade and continue to increase 
their scale by several multiples each year. By the end of this decade, 
leading AI developers plan to construct clusters of advanced ICs many 
times larger than those that exist today to train AI models using many 
times more computational operations than the largest AI models yet 
released.
    The structure of AI models and these industry trends suggest that 
export controls can effectively regulate the global diffusion of 
advanced AI models through: (1) an expansion of existing controls on 
the export, reexport, and transfer (in-country) of advanced computing 
ICs that are necessary to construct large clusters for training 
advanced AI models; and (2) new controls on the export, reexport, and 
transfer (in-country) of the model weights of the most advanced AI 
models.
iii. Framework for the Diffusion of Advanced AI Technologies
    This rule details a tailored strategic approach to controlling the 
proliferation of advanced AI models. At a high level, this strategy 
aims to ensure that the model weights of the most advanced U.S. AI 
models are stored outside the United States only under stringent 
security conditions and the large clusters of advanced ICs necessary to 
train those models are built in destinations that pose comparatively 
low risks of diversion or misuse.
    This rule requires a license to export, reexport, or transfer (in-
country) advanced computing ICs or the model weights of the most 
advanced AI models to any end user in any destination. The U.S. 
Government will review applications for such exports, reexports, and 
transfers (in-country) based on the sensitivity of the destination, the 
quantity of compute power or performance of the AI model, and the 
security requirements agreed to by the recipient. This global licensing 
requirement is crucial to ensuring that these items are not diverted to

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destinations or end users of concern. Credible open-source reporting 
has identified People's Republic of China (PRC) companies that have 
used foreign subsidiaries in a range of uncontrolled destinations to 
buy ICs subject to EAR controls. The risk is even greater with AI model 
weights, which, once exfiltrated by malicious actors, can be copied and 
sent anywhere in the world instantaneously. Accordingly, U.S. national 
security and foreign policy require that BIS scrutinize any transaction 
involving a destination or end user that presents an elevated risk of 
diversion or misuse. To reinforce this general requirement, BIS will 
set a licensing policy of a presumption of denial for certain large 
quantities of advanced computing ICs needed to train advanced AI 
models. For destinations and end users that present a comparatively low 
risk of diversion or misuse, a global licensing requirement will enable 
BIS to impose conditions that reduce the overall risk. A global 
licensing requirement is the most effective way to ensure that BIS can 
address the various risks associated with exporting large quantities of 
advanced computing ICs and the model weights of the most advanced AI 
models.
    To help ease the burden on destinations and end users that pose a 
comparatively low risk of diversion or misuse and to facilitate 
economically beneficial activities, BIS is including flexibility within 
its global licensing requirements. For example, BIS will provide 
license exceptions--conditioned on compliance with certain security 
measures--for validated end users or particularly low-risk 
destinations. BIS will also provide a mechanism for other end users in 
other destinations to achieve validated status, which will allow them 
to obtain advanced computing ICs more easily. Additionally, consistent 
with its general practice, BIS will not require a license for the 
export of the model weights of open-weight models (see July 30, 2024, 
Dual-Use Foundation Models with Widely Available Model Weights Report, 
National Telecommunications and Information Administration). These 
elements of the strategy will ensure that BIS's controls address only 
the starkest risks identified at the frontier of AI development and do 
not affect the vast majority of AI technology. This is consistent with 
ECRA's policy goals, which direct BIS to restrict the export of items 
that would ``make a significant contribution to the military potential 
of any other country or combination of countries which would prove 
detrimental to the national security of the United States'' while 
simultaneously maintaining U.S. ``leadership in the science, 
technology, engineering, and manufacturing sectors, including 
foundational technology that is essential to innovation.'' 50 U.S.C. 
4811(3).
    As a third and final part of the strategy, BIS will impose security 
conditions to safeguard the storage of the most advanced models in 
destinations that pose heightened risks of diversion and to mitigate 
the risk of diversion for advanced ICs. Such conditions will protect 
U.S. national security by ensuring that where advanced models are 
stored, and large IC clusters are built, outside the United States, 
they are safeguarded from diversion or misuse.
    As explained further below, BIS is implementing this three-part 
strategy by:
    (1) adding a new control for AI model weights under new Export 
Control Classification Number (ECCN) 4E091;
    (2) revising the license requirements and review policy for ECCNs 
3A090.a, 4A090.a, and corresponding .z items;
    (3) expanding the country scope of License Exception Advanced 
Computing Authorized (ACA);
    (4) adding new License Exceptions Artificial Intelligence 
Authorization (AIA), Advanced Compute Manufacturing (ACM), and Low 
Processing Performance (LPP) that apply to advanced computing 
integrated circuits, AI model weights, and related items;
    (5) adding new red flag guidance related to AI model weights;
    (6) bifurcating the Data Center Validated End-User Authorization 
into Universal and National Validated End-User Authorizations; and
    (6) updating License Exception Notified Advanced Computing (NAC) 
notification procedures to improve its efficiency.
    Ultimately, ensuring the staged, responsible diffusion of advanced 
AI in these ways has several benefits. First, it reduces the risk that 
countries or end users of concern obtain the most advanced AI models or 
the ability to develop them. Second, it will allow a fuller 
understanding of the risks posed by each generation of AI models and 
the development of safety mitigations before the most advanced model 
weights and largest IC clusters diffuse globally. Third, a highly 
focused scope on frontier AI will allow commerce in AI models and 
advanced ICs to continue largely unimpeded. And finally, a strategy 
that focuses on the physical locations of model weights and large 
clusters of advanced ICs will allow continued global access to the 
capabilities of even the most advanced AI models through structured 
mechanisms, including through user applications and application 
programming interfaces (APIs), for which this rule imposes no new 
restrictions.

II. Expanded Advanced Computing Integrated Circuit Controls

    As explained above, large clusters of advanced computing ICs are 
essential to the development of advanced AI models. Accordingly, BIS 
can reduce the risk that malicious state and non-state actors gain 
access to advanced AI models by imposing controls that allow exports, 
reexports, and transfers (in-country) of large quantities of advanced 
computing ICs only to certain destinations and end users. At the same 
time, BIS can ensure that destinations and end users that meet robust 
security and safety standards will be able to obtain large quantities 
of advanced computing ICs.
    Controls focused on the construction of large clusters of advanced 
computing ICs are a logical extension of BIS's previous controls, which 
have focused on the risk to U.S. national security and foreign policy 
from allowing even small numbers of advanced ICs, and associated SME, 
to be exported or reexported to certain destinations of concern. Those 
previous controls were based on BIS's determination that military and 
intelligence services in such destinations could use even small 
quantities of advanced computing ICs to further their military 
capabilities, contrary to U.S. national security and foreign policy 
interests. Accordingly, BIS imposed controls on these items in October 
2022 (87 FR 62186, October 13, 2022), October 2023 (88 FR 73458, 
October 25, 2023 and 88 FR 73424, October 25, 2023), and further 
clarified such controls in April 2024 (89 FR 23876, April 4, 2024). In 
October 2024, BIS expanded the Validated End-User (VEU) Authorization 
in Sec.  748.15 to facilitate the export of advanced computing ICs and 
related items to qualified data centers (89 FR 80080, October 2, 2024). 
Mostly recently, BIS updated these controls in December 2024 (89 FR 
96790, December 5, 2024).
    Specifically, in October 2022, BIS published an interim final rule 
(87 FR 62186) which made critical changes to the EAR in two areas. 
First, the rule imposed additional export controls on certain advanced 
computing ICs, computer commodities that contain such ICs, and certain 
SME and parts and components needed to produce those and other advanced 
ICs. Specifically,

[[Page 4548]]

the controls required a license before exporting or reexporting those 
items to the PRC or to certain entities on the Entity List (supplement 
no. 4 to part 744). BIS explained that these controls were aimed at 
limiting the PRC's ability to engage in activities that would pose 
significant threats to U.S. national security and foreign policy. 
Specifically, BIS found that certain advanced computing ICs and related 
computing items--many of which originated in the United States or were 
produced with U.S. technology, software, or tools--could enable the PRC 
to develop certain enhanced data processing and analysis capabilities, 
including through AI applications. Additionally, BIS found that the 
capability to produce advanced computing ICs through the use of certain 
SME presented significant national security and foreign policy 
concerns. These capabilities could be used by the PRC to further its 
military modernization efforts; to improve calculations in weapons 
design and testing, including for weapons of mass destruction (WMD); 
and to violate human rights through comprehensive surveillance 
programs.
    Thereafter, in October 2023, BIS broadened the scope of advanced 
computing controls to cover other destinations of concern (Country 
Groups D:1, D:4, and D:5). Similarly, BIS imposed worldwide license 
requirements for certain advanced computing ICs and specified 
semiconductor manufacturing and supercomputing end-uses when conducted 
on behalf of entities headquartered in, or with an ultimate parent 
company headquartered in, Macau or a destination in Country Group D:5. 
Due to the rapid nature of technological change in AI, BIS has been 
closely studying these developments and updating its rules accordingly 
to ensure that they remain as targeted and effective as possible.
    BIS has also modified its controls to facilitate the export of 
advanced computing ICs and related items to certain end users who agree 
to use those items in secure ecosystems. Specifically, in October 2024, 
BIS expanded the Validated End-User (VEU) Authorization in Sec.  748.15 
to expand Authorization VEU for data centers 89 FR 80080, October 2, 
2024. BIS explained that data centers are vital to global AI 
development, and that the United States is committed to facilitating 
international AI development in a way that minimizes risk to U.S. 
national security. Accordingly, BIS expanded Authorization VEU to 
facilitate the export or reexport of items necessary for a data center 
to preapproved validated end users in destinations (other than D:5 
countries) that require a license for items classified under ECCNs 
3A090.a, 4A090.a, and .z items in Categories 3, 4, and 5. The Data 
Center VEU Authorization adopted much of the framework of the existing 
Authorization VEU, with additional requirements appropriate for a data 
center environment.
    Effective December 2, 2024, BIS expanded controls on advanced 
computing ICs that could enable AI applications of national security 
concern, as well as the SME, software, and technology needed to produce 
such ICs. Specifically, BIS imposed new controls on certain high-
bandwidth memory (HBM) commodities, which are critical to AI training 
and inference at scale and a key component of advanced computing ICs. 
BIS also imposed controls on additional SME capable of producing 
advanced computing ICs (e.g., certain etch, deposition, lithography 
tools, etc.) and on software that can enhance the capabilities of such 
SME or can be used to design advanced computing ICs.
    These previous controls reflect BIS's determination--made in 
conjunction with experts from across the U.S. government--that the 
export of even small quantities of advanced computing ICs to specific 
destinations and end users of concern pose significant risks to U.S. 
national security and foreign policy interests. Having imposed controls 
that address those risks, BIS and its interagency partners have 
evaluated how sales of large quantities of advanced computing ICs to 
other destinations and end users affect U.S. national security and 
foreign policy. BIS has determined that it is necessary to restrict the 
export of quantities of advanced ICs sufficient to train such models in 
order to protect U.S. national security and foreign policy interests.
    To that end, this rule imposes a global license requirement for the 
export of advanced ICs classified under ECCNs 3A090.a, 4A090.a, and 
related .z items in Sec.  742.6(a)(6)(iii)(A), and then creates several 
exceptions and pathways to authorization to facilitate transactions 
that pose a low risk of diversion or would otherwise advance U.S. 
national security or foreign policy interests, including technological 
leadership. As noted elsewhere in this rule, these provisions also are 
consistent with U.S. foreign policy regarding global development.
    First, this rule creates an exception in new Sec.  740.27 for all 
transactions involving certain types of end users in certain low-risk 
destinations. Specifically, these are destinations in which: (1) the 
government has implemented measures to prevent diversion of advanced 
technologies, and (2) there is an ecosystem that will enable and 
encourage firms to use advanced AI models to advance the common 
national security and foreign policy interests of the United States and 
its allies and partners. Those destinations, which are listed in 
paragraph (a) to Supplement No. 5 to Part 740, are Australia, Belgium, 
Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the 
Netherlands, New Zealand, Norway, Republic of Korea, Spain, Sweden, 
Taiwan, the United Kingdom, and the United States. For these 
destinations, this IFR makes minimal changes: companies in these 
destinations generally will be able to obtain the most advanced ICs 
without a license as long as they certify compliance with specific 
requirements provided in Sec.  740.27.
    Second, BIS makes no changes to the strict rules governing 
provision of these items to Country Group D:5 destinations and Macau.
    Third, for all other destinations--in other words, destinations 
that are not Macau, Country Group D:5, or those listed in paragraph (a) 
to Supplement No. 5 to Part 740--this rule creates a multi-part 
framework that takes into account the compute power of the transaction 
and, in certain cases, security measures agreed to by the recipient. To 
start, BIS is establishing a license exception for limited quantities 
of advanced ICs, i.e., quantities well below the amount necessary to 
train the most advanced AI models. This license exception can ensure 
that transactions not intended to contribute to the development of 
advanced AI models can continue unimpeded, so long as the exporter 
provides BIS with notice. Transactions involving larger quantities of 
controlled ICs will be subject to a new licensing policy that enables 
the export of ICs up to a specified country allocation. To provide 
predictability, BIS is specifying this allocation for the time period 
from 2025 to 2027. This licensing policy will enable end users in these 
destinations to develop any AI models short of the frontier, thereby 
allowing them to access the economic benefits of those models while 
simultaneously protecting the United States from the most significant 
threats.
    At the same time, this rule enables entities in these destinations 
to gain validated status to obtain significantly larger quantities of 
ICs under Authorization VEU. Authorization VEU advances U.S. national 
security and foreign policy by allowing entities that

[[Page 4549]]

have agreed to enact concrete, verifiable, and robust security measures 
to access large clusters of advanced ICs. For end users in these 
destinations--not Macau, Country Group D:5, or those listed in 
paragraph (a) to supplement no. 5 to Part 740--that do not meet 
eligibility criteria for the National VEU Authorization, BIS is 
implementing uniform default country allocations of advanced ICs. 
Exports and reexports of advanced ICs will be counted against these 
allocations starting on the effective date of this rule. These 
allocations will limit the risk of diversion of advanced ICs and 
encourage such entities to meet the conditions to qualify for VEU 
Authorization. In this way, Authorization VEU will also buttress U.S. 
foreign policy to support global development.

A. New Worldwide License Requirements

    With this IFR, BIS establishes a worldwide license requirement for 
ECCNs 3A090.a, 4A090.a, and corresponding .z items in new Sec.  
742.6(a)(6)(iii)(A). A worldwide license requirement for these items, 
which includes those items subject to the EAR's jurisdiction through 
the advanced computing foreign direct product rule (FDPR), will protect 
U.S. national security and foreign policy interests by allowing BIS to 
scrutinize any transaction that presents an elevated risk of diversion 
or misuse and by providing the U.S. government with visibility into the 
locations, end users, and end uses of advanced ICs. Further, as 
discussed below, diffusion of AI compute through the Data Center VEU 
Authorization will allow for companies around the world to benefit from 
allocations of AI compute in validated, protected environments.
    ECCN 3A090.a controls integrated circuits with one or more digital 
processing units having either: (1) a `total processing performance' of 
4800 or more; or (2) a `total processing performance' of 1600 or more 
and a `performance density' of 5.92 or more. ECCN 3A090.b controls 
integrated circuits with one or more digital processing units having 
either: (1) a `total processing performance' of 2400 or more and less 
than 4800 and a `performance density' of 1.6 or more and less than 
5.92; or (2) a `total processing performance' of 1600 or more and a 
`performance density' of 3.2 or more and less than 5.92.
    ECCN 4A090.a controls computers, ``electronic assemblies,'' and 
``components'' containing integrated circuits, any of which meets or 
exceeds the limits in 3A090.a. ECCN 4A090.b controls computers, 
``electronic assemblies,'' and ``components'' containing integrated 
circuits, any of which meets or exceeds the limits in 3A090.b.
    To adopt this new control, BIS is revising the Regional Stability 
control in Sec.  742.6 by amending paragraph (a)(6)(iii) and 
bifurcating it into paragraphs (A) and (B). Section (a)(6)(iii)(A) will 
implement a worldwide license requirement on 3A090.a, 4A090.a and 
corresponding .z commodities, software, and technology. Section 
(a)(6)(iii)(B) implements license requirements on 3A090.b, 4A090.b, and 
corresponding .z commodities, software, and technology to or within 
destinations specified in Country Groups D:1, D:4, and D:5, excluding 
destinations also specified in Country Groups A:5 or A:6. Imposition of 
this RS control will make License Exception GBS unavailable for 
3A001.z.1.a items, because they will be subject to a worldwide license 
requirement that is imposed for other than national security reasons. 
GBS will still be available for 3A001.z.1.b items for destinations in 
Country Group B that are not also listed in Country Groups D:1, D:4, or 
D:5. Additionally, consistent with the imposition of expanded RS 
controls for such items, this rule removes existing LVS eligibility for 
all 3A001.z items to ensure they may not be exported or reexported 
under this license exception to destinations in Country Group B without 
being subject to the volume restrictions, certification requirements, 
and reporting requirements of the new license exceptions added for such 
items in this rule. (See also restrictions on license exceptions, Sec.  
740.2(a)(9)(ii).)
    In addition to expanding the country scope of controls on ECCN 
3A090.a and 4A090.a items, BIS is also expanding the destination scope 
of the advanced computing foreign direct product rule in Sec.  
734.9(h)(2)(i). BIS is replacing references to Country Groups D:1, D:4, 
and D:5 and exclusions of A:5 and A:6 with the word ``worldwide.'' 
Accordingly, the language now provides that a foreign-produced item 
meets the destination scope of this paragraph (h)(2) if there is 
``knowledge'' that the foreign-produced item is destined worldwide or 
will be incorporated into any ``part,'' ``component,'' ``computer,'' or 
``equipment'' not designated EAR99 to any destination worldwide.

B. License Exceptions for 3A090, 4A090, Corresponding .z Items, and 
4E091

    With this rule, BIS is adding three new license exceptions to the 
EAR that will be applicable to advanced compute ICs: Sec.  740.27 
License Exception AIA, Sec.  740.28 License Exception ACM, and Sec.  
740.29 License Exception LPP. In addition, it is updating the 
destination scope of License Exception Advanced Compute Authorization 
(ACA). BIS also is updating the NAC process to facilitate more 
efficient processing. As part of this updated process, BIS and the 
interagency are seeking additional information from NAC users.
1. License Exception Artificial Intelligence Authorization (AIA)
    This new license exception authorizes the export, reexport, or 
transfer (in-country) of eligible advanced computing ICs and associated 
software and technology to entities located in a destination listed in 
paragraph (a) of supplement no. 5 to part 740, unless the entity either 
is headquartered outside of a destination specified in paragraph (a) of 
the supplement or has an ultimate parent company that is headquartered 
outside of a destination specified in paragraph (a) of the supplement. 
See Sec.  740.27(a).
    To use the license exception for eligible items (e.g., 3A090.a, 
4A090.a, or corresponding .z items and 4E091), the exporter, 
reexporter, or transferor must furnish the ECCN to the ultimate 
consignee. In addition, for advanced computing ICs eligible for this 
license exception, the exporter, reexporter, or transferor must also 
obtain a prior certification from the ultimate consignee and, for 
certain large orders, provide the certification to BIS pursuant to 
certain reporting requirements. For purposes of License Exception AIA, 
the ultimate consignee is the entity that has ownership over the 
eligible items. The certification must state that, without BIS 
authorization: (1) the items received will not be used to provide 
Infrastructure-as-a-Service (IaaS) access sufficient to train an AI 
model classified under ECCN 4E091 to entities headquartered or located 
outside of, or whose ultimate parent company is headquartered outside 
of destinations listed in paragraph (a) of supplement no. 5 to Part 
740; (2) the ultimate consignee will not export, reexport, or transfer 
the items to any end use or end user prohibited pursuant to Part 744 of 
the EAR; and (3) the ultimate consignee will not export, reexport, or 
transfer (in-country) the items to an entity headquartered or located 
outside of, or whose ultimate parent company is headquartered outside 
of paragraph(a) of supplement no. 5 to Part 740. Once the certification 
is received from the ultimate consignee, and prior to the initial 
export, reexport, or transfer, the exporter, reexporter, or transferor 
must

[[Page 4550]]

submit the certification to [email protected] with the Subject AIA 
Certification. The ultimate consignee must also submit the 
certification to the exporter, reexporter, or transferor. The 
certification is a one-time certification provided by each ultimate 
consignee that will be using License Exception AIA. With each shipment 
under License Exception AIA, the exporter, reexporter, or transferor, 
must notify the ultimate consignee in writing that: (1) the shipment is 
being made pursuant to License Exception AIA; (2) specify which items 
are subject to License Exception AIA or state that the entire shipment 
is made pursuant to License Exception AIA; and (3) it has certified to 
the certification in Sec.  740.27(b)(2). This reporting requirement is 
only applicable if the ultimate consignee is receiving items identified 
in paragraphs (a)(1) with a cumulative total processing performance 
(TPP) of 253,000,000.
2. License Exception Advanced Compute Manufacturing (ACM)
    New License Exception ACM authorizes the export, reexport, and 
transfer (in-country) of eligible items (ECCNs 3A090, 4A090, and 
related .z commodities, software, and technology) to a `private sector 
end user' that is located in a destination not listed in Country Group 
D:5 or Macau, provided it is not headquartered in and does not have an 
ultimate parent company headquartered in Macau or a destination 
specified in Country Group D:5, if the ultimate end use is the 
``development,'' ``production,'' or storage (in a warehouse or other 
similar facility) of such eligible items. An entity may not use this 
exception if the ultimate end use of the items is training an AI model 
or any other activity not related to the ``development,'' 
``production,'' or storage (in a warehouse or other similar facility) 
of such eligible items. For the purposes of this license exception, 
`private sector end user' is an individual who is not acting on behalf 
of any government (other than the U.S. government); or a commercial 
firm (including its subsidiary and parent firms, and other subsidiaries 
of the same parent) that is not wholly owned by, or otherwise 
controlled by any government (other than the U.S. government). The 
items produced must be ultimately destined to customers outside of 
Macau or destinations specified in Country Group D:5. Although License 
Exception ACM shipments do not count toward country caps, exporters, 
reexporters, and transferors must maintain a system of distribution 
that allows them to account for the number of controlled items 
transferred to, and subsequently out, of the facility. Such accounting 
should be done for each facility, with records updated every six months 
or more frequently. This license exception is intended to minimize the 
impact of this rule on supply chains.
3. License Exception Low Processing Performance (LPP)
    New License Exception LPP, set forth in new Sec.  740.29, 
authorizes the export and reexport of low amounts of compute that do 
not present significant national security risks, up to 26,900,000 Total 
Processing Performance (TPP) of advanced computing ICs per-calendar 
year to any individual ultimate consignee. For purposes of this license 
exception, ultimate consignee means the entity that has ownership over 
the items. This license exception is available to exporters or 
reexporters who export or reexport eligible items (ECCNs 3A001.z.1.a, 
z.2.a, z.3.a, z.4.a; 3A090.a; 4A003.z.1.a, z.2.a; 4A004.z.1; 4A005.z.1; 
4A090.a; 5A004.z.1.a, z.2.a; and 5A992.z.1) directly to ultimate 
consignees in eligible destinations. It is not available for exports or 
reexports made through distributors or for in-country transfers. 
Eligible destinations are those located outside of destinations in 
Country Group D:5 or Macau, provided the ultimate consignee is not 
headquartered in, and does not have an ultimate parent company 
headquartered in, Macau or Country Group D:5. In addition, the license 
exception cannot be used to export or reexport to prohibited end uses 
or end users in part 744 of the EAR.
    The license exception provides for an annual TPP volume restriction 
on LPP orders set forth in paragraph (d) of the new license exception. 
The total TPP volume of exports and reexports per calendar year by all 
exporters and reexporters to any individual ultimate consignee may not 
exceed the 26,900,000 TPP volume limit; however, there is no 
restriction on the number of shipments from any exporters or 
reexporters, provided the volume limit is not exceeded. This annual TPP 
limit applies to shipments to any individual ultimate consignee even if 
the shipments are made by multiple exporters or reexporters or through 
more than one intermediate consignee. Before using License Exception 
LPP, under paragraph (f) of new Sec.  740.29, the exporter or 
reexporter must obtain a certification from the ultimate consignee that 
the ultimate consignee has not received a cumulative of 26,900,000 TPP 
during the relevant calendar year under License Exception LPP from all 
exporters and reexporters and that the requested TPP for the specific 
transaction will not result in the ultimate consignee exceeding the TPP 
limit. The exporter or reexporter must also provide this certificate to 
BIS within 30 days of the date on which the export or reexport of 
eligible items occurs. Cumulative TPP is the total amount of TPP of the 
eligible commodities in paragraph (b) of Sec.  740.29 that are provided 
to the ultimate consignee in all shipments by all exporters and 
reexporters in a calendar year under License Exception LPP. Pursuant to 
paragraph (g), the exception also provides that ultimate consignees 
receiving eligible items under License Exception LPP must notify BIS 
once they have received a cumulative total of 26,900,000 TPP in a 
calendar year. Under paragraph (g), the exception also provides that 
the exporter must notify BIS of all shipments under the exception with 
an aggregate TPP of more than 3,200,000.
4. Updates to License Exception Notified Advanced Computing and 
Advanced Computing Authorized for ECCNs 3A090, 4A090, and Corresponding 
.z Items
    Currently, under Sec.  740.8(a), License Exceptions Notified 
Advanced Computing (NAC) and Advanced Computing Authorized (ACA) are 
available for items classified in ECCNs 3A090, 4A090, 3A001.z, 4A003.z, 
4A004.z, 4A005.z, 5A002.z, 5A004.z, 5A992.z, 5D002.z, or 5D992.z, 
except for items designed or marketed for use in a data center and 
meeting the parameters of 3A090.a. License Exception NAC authorizes the 
export and reexport of specified items to Macau and destinations 
specified in Country Group D:5 and entities headquartered in, or with 
an ultimate parent headquartered in, Macau or a destination specified 
in Country Group D:5 wherever located, that require a notification to 
BIS. License Exception ACA authorizes the export and reexport of any 
item classified in ECCN 3A090, 4A090, 3A001.z, 4A003.z, 4A004.z, 
4A005.z, 5A002.z, 5A004.z, 5A992.z, 5D002.z, or 5D992.z (except for 
items designed or marketed for use in a datacenter and meeting the 
parameters of 3A090.a) to or within any destination specified in 
Country Groups D:1 and D:4 (except Macau, a destination in Country 
Group D:5, or an entity headquartered in, or with an ultimate parent 
headquartered in, Macau or a destination specified in Country Group 
D:5, wherever located), as well as transfers (in-country) within Macau 
and destinations in Country Group D:5. The destination scope of License 
Exception ACA in Sec.  740.8(a) is amended by striking to D:1 or D:4 
and

[[Page 4551]]

replacing with ``any destination worldwide.'' Accordingly, the 
regulatory text now states, ``to or within any destination worldwide 
(except Macau, a destination specified in Country Group D:5, or an 
entity headquartered in, or with an ultimate parent headquartered in, 
Macau or a destination specified in Country Group D:5, wherever 
located), as well as transfers (in-country) within Macau and 
destinations specified in Country Group D:5''.
    In addition to the changes to License Exception ACA, BIS is 
amending the NAC notification procedures by seeking additional 
information as set forth in Sec.  740.8(c). License Exception NAC 
established a notification process for exports and reexports to Macau 
or destinations specified in Country Group D:5 to provide BIS and 
interagency partners the opportunity to evaluate the national security 
risk posed by ICs that fall within this parameter. Since initial 
implementation, BIS and its interagency partners have revisited NAC to 
implement a faster internal review process. Specifically, during the 
evaluation process, interagency partners will be reviewing: (1) whether 
the export is NAC eligible; (2) whether the end-user has ties to a 
military or intelligence organization that prompt national security or 
human rights concerns; (3) if the technical parameters of the ICs are 
>2800 TPP or if the ICs have >1,000 GB/s memory bandwidth; (4) whether 
the ICs will be aggregated with other ICs into a datacenter cluster, or 
be used as a sample or in a standalone configuration (e.g., 
workstation); (5) if the ICs are going into the datacenter, the size of 
the data center; and (6) if the ICs will be used internally by a 
company headquartered in the United States or a company headquartered 
in Country Group A:5 or A:6. Exporters and reexporters utilizing 
License Exception NAC must provide this information to ensure efficient 
processing. BIS believes the use of this new review criteria will 
result in overall faster processing of all NAC notifications, as well 
as a greater percentage of NAC notifications being approved during the 
initial review period.
    Moreover, to deploy this process, BIS is amending Sec.  740.8(c) to 
add the following to the existing list of required information: (1) all 
NAC and license approvals to the end-user in the past 12 months under 
ECCN 3A090, 4A090, 3A001.z, 4A003.z, 4A004.z, 4A005.z, 5A002.z, 
5A004.z, 5A992.z, 5D002.z, or 5D992.z (except for items designed or 
marketed for use in a datacenter and meeting the parameters of 
3A090.a); (2) memory bandwidth of the item(s) requested; and (3) 
whether the items are destined to be aggregated into a datacenter or 
computing cluster, and, if so: (i) the computing power of the computing 
cluster, measured in the aggregate TPP of all chips used in the cluster 
once the cluster is complete; and (ii) whether the cluster will be (a) 
exclusively for internal use by a company headquartered in the United 
States or a member of Country Group A:5 or A:6, or (b) used by any 
other companies not headquartered in A:5 or A:6, or by external parties 
such as through cloud services.

C. Data Center Validated End-Users (DC VEUs): Universal and National 
VEUs

    In October 2024, BIS amended the EAR to expand Authorization VEU to 
include Data Center VEU (DC VEU). As noted in that rule, data centers 
play a vital role in global AI development, and the United States is 
committed to facilitating international AI development in a way that 
minimizes risk to national security. With this rule, BIS further 
expands the DC VEU Authorization by bifurcating it into a universal VEU 
(UVEU) and a national VEU (NVEU) Authorization. Companies headquartered 
in, or whose ultimate parent is headquartered in destinations specified 
in paragraph (a) of supplement no. 5 to part 740 may apply for the UVEU 
Authorization. With certain limitations, companies headquartered in, or 
whose ultimate parent is headquartered in, all destinations worldwide 
except Macau or destinations specified in Country Group D:5, that would 
like to qualify for exports, reexports, or transfers (in-country) of 
large amounts of advanced computing integrated circuits, may apply for 
the NVEU Authorization.
    BIS recognizes that advanced compute data centers (DCs) may involve 
corporate relationships in which different parties own the data center, 
provide physical security, own the advanced compute assemblies, provide 
logical security, and are able to access the compute. To clarify the 
September 2024 DC VEU rule, BIS notes that the party that has ownership 
of the advanced compute should submit the DC VEU application. If such 
party cannot directly certify to all of the application information 
requested in Sec.  748.15, it must inform BIS of the identities of 
other entities involved in the DC operations. Applicants may be 
required to obtain written assurances from those other entities during 
the application review process. If the operator of the advanced compute 
is different from the owner of the advanced compute, both the advanced 
compute owner and the advanced compute operator must have a VEU 
authorization.
    As specified in paragraph 6 of Supplement No. 10 to Part 748, all 
UVEUs will be subject to limitations on where they can geographically 
allocate their AI computing power, measured by the aggregate TPP of 
chips that meet or exceed the scope of ECCN 3A090.a. Specifically, a 
UVEU headquartered in a country listed in paragraph (a) to Supplement 
no. 5 to Part 740 cannot transfer or install more than 25% of its total 
AI computing power--i.e., the AI computing power owned by the entity 
all its subsidiary and parent entities--to or in locations outside of 
countries listed in paragraph (a) to Supplement No. 5 to Part 740, and 
cannot transfer or install more than 7% of its total AI computing power 
to or in any single country outside of those listed in paragraph (a) to 
Supplement No. 5 to Part 740. Additionally, a UVEU headquartered in the 
United States cannot transfer or install more than 50% of its total AI 
computing power outside of the United States.
    For all NVEUs, as described in new paragraph (a)(2)(iii)(B) of 
Sec.  748.15, a per-company, per-country installed base allocation of 
TPP, as measured by the collective computing power of items subject to 
ECCNs 3A090.a, 4A090.a, or corresponding .z paragraphs, will apply as 
follows:

------------------------------------------------------------------------
                                                         Cumulative TPP
                                                        per-company per-
                        Quarter                              country
                                                           allocation
------------------------------------------------------------------------
2025 Q1...............................................       633,000,000
2025 Q2...............................................       949,500,000
2025 Q3...............................................     1,266,000,000
2025 Q4...............................................     1,582,500,000
2026 Q1...............................................     1,899,000,000
2026 Q2...............................................     2,690,250,000
2026 Q3...............................................     3,481,500,000
2026 Q4...............................................     4,272,750,000
2027 Q1-4.............................................     5,064,000,000
------------------------------------------------------------------------

    These TPP allocations were identified through an extensive analysis 
of the size of AI compute clusters necessary to train the largest AI 
models, and the rate at which those clusters are likely to grow over 
the next three years. These allocations represent clusters 
approximately 12 months, or one generation, behind the cluster size BIS 
believes will be needed to train the most advanced dual-use AI models. 
By providing a three-year roadmap, BIS aims to give predictability to 
industry while reducing the risks posed by the unchecked proliferation 
of the most advanced AI models and largest clusters

[[Page 4552]]

at any given time. These TPP allocations represent permitted cumulative 
installed base during a given quarter, not newly available TPP in 
addition to previous-quarter installed bases, and do not count towards 
or impact country allocations. Additionally, multiple NVEUs may operate 
in a single country, with each NVEU subject to the quarterly 
allocations above. Advanced computing ICs that suffer attrition due to 
factors such as loss, damage, failure, relocation, and resale will no 
longer count toward allocations. BIS is not identifying specific TPP 
allocations for future years at this time given the evolving nature of 
national security requirements, the geopolitical landscape, and the AI 
industry.
    Together with the Departments of State, Energy, and Defense, BIS 
will review allocations for subsequent years on an annual basis to 
determine future allocations.
1. Data Center VEU: Universal Validated End User
    The UVEU Authorization is available to companies headquartered in 
the countries listed in paragraph (a) to supplement no. 5 to Part 740. 
As described in new paragraph (a)(2)(ii)(A) of Sec.  748.15, under the 
UVEU Application Overview, the UVEU Authorization provides the data 
centers that own their advanced computing capacity with a single 
authorization that will allow a UVEU to build DCs around the world, 
except in Macau or destinations specified in Country Group D:5, 
provided that the UVEU maintains its status by following the guidelines 
in supplement no. 10 to part 748. The UVEU is responsible for ensuring 
it complies with the applicable AI TPP geographic allocations. To 
receive UVEU status, a DC that owns its advanced computing capacity 
must certify that it will follow the guidelines outlined in supplement 
no. 10 to part 748 and go through an intensive application process. As 
previously noted, if the owner of the advanced compute cannot directly 
certify to all of the application information requested in Sec.  
748.15, it must include in its VEU application to BIS the identities of 
other entities involved in the DC operations. Through this process, BIS 
and its interagency partners will be able to assess whether the UVEU 
applicant meets the guidelines and resolve national security concerns.
    Approved applicants for the UVEU authorization will be listed in 
the EAR as UVEUs along with each authorized address identified in the 
UVEU application. As new DCs are brought online by the UVEU, it is 
required to notify BIS 180 days prior to any exports, reexports, or 
transfers (in-country) to the new DC so that the EAR may be updated to 
include the new location(s). This notification will allow BIS to update 
supplement no. 7 to part 748 with the new data center's address to 
notify exporters and reexporters of the UVEU location address that can 
receive exports and reexports under this authorization. The UVEU may 
choose whether to list a corporate address or a physical address of the 
new data center location. Otherwise, or in the period between 
notification to BIS and EAR amendment, UVEUs may furnish their BIS 
authorization letters to exporters and reexporters to enable continuity 
of exports and reexports to the new country and/or new DC.
A. Data Center VEU: National Validated End-User
    A National Validated End-User (NVEU) Authorization is available to 
all entities headquartered in or located in a destination in Country 
Groups A, B, or D:1-D:4, except Macau or destinations specified in 
Country Group D:5, as described in revised Sec.  748.15(b)(2). New 
paragraph (a)(2)(iii) of Sec.  748.15 describes the requirements to 
obtain an NVEU. In order to receive NVEU Authorization, a data center 
operator that owns its advanced computing capacity must apply to BIS 
and go through an intensive application process that will be subject to 
interagency review. Information required to be submitted to become a 
VEU is described in supplement no. 8 to part 748, some provisions of 
which are revised by this rule, including an update to paragraph (B)(2) 
of the supplement to require information about business activities and 
corporate relationships with government or military organizations in 
Macau and destinations specified Country Group D:5, e.g., direct sales 
to or contracts with such entities.
    Approved applicants for the NVEU Authorization will be listed in 
the EAR as NVEUs in supplement no. 7 to part 748. This listing will 
serve to notify exporters and reexporters that the NVEU location can 
receive exports and reexports under this authorization. The NVEU may 
choose whether to list a corporate address or a physical address of the 
new data center location. NVEUs will be subject to the cumulative TPP 
allocations identified above.

D. License Applications

    For transactions that do not meet the terms and conditions for use 
of license exceptions, and for which the end user does not participate 
in the DC VEU Authorization, the traditional license application 
process is available under part 748 of the EAR.
    As explained in additional detail below, BIS is instituting 
specific country allocations of total processing performance (TPP) in 
new paragraph (b)(10) of Sec.  742.6. As with Authorization VEU 
allocations, exports and reexports of advanced ICs will be counted 
against the following country allocation beginning on the effective 
date of this rule. From 2025 to 2027, countries will be subject to a 
cumulative maximum installed base allocation of 790,000,000 TPP. This 
TPP allocation represents permitted cumulative installed base for the 
entire period to and inclusive of 2027. Advanced computing ICs that 
suffer attrition due to factors such as loss, damage, failure, 
relocation, and resale will no longer count toward the allocation.
    Accordingly, license applications for 3A090.a, 4A090.a, or 
corresponding .z items must be accompanied by a purchase order or 
equivalent firm contractual agreement reflecting the actual volume 
amount that the applicant seeks to export, reexport, or transfer (in-
country). The purchase order requirement is found in paragraph (c) of 
supplement no. 2 to part 748. The purchase order must be for the 
fulfilment of actual items to be sold, although it may be contingent on 
license approval. In addition, licenses for these items generally will 
carry a one-year validity period during which the items must be 
exported, re-exported, or transferred (in country), pursuant to the 
revision to Sec.  750.7(g) made in this rule. Should a lengthier 
validity period be required, such information must be provided with the 
license application or a request for extension must be filed in 
accordance with Sec.  750.7(g)(1) or (2).
    BIS is not identifying specific TPP allocations for future years at 
this time given the evolving nature of national security requirements, 
the geopolitical landscape, and the AI industry.
    Together with the Departments of State, Energy, and Defense, BIS 
will review allocations for subsequent years on an annual basis.
1. Revision of License Review Policy
    To implement the new license review policy for Sec.  
742.6(a)(6)(iii)(A), BIS is updating the license review policy in Sec.  
742.6(b)(10). Section 742.6(b)(10)(iii)(A)(1) provides that a 
presumption of denial will apply to applications for Macau, 
destinations specified in Country Group D:5, and any entity 
headquartered in, or whose ultimate parent is headquartered in,

[[Page 4553]]

Macau or a destination specified in Country Group D:5.
    For end users headquartered or located in destinations listed in 
paragraph (a) of supplement no. 5 to Part 740, license applications 
will be reviewed under a presumption of approval under new Sec.  
742.6(b)(10)(iii)(A)(2).
    Under certain circumstances when destination governments assure the 
U.S. Government of a commitment to protect advanced computing ICs 
consistent with U.S. national security interests, these TPP allocations 
may be increased up to 100% for a given destination. Once the U.S. 
Government has determined that a country has provided appropriate 
national security assurances, BIS will list that country in paragraph 
(b) to supplement no. 5 to Part 740. In such a case, the licensing 
policies pursuant to new Sec.  742.6(b)(10)(iii)(B), would apply with 
an upward adjustment to country TPP allocations. While the U.S. 
Government--led by the Departments of State and Commerce--may pursue 
such government-to-government assurances independently to advance U.S. 
national security and foreign policy interests, in cases where BIS has 
not applied an allocation increase to a particular destination, license 
applicants seeking an upward departure from country TPP allocations 
should identify such interest in their license applications, along with 
the contact information for appropriate foreign government officials 
with whom BIS and interagency partners should engage on such 
assurances.
    For end users headquartered, or whose ultimate parent is 
headquartered, outside of destinations listed in paragraph (a) or (b) 
of supplement no. 5 to Part 740, Macau, and Country Group D:5, license 
applications for 3A090.a, 4A090.a, and corresponding .z items will be 
subject to a presumption of approval up to specific country allocations 
in TPP, as described in new Sec.  742.6(b)(10)(iii)(B)(1). BIS will 
calculate progress toward country allocations by totaling the TPP of 
3A090.a, 4A090.a, and corresponding .z items licensed to each 
destination in a given calendar year. When country allocations have 
been met for a specific country, licenses will be reviewed under a 
policy of denial, consistent with new Sec.  742.6(b)(10)(iii)(B)(2).
    Together with the Departments of State, Energy, and Defense, BIS 
will review allocations for subsequent years on an annual basis. 
Moreover, absent regulatory changes, the licensing policies outlined in 
Sec.  742.6(a)(6)(iii) will continue to apply.
    To keep the public informed on country allocations, BIS will use 
purchase orders provided in license applications to track fulfillment 
of country allocations and will provide timely updates to the public on 
these allocations in aggregate at http://www.bis.gov/advanced-compute-resources.
2. Information Required in License Application
    Applicants are required to submit the total aggregated TPP volume 
of each export item on their license application. This information, 
consistent with new paragraph (c)(4) in supp. no. 2 to Part 748, should 
be included in block 22(j) in SNAP-R. If applicants are submitting a 
license for items destined to a country that is subject to a per-
country TPP allocation, the applicant must fill out an individual 
license for each country and calculate the TPP per individual country. 
Applicants must submit relevant purchase orders and are encouraged to 
include additional information to support their TPP calculation in 
their Letter of Explanation (LOE). Calculate the aggregate TPP for each 
export item by adding the TPP for each integrated circuit. For 
additional information on calculating TPP, please refer to the 
Technical Notes to 3A090.

III. Overview of New Controls for AI Model Weights

    As of the effective date of this rule on January 13, 2025, in 
addition to expanding its controls on advanced computing ICs, BIS is 
imposing new controls on the model weights of the most advanced AI 
models. Model weights are ``numerical parameter[s] within an AI model'' 
that ``help determine the model's outputs in response to inputs.'' 
Executive Order 14110 on the Safe, Secure, and Trustworthy Development 
and Use of Artificial Intelligence. An AI model that lacks trained 
model weights produces meaningless outputs. Additionally, the 
developers of the most advanced AI models typically incorporate 
technical safeguards that help to prevent applications based on the 
model, such as chatbots or those served through APIs, from completing 
certain dangerous tasks, such as assisting in the development of 
nuclear, chemical, biological, or cyber weapons. With access to the 
model weights, it is easier to remove these safeguards. Model weights 
for advanced AI models can, moreover, be produced only by training the 
model on vast quantities of data using thousands of advanced computing 
ICs over a period of several months or more. Accordingly, model weights 
can be the most valuable and closely guarded elements of an AI model.
    Given the importance of model weights to the functioning of 
advanced AI models, BIS has determined that, in order to protect U.S. 
national security and foreign policy interests, it is necessary to 
impose a global licensing requirement on the model weights of the most 
advanced AI models. Even if countries and end users of concern are able 
to obtain or reverse engineer the other elements of an advanced AI 
model--e.g., the architecture or ancillary code--those actors will be 
unable to use the model for activities that threaten U.S. national 
security and foreign policy unless they have the corresponding model 
weights. And crucially, they will not be able to train their own model 
weights unless they have access to thousands of advanced computing ICs. 
Thus, by imposing global controls on the model weights of the most 
advanced AI models, BIS will make it significantly more difficult for 
countries and end users of concern to access those models and their 
functions.
    In conjunction with technical experts from across the U.S. 
government, BIS has determined that a reasonable proxy for the 
performance of an AI model is the amount of compute--i.e., the number 
of computational operations--used to train the model. This 
determination is supported by empirical evidence compiled by leading AI 
researchers, which shows that the performance of an AI model depends in 
large part on the number of parameters in the model, the size of the 
dataset used to train the model, and the amount of compute used to 
train the model. Although there is disagreement about whether it is 
more important to maximize the number of parameters or the size of the 
dataset, there is a general consensus that, given a fixed model 
architecture, the amount of compute positively correlates with the 
performance of the model. Accordingly, at the outset of the training 
process, developers of advanced AI models set a ``compute budget,'' 
i.e., a fixed number of operations on which the model will be trained. 
It is possible, however, that better measures of model capabilities may 
become available over time. BIS will consider alternative approaches as 
they become available.
    Using this measure, BIS is requiring a license to export, reexport, 
or transfer (in-country) the model weights of any closed-weight AI 
model--i.e., a model with weights that are not published--that has been 
trained on more than 10\26\ computational operations. Because the model 
weights of models trained with fewer than 10\26\ computational

[[Page 4554]]

operations are already stored at locations across the globe, and such 
models are available from foreign sources, imposing controls on such 
models would be ineffective. These models have shown concerning 
capabilities, however, and technical experts from across the U.S. 
government agree that the next generation of models--i.e., those 
trained on 10\26\ computational operations--will significantly reduce 
the barriers to enabling activities that threaten U.S. national 
security and foreign policy. To ensure that the licensing process 
consistently accounts for the risks associated with the most advanced 
AI models, BIS has decided to apply a presumption of denial review 
policy (implemented in Sec.  742.6(a)(12)) to every license application 
involving the model weights of those models. This policy is necessary 
for two interrelated reasons. First, the potential risks to U.S. 
national security from even one case of diversion are extreme. For 
example, if a terrorist organization were to obtain the model weights 
of an advanced AI model, it could potentially gain permanent access to 
the full range of capabilities of that model. Second, because model 
weights can be stored, copied, and transferred using basic computer 
technologies, the risk of diversion is elevated. And if a particular 
set of model weights is diverted even once, it would be difficult to 
prevent further dissemination across the world. Accordingly, BIS must 
scrutinize every license application involving model weights to ensure 
that the end user does not present a risk of diversion and has adequate 
security measures in place. A presumption of denial review policy can 
ensure this consistent level of scrutiny.
    In addition to applying to U.S.-origin model weights, this 
licensing requirement applies to the model weights of certain closed-
weight models produced in foreign destinations. As discussed, training 
an AI model on more than 10\26\ computational operations is not 
possible without advanced computing ICs and other related advanced 
computing items. BIS has found that many foreign entities that are 
training advanced AI models or intend to train such models are using 
advanced computing ICs and related items that were directly produced 
with U.S. technology. To reduce the risk that such U.S. technology 
contributes to models that are diverted to malicious actors and used 
for activities that threaten U.S. national security and foreign policy 
interests, this IFR creates a new Foreign Direct Product (FDP) rule 
(implemented in new Sec.  734.9(l)) for the model weights of closed-
weight models trained using more than more than 10\26\ computational 
operations.
    As with advanced computing ICs, however, BIS is providing a license 
exception (License Exception AIA, implemented in new Sec.  740.27) for 
the export or reexport of model weights to certain end users in certain 
destinations. As discussed, BIS and its interagency partners have 
identified a set of destinations where (1) the government has 
implemented measures with a view to preventing diversion of advanced AI 
technologies, and (2) there is an ecosystem that will enable and 
encourage firms to use advanced AI models activities that may have 
significant economic benefits. Those destinations, which are listed in 
paragraph (a) to Supplement No. 5 to Part 740, are Australia, Belgium, 
Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, 
Netherlands, New Zealand, Norway, Republic of Korea, Spain, Sweden, 
Taiwan, the United Kingdom, and the United States. For end users 
headquartered in these destinations, listed in paragraph (a) of 
supplement no. 5 to Part 740, BIS is providing a license exception for 
export or reexport to entities located in all destinations except Macau 
and those in Country Group D:5. However, exporters and reexporters may 
not take advantage of this exception unless they ensure that the end 
user has instituted specific security measures that will reduce the 
risk of diversion, specified in paragraphs 14, 15, and 18 of supplement 
no. 10 to Part 748.
    Additionally, BIS is not imposing controls on the model weights of 
open-weight models. At present, there are no open-weight models known 
to have been trained on more than 10\26\ computational operations. 
Moreover, Commerce and its interagency partners assess that the most 
advanced open-weight models are currently less powerful than the most 
advanced closed-weight models, in part because the most advanced open-
weight models have been trained on less computing power and because 
proprietary algorithmic advances have allowed closed-weight model 
developers to produce more advanced capabilities with the same 
computational resources. BIS has also determined that, for now, the 
economic and social benefits of allowing the model weights of open-
weight models to be published without a license currently outweigh the 
risks posed by those models. Specifically, making model weights open 
ensures that many actors seeking to use the models for economically and 
socially beneficial activities can do so. This includes small, 
independent research groups that are seeking to research model safety 
and trustworthiness, as well as defenses against AI risk, such as 
cyberattacks. It also includes small commercial entities that are 
pursuing applications of AI models that require expertise not possessed 
by leading AI developers; for example, many of the premier foreign 
language translation applications have been developed by small entities 
using open-weight models. Wide availability also allows governments and 
independent researchers to assess the risks posed by these models and 
develop mitigations. By comparison, the actors that can take advantage 
of the capabilities of ``closed weight'' models--i.e., models with 
weights that have not been made publicly available--are the original 
developer, actors who negotiate directly with original developers or 
deployers, and malicious actors that have stolen the weights. In 
practice, the most advanced closed weight models are, BIS assesses, 
closely held by their developers.
    Accordingly, BIS and its interagency partners are not today 
imposing controls on open-weight models. BIS also recognizes that users 
of open-weight models may need to perform additional training 
operations to fine tune open-weight models for beneficial uses. 
Accordingly, this IFR makes clear that training an open-weight model 
with a relatively small amount of additional computational operations 
does not subject that model to BIS's controls. But as noted in the 
National Telecommunications and Information Administration's report 
``Dual-Use Foundation Models with Widely Available Model Weights'' 
published on July 30, 2024, the U.S. Government will continue to 
actively monitor risks that could arise from open-weight models and 
assess what actions might need to be taken if heightened risks emerge.
    To reduce the economic impact on developers of closed models, BIS 
will also not require a license for the export, reexport, or transfer 
(in-country) of the model weights of closed models that are less 
powerful than the most powerful open-weight model (as determined by the 
AI Safety Institute and the U.S. Department of Energy). Because the 
model weights of the most powerful open-weight model will be available 
to all entities across the world, any entity seeking to use advanced AI 
models for activities that threaten U.S. national security and foreign 
policy will have no incentive to divert the model weights of less 
powerful closed models.

[[Page 4555]]

    In sum, BIS's new controls for the model weights of the most 
advanced AI models reflects both BIS's focus on the risks posed by the 
frontier of AI development and BIS's expectation that increasingly 
powerful models will continue to be available from foreign sources, 
rendering controls on general purpose models behind the frontier 
ineffective. BIS's controls will assist in the responsible management 
of the risks to national security and public safety posed by 
technological development at the frontier by ensuring that such models 
are diffused more broadly in a structured, staged manner. Additionally, 
restricting the export of model weights, while allowing access to the 
most advanced AI models through other methods, such as application 
programming interfaces, can unlock the beneficial uses of AI for users 
across the world while mitigating the national security and public 
safety risks posed by these models. Below, BIS explains its controls in 
more detail.

A. AI Model Weights Technology Controls

    In the Commerce Control List (CCL), this rule adds new ECCN 4E091 
for `parameters' for advanced AI models, which are defined as having 
been trained utilizing 10\26\ or more `operations.' `Parameters' refers 
to any value learned during training (e.g., network weights, biases, 
etc.). `Operations' include any subsequent training, such as fine-
tuning the pre-trained model, but does not include the collection and 
curation of the input training data.
    This ECCN is controlled for regional stability (RS) reasons for 
exports, reexports, and transfers (in-country) to and within all 
destinations worldwide through new Sec.  742.6(a)(13). The ECCN is also 
controlled for anti-terrorism (AT) reasons when destined to a country 
that has an AT:1 license requirement (i.e., Iran in Sec.  742.8, Syria 
in Sec.  742.9, or North Korea in Sec.  742.19). See also parts 744 and 
746 of the EAR for additional controls. License applications for items 
controlled under this RS control will be reviewed under a presumption 
of denial for all destinations other than those listed in paragraph (a) 
of supplement no. 5 to part 740, as established in new Sec.  
742.6(b)(14) of the EAR. License applications for destinations listed 
in paragraph (a) of supplement no. 5 to part 740 will be reviewed under 
a presumption of approval. The license requirements in Sec.  
742.6(a)(13) do not apply to deemed exports or deemed reexports for 
persons employed by entities headquartered in or with an ultimate 
parent headquartered in the United States or a destination specified in 
paragraph (a) of supplement no. 5 to Part 740.
    As explained above, ECCN 4E091 excludes from the control any open-
weight models. Note 1 to the ECCN states that ECCN 4E091 does not 
control the `parameters' of any artificial intelligence model that has 
been ``published'' as defined in Sec.  734.7(a), or that were subject 
to additional training `operations' applied to ``published'' 
`parameters,' such that the additional training `operations' constitute 
no more than 2x10\25\ `operations' or no more than 25 percent of the 
training `operations' defined in Note 2, whichever is higher. ECCN 
4E091 also excludes from the control models that are less powerful than 
the most powerful open-weight model (as determined by the AI Safety 
Institute and the U.S. Department of Energy). Note 2 to the ECCN states 
that ECCN 4E091 does not control the `parameters' of any artificial 
intelligence model trained utilizing fewer `operations' than the number 
needed to train an artificial intelligence model as capable, according 
to an aggregate of widely used benchmarks, as the most advanced 
artificial intelligence model that has been ``published'' as defined in 
Sec.  734.7(a) of the EAR.
    As described in Note 2 to ECCN 4E091, to determine if an AI model 
is excluded from ECCN 4E091, an exporter may either self-classify its 
model or obtain guidance from BIS. Self-classification may rely on 
guidance published on BIS's website http://www.bis.gov/advanced-compute-resources or a technical opinion issued by the U.S. AI Safety 
Institute and the Department of Energy. For a BIS classification, 
exporters should submit a classification request in accordance with the 
procedures in Sec. Sec.  748.1 and 748.3 of the EAR.

B. Foreign-Direct Product Rule for AI Model Weights

    As described above, access to the model weights of advanced AI 
models may enable malicious actors to advance military end uses, 
develop WMD, the deploy offensive cyber operations, and carry out human 
right abuses. Direct access to the model weights may, for example, 
enable malicious actors to use the model to provide step-by-step 
instructions for the creation of chemical or biological weapons, or to 
develop AI agents capable of conducting advanced cyberattacks. This 
risk applies with equal force to model weights produced outside the 
United States using U.S. technology as it does to model weights 
produced inside the United States. To address the national security and 
foreign policy risk associated with the production of AI model weights 
outside of the United States, this rule applies a new Foreign Direct 
Product Rule (FDPR) in Sec.  734.9(l). Under this new AI model weights 
FDPR, an item classified under new ECCN 4E091 is subject to the EAR 
based on product scope criteria to any location, worldwide. License 
requirements and license review policy are the same as those for ECCN 
4E091, meaning that a license is not necessarily required just because 
this new FDPR establishes jurisdiction over the model. The applicable 
license requirements depend on the license requirements for 4E091 
items, as well as end use and end user license requirements described 
in part 744 of the EAR.
    To meet the new FDPR's product scope, the 4E091 item must be 
produced by a complete plant or `major component' of a plant that is 
located outside the United States, when the complete plant or `major 
component' of a plant, whether made in the United States or a foreign 
country, is subject to the EAR and specified in ECCN 3A001.z, 3A090, 
4A003.z, 4A004.z, 4A005.z, 4A090, 5A002.z, 5A004.z, or 5A992.z. The 
ICs, servers, and other electronic equipment described in those ECCNs, 
which would be considered `major components' of a plant under this 
FDPR, are critical to producing model weights specified in 4E091. The 
FDPR also includes a note specifying that ECCN 4E091 includes any 
foreign-produced item that is further trained, including through 
techniques that follow on initial training, such as fine-tuning and 
quantization. Thus, the use of items not specified in ECCN 3A001.z, 
3A090, 4A003.z, 4A004.z, 4A005.z, 4A090, 5A002.z, 5A004.z, or 5A992.z 
to conduct further training of a foreign-produced 4E091 item would not 
impact whether the 4E091 item is subject to the EAR.

C. License Exception Eligibility for AI Model Weights

    The only license exception available for new ECCN 4E091 is newly-
created License Exception AIA in Sec.  740.27. License Exception AIA 
authorizes the export, reexport, and transfer (in-country) of ECCN 
4E091 to entities located within the destinations listed in paragraph 
(a) of supplement no. 5 to Part 740. This license exception also 
authorizes the export, reexport, and transfer (in-country) of AI model 
weights, including the most advanced AI models specified in ECCN 4E091, 
to entities headquartered in, or whose ultimate parent company is 
headquartered in, the destinations listed in paragraph (a) of 
supplement no. 5 to

[[Page 4556]]

Part 740 and located in any destination other than Macau or 
destinations listed in Country Group D:5. As discussed below, License 
Exception AIA also is available for certain eligible commodities, 
software, and technology. License Exception AIA cannot be used to 
export, reexport or transfer (in-country) ECCN 4E091 or other specified 
ECCNs to an entity headquartered outside of, or whose ultimate parent 
company is headquartered outside of, a destination specified in 
paragraph (a) of supplement no. 5 to Part 740.

D. Red Flag Guidance on AI Model Weights

    In supplement no. 3 to part 732--BIS's ``Know Your Customer'' 
Guidance and Red Flags--this IFR adds a new red flag to provide 
compliance guidance to assist exporters, re-exporters, and transferors 
of AI model weights in complying with BIS's controls. New red flag 28 
will help U.S. Infrastructure as a Service (IaaS) cloud computing 
providers located in the United States identify when training an 
advanced AI model for a customer that is a U.S. subsidiary of a foreign 
entity--and transferring the resulting model weights to that customer--
creates a potential diversion concern. Under some circumstances, there 
is a substantial risk that the model weights will be exported from the 
United States in violation of BIS's controls. New red flag 28 specifies 
that in scenarios where a U.S. subsidiary of an entity headquartered in 
destinations other than those listed in paragraph (a) of supplement no. 
5 to Part 740 uses a U.S. IaaS provider's products or services to train 
an AI model that falls within ECCN 4E091 raises a red flag under the 
EAR that the model weights may be exported to the connected entity 
without the necessary authorization. For example, if a U.S. IaaS 
provider provides infrastructure, in the form of clusters of advanced 
ICs, to train an AI model for a separate AI development organization, 
once the training run is complete, the model weights of the resulting 
AI model are transferred to the AI development organization. If a U.S. 
IaaS provider performs this service for a U.S. subsidiary of a foreign 
corporation headquartered in a destination to which a license 
requirement for ECCN 4E091 applies, the performance of the training run 
and the transfer of model weights creates a substantial risk that the 
model weights will be diverted to the entity's ultimate parent in 
violation of the EAR and that the IaaS provider may have aided and 
abetted a violation of the EAR.
    BIS encourages exporters, reexporters, and transferors, as well as 
IaaS providers serving domestic customers, to take additional steps as 
part of their compliance programs to determine whether the model 
weights in question will be exported, reexported, or transferred to a 
destination subject to a license requirement and, if so, either to 
apply for a license or inform their customers of the obligation to do 
so prior to export.

IV. New Definition

    Section 772.1 is amended by adding a definition for ``model 
weights.'' This term is added to Sec.  772.1 to assist the public to 
easily find the definition, because it is used in multiple parts of the 
EAR.

Export Control Reform Act of 2018

    On August 13, 2018, the President signed into law the John S. 
McCain National Defense Authorization Act for Fiscal Year 2019, which 
included the Export Control Reform Act of 2018 (ECRA) (codified, as 
amended, at 50 U.S.C. 4801-4852). ECRA provides the legal basis for 
BIS's principal authorities and serves as the authority under which BIS 
issues this rule. In particular, and as noted elsewhere, Section 1753 
of ECRA (50 U.S.C. 4812) authorizes the regulation of exports, 
reexports, and transfers (in-country) of items subject to U.S. 
jurisdiction. Further, Section 1754(a)(1)-(16) of ECRA (50 U.S.C. 
4813(a)(1)-(16)) authorizes, inter alia, the establishment of a list of 
controlled items; the prohibition of unauthorized exports, reexports, 
and transfers (in-country); the requirement of licenses or other 
authorizations for exports, reexports, and transfers (in-country) of 
controlled items; apprising the public of changes in policy, 
regulations, and procedures; and any other action necessary to carry 
out ECRA that is not otherwise prohibited by law. Pursuant to Section 
1762(a) of ECRA (50 U.S.C. 4821(a)), these changes can be imposed in a 
final rule without prior notice and comment.

Rulemaking Requirements

    1. Executive Orders 12866, 13563, and 14094 direct agencies to 
assess all costs and benefits of available regulatory alternatives and, 
if regulation is necessary, to select regulatory approaches that 
maximize net benefits (including potential economic, environmental, 
public health and safety effects and distributive impacts and equity). 
Executive Order 13563 emphasizes the importance of quantifying both 
costs and benefits and of reducing costs, harmonizing rules, and 
promoting flexibility.
    This interim final rule has been designated a ``significant 
regulatory action'' under section 3(f) of Executive Order 12866, as 
amended by Executive Order 14094.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et 
seq.) (PRA), unless that collection of information displays a currently 
valid Office of Management and Budget (OMB) Control Number. Although 
this rule makes important changes to the EAR for items controlled for 
national security reasons, BIS believes that the overall increases in 
burdens and costs associated with the following information collections 
due to this rule are estimated to increase the number of submissions by 
800 which is not expected to exceed the current approved estimates.
     0694-0088, ``Simplified Network Application Processing 
System,'' which carries a burden-hour estimate of 29.6 minutes for a 
manual or electronic submission;
     0694-0137 ``License Exceptions and Exclusions,'' which 
carries a burden-hour estimate average of 1.5 hours per submission 
(Note: submissions for License Exceptions are rarely required);
     0694-0096 ``Five Year Records Retention Period,'' which 
carries a burden-hour estimate of less than 1 minute; and
     0607-0152 ``Automated Export System (AES) Program,'' which 
carries a burden-hour estimate of 3 minutes per electronic submission.
    Additional information regarding these collections of information--
including all background materials--can be found at https://www.reginfo.gov/public/do/PRAMain and using the search function to 
enter either the title of the collection or the OMB Control Number.
    3. This rule does not contain policies with federalism implications 
as that term is defined in Executive Order 13132.
    4. Pursuant to section 1762 of ECRA (50 U.S.C. 4821), this action 
is exempt from the Administrative Procedure Act (APA) (5 U.S.C. 553) 
requirements for notice of proposed rulemaking, opportunity for public 
participation and delay in effective date.
    5. Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule by 5 U.S.C. 
553, or

[[Page 4557]]

by any other law, the analytical requirements of the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq., are not applicable. 
Accordingly, no regulatory flexibility analysis is required, and none 
has been prepared.

List of Subjects

15 CFR Parts 732 and 750

    Administrative practice and procedure, Exports, Reporting and 
recordkeeping requirements.

15 CFR Part 734

    Administrative practice and procedure, Exports, Inventions and 
patents, Research, Science and technology.

15 CFR Parts 740

    Administrative practice and procedure, Exports, Reporting and 
recordkeeping.

15 CFR Part 742

    Exports, Terrorism.

15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

15 CFR Part 748

    Administrative practice and procedure, Exports, Reporting and 
recordkeeping requirements, Terrorism.

15 CFR Part 762

    Administrative practice and procedure, Business and industry, 
Confidential business information, Exports, Reporting and recordkeeping 
requirements.

15 CFR Part 772

    Exports.

15 CFR Part 774

    Exports, Reporting and Recordkeeping Requirements.

    Accordingly, parts 732, 734, 740, 742, 744, 748, 750, 762, 772, and 
774 of the Export Administration Regulations (15 CFR parts 730 through 
774) are amended as follows:

PART 732--STEPS FOR USING THE EAR

0
1. The authority citation for part 732 continues to read as follows:

    Authority:  50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783.


0
2. Supplement No. 3 to part 732 is amended by adding paragraph 28 under 
``Red Flags'' to read as follows:

Supplement No. 3 to Part 732--BIS's ``Know Your Customer'' Guidance and 
Red Flags

* * * * *

Red Flags

* * * * *
    28. You will be providing Infrastructure-as-a-Service (IaaS) 
products or services, or other computing products or services, to 
assist in training an AI model with model weights captured by ECCN 
4E091 for an entity headquartered, or whose ultimate parent is 
headquartered, in any destination other than those listed in 
paragraph (a) of supplement no. 5 to part 740 of the EAR. Such 
assistance creates a substantial risk that such AI model weights, 
due to their digital nature, will be exported or reexported to a 
destination for which a license is required and, if a license is not 
obtained, that the IaaS provider will have aided and abetted in a 
violation of the EAR. In such cases, the IaaS provider should 
inquire if the customer intends to export the model and if so, apply 
for a license as required or inform the customer of their obligation 
to do so prior to export.

PART 734--SCOPE OF THE EXPORT ADMINISTRATION REGULATIONS

0
3. The authority citation for part 734 continues to read as follows:

    Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 
950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 
CFR, 2001 Comp., p. 783; E.O. 13637, 78 FR 16129, 3 CFR, 2014 Comp., 
p. 223; Notice of November 7, 2024, 89 FR 88867 (November 8, 2024); 
Pub. L. 118-50.


0
4. Section 734.9 is amended by:
0
a. Revising paragraph (h); and
0
b. Adding paragraph (l).
    The addition and revision read as follows:


Sec.  734.9  Foreign-Direct Product (FDP) Rules.

* * * * *
    (h) Advanced computing FDP rule. A foreign-produced item is subject 
to the EAR if it meets both the product scope in paragraph (h)(1) of 
this section and the destination scope in paragraph (h)(2) of this 
section. See Sec.  742.6(a)(6) of the EAR for license requirements and 
license exceptions and Sec.  742.6(b)(10) for license review policy 
applicable to foreign-produced items that are subject to the EAR under 
this paragraph (h).
    (1) Product scope of advanced computing FDP rule. The product scope 
applies if a foreign-produced item meets the conditions of either 
paragraph (h)(1)(i) or (ii) of this section.
    (i) ``Direct product'' of ``technology'' or ``software.'' A 
foreign-produced item meets the product scope of this paragraph (h) if 
it meets both of the following conditions:
    (A) The foreign-produced item is the ``direct product'' of 
``technology'' or ``software'' subject to the EAR and specified in 
3D001, 3D901, 3D991, 3D992, 3D993, 3D994, 3E001, 3E002, 3E003, 3E901, 
3E991, 3E992, 3E993, 3E994, 4D001, 4D090, 4D993, 4D994, 4E001, 4E992, 
4E993, 5D001, 5D002, 5D991, 5E001, 5E991, or 5E002 of the CCL; and
    (B) The foreign-produced item is:
    (1) Specified in ECCN 3A090, 3E001 (for 3A090), 4A090, or 4E001 
(for 4A090) of the CCL; or
    (2) An integrated circuit, computer, ``electronic assembly,'' or 
``component'' specified in ECCN 3A001.z, 4A003.z, 4A004.z, 4A005.z, 
5A002.z, 5A004.z, or 5A992.z.
    (ii) Product of a complete plant or 'major component' of a plant 
that is a ``direct product.'' A foreign-produced item meets the product 
scope of this paragraph (h) if it meets both of the following 
conditions:
    (A) The foreign-produced item is produced by any complete plant or 
'major component' of a plant that is located outside the United States, 
when the plant or 'major component' of a plant, whether made in the 
United States or a foreign country, itself is a ``direct product'' of 
U.S.-origin ``technology'' or ``software'' that is specified in ECCN 
3D001, 3D901, 3D991, 3D992, 3D993, 3D994, 3E001, 3E002, 3E003, 3E901, 
3E991, 3E992, 3E993, 3E994, 4D001, 4D090, 4D993, 4D994, 4E001, 4E992, 
4E993, 5D001, 5D991, 5E001, 5E991, 5D002, or 5E002 of the CCL; and
    (B) The foreign-produced item is:
    (1) Specified in ECCN 3A090, 3E001 (for 3A090), 4A090, or 4E001 
(for 4A090) of the CCL; or
    (2) An integrated circuit, computer, ``electronic assembly,'' or 
``component'' specified in ECCN 3A001.z, 4A003.z, 4A004.z, 4A005.z, 
5A002.z, 5A004.z, or 5A992.z.
    (2) Destination or end use scope of the advanced computing FDP 
rule. A foreign-produced item meets the destination scope of this 
paragraph (h)(2) if there is ``knowledge'' that the foreign-produced 
item is:
    (i) Destined to any location worldwide or will be incorporated into 
any ``part,'' ``component,'' ``computer,'' or ``equipment'' not 
designated EAR99 destined to any location worldwide; or
    (ii) ``Technology'' ``developed'' by an entity headquartered in, or 
whose ultimate parent company is headquartered in, either Macau or a 
destination specified in Country Group

[[Page 4558]]

D:5, for the ``production'' of a mask or an integrated circuit wafer or 
die.

    Note to 5 paragraph (h)(2)(ii):  These end-use requirements 
under paragraph (h) apply when any entity headquartered in, or whose 
ultimate parent company is headquartered in, either Macau or a 
destination specified in Country Group D:5, is a party to any 
transaction involving the foreign-produced item, e.g., as a 
``purchaser,'' ``intermediate consignee,'' ``ultimate consignee,'' 
or ``end-user.''

* * * * *
    (l) AI Model weights FDP rule. A foreign-produced item is subject 
to the EAR if it meets both the product scope in paragraph (l)(1) of 
this section and the destination scope in paragraph (l)(2) of this 
section. See Sec.  742.6(a)(13) of the EAR for license requirements and 
Sec.  742.6(b)(10) for license review policy applicable to foreign-
produced items that are subject to the EAR under this paragraph (l).
    (1) Product scope. The product scope applies if a foreign-produced 
item is specified in ECCN 4E091 and is produced by a complete plant or 
`major component' of a plant that is located outside the United States, 
when the complete plant or `major component' of a plant, whether made 
in the United States or a foreign country, is subject to the EAR and 
specified in ECCN 3A001.z, 3A090, 4A003.z, 4A004.z, 4A005.z, 4A090, 
5A002.z, 5A004.z, or 5A992.z.

    Note 7 to paragraph (l)(1):  A foreign-produced item specified 
in ECCN 4E091 includes any foreign produced item that is further 
trained or modified via post-training techniques such as fine-
tuning, quantization, or other techniques.

    (2) Destination scope. A foreign-produced 4E091 item meets the 
destination scope of this paragraph (l)(2) if the foreign-produced item 
is destined to any location worldwide.
* * * * *

PART 740--LICENSE EXCEPTIONS

0
5. The authority citation for part 740 continues to read as follows:

    Authority:  50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; 22 U.S.C. 7201 et seq.; E.O. 13026, 61 FR 
58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 
2001 Comp., p. 783.

0
6. Section 740.2 is amended by revising paragraph (a)(9)(ii) 
introductory text and paragraph (a)(9)(ii)(A) to read as follows:


Sec.  740.2  Restrictions on all License Exceptions.

* * * * *
    (a) * * *
    (9) * * *
    (ii) The item is identified in paragraph (a)(9)(ii)(A) or (B) of 
this section and is being exported, reexported, or transferred (in-
country) to or within a destination specified in Country Group D:1, 
D:4, or D:5, excluding any destination also specified in Country Groups 
A:5 or A:6, or to an entity headquartered in or whose ultimate parent 
is headquartered in, Macau or a destination specified in Country Group 
D:5, wherever located, and the license exception is other than: TMP, 
restricted to eligibility under the provisions of Sec.  740.9(a)(6); 
NAC/ACA, under the provisions of Sec.  740.8; RPL, under the provisions 
of Sec.  740.10; GOV, restricted to eligibility under the provisions of 
Sec.  740.11(b); TSU under the provisions of Sec.  740.13(a) and (c); 
HBM under the provisions of Sec.  740.25; AIA under the provisions of 
Sec.  740.27 (for ECCN 4E091 to entities headquartered in countries 
listed in paragraph (a) of supplement no. 5 to part 740 and located in 
destinations other than Macau or Country Group D:5); or ACM under the 
provisions of Sec.  740.28. Items restricted to eligibility only for 
the foregoing license exceptions are:
    (A) Controlled under ECCNs 3A090, 4A090, 4E091, or associated 
software and technology in 3D001, 3E001, 4D090, and 4E001;
* * * * *

0
7. Section 740.8 is amended by revising the introductory text of 
paragraph (a) and paragraph (c)(1) to read as follows:


Sec.  740.8  Notified Advanced Computing (NAC) and Advanced Computing 
Authorized (ACA).

    (a) Eligibility requirements. License Exception NAC authorizes the 
export and reexport of any item classified in ECCN 3A090 (except for 
3A090.c), 4A090, 3A001.z, 4A003.z, 4A004.z, 4A005.z, 5A002.z, 5A004.z, 
5A992.z, 5D002.z, or 5D992.z, except for items designed or marketed for 
use in a datacenter and meeting the parameters of 3A090.a, to Macau and 
Country Group D:5 or an entity headquartered in or whose ultimate 
parent is headquartered in, Macau or a destination specified in Country 
Group D:5, wherever located. License Exception ACA authorizes the 
export, reexport, and transfer (in-country) of any item classified in 
ECCN 3A090 (except for 3A090.c), 4A090, 3A001.z, 4A003.z, 4A004.z, 
4A005.z, 5A002.z, 5A004.z, 5A992.z, 5D002.z, or 5D992.z, except for 
items designed or marketed for use in a datacenter and meeting the 
parameters of 3A090.a, to or within any destination worldwide (except 
Macau, a destination specified in Country Group D:5, or an entity 
headquartered in, or whose ultimate parent is headquartered in, Macau 
or a destination specified in Country Group D:5, wherever located), as 
well as transfers (in-country) within Macau and destinations specified 
in Country Group D:5. These license exceptions may be used provided the 
export, reexport, or transfer (in-country) meets all of the applicable 
criteria identified under this paragraph (a) and none of the 
restrictions in paragraph (b) of this section.
* * * * *
    (c) * * *
    (1) Procedures. At least twenty-five calendar days prior to exports 
or reexports using License Exception NAC, you must provide prior 
notification under License Exception NAC by submitting a completed 
application in SNAP-R in accordance with Sec.  748.1 of the EAR. The 
following blocks must be completed, as appropriate: Blocks 1, 2, 3, 4, 
5 (by marking box 5 export license or reexport license), 9, 14, 16, 17, 
18, 19, 21, 22(a), (d), (e), (f), (g), (h), (i), (j), 23, 24, and 25 
according to the instructions described in supplement no. 1 to part 748 
of the EAR. Box 9 under special purpose must include NAC. The 
application must include certain information to allow for BIS to 
determine if the item in question otherwise meets the criteria for an 
item eligible for License Exception NAC. Required information to 
include in the NAC submission is as follows:
    (i) Total Processing Performance of the item, as defined in ECCN 
3A090;
    (ii) Performance density of the item, as defined in ECCN 3A090;
    (iii) Data sheet or other documentation showing how the item is 
designed and marketed (in particular, whether it is designed or 
marketed for datacenter use);
    (iv) All NAC and license approvals to the end-user in the past 12 
months;
    (v) Memory bandwidth of the item(s); and
    (vi) Whether the items are destined for use in a computing cluster, 
and, if so:
    (A) The computing power of the computing cluster, measured in the 
aggregate TPP of all chips used in the cluster once the cluster is 
complete; and
    (B) Whether the cluster will be:
    (1) Exclusively for internal use by a company headquartered in the 
United States or a destination specified in Country Group A:5 or A:6, 
or
    (2) Used by any other companies not headquartered in A:5 or A:6, or 
by external parties such as through cloud services.
* * * * *

[[Page 4559]]


0
8. Add Sec. Sec.  740.27, 740.28, and 740.29 to read as follows:


Sec.  740.27  License Exception Artificial Intelligence Authorization 
(AIA).

    (a) Scope. This license exception authorizes the export, reexport, 
and transfer (in-country) of the items identified in paragraphs (a)(1) 
and (a)(2)(i) of this section to entities located within destinations 
listed in paragraph (a) of supplement no. 5 to this part, unless the 
entity is headquartered outside of, or has an ultimate parent company 
headquartered outside of, a destination specified in paragraph (a) of 
supplement no. 5 to this part, with an additional authorization for 
certain model weights in paragraph (a)(3) of this section, subject to 
additional conditions. This license exception cannot be used to provide 
items identified in paragraph (a)(1) of this section to entities 
headquartered outside of or located outside of paragraph (a) in 
supplement no. 5 to this part for training AI models specified in ECCN 
4E091. Prior to export, reexport, or transfer (in-country) of eligible 
items in paragraph (a)(1) of this section, the exporter, reexporter, or 
transferor must obtain the certification described in (b)(2) of this 
section and submit it to BIS.
    (1) Eligible commodities for this exception are: ECCNs 3A001.z.1.a, 
z.2.a, z.3.a, z.4.a; 3A090.a; 4A003.z.1.a, z.2.a; 4A004.z.1; 4A005.z.1; 
4A090.a; 5A002.z.1.a, z.2.a, z.3.a, z.4.a, z.5.a; 5A004.z.1.a, z.2.a; 
5A992.z.1; 5A004.z.1.a, z.2.a; and 5A992.z.1.
    (2) Eligible software and technology for this exception are:
    (i) Advanced Integrated Circuits: 3D001 (for ``software'' for 
commodities controlled by 3A001.z.1.a, z.2.a, z.3.a, z.4.a and 
3A090.a); 4D001 (for ``software'' for commodities controlled by 
4A003.z.1.a, z.2.a, 4A004.z.1, and 4A005.z.1); 4D090 (for ``software'' 
for commodities controlled by 4A090.a); 4E001 (for ``technology'' for 
commodities controlled by 4A003.z.1.a, z.2.a, 4A004.z.1, 4A005.z.1, 
4A090.a or ``software'' specified by 4D001 (for 4A003.z.1.a, z.2.a 
4A004.z.1, and 4A005.z.1) or 4D090.a); ; 5D002.z.1.a z.2.a, z.3.a, 
z.4.a, z.5.a, z.6.a, z.7.a, z.8.a, and z.9.a, or 5D992.z.1; 5E002 (for 
``technology'' for commodities controlled by 5A002.z.1.a, z.2.a, z.3.a, 
z.4.a, z.5.a or 5A004.z.1.a, z.2.a or ``software'' specified by 5D002 
(for 5A002. z.1.a, z.2.a, z.3.a, z.4.a, z.5.a or 5A004.z.1.a, z.2.a 
commodities)); and 5E992 (for ``technology'' for commodities controlled 
by 5A992.z.1 or ``software'' controlled by 5D992.z.1.)
    (ii) AI Model Weights specified by ECCN 4E091, subject to the 
additional requirements in paragraph (a)(3) of this section.
    (3) Additional authorization for AI model weights. For items 
identified in paragraph (a)(2)(ii) of this section only, this license 
exception also authorizes the export, reexport, and transfer (in-
country) to entities headquartered, or whose ultimate parent company is 
headquartered, in the destinations listed in paragraph (a) of 
supplement no. 5 to this part 740, as long as:
    (i) The entities obtaining the items are located outside Macau or 
destinations specified in Country Group D:5, and
    (ii) These items will be stored in a facility that complies with 
paragraphs 14, 15 and 18 of the guidelines outlined in supplement no. 
10 to part 748 (regardless of whether the facility is designated as a 
VEU).
    (b) Requirements prior to use of this license exception for 
eligible commodities, software, and technology identified in paragraphs 
(a)(1) and (a)(2)(i) of this section--(1) Furnish ECCN. The exporter, 
reexporter, or transferor must furnish to the ultimate consignee the 
ECCN of each item to be exported, reexported, or transferred (in-
country) pursuant to this section. Once furnished to a particular 
ultimate consignee, the ECCN need not be refurnished to that same 
ultimate consignee at the time the same exporter, reexporter, or 
transferor makes an additional export, reexport, or transfer (in-
country) of the same item, if the ECCN(s) remains accurate at the time 
of the additional export, reexport, or transfer (in-country). For 
purposes of this license exception, the ultimate consignee is the 
entity that has ownership over the eligible item(s) in paragraph (a)(1) 
or (a)(2)(ii).
    (2) Ultimate consignee certification. Prior to use of this license 
exception for items identified in (a)(1) only, the exporter, 
reexporter, or transferor must obtain a certification from the ultimate 
consignee. The certification is a one-time certification provided by 
each ultimate consignee that will be receiving items through the use of 
this license exception. The certification should provide that: [INSERT 
NAME(S) OF ULTIMATE CONSIGNEE(S)]:
    (i) Is aware that [INSERT GENERAL DESCRIPTION AND APPLICABLE 
ECCN(S) OF ITEMS TO BE SHIPPED (e.g., Boards classified under ECCN 
4A090.a)) will be shipped pursuant to License Exception Artificial 
Intelligence Authorization (AIA) of the Export Administration 
Regulations (EAR), 15 CFR parts 730-774;
    (ii) Agrees not to export, reexport, or transfer (in-country) these 
items to any end use or end user prohibited pursuant to Part 744 of the 
EAR without BIS authorization;
    (iii) Agrees items received under this license exception are not, 
without prior authorization from the U.S. Department of Commerce's 
Bureau of Industry and Security (BIS), to be used to provide 
Infrastructure-as-a-Service (IaaS) access for training AI models 
specified in ECCN 4E091 for entities headquartered or located outside 
of, or whose ultimate parent company is headquartered outside of 
destinations listed in paragraph (a) of Supplement No. 5 to part 740;
    (iv) Agrees that the items received under this license exception 
will not be exported, reexported, or transferred (in-country) to an 
entity headquartered or located outside of, or whose ultimate parent 
company is headquartered outside of paragraph (a) of Supplement No. 5 
to Part 740 without prior authorization from BIS; and
    (v) Inserts [NAME(S), SIGNATURE(S), AND TITLE(S) OF PERSON(S) 
AUTHORIZED TO SIGN THIS DOCUMENT ON BEHALF OF THE ULTIMATE CONSIGNEE, 
AND DATE(S) DOCUMENT IS SIGNED].
    (3) Notification to ultimate consignee of AIA shipment. With each 
shipment under License Exception AIA, the exporter (or reexporter or 
transferor as applicable), must notify the ultimate consignee in 
writing that the shipment is made pursuant to License Exception AIA. 
The notice must either specify which items are subject to License 
Exception AIA or state that the entire shipment is made pursuant to 
License Exception AIA. The notice must clearly identify the shipment to 
which it applies. The written notice may be conveyed by paper documents 
or by electronic methods such as facsimile or email.
    (c) Reporting requirement. Once the exporter, reexporter, or 
transferor obtains the certification from the ultimate consignee for 
items identified in paragraph (a)(1) only, prior to the initial export, 
reexport or transfer (in-country), the exporter, reexporter, or 
transferor must submit the certification to [email protected], 
with the subject line: AIA Certification. Following submission of the 
certification, exporters, reexporters and in-country transferors are 
not required to sign or provide a subsequent certification if the 
notification described in (b)(4) is provided to the ultimate consignee. 
This reporting requirement is only applicable if the ultimate consignee 
is receiving items identified in paragraph (a)(1) with a cumulative 
total processing performance (TPP) of 253,000,000.

[[Page 4560]]

Sec.  740.28   License Exception Advanced Compute Manufacturing (ACM).

    (a) Scope. License Exception ACM authorizes the export, reexport, 
and transfer (in-country) of eligible items specified in paragraph (b) 
to `private sector end users' for the ``development,'' ``production,'' 
or storage (in a warehouse or other similar facility) prior to export, 
reexport, or transfer (in country) to the ultimate end user of eligible 
items specified in paragraph (b) for items that are ultimately destined 
to customers outside of Macau or destinations specified in Country 
Group D:5, unless otherwise authorized.
    (b) Eligible commodities, software, and technology. Items 
controlled by ECCNs 3A001.z; 3A090; 3D001 (for ``software'' for 
commodities controlled by 3A001.z or 3A090); 3E001 (for ``technology'' 
for commodities controlled by 3A001.z or 3A090); 4A003.z; 4A004.z; 
4A005.z; 4A090; 4D001 (for ``software'' for commodities controlled by 
4A003.z, 4A004.z, and 4A005.z); 4D090 (for ``software'' for commodities 
controlled by 4A090); 4E001 (for commodities controlled by 4A003.z, 
4A004.z, 4A005.z, 4A090 or ``software'' specified by 4D001 (for 
4A003.z, 4A004.z, or 4A005.z), or 4D090 (for ``software'' for 
commodities controlled by 4A090)); 5A002.z; 5A004.z; 5A992.z; 5D002.z; 
5D992.z; 5E002 (for ``technology'' for commodities controlled by 
5A002.z or 5A004.z or ``software'' specified by 5D002 (for 5A002.z or 
5A004.z commodities)); or 5E992 (for ``technology'' for commodities 
controlled by 5A992.z or ``software'' controlled by 5D992.z).
    (c) Ineligible destinations. License Exception ACM does not 
authorize the export, reexport, or transfer (in-country) to Macau or 
any destination specified in Country Group D:5, or to any consignee 
wherever located when the ultimate consignee is headquartered in, or 
the ultimate consignee's ultimate parent company is headquartered in, 
Macau or a destination specified in Country Group D:5.
    (d) Private sector end user. A `private sector end user' is either 
an individual who is not acting on behalf of any government (other than 
the U.S. Government), or a commercial firm (including its subsidiary 
and parent firms, and other subsidiaries of the same parent) that is 
not wholly owned by, or otherwise controlled by any government (other 
than the U.S. Government).
    (e) Accounting. Exporters, reexporters, and transferors must 
maintain a system of distribution that allows them to account for the 
number of controlled items transferred to, and subsequently out, of the 
facility. Such accounting should be done for each facility, with 
records updated every six months or more frequently.


Sec.  740.29  License Exception Low Processing Performance (LPP).

    (a) Scope. License Exception LPP authorizes the export and reexport 
of up to 26,900,000 cumulative total processing performance (TPP) of 
advanced computing integrated circuits per-calendar year directly to a 
single ultimate consignee. If the ultimate consignee is headquartered 
in a destination specified in paragraph (a) of supplement no. 5 to part 
740, then the ultimate consignee may apply the cumulative TPP of 
exports and reexports of eligible commodities under this license 
exception toward the cumulative TPP limit of a different entity that 
will operate the items in paragraph (b). This license exception does 
not authorize transfers (in-country).
    (b) Eligible commodities. Eligible commodities are those under 
ECCNs 3A001.z.1.a, z.2.a, z.3.a, z.4.a; 3A090.a; 4A003.z.1.a, z.2.a; 
4A004.z.1; 4A005.z.1; 4A090.a; 5A004.z.1.a, z.2.a; and 5A992.z.1.
    (c) Eligible destinations. This License Exception is available 
except:
    (1) To destinations specified in Country Group D:5 or Macau, or
    (2) To any destination when the ultimate consignee is headquartered 
in or has an ultimate parent company headquartered in Macau or a 
destination specified in Country Group D:5.
    (d) Restriction on annual processing power volume of LPP. The total 
TPP volume of all exports and reexports of eligible commodities under 
this license exception made by all exporters and reexporters to a 
single ultimate consignee per calendar year may not exceed 26,900,000 
TPP; however, there is no restriction on the number of shipments or the 
number of exporters and reexporters, provided that TPP volume is not 
exceeded. This annual TPP limit applies to shipments by all exporters 
and reexporters to the same ultimate consignee even though the 
shipments are made through more than one intermediate consignee.
    (e) Prohibited end use and end user. This license exception cannot 
be used to export or reexport items to any end use or end user 
prohibited under Part 744.
    (f) Ultimate Consignee Statement. Prior to use of this license 
exception the exporter or reexporter must obtain a certification from 
the ultimate consignee that: [INSERT NAME(S) OF ULTIMATE CONSIGNEE(S)]:
    (i) Is aware that [INSERT GENERAL DESCRIPTION AND APPLICABLE 
ECCN(S) OF ITEMS TO BE SHIPPED (e.g., Boards classified under ECCN 
4A090.a)] will be shipped pursuant to License Exception Low Processing 
Performance;
    (ii) Agrees not to export, reexport, or transfer these items to any 
use or user prohibited under Part 744 of the Export Administration 
Regulations;
    (iii) Certifies that they have not received a `cumulative TPP' of 
26,900,000 of ECCNs 3A001.z.1.a, z.2.a, z.3.a, z.4.a; 3A090.a; 
4A003.z.1.a, z.2.a; 4A004.z.1; 4A005.z.1; 4A090.a; 5A002.z.1.a, z.2.a, 
z.3.a, z.4.a, z.5.a; 5A004.z.1.a, z.2.a; 5A992.z.1, 5A004.z.1.a, z.2.a; 
and 5A992.z.1 items in the relevant calendar year under License 
Exception LPP.
    (iv) Inserts [NAME(S), SIGNATURE(S), AND TITLE(S) OF PERSON(S) 
AUTHORIZED TO SIGN THIS DOCUMENT ON BEHALF OF THE ULTIMATE CONSIGNEE, 
AND DATE(S) DOCUMENT IS SIGNED].
    (g) Reporting requirement. (1) Exporters and reexporters, having 
obtained the required certification in paragraph (f) prior to exporting 
or reexporting eligible items, must provide a copy of that 
certification to BIS by email to [email protected] with subject 
line ``LPP Shipment'' within 30 days of the date on which the export or 
reexport takes place.
    (2) Ultimate consignees receiving eligible commodities under this 
License Exception TPP must notify BIS by email to 
[email protected] with subject line ``LPP TPP Limit Reached'' 
whenever they have received the maximum allowable 26,900,000 TPP under 
this license exception in a calendar year in all shipments from all 
exporters and reexporters. Notification to BIS should be made as soon 
as the ultimate consignee actually receives the final shipment of 
eligible commodities that exhausts the consignee's annual TPP volume 
limit.
    (3) Exporters and reexporters, prior to exporting or reexporting 
the eligible items, must notify BIS by email to [email protected] 
with the subject line ``LPP Shipment'' of any shipment with an 
aggregate TPP of 3,200,000.
    (h) Definitions--(1) Ultimate consignee. For purposes of this 
license exception, the ultimate consignee is the ultimate parent entity 
that has ultimate ownership over the items in paragraph (b).
    (2) Cumulative TPP. The `cumulative TPP' is the total amount of 
TPP, as defined in the Technical Notes to 3A090, of all eligible 
commodities in

[[Page 4561]]

paragraph (b) that are received by a single ultimate consignee in all 
shipments from all exporters and reexporters in a calendar year. 
Cumulative TPP should be calculated by adding the individual TPP for 
any items specified in 3A090.a and 4A090.a and any items specified in 
3A001.z, 4A003.z, 4A004.z, 4A005.z, 5A002.z, 5A004.z, or 5A992.z that 
meet or exceed the parameters of 3A090.a or 4A090.a.

0
9. Part 740 is amended by adding Supplement No. 5 to read as follows:

Supplement No. 5 to Part 740--Artificial Intelligence Authorization 
Countries

    (a) Destinations eligible:

Australia
Belgium
Canada
Denmark
Finland
France
Germany
Ireland
Italy
Japan
Netherlands
New Zealand
Norway
Republic of Korea
Spain
Sweden
Taiwan
United Kingdom
United States

    (b) Destinations that have provided government assurances to the 
U.S. Government and therefore are subject to a higher country 
allocation.

PART 742--CONTROL POLICY--CCL BASED CONTROLS

0
10. The authority citation for part 742 continues to read as follows:

    Authority:  50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 
U.S.C. 7201 et seq.; 22 U.S.C. 7210; Sec. 1503, Pub. L. 108-11, 117 
Stat. 559; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 
12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR 
59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026, 61 FR 58767, 3 CFR, 
1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783; Presidential Determination 2003-23, 68 FR 26459, 3 CFR, 2004 
Comp., p. 320; Notice of November 7, 2024, 89 FR 88867 (November 8, 
2024).


0
11. Section 742.6 is amended by
0
a. Revising paragraph (a)(6)(iii);
0
b. Adding paragraph (a)(13);
0
c. Revising paragraph (b)(10)(iii); and
0
d. Adding (b)(14).
    The revisions and additions read as follows:


Sec.  742.6   Regional stability.

* * * * *
    (a) * * *
    (6) * * *
    (iii)(A) Worldwide license requirement. A license is required to 
export, reexport, or transfer (in-country) items specified in ECCNs 
3A001.z.1.a, z.2.a, z.3.a, z.4.a; 3A090.a; 3D001 (for ``software'' for 
commodities controlled by 3A001.z.1.a, z.2.a, z.3.a, z.4.a, or 
3A090.a); 3E001 (for ``technology'' for commodities controlled by 
3A001.z.1.a, z.2.a, z.3.a, z.4.a, or 3A090.a); 4A003.z.1.a, z.2.a; 
4A004.z.1; 4A005.z.1; 4A090.a; 4D001 (for ``software'' for commodities 
controlled by 4A003.z.1.a, z.2.a, 4A004.z.1, and 4A005.z.1); 4D090 (for 
``software'' for commodities controlled by 4A090.a); 4E001 (for 
commodities controlled by 4A003.z.1.a, z.2.a, 4A004.z.1, 4A005.z.1, 
4A090.a or ``software'' specified by 4D001 (for 4A003.z.1.a, z.2.a, 
4A004.z.1, or 4A005.z.1), or 4D090 (for ``software'' for commodities 
controlled by 4A090.a)); 5A002.z.1.a, z.2.a, z.3.a, z.4.a, z.5.a; 
5A004.z.1.a, z.2.a; 5A992.z.1; 5D002.z.1.a, z.2.a, z.3.a, z.4.a, z.5.a, 
z.6.a, z.7.a, z.8.a, and z.9.a; 5D992.z.1; 5E002 (for ``technology'' 
for commodities controlled by 5A002.z.1.a, z.2.a, z.3.a, z.4.a, z.5.a 
or 5A004.z.1.a, z.2.a or ``software'' specified by 5D002 (for 
5A002.z.1.a, z.2.a, z.3.a, z.4.a, z.5.a or 5A004.z.1.a, z.2.a 
commodities)); or 5E992 (for ``technology'' for commodities controlled 
by 5A992.z.1 or ``software'' controlled by 5D992.z.1.) to or within any 
destination worldwide.
    (B) Country Groups D:1, D:4, or D:5 license requirement excluding 
destination also specified in Country Groups A:5 or A:6. A license is 
required to export, reexport, or transfer (in-country) items specified 
in ECCNs 3A001.z.1.b, z.2.b, z.3.b, z.4.b; 3A090.b; 3D001 (for 
``software'' for commodities controlled by 3A001.z.1.b, z.2.b, z.3.b, 
z.4.b; 3A090.b); 3E001 (for ``technology'' for commodities controlled 
by 3A001.z.1.b, z.2.b, z.3.b, z.4.b, or 3A090.b); 4A003.z.1.b, z.2.b; 
4A004.z.2; 4A005.z.2; 4A090.b; 4D001 (for ``software'' for commodities 
controlled by 4A003.z.1.b, z.2.b, 4A004.z.2, and 4A005.z.2); 4D090 (for 
``software'' for commodities controlled by 4A090.b); 4E001 (for 
commodities controlled by 4A003.z.1.b, z.2.b, 4A004.z.2, 4A005.z.2, 
4A090.b or ``software'' specified by 4D001 (for 4A003.z.1.b, z.2.b, 
4A004.z.2, or 4A005.z.2), or 4D090 (for ``software'' for commodities 
controlled by 4A090.b)); 5A002.z.1.b, z.2.b, z.3.b, z.4.b, z.5.b; 
5A004.z.1.b, z.2.b; 5A992.z.2; 5D002.z.1.b, z.2.b, z.3.b, z.4.b, z.5.b, 
z.6.b, z.7.b, z.8.b, and z.9.b; 5D992.z.2; 5E002 (for ``technology'' 
for commodities controlled by 5A002.z.1.b, z.2.b, z.3.b, z.4.b, z.5.b 
or 5A004.z.1.b, z.2.b or ``software'' specified by 5D002 (for 5A002. 
z.1.b, z.2.b, z.3.b, z.4.b, z.5.b or 5A004.z.1.b, z.2.b commodities)); 
or 5E992 (for ``technology'' for commodities controlled by 5A992.z.2 or 
``software'' controlled by 5D992.z.2.) to or within a destination in 
Country Groups D:1, D:4, or D:5 excluding destinations also specified 
in Country Groups A:5 or A:6.
* * * * *
    (13) RS requirement that applies to artificial intelligence model 
weights. A license is required for the export, reexport, and transfer 
(in-country) of items specified in ECCN 4E091 to all destinations 
worldwide. The license requirements in this paragraph (a)(13) do not 
apply to deemed exports or deemed reexports for `permanent regular 
employees,' as that term is defined Sec.  734.20(d)(2), employed by 
entities headquartered in or with an ultimate parent headquartered in a 
destination specified in paragraph (a) of Supplement No. 5 to Part 740.
* * * * *
    (b) * * *
    (10) * * *
    (iii) License review policy for paragraph (a)(6)(iii)(A)--(A)(1) 
Policy for Country Group D:5 and Macau. For items specified in 
paragraph (a)(6)(iii)(A) of this section, applications for exports, 
reexports, or transfers (in-country) to or within Macau or destinations 
specified in Country Group D:5 or to an entity headquartered in, or 
whose ultimate parent company is headquartered in, either Macau or a 
destination specified in Country Group D:5 will be reviewed under a 
presumption of denial.
    (2) Policy for countries in paragraph (a)of supplement no. 5 to 
part 740. For items specified in paragraph (a)(6)(iii)(A) of this 
section, applications for exports, reexports, or transfers (in-country) 
to or within destinations listed in paragraph (a) to supplement no. 5 
of Part 740, or to entities headquartered in, or whose ultimate parent 
company is headquartered in, a destination listed in paragraph (a) to 
supplement no. 5 of Part 740 will be reviewed under a presumption of 
approval.
    (B) Country Allocations and licensing policy for all other 
destinations. For items specified in paragraph (a)(6)(iii)(A) of this 
section, applications for exports, reexports, or transfers (in-country) 
to or within a destination or to entities headquartered, or whose 
ultimate parent is headquartered, in a destination not listed in either 
paragraph (a) or (b) of supplement no. 5 of Part 740:

[[Page 4562]]

    (1) Not exceeding the country allocation. Applications for exports, 
reexports, or transfers (in-country) will be reviewed under a 
presumption of approval, up to a per-country allocation of 790,000,000 
TPP for the period from 2025 to 2027, to or within destinations other 
than Country Group D:5 or Macau or to entities not headquartered in or 
whose ultimate parent company is not headquartered in destinations in 
Country Group D:5 or Macau. These TPP allocations represent permitted 
cumulative installed base, not newly available TPP in addition to 
previous-year installed bases. BIS will calculate progress toward 
country allocations by totaling the TPP of 3A090.a, 4A090.a, and 
corresponding .z items licensed to each destination cumulatively 
beginning in 2025. Items exported, re-exported, or transferred (in-
country) before 2025 will not count toward country allocations. Please 
visit www.bis.gov/advanced-compute-resources for an update on whether 
the country allocations have been met.
    (2) Exceeding the country allocation. After the country allocations 
above are met, applications will be reviewed under a policy of denial. 
Together with the Departments of State, Energy, and Defense, BIS will 
review allocations for subsequent years on an annual basis.
    (C) For items specified in paragraph (a)(6)(iii)(A) of this 
section, applications for exports, reexports, or transfers (in-country) 
to or within destinations listed in paragraph (b) of supplement no. 5 
to Part 740, TPP allocations may be increased up to 100% for that 
destination pursuant to government-to-government assurances, as 
applicable. Accordingly, the licensing policy in paragraph 
(b)(10)(iii)(B) will apply, up to the adjusted country allocations.
    (iv) For items specified in paragraph (a)(6)(iii)(B) of this 
section:
    (A) Presumption of approval. Applications for exports, reexports, 
or transfers (in-country) will be reviewed with a presumption of 
approval to or within destinations not specified in Country Group D:5 
or Macau or to an entity not headquartered in, and whose ultimate 
parent company is not headquartered in, either Macau or a destination 
specified in Country Group D:5.
    (B) Presumption of denial. Applications for exports, reexports, or 
transfers (in-country) will be reviewed under a presumption of denial 
to or within Macau or destinations specified in Country Group D:5 or to 
an entity headquartered in, or whose ultimate parent company is 
headquartered in, either Macau or a destination specified in Country 
Group D:5.
* * * * *
    (14) License Review Policy for AI Model Weights in (a)(13) of this 
section. Applications to export, reexport, or transfer (in-country) 
items classified under ECCN 4E091 will be reviewed under a presumption 
of denial for end users headquartered, or with an ultimate parent 
headquartered, outside of destinations listed in paragraph (a) to 
supplement No. 5 to part 740.

    Note to paragraph (b)(14):  Note 2 to ECCN 4E091 explains that 
4E091 does not control the `parameters' of any artificial 
intelligence model trained utilizing fewer `operations' than the 
number needed to train an artificial intelligence model as capable, 
according to an aggregate of widely used benchmarks, as the most 
advanced artificial intelligence model that has been ``published'' 
as defined in Sec.  734.7(a) of the EAR.

* * * * *

PART 744--CONTROL POLICY: END-USER AND END-USE BASED

0
12. The authority citation for part 744 is revised to read as follows:

    Authority:  50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 
U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 
1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 
608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026, 
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3 
CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., 
p. 783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; Notice 
of September 18, 2024, 89 FR 77011 (September 20, 2024); Notice of 
November 7, 2024, 89 FR 88867 (November 8, 2024).


0
13. Revise Sec.  744.23(a)(3)(i) to read as follows:


Sec.  744.23  ``Supercomputer,'' ``advanced-node integrated circuits,'' 
and semiconductor manufacturing equipment end use controls.

* * * * *
    (a) * * *
    (3) * * *
    (i)(A) Any item subject to the EAR and specified in ECCN 
3A001.z.1.b, z.2.b, z.3.b, z.4.b; 3A090.b; 4A003.z.1.b, z.2.b; 
4A004.z.2; 4A005.z.2; 4A090.b; 5A002.z.1.b, z.2.b, z.3.b, z.4.b, z.5.b; 
5A004.z.1.b, z.2.b; 5A992.z.2, 5D002.z.1.b, z.2.b, z.3.b, z.4.b, z.5.b, 
z.6.b, z.7.b, z.8.b, and z.9.b; 5D992.z.2 destined to any destination 
other than those specified in Country Groups D:1, D:4, or D:5 
(excluding any destination also specified in Country Groups A:5 or A:6) 
for an entity that is headquartered in, or whose ultimate parent 
company is headquartered in, either Macau or a destination specified in 
Country Group D:5 (e.g., a PRC-headquartered cloud or data server 
provider located outside of Country Groups D:1, D:4, or D:5 (excluding 
any destination also specified in Country Groups A:5 or A:6)).
    (B) Any item subject to the EAR and specified in ECCN 3A090.c 
destined to any destination other than Macau or those specified in 
Country Group D:5, for an entity that is headquartered in, or whose 
ultimate parent company is headquartered in, either Macau or a 
destination specified in Country Group D:5.

PART 748--APPLICATIONS (CLASSIFICATION, ADVISORY, AND LICENSE) AND 
DOCUMENTATION

0
14. The authority citation for part 748 is revised to read as follows:

    Authority:  50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of 
August 13, 2024, 8 FR 66187 (August 15, 2024).

0
15. Section 748.3 is amended by adding paragraph (f) to read as 
follows:


Sec.  748.3  Classification requests and advisory opinions.

* * * * *
    (f) Classification requests for artificial intelligence models. 
Classification requests may be submitted to confirm that technology is 
not controlled under ECCN 4E091 because the artificial intelligence 
model has been trained utilizing fewer computational `operations' than 
the number needed to train a model as capable, according to an average 
of widely used benchmarks, as the most advanced artificial intelligence 
model that has been ``published'' as defined in Sec.  734.7(a) of the 
EAR. Refer to the technical notes to ECCN 4E091 for instructions 
regarding self-classifications of artificial intelligence models.

0
16. Section 748.15 is amended by revising the introductory text and 
paragraphs (a)(1), (a)(2), (b), (d)(2), and (f) to read as follows:


Sec.  748.15   Authorization Validated End-User (VEU).

    Validated end-users (VEU) are those who have been previously 
approved by BIS pursuant to the requirements of this section. To be 
eligible for authorization VEU, exporters, reexporters, and validated 
end-user applicants must adhere to the conditions and restrictions set 
forth in paragraphs (a) through (f) of this section. If a request for 
VEU

[[Page 4563]]

Authorization for a particular end-user is not granted, no new license 
requirement is triggered. In addition, such a result does not render 
the end user ineligible for license approvals from BIS. There are two 
types of VEU authorization: General VEU Authorization and Data Center 
VEU Authorization. General VEU Authorizations permit the export, 
reexport, and transfer to validated end-users of any eligible items 
that will be used in a specific eligible destination. Data Center VEU 
Authorizations permit the export and reexport to validated end-users of 
any eligible items that will be used in specific data centers. A data 
center is a facility or ``facilities'' that house a multi-racked, 
networked computer system that include servers, storage devices, and 
networking equipment. Data Center VEU Authorizations may be either 
universal or national authorizations.
    (a)(1) Eligible end-users for General VEU Authorizations and Data 
Center VEU Authorizations. The only end users to whom eligible items 
may be exported, reexported, or transferred under a General VEU 
Authorization or a Data Center VEU Authorization are those validated 
end-users identified in Supplement No. 7 to this part. Those entities 
were added as VEUs according to the provisions in this Section and 
Supplement Nos. 8 and 9 to this part.
    (2) Requests for authorizations--(i) Advisory opinion. To apply for 
a General VEU Authorization or Data Center VEU Authorization, requests 
for authorization must be submitted in the form of an advisory opinion 
request, as described in Sec.  748.3(c), and must include a list of 
items (except as excluded by paragraph (c) of this section), identified 
by ECCN, intended for export, reexport, or transfer (in-country) to an 
eligible end-user, once approved.
    (ii) Applications for Universal VEU (UVEU) Authorization--(A) 
Application Overview. A UVEU authorization should be submitted by the 
owner of the advanced computing ICs. To qualify for UVEU authorization, 
the owner of the advanced computing ICs must certify that it will 
follow the guidelines in Supplement No. 10 to this part. The owner of 
the advanced compute must certify that it will follow the guidelines in 
paragraphs 14, 15, and 18 of Supplement No. 10 to this part on or 
before January 15, 2026. If the owner of the advanced computing ICs 
cannot certify to all of the guidelines in Supplement No. 10 to this 
part, it must notify BIS in its application of the other entities 
involved in its operations. The applicant must also provide signed 
certifications from such entities as set forth in Supplement No. 10 to 
this part. For UVEUs, if the operator of the advanced compute is 
different from the owner of the advanced compute, the operator must 
itself have an Authorization UVEU. As appropriate, BIS will adjudicate 
complete UVEU applications within 30 days of receipt. A UVEU will need 
to file a notification with BIS when building a datacenter in a new 
location 180 days before any exports, reexports, or transfers (in-
country) to the new datacenter. The notification should include the 
physical address of the new data center location. BIS will use this 
information to update the eligible destination column in the validated 
end user list in Supplement No. 7 to this part. The UVEU may choose 
whether to list a corporate address or a physical address of the new 
data center location. The UVEU may furnish its BIS authorization letter 
as proof of its authorization to receive exports, reexports, or 
transfers (in-country) prior to the publication of an amendment to 
Supplement No. 7 to this part that includes a physical address, or 
where Supplement No. 7 includes a corporate address but not a physical 
address. No other requirements may be placed on the UVEU beyond those 
described in Supplement No. 10 to this part as a condition for granting 
the original UVEU application.
    (B) UVEU Compute Geographic Allocations. UVEUs will be subject to 
the geographic allocations identified in paragraph 6 or Supplement No. 
10 to this part.
    (iii) Applications for National VEU (NVEU) Authorization--(A) 
Application Overview. The NVEU Authorization will allow an entity to 
receive exports and reexports in a specific country as specified in 
their NVEU authorization. For every additional country in which the 
NVEU wants to operate, the owner of the advanced compute must obtain a 
separate NVEU authorization. To qualify for NVEU authorization, the 
owner of the advanced computing ICs must adhere to guidelines provided 
in Supplement No. 10 to this part but, depending on its location and 
the national security and foreign policy risks associated with that 
location, may be subject to other requirements. The owner of the 
advanced compute must certify that it will follow the guidelines in 
paragraphs 14, 15, and 18 of Supplement No. 10 to this part on or 
before January 15, 2026. If the owner of the advanced computing ICs 
cannot certify to all of the guidelines in Supplement No. 10 to this 
part, it must notify BIS in its application of the other entities 
involved in its operations. Applicants must provide written assurances 
from those other entities consistent with Supplement No. 10 to this 
part during the application review process. Government-to-Government 
assurances between the United States and the government of the country 
in which the NVEU wishes to operate may be sought before a NVEU is 
granted. Where multiple entities will own and operate the NVEU they 
should submit a joint application. For NVEUs, if the operator of the 
advanced compute is different from the owner of the advanced compute, 
the operator must itself have its own Authorization NVEU. After 
receiving NVEU Authorization, the NVEU will be listed as such in 
Supplement No. 7 to this part. The NVEU may inform BIS if it prefers 
that Supplement No. 7 list a corporate address or a physical address of 
the new data center location. Once approved for Authorization NVEU by 
BIS, the NVEU may furnish its BIS authorization letter that includes 
physical addresses as proof of its authorization to receive exports, 
reexports, or transfers (in-country) prior to the publication of an 
amendment to Supplement No. 7 that includes a physical address, or 
where Supplement No. 7 includes a corporate address but not a physical 
address.
    (B) NVEU TPP Allocation. NVEUs will be subject to a per-NVEU per-
country installed base allocation of total processing performance 
(TPP), as measured by the collective computing power of items subject 
to ECCNs 3A090.a, 4A090.a, or corresponding .z paragraphs, as provided 
below:

                   Table 1 to Paragraph (a)(2)(iii)(B)
------------------------------------------------------------------------
                                                         Cumulative per-
                                                          company per-
                        Quarter                              country
                                                          allocation in
                                                               TPP
------------------------------------------------------------------------
2025 Q1...............................................       633,000,000
2025 Q2...............................................       949,500,000
2025 Q3...............................................     1,266,000,000
2025 Q4...............................................     1,582,500,000
2026 Q1...............................................     1,899,000,000
2026 Q2...............................................     2,690,250,000
2026 Q3...............................................     3,481,500,000
2026 Q4...............................................     4,272,750,000
2027 Q1-4.............................................     5,064,000,000
------------------------------------------------------------------------

    These TPP allocations represent permitted cumulative installed base 
during a given quarter, not newly available TPP in addition to 
previous-quarter installed bases, and do not count towards or impact 
country allocations. Advanced computing ICs that suffer attrition due 
to factors such as loss, damage, failure, relocation, and resale do not 
count toward allocations.

[[Page 4564]]

    (iv) Information to include and address for submissions. To ensure 
a thorough review, applications for Authorization VEU must include the 
information described in Supplement No. 8 to this part. Applications 
for UVEU and NVEU should also include information demonstrating that 
the applicant can adhere to the guidelines described in Supplement No. 
10 to this part. Requests for authorization will be accepted from 
exporters, reexporters, or end users. Submit the request to: The Office 
of Exporter Services, Bureau of Industry and Security, U.S. Department 
of Commerce, 14th Street and Pennsylvania Avenue NW, Room 2099B, 
Washington, DC 20230. Mark the package ``Request for [insert 
``General,'' ``Data Center--Universal,'' or ``Data Center--National'' 
as appropriate] Authorization Validated End-user.''
* * * * *
    (b) Eligible destinations--(1) General VEU Authorizations. General 
VEU Authorizations may be used for the following destinations:
    (i) The People's Republic of China.
    (ii) India.
    (2) Data Center VEU Authorizations. (i) UVEU must be headquartered 
in, or have their ultimate parent company headquartered in, 
destinations listed in paragraph (a) of Supplement No. 5 to Part 740, 
and UVEU data centers may be located anywhere, except in Macau or 
destinations specified in Country Group D:5.
    (ii) NVEU may be headquartered, have an ultimate parent 
headquartered, or located in a destination specified in Country Groups 
A, B, or D:1-D:4, except Macau or destinations specified in Country 
Group D:5. NVEU data centers can be built around the world, except in 
Macau or destinations specified in Country Group D:5.
* * * * *
    (d) * * *
    (2) Data Center VEU Authorizations. Items obtained under Data 
Center VEU Authorizations may not be used for any activities described 
in part 744 of the EAR. Eligible validated end users who obtain items 
under VEU may only:
    (i) Use such items at the end user's own facility located in an 
authorized destination;
    (ii) Consume such items during use; or
    (iii) In-country transfers and reexports are not permitted under 
Data Center VEU Authorization unless the transfer (in-country) or 
reexport is to a VEU authorized location by the same VEU or a separate 
authorization is obtained.

    Note 1 to paragraph (d): Authorizations set forth in supplement 
no. 7 to this part for General VEUs and Data Center NVEUs are 
country-specific. Authorization as a validated end-user for one 
country specified in paragraph (b) of this section does not 
constitute authorization as a validated end-user for any other 
country specified in that paragraph for those types of VEUs.

* * * * *
    (f) Reporting and review requirements--(1) Reports--(i) Reexport 
Information Required for both types of VEU authorizations. Reexporters 
who make use of General VEU Authorizations are required to submit 
annual reports to BIS. Reexporters who make use of Data Center VEU 
Authorizations are required to submit semi-annual reports to BIS. For 
either authorization, reexporters must include, for each validated end 
user to whom the exporter or reexporter exported or reexported eligible 
items:
    (A) The name and address of each validated end-user to whom 
eligible items were reexported;
    (B) The eligible destination to which the items were reexported;
    (C) The quantity of such items;
    (D) The value of such items; and
    (E) The ECCN(s) of such items.
    (ii) End user reports for Data Center VEU Authorizations. End users 
who make use of Data Center VEU Authorizations must submit reports to 
BIS semi-annually. End users must submit the following information, 
including, as appropriate:
    (A) A record of current inventory of eligible items received;
    (B) Dates of when eligible items were received; and
    (C) For NVEUs, a list of current customers.
    (iii) Deadlines. For reexporters making use of General VEU 
Authorization, reports are due by February 15 of each year, and must 
cover the period from January 1 through December 31 of the prior year. 
For reexporters and end users making use of Data Center VEU 
Authorization, reports are due semiannually:
    (A) The first report is due July 15 of each year and must cover the 
period from January 1 through June 30;
    (B) The second report is due January 15 of each year and must cover 
the period from July 1 to December 31 of the previous year.
    (iv) Addresses. Reports must be sent to: Office of Exporter 
Services, Bureau of Industry and Security, U.S. Department of Commerce, 
14th Street and Constitution Avenue NW, Room 2099B, Washington, DC 
20230. Mark the package ``General Authorization Validated End-User 
Report'' or ``Data Center Authorization Validated End-user Report.''
    (2) Reviews. Records related to activities covered by General or 
Data Center VEU Authorizations that are maintained by exporters, 
reexporters, transferors, and VEU will be reviewed on a periodic basis. 
Upon request by BIS, exporters, reexporters, transferors, and validated 
end-users must allow review of records, including on-site reviews 
covering the information set forth in paragraphs (e) and (f)(1) of this 
section.
* * * * *

0
17. Amend supplement No. 2 to part 748 by adding paragraphs (c)(3) and 
(4) to read as follows:

Supplement No. 2 to Part 748--Unique Application and Submission 
Requirements

* * * * *
    (c) * * *
    (3) Purchase orders for Artificial Intelligence commodities. 
License applications for items controlled under ECCNs 3A090.a, 
4A090.a, 3A001.z, 4A003.z, 4A004.z, 4A005.z, 5A002.z, 5A004.z, or 
5A992.z require the submission of a purchase order or equivalent 
contractual agreement with the submission of the license 
application. The purchase order may be contingent on approval of the 
license. Upon approving a license for these items, BIS will 
generally limit the licensed quantity to the quantity specified on 
the purchase order.
    (4) License applications for Artificial Intelligence 
commodities. Applicants are required to submit the total aggregated 
TPP value of each export item on their license application. This 
information should be included in block 22(j) in SNAP-R. If 
applicants are submitting a license for items destined to a country 
that is subject to a per-country TPP allocation, the applicant must 
fill out an individual license for each country and calculate the 
TPP per individual country. Applicants are encouraged to include 
information to support their TPP calculation in their Letter of 
Explanation (LOE). Calculate the aggregate TPP for each export item 
by adding the TPP for each integrated circuit. For additional 
information on calculating TPP, please refer to the Technical Notes 
to 3A090.
* * * * *

0
18. Amend supplement No. 8 to part 748 by revising paragraphs B(2), 
(6), (9), and (10), and adding B(11) to read as follows:

Supplement No. 8 to Part 748--Information Required in Requests for VEU 
Authorization

* * * * *

B * * *

    (2) An overview of any business activity or corporate 
relationship that the candidate has with either government or 
military organizations of Macau or a destination specified in 
Country Group D:5;
* * * * *

[[Page 4565]]

    (6) For NVEUs, absent a legal prohibition or other such 
exceptional circumstances, a list of current and potential customers 
of the data center;
* * * * *
    (9) An overview of the applicant's supply chain risk management 
plan to limit PRC-origin equipment specified in paragraph 3 of 
Supplement No. 10 to Part 748 from entering the data-center 
environment and supply chain;
    (10) An overview of the applicant's export control training 
program and compliance program procedures; and
    (11) (NVEU applicants only) An overview of the applicant's 
ability to verify that items subject to the license requirement in 
Sec.  742.6(a)(6)(iii) have not been moved from the specific country 
authorized for export or reexport by the NVEU (e.g. from the ping 
times to nearby secure servers);
* * * * *

0
19. Supplement No. 10 to part 748 is added to read as follows:

Supplement No. 10 to Part 748--Data Center VEU Authorization Guidelines

I. Certification and Policy Requirements Relating to National and 
Universal Validated End Users (VEU)

Vetting Requirements

    1. General Compliance and Proven Track Record. The VEU must have 
a credible plan to meet or demonstrated track record of meeting 
established physical, cyber, and personnel security standards for 
large-scale data center operations and of complying with U.S. export 
control laws, a credible plan to or demonstrated track record of 
respecting human rights, as well as a clear and feasible plan for 
doing so in a destination that is not Macau, specified in Country 
Group D:5, or listed in paragraph (a) to Supplement No. 5 to Part 
740.
    2. Foreign Military and Intelligence Ties.
    a. The VEU, to include all subsidiary and parent entities (as 
well as their personnel in their professional capacities), must be 
free of ties to any `military end users' (as that term is defined in 
Sec.  744.21(g)) or `military-intelligence end users' (as that term 
is defined in Sec.  744.22(f)(2)).
    b. Ties include research and development agreements and joint 
activities.
    3. Foreign Technology Ties. The VEU, to include all subsidiary 
and parent entities (as well as their personnel in their 
professional capacities), must adhere to the U.S. rules on outbound 
investment at 31 CFR part 850 as applied to U.S. persons regardless 
of whether such VEU, entity, or individual is a U.S. person, without 
giving effect to any exception under 31 CFR 850.501(g), except that 
non-U.S. persons must submit materials to BIS, not the Department of 
the Treasury. Any notifications or other information that, because 
of this paragraph, would be required to be submitted in order to 
adhere to 31 CFR part 850 should be submitted to BIS as part of the 
VEU application. (For the avoidance of doubt, any notification or 
other information that would be required to be submitted pursuant to 
31 CFR part 850 should continue to be submitted to the Department of 
the Treasury). The VEU must also adhere to determinations, including 
any prohibitions and mitigations, made under Commerce's Information 
Communication Technology Services program at 15 CFR part 791, and 
the VEU must demonstrate that it has eliminated supply chain 
dependencies on advanced semiconductors specified in ECCN 3A090.a, 
4A090.a, or .z derivatives meeting or exceeding the parameters of 
ECCN 3A090.a or 4A090.a and advanced networking equipment specified 
in ECCN 4A003.g, 5A001, 5A002.a, or 5A992.a. produced by any 
entities headquartered in Macau or destinations specified in Country 
Group D:5. The VEU must also demonstrate that it has eliminated 
supply chain dependencies on equipment and services listed by the 
Federal Communications Commission as covered by Section 2 of the 
Secure and Trusted Communications Networks Act of 2019. The VEU must 
also notify the U.S. Government, through the VEU program, of all 
cooperative activities, such as joint ventures, with any entities 
headquartered in Macau or a destination specified in Country Group 
D:5 or any individuals or entities that are on the EAR's Entity List 
or OFAC's Specially-Designated Nationals and Blocked Persons List. 
The VEU must report to BIS all equity interests (including 
contingent equity interests) or ownership stakes in the VEU by, or 
debt or obligations of the VEU from similar financial arrangements 
to, any entity. headquartered in Macau or a destination specified in 
Country Group D:5 or any individual or entities that are on the 
EAR's Entity List or OFAC's Specially-Designated Nationals and 
Blocked Persons List, with the exception of investments under 1 
percent or $1 million, whichever is lower, individually or as 
aggregated across (a) entities that are affiliated or have formal or 
informal arrangements to act in concert, or (b) departments, 
agencies, or instrumentalities of, or that are controlled by, the 
national or subnational governments of Macau or a destination 
specified in Country Group D:5, in a VEU whose equity securities are 
primarily traded on an exchange in a country listed in paragraph (a) 
to Supplement No. 5 to Part 740.

Export Restrictions

    4. Transfer of Chips. The VEU may not, without authorization 
from BIS, transfer chips, assemblies, or computers that meet or 
exceed the scope of ECCN 3A090.a, 4A090.a, or .z items meeting or 
exceeding the parameters of ECCN 3A090.a or 4A090.a to any of the 
following:
    a. Any entity located in, or headquartered in, Macau or a 
destination specified in Country Group D:5;
    b. Persons of any nationality working for or on behalf of a 
party on the EAR's Entity List, ISN's nonproliferation sanctions 
lists, or OFAC's Specially Designated Nationals and Blocked Persons 
List;
    c. Persons of any nationality employed by a government entity of 
Macau or a government entity of a destination specified in Country 
Group D:5 or presenting a high risk of facilitating diversion to 
Macau or a destination specified in Country Group D:5.
    These requirements should not be read as allowing any transfers 
that otherwise require a license.
    5. Intra-company Transfer Notification. [Only for VEUs 
accredited via a UVEU] The UVEU must notify the BIS 60 days in 
advance of its intention to transfer any chips between countries in 
which the UVEU is using the UVEU authorization for such transfer, as 
well as any planned construction or installations of data centers in 
countries not previously included in prior notifications to BIS. BIS 
retains the right to impose licensing requirements for transfers of 
chips and/or to require additional conditions for entry into these 
countries.
    6. Geographic allocations. Only for entities headquartered in 
countries listed in paragraph (a) to Supplement no. 5 to Part 740 
with UVEU status: The UVEU cannot transfer or install more than 25% 
of its total AI computing power, measured as the aggregate Total 
Processing Power (TPP) of chips that meet or exceed the scope of 
ECCN 3A090.a and are owned by the entity and all its subsidiary and 
parent entities, to or in locations outside of countries listed in 
paragraph (a) to Supplement No. 5 to Part 740, and cannot transfer 
or install more than 7% of its total AI computing power to or in any 
single country outside of those listed in paragraph (a) to 
Supplement No. 5 to Part 740). Only for U.S.-headquartered entities 
with UVEU status: The UVEU cannot transfer or install more than 50% 
of its total AI computing power outside of the United States, as 
measured on the reporting dates outlined in Section 10.

Acceptable Use Policies

    7. Advanced AI Training. The VEU, to include all subsidiary and 
parent entities, may not, without authorization from BIS, train an 
AI model specified in ECCN 4E091, in whole or in part, in a location 
outside of, or as Infrastructure-as-a-Service (IaaS) for an entity 
headquartered outside of, countries listed in paragraph (a) to 
Supplement No. 5 to Part 740. Fine-tuning an AI model specified in 
ECCN 4E091 is permitted if such fine-tuning constitutes no more than 
25 percent of the training operations of the original AI model 
specified in ECCN 4E091. Provision of application programming 
interface (API) access to AI models or infrastructure-as-a-service 
(IaaS) access for AI inference are not prohibited, and would only 
become prohibited if equivalent restrictions are put in place for 
U.S.-based computing resources.
    8. Model Weight Storage. The VEU may only store or transfer the 
model weights of an advanced AI model specified in ECCN 4E091 to 
facilities located in countries listed in paragraph (a) to 
Supplement No. 5 to Part 740, or to facilities located in 
jurisdictions other than Macau or those specified in Country Group 
D:5, provided such facilities are owned or operated by entities 
headquartered in, or with an ultimate parent headquartered in 
countries listed in paragraph (a) to Supplement No. 5 to Part 740, 
and provided the facility complies with the provisions of paragraphs 
14, 15, and 18 of Supplement No. 10 to this part by January 15, 
2026.

[[Page 4566]]

    9. Prohibited Uses and Human Rights Safeguards. The VEU is 
responsible for ensuring that no items subject to the EAR are used 
to support any of the following:
    a. Activities described in part 744 and all relevant 
supplemental notices;
    b. Military and intelligence entities headquartered, or located 
in, Macau, destinations specified in Country Group D:5, and military 
and intelligence entities whose activities BIS informs the VEU could 
pose an unacceptable risk to U.S. national security or could enable 
human rights abuses or repression of democracy; or
    c. Activities that enable human rights abuses and/or repression 
of democracy including through censorship; arbitrary or unlawful 
surveillance; and abusive genetic collection and analysis schemes.

Documentation, Auditing, and Reporting Requirements

    10. Reporting of Chip Installations. The VEU will report to BIS 
and other agencies on a semi-annual basis (each February 1 and 
August 1), a complete facility-specific chip accounting for itself 
and all parent and subsidiary entities, including:
    a. The quantities and types of chips that meet or exceed the 
parameters of 3A090.a, purchased, approved for export to facilities 
in given countries, reexported, transferred to relevant destinations 
and entities to which transfers have occurred, and installed in all 
data center facilities in destinations except Macau, destinations 
specified in Country Group D:5, and countries not listed in 
paragraph (a) to Supplement No. 5 to Part 740.
    b. A breakdown of the VEU's total aggregate compute for chips, 
assemblies, and computers specified in 3A090.a, 4A090.a, or .z 
derivatives meeting or exceeding the parameters of ECCN 3A090.a or 
4A090.a, in destinations except Macau and destinations specified in 
Country Group D:5 (including chips transferred but not yet 
installed). This accounting must also include information about chip 
attrition due to factors such as loss, damage, failure, relocation, 
and resale.
    11. Monitoring, Recordkeeping, and Reporting. The VEU must 
perform ongoing monitoring, evaluation, and end user due diligence 
of all the vetting requirements, export restrictions, acceptable use 
policies, and security requirements herein. The VEU must further 
notify BIS if, at any time, any requirements have not been met and 
it must maintain for five years all records in conjunction with 
these conditions. These records must be made available pursuant to a 
request from BIS, whether through an end use check or otherwise. The 
VEU must also cooperate with BIS's auditing of records and 
facilities described in this document. Failure to comply with BIS 
may result in revocation of VEU status.
    12. Certification as VEU. An entity is certified as a VEU 
through the process described in Supplement No. 9 to this part. 
Entities headquartered in countries listed in paragraph (a) to 
Supplement No. 5 to Part 740 are eligible if they meet the standards 
provided in Section I and II. Entities in destinations except Macau, 
destinations specified in Country Group D:5, or those listed in 
paragraph (a) to Supplement No. 5 to Part 740 are eligible if they 
meet the appropriate standards outlined in Supplement No. 10 to part 
748 and, for NVEUs, if there is a government-to-government 
arrangement between their government and the United States. If a 
government-to-government arrangement is rescinded by either party, 
the NVEU status of NVEUs and, as appropriate, the ability of a UVEU 
to operate in that country may be revoked.

II. Security Requirements

Ownership Security

    13. Ownership Security of VEUs: The VEU, to include all 
subsidiary and parent entities, must meet ownership security 
standards to ensure there are no Foreign Ownership, Control, or 
Influence (FOCI) factors related to Macau or a destination specified 
in Country Group D:5. Factors relating to the entity, its relevant 
foreign interest, and the government of such foreign interest shall 
be assessed against the requirements outlined in National Industrial 
Security Program Operating Manual (NISPOM) 32 CFR 117.11(b) and 
additional factors to include:
    a. The VEU's financial viability;
    b. Counterintelligence concerns, especially regarding key 
management or leadership personnel and company owners with regard to 
the government of Macau or the government of a destination specified 
in Country Group D:5, or to entities headquartered in, or nationals 
of, Macau or a destination specified in Country Group D:5;
    c. Record of enforcement and/or engagement in unauthorized 
technology transfer;
    d. The nature of any relevant bilateral and multilateral 
security agreement and information exchange agreements; and
    e. Any other factor that demonstrates a capability on the part 
of foreign interests to control or influence the operations or 
management of the VEU of concern.

Baseline Security

    14. Baseline Security of Chips and Data. The VEU's datacenters 
must be compliant with NIST 800-53 in a fashion certified as 
appropriate for compliance with these conditions and consistent with 
the security requirements associated with FedRAMP High, as well as 
with controls AC-3(7), AT-2(1), CA-8(3), CM-7(4), CM-11(2), IR-
4(14), PE-3(3), PM-3, and PS-7 from NIST 800-53. This includes:
    a. Advanced AI model weights and proprietary techniques used for 
advanced AI training must be treated as an information type with 
FIPS-199 security category {(confidentiality, HIGH), (integrity, 
HIGH), (availability, HIGH){time} .
    b. Certification of compliance with the above NIST 800-53 
requirements must be attested annually by a Third-Party Assessment 
Organization (3PAO) and made available to BIS. 3PAOs must be 
accredited and recognized by the FedRAMP Program Management Office, 
and have successfully completed the certification of a FedRAMP-high 
Cloud Service Provider;
    c. The VEU must have procedures in place to address and prevent 
seizure of chips;
    d. The VEU must put in place software and hardware mechanisms to 
detect and defeat tampering, such as illicit modification;
    e. Plans for the secure operation of data centers supporting a 
VEU shall be implemented in accordance with a security management 
defense-in-depth framework that includes a review of the following 
factors:
    i. Threat analysis. Assess the capabilities, intentions, and 
opportunity of an adversary to exploit or damage assets or 
information.
    ii. Vulnerability analysis. Assess the inherent susceptibility 
to attack of a procedure, facility, information system, equipment, 
or policy.
    iii. Probability analysis. Assess the probability of an adverse 
action, incident, or attack occurring.
    iv. Consequence analysis. Assess the consequences of such an 
action (expressed as a measure of loss, such as cost in dollars, 
resources, programmatic effect/mission impact, etc.)
    f. The following physical and technical security requirements 
are required for all VEU data centers:
    i. Compliance with Department of Defense Unified Facilities 
Criteria 4-010-05, Sections 3-4.4.1, 3-4.6.10, and 3-4.17.3;
    ii. No windows permitted in server core areas; and
    iii. 24/7/365 roving guard patrol or Perimeter Intrusion 
Detection System (PIDS) with a 15-minute response time;

Software and Network Security

    15. AI-Specific Cybersecurity. The VEU will establish and bear 
responsibility for the following additional practices for AI 
security:
    a. Ensure compliance with all best practices in the NSA 
cybersecurity information sheet ``Deploying AI Systems Securely,'' 
and the recommended actions for every CISA CPG 1.0 goal cross-
referenced therein.
    b. Establish accountability for usage; generate logs and other 
records of usage, to include logging and monitoring usage of third-
party APIs and fine-tuning mechanisms;
    c. Comply with the following requirements on model weights 
specified in ECCN 4E091, in addition to complying with the best 
practices listed in (a):
    i. Model weights must be stored on dedicated devices not used 
by, or hosting the data of, other organizations.
    ii. Every interface by which model weights can be accessed, 
directly or indirectly, must be reviewed to determine the 
appropriate output rate of information necessary for its legitimate 
functionality. The output rate must be monitored, and rate 
limitations must be implemented to ensure the output rate is unable 
to exceed the rate established for the interface's legitimate 
functionality.
    iii. Every interface, for which the established output rate is 
such that the model weights may be extracted in six months or less, 
must provide access only through a narrow, well-defined API, such as 
for inference or fine-tuning. The API must be thoroughly reviewed 
and secured to prevent model extraction attacks.

[[Page 4567]]

Supply Chain Security

    16. Transit Security. The VEU must work with the chip provider 
to develop, implement, and maintain a shipment security plan, to 
include working with validated shipping providers, establishing a 
positive chain of custody, employing anti-theft and anti-tampering 
measures, conducting inspection/inventory upon receipt, and 
reporting any theft, loss, or tampering incidents to BIS within 30 
days. The VEU will bear responsibility for tracking and security of 
chips and other items subject to export control while in transit and 
shall report any anomalies to BIS, as outlined in Section 11.
    17. Sanitization and Disposal Procedures. The VEU must 
incorporate appropriate end-of-life procedures for chip sanitization 
and disposal that are verifiable and that ensure such chips do not 
enable prohibited activities, including by exceeding relevant caps.

Personnel Security

    18. Personnel Security Standards and Practices. In addition to 
the personnel security requirements in Section 13, the VEU must 
follow the below practices:
    a. The VEU must develop a plan to implement a personnel vetting 
model covering all individuals granted access to the VEU data center 
facility or corresponding systems.
    b. Personnel granted unescorted access to the VEU data center 
must be vetted under the following categories:
    i. Individuals specifically named on the U.S. Department of 
Treasury, Office of Foreign Assets Control (OFAC) Specially 
Designated Nationals List (SDN) or other OFAC sanctions lists; and
    ii. Individuals with employment history by a government, 
intelligence service, or military based in Macau or a destination 
specified in Country Group D:5, or with any parties on the EAR's 
Entity List or OFAC's SDN, Blocked Persons List, or other sanctions 
lists should be excluded from consideration. Individuals with 
employment history with entities headquartered in Macau or a 
destination specified in Country Group D:5 require additional 
vetting of their continuing ties, relationships, obligations, or 
other factors that could incentivize them to act on behalf of an 
entity headquartered in Macau or a destination specified in Country 
Group D:5.
    c. The VEU must establish and maintain a comprehensive program 
for detecting, assessing, disclosing, and managing insider threats, 
in accordance with the Cybersecurity and Infrastructure Security 
Agency Insider Threat Mitigation Guide, with particular 
consideration for insider threats that could enable access or 
prohibited uses by individuals or any other entities.

Adherence to This Agreement

    19. Enforcement. Failure to adhere to this agreement may result 
in the revocation of VEU status on a national or global basis, 
denial of chip allocations or export licenses, as well as other 
penalties as appropriate under U.S. laws and regulations.

Exemption for Intentional Publication

    None of the provisions of this document shall be interpreted as 
to apply to or prevent intentional publication of model weights, 
data, or code.

PART 750--APPLICATION PROCESSING, ISSUANCE, AND DENIAL

0
19. The authority citation for part 750 continues to read as follows:

    Authority:  50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; Sec. 1503, Pub. L. 108-11, 117 Stat. 559; E.O. 
13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 
44025, 3 CFR, 2001 Comp., p. 783; E.O. 13637, 78 FR 16129, 3 CFR, 
2013 Comp., p. 223; Presidential Determination 2003-23, 68 FR 26459, 
3 CFR, 2004 Comp., p. 320.


0
20. Section 750.7 is amended by revising paragraph (g) introductory 
text to read as follows:


Sec.  750.7  Issuance of licenses.

* * * * *
    (g) License validity period. Licenses involving the export or 
reexport of items will generally have a four-year validity period, 
unless a different validity period has been requested and specifically 
approved by BIS or is otherwise specified on the license at the time 
that it is issued. Exceptions from the four-year validity period 
include: license applications for items controlled for short supply 
reasons, which will be limited to a one-year validity period during 
which the items must be exported, re-exported, or transferred (in 
country) and license applications reviewed and approved as an 
``emergency'' (see Sec.  748.4(h) of the EAR); and items controlled 
under ECCNs 0A501, 0A502, 0A504, 0A505, 0A506, 0A507, 0A508, 0A509, or 
listed in Sec.  742.6(a)(6)(iii)(A) of the EAR, which will generally be 
limited to a one-year validity period during which the items must be 
exported, re-exported, or transferred (in country). Emergency licenses 
will expire no later than the last day of the calendar month following 
the month in which the emergency license is issued. The expiration date 
will be clearly stated on the face of the license. If the expiration 
date falls on a legal holiday (Federal or State), the validity period 
is automatically extended to midnight of the first business day 
following the expiration date.
* * * * *

PART 762--RECORDKEEPING

0
21. The authority citation for part 762 continues to read as follows:

    Authority:  50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783.


0
22. Section 762.2 is amended by adding paragraphs (b)(58), (59), and 
(60) to read as follows:


Sec.  762.2  Records to be retained.

* * * * *
    (b) * * *
    (58) Sec.  740.27, License Exception AIA.
    (59) Sec.  740.28, License Exception ACM.
    (60) Sec.  740.29, License Exception LPP.

PART 772--DEFINITIONS OF TERMS

0
23. The authority citation for part 772 continues to read as follows:

    Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783.


0
24. Section 772.1 is amended by adding, in alphabetical order, the 
definition for ``Model Weights'' to read as follows:


Sec.  772.1  Definitions of terms as used in the Export Administration 
Regulations (EAR).

* * * * *
    Model Weights. See ECCN 4E091 (Supplement No. 1 to part 774).
* * * * *

PART 774--THE COMMERCE CONTROL LIST

0
25. The authority citation for part 774 continues to read as follows:

    Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; 10 U.S.C. 8720; 10 U.S.C. 8730(e); 22 U.S.C. 
287c, 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 42 U.S.C. 2139a; 15 
U.S.C. 1824; 50 U.S.C. 4305; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; 
E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 
FR 44025, 3 CFR, 2001 Comp., p. 783.


0
26. Supplement no. 1 to part 774 is amended by:
0
a. Revising ECCNs 3A001, 3A090, 3D001, 3E001, 4A003, 4A004, 4A005, 
4A090, 4D001, 4D090, and 4E001;
0
b. Adding, in numerical order, ECCN 4E091;
0
c. Revising, 5A002, 5A992, 5A004, 5D002, 5D992, 5E002, and 5E992.
    The revisions and addition read as follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *
3A001 Electronic items as follows (see List of Items Controlled).
Reason for Control: NS, RS, MT, NP, AT

[[Page 4568]]



 
 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to ``Monolithic Microwave        NS Column 1.
 Integrated Circuit'' (``MMIC'')
 amplifiers in 3A001.b.2 and discrete
 microwave transistors in 3A001.b.3,
 except those 3A001.b.2 and b.3 items
 being exported or reexported for use in
 civil telecommunications applications.
NS applies to entire entry................  NS Column 2.
RS applies ``Monolithic Microwave           RS Column 1.
 Integrated Circuit'' (``MMIC'')
 amplifiers in 3A001.b.2 and discrete
 microwave transistors in 3A001.b.3,
 except those 3A001.b.2 and b.3 items
 being exported or reexported for use in
 civil telecommunications applications.
RS applies to 3A001.z.1.a, z.2.a, z.3.a,    To or within any destination
 z.4.a.                                      worldwide. See Sec.
                                             742.6(a)(6)(iii)(A) of the
                                             EAR.
RS applies to 3A001.z.1.b, z.2.b, z.3.b,    To or within destinations
 z.4.b.                                      specified in Country Groups
                                             D:1, D:4, and D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR, excluding
                                             any destination also
                                             specified in Country Groups
                                             A:5 or A:6. See Sec.
                                             742.6(a)(6)(iii)(B) of the
                                             EAR.
MT applies to 3A001.a.1.a when usable in    MT Column 1.
 ``missiles''; and to 3A001.a.5.a when
 ``designed or modified'' for military
 use, hermetically sealed and rated for
 operation in the temperature range from
 below -54 [deg]C to above +125 [deg]C;
 and 3A001.z.2.
NP applies to pulse discharge capacitors    NP Column 1.
 in 3A001.e.2 and superconducting
 solenoidal electromagnets in 3A001.e.3
 that meet or exceed the technical
 parameters in 3A201.a and 3A201.b,
 respectively; and 3A001.z.3.
AT applies to entire entry................  AT Column 1.
 

Reporting Requirements: See Sec.  743.1 of the EAR for reporting 
requirements for exports under 3A001.b.2 or b.3 under License 
Exceptions, and Validated End-User authorizations.
License Requirements: See Sec.  744.17 of the EAR for additional 
license requirements for microprocessors having a processing speed 
of 5 GFLOPS or more and an arithmetic logic unit with an access 
width of 32 bit or more, including those incorporating ``information 
security'' functionality, and associated ``software'' and 
``technology'' for the ``production'' or ``development'' of such 
microprocessors.

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: N/A for MT, NP; N/A for ``Monolithic Microwave Integrated 
Circuit'' (``MMIC'') amplifiers in 3A001.b.2, discrete microwave 
transistors in 3A001.b.3, except those that are being exported or 
reexported for use in civil telecommunications applications; N/A for 
and 3A001.z.

    Yes for:
    $1500: 3A001.c.
    $3000: 3A001.b.1, b.2 (exported or reexported for use in civil 
telecommunications applications), b.3 (exported or reexported for 
use in civil telecommunications applications), b.9, .d, .e, .f, and 
.g.
    $5000: 3A001.a (except a.1.a and a.5.a when controlled for MT), 
b.4 to b.7, and b.12.
GBS: Yes for 3A001.a.1.b, a.2 to a.14 (except .a.5.a when controlled 
for MT), b.2 (exported or reexported for use in civil 
telecommunications applications), b.8 (except for ``vacuum 
electronic devices'' exceeding 18 GHz), b.9., b.10, .g, .h, .i, and 
z.1.b (exported or reexported for use in civil telecommunications 
applications).
NAC/ACA: Yes, for 3A001.z.
AIA: Yes for 3A001.z.1.a, z.2.a, z.3.a, z.4.a
ACM: Yes for 3A001.z
LPP: Yes for 3A001.z.1.a, z.2.a, z.3.a, z.4.a
    Note: See Sec.  740.2(a)(9)(ii) of the EAR for license exception 
restrictions for ECCN 3A001.z.

Special Conditions for STA

STA: License Exception STA may not be used to ship any item in 
3A001.b.2 or b.3, except those that are being exported or reexported 
for use in civil telecommunications applications, or 3A001.z to any 
of the destinations listed in Country Group A:5 or A:6 (See 
Supplement No. 1 to part 740 of the EAR).

List of Items Controlled

Related Controls: (1) See Category XV of the USML for certain 
``space-qualified'' electronics and Category XI of the USML for 
certain ASICs, 'transmit/receive modules,' 'transmit modules,' or 
'MMICs' ``subject to the ITAR.'' (2) See also 3A090, 3A101, 3A201, 
3A611, 3A901 for cryogenic CMOS integrated circuits and parametric 
signal amplifiers or quantum limited amplifiers not controlled by 
3A001, 3A991, and 9A515.
Related Definitions: 'Microcircuit' means a device in which a number 
of passive or active elements are considered as indivisibly 
associated on or within a continuous structure to perform the 
function of a circuit. For the purposes of integrated circuits in 
3A001.a.1, 5 x 10\3\ Gy(Si) = 5 x 10\5\ Rads (Si); 5 x 10\6\ Gy 
(Si)/s = 5 x 10\8\ Rads (Si)/s.
Items:

    a. General purpose integrated circuits, as follows:
    Note 1: Integrated circuits include the following types:

--``Monolithic integrated circuits'';
--``Hybrid integrated circuits'';
--``Multichip integrated circuits'';
--``Film type integrated circuits'', including silicon-on-sapphire 
integrated circuits;
--``Optical integrated circuits'';
--``Three dimensional integrated circuits'';
--``Monolithic Microwave Integrated Circuits'' (``MMICs'').

    a.1. Integrated circuits designed or rated as radiation hardened 
to withstand any of the following:
    a.1.a. A total dose of 5 x 10\3\ Gy (Si), or higher;
    a.1.b. A dose rate upset of 5 x 10\6\ Gy (Si)/s, or higher; or
    a.1.c. A fluence (integrated flux) of neutrons (1 MeV 
equivalent) of 5 x 10\13\ n/cm\2\ or higher on silicon, or its 
equivalent for other materials;
    Note: 3A001.a.1.c does not apply to Metal Insulator 
Semiconductors (MIS).
    a.2. ``Microprocessor microcircuits,'' ``microcomputer 
microcircuits,'' microcontroller microcircuits, storage integrated 
circuits manufactured from a compound semiconductor, analog-to-
digital converters, integrated circuits that contain analog-to-
digital converters and store or process the digitized data, digital-
to-analog converters, electro-optical or ``optical integrated 
circuits'' designed for ``signal processing'', field programmable 
logic devices, custom integrated circuits for which either the 
function is unknown or the control status of the equipment in which 
the integrated circuit will be used in unknown, Fast Fourier 
Transform (FFT) processors, Static Random-Access Memories (SRAMs), 
or 'non-volatile memories,' having any of the following:
    Technical Note: For the purposes of 3A001.a.2, 'non-volatile 
memories' are memories with data retention over a period of time 
after a power shutdown.
    a.2.a. Rated for operation at an ambient temperature above 398 K 
(+125 [deg]C);
    a.2.b. Rated for operation at an ambient temperature below 218 K 
(-55 [deg]C); or
    a.2.c. Rated for operation over the entire ambient temperature 
range from 218 K (-55 [deg]C) to 398 K (+125 [deg]C);
    N.B.: For cryogenic CMOS integrated circuits not specified by 
3A001.a.2, see 3A901.a.
    Note: 3A001.a.2 does not apply to integrated circuits designed 
for civil automobile or railway train applications.
    a.3. ``Microprocessor microcircuits'', ``microcomputer 
microcircuits'' and microcontroller microcircuits, manufactured from 
a compound semiconductor and operating at a clock frequency 
exceeding 40 MHz;
    Note: 3A001.a.3 includes digital signal processors, digital 
array processors and digital coprocessors.
    a.4. [Reserved]
    a.5. Analog-to-Digital Converter (ADC) and Digital-to-Analog 
Converter (DAC) integrated circuits, as follows:
    a.5.a. ADCs having any of the following:
    a.5.a.1. A resolution of 8 bit or more, but less than 10 bit, 
with a ``sample rate'' greater than 1.3 Giga Samples Per Second 
(GSPS);

[[Page 4569]]

    a.5.a.2. A resolution of 10 bit or more, but less than 12 bit, 
with a ``sample rate'' greater than 600 Mega Samples Per Second 
(MSPS);
    a.5.a.3. A resolution of 12 bit or more, but less than 14 bit, 
with a ``sample rate'' greater than 400 MSPS;
    a.5.a.4. A resolution of 14 bit or more, but less than 16 bit, 
with a ``sample rate'' greater than 250 MSPS; or
    a.5.a.5. A resolution of 16 bit or more with a ``sample rate'' 
greater than 65 MSPS;
    N.B.: For integrated circuits that contain analog-to-digital 
converters and store or process the digitized data see 3A001.a.14.
    Technical Notes: For the purposes of 3A001.a.5.a:
    1. A resolution of n bit corresponds to a quantization of 2\n\ 
levels.
    2. The resolution of the ADC is the number of bits of the 
digital output that represents the measured analog input. Effective 
Number of Bits (ENOB) is not used to determine the resolution of the 
ADC.
    3. For ``multiple channel ADCs'', the ``sample rate'' is not 
aggregated and the ``sample rate'' is the maximum rate of any single 
channel.
    4. For ``interleaved ADCs'' or for ``multiple channel ADCs'' 
that are specified to have an interleaved mode of operation, the 
``sample rates'' are aggregated and the ``sample rate'' is the 
maximum combined total rate of all of the interleaved channels.
    a.5.b. Digital-to-Analog Converters (DAC) having any of the 
following:
    a.5.b.1. A resolution of 10-bit or more but less than 12-bit, 
with an 'adjusted update rate' of exceeding 3,500 MSPS; or
    a.5.b.2. A resolution of 12-bit or more and having any of the 
following:
    a.5.b.2.a. An 'adjusted update rate' exceeding 1,250 MSPS but 
not exceeding 3,500 MSPS, and having any of the following:
    a.5.b.2.a.1. A settling time less than 9 ns to arrive at or 
within 0.024% of full scale from a full scale step; or
    a.5.b.2.a.2. A 'Spurious Free Dynamic Range' (SFDR) greater than 
68 dBc (carrier) when synthesizing a full scale analog signal of 100 
MHz or the highest full scale analog signal frequency specified 
below 100 MHz; or
    a.5.b.2.b. An 'adjusted update rate' exceeding 3,500 MSPS;
    Technical Notes: For the purposes of 3A001.a.5.b:
    1. 'Spurious Free Dynamic Range' (SFDR) is defined as the ratio 
of the RMS value of the carrier frequency (maximum signal component) 
at the input of the DAC to the RMS value of the next largest noise 
or harmonic distortion component at its output.
    2. SFDR is determined directly from the specification table or 
from the characterization plots of SFDR versus frequency.
    3. A signal is defined to be full scale when its amplitude is 
greater than -3 dBfs (full scale).
    4. 'Adjusted update rate' for DACs is:
    a. For conventional (non-interpolating) DACs, the 'adjusted 
update rate' is the rate at which the digital signal is converted to 
an analog signal and the output analog values are changed by the 
DAC. For DACs where the interpolation mode may be bypassed 
(interpolation factor of one), the DAC should be considered as a 
conventional (non-interpolating) DAC.
    b. For interpolating DACs (oversampling DACs), the 'adjusted 
update rate' is defined as the DAC update rate divided by the 
smallest interpolating factor. For interpolating DACs, the 'adjusted 
update rate' may be referred to by different terms including:

 input data rate
 input word rate
 input sample rate
 maximum total input bus rate
 maximum DAC clock rate for DAC clock input
    a.6. Electro-optical and ``optical integrated circuits'', 
designed for ``signal processing'' and having all of the following:
    a.6.a. One or more than one internal ``laser'' diode;
    a.6.b. One or more than one internal light detecting element; 
and
    a.6.c. Optical waveguides;
    a.7. 'Field programmable logic devices' having any of the 
following:
    a.7.a. A maximum number of single-ended digital input/outputs of 
greater than 700; or
    a.7.b. An 'aggregate one-way peak serial transceiver data rate' 
of 500 Gb/s or greater;
    Note: 3A001.a.7 includes:

--Complex Programmable Logic Devices (CPLDs);
--Field Programmable Gate Arrays (FPGAs);
--Field Programmable Logic Arrays (FPLAs);
--Field Programmable Interconnects (FPICs).

    N.B.: For integrated circuits having field programmable logic 
devices that are combined with an analog-to-digital converter, see 
3A001.a.14.
    Technical Notes: For the purposes of 3A001.a.7:
    1. Maximum number of digital input/outputs in 3A001.a.7.a is 
also referred to as maximum user input/outputs or maximum available 
input/outputs, whether the integrated circuit is packaged or bare 
die.
    2. 'Aggregate one-way peak serial transceiver data rate' is the 
product of the peak serial one-way transceiver data rate times the 
number of transceivers on the FPGA.
    a.8. [Reserved]
    a.9. [Reserved]
    a.10. Custom integrated circuits for which the function is 
unknown, or the control status of the equipment in which the 
integrated circuits will be used is unknown to the manufacturer, 
having any of the following:
    a.10.a. More than 1,500 terminals;
    a.10.b. A typical ``basic gate propagation delay time'' of less 
than 0.02 ns; or
    a.10.c. An operating frequency exceeding 3 GHz;
    a.11. Digital integrated circuits, other than those described in 
3A001.a.3 to 3A001.a.10 and 3A001.a.12, based upon any compound 
semiconductor and having any of the following:
    a.11.a. An equivalent gate count of more than 3,000 (2 input 
gates); or
    a.11.b. A toggle frequency exceeding 1.2 GHz;
    a.12. Fast Fourier Transform (FFT) processors having a rated 
execution time for an N-point complex FFT of less than (N 
log2 N)/20,480 ms, where N is the number of points;
    Technical Note: For the purposes of 3A001.a.12, when N is equal 
to 1,024 points, the formula in 3A001.a.12 gives an execution time 
of 500 [mu]s.
    a.13. Direct Digital Synthesizer (DDS) integrated circuits 
having any of the following:
    a.13.a. A Digital-to-Analog Converter (DAC) clock frequency of 
3.5 GHz or more and a DAC resolution of 10 bit or more, but less 
than 12 bit; or
    a.13.b. A DAC clock frequency of 1.25 GHz or more and a DAC 
resolution of 12 bit or more;
    Technical Note: For the purposes of 3A001.a.13, the DAC clock 
frequency may be specified as the master clock frequency or the 
input clock frequency.
    a.14. Integrated circuits that perform or are programmable to 
perform all of the following:
    a.14.a. Analog-to-digital conversions meeting any of the 
following:
    a.14.a.1. A resolution of 8 bit or more, but less than 10 bit, 
with a ``sample rate'' greater than 1.3 Giga Samples Per Second 
(GSPS);
    a.14.a.2. A resolution of 10 bit or more, but less than 12 bit, 
with a ``sample rate'' greater than 1.0 GSPS;
    a.14.a.3. A resolution of 12 bit or more, but less than 14 bit, 
with a ``sample rate'' greater than 1.0 GSPS;
    a.14.a.4. A resolution of 14 bit or more, but less than 16 bit, 
with a ``sample rate'' greater than 400 Mega Samples Per Second 
(MSPS); or
    a.14.a.5. A resolution of 16 bit or more with a ``sample rate'' 
greater than 180 MSPS; and
    a.14.b. Any of the following:
    a.14.b.1. Storage of digitized data; or
    a.14.b.2. Processing of digitized data;
    N.B. 1: For analog-to-digital converter integrated circuits see 
3A001.a.5.a.
    N.B. 2: For field programmable logic devices see 3A001.a.7.
    Technical Notes: For the purposes of 3A001.a.14:
    1. A resolution of n bit corresponds to a quantization of 2\n\ 
levels.
    2. The resolution of the ADC is the number of bits of the 
digital output of the ADC that represents the measured analog input. 
Effective Number of Bits (ENOB) is not used to determine the 
resolution of the ADC.
    3. For integrated circuits with non- interleaving ``multiple 
channel ADCs'', the ``sample rate'' is not aggregated and the 
``sample rate'' is the maximum rate of any single channel.
    4. For integrated circuits with ``interleaved ADCs'' or with 
``multiple channel ADCs'' that are specified to have an interleaved 
mode of operation, the ``sample rates'' are aggregated and the 
``sample rate'' is the maximum combined total rate of all of the 
interleaved channels.
    b. Microwave or millimeter wave items, as follows:
    Technical Note: For the purposes of 3A001.b, the parameter peak 
saturated power output may also be referred to on product data 
sheets as output power, saturated power output, maximum power 
output, peak power output, or peak envelope power output.

[[Page 4570]]

    N.B.: For parametric signal amplifiers or Quantum-limited 
amplifiers (QLAs) not specified by 3A001.b, see ECCN 3A901.b.
    b.1. ``Vacuum electronic devices'' and cathodes, as follows:
    Note 1: 3A001.b.1 does not control ``vacuum electronic devices'' 
designed or rated for operation in any frequency band and having all 
of the following:
    a. Does not exceed 31.8 GHz; and
    b. Is ``allocated by the ITU'' for radio-communications 
services, but not for radio-determination.
    Note 2: 3A001.b.1 does not control non-``space-qualified'' 
``vacuum electronic devices'' having all the following:
    a. An average output power equal to or less than 50 W; and
    b. Designed or rated for operation in any frequency band and 
having all of the following:
    1. Exceeds 31.8 GHz but does not exceed 43.5 GHz; and
    2. Is ``allocated by the ITU'' for radio-communications 
services, but not for radio-determination.
    b.1.a. Traveling-wave ``vacuum electronic devices,'' pulsed or 
continuous wave, as follows:
    b.1.a.1. Devices operating at frequencies exceeding 31.8 GHz;
    b.1.a.2. Devices having a cathode heater with a turn on time to 
rated RF power of less than 3 seconds;
    b.1.a.3. Coupled cavity devices, or derivatives thereof, with a 
``fractional bandwidth'' of more than 7% or a peak power exceeding 
2.5 kW;
    b.1.a.4. Devices based on helix, folded waveguide, or serpentine 
waveguide circuits, or derivatives thereof, having any of the 
following:
    b.1.a.4.a. An ``instantaneous bandwidth'' of more than one 
octave, and average power (expressed in kW) times frequency 
(expressed in GHz) of more than 0.5;
    b.1.a.4.b. An ``instantaneous bandwidth'' of one octave or less, 
and average power (expressed in kW) times frequency (expressed in 
GHz) of more than 1;
    b.1.a.4.c. Being ``space-qualified''; or
    b.1.a.4.d. Having a gridded electron gun;
    b.1.a.5. Devices with a ``fractional bandwidth'' greater than or 
equal to 10%, with any of the following:
    b.1.a.5.a. An annular electron beam;
    b.1.a.5.b. A non-axisymmetric electron beam; or
    b.1.a.5.c. Multiple electron beams;
    b.1.b. Crossed-field amplifier ``vacuum electronic devices'' 
with a gain of more than 17 dB;
    b.1.c. Thermionic cathodes, designed for ``vacuum electronic 
devices,'' producing an emission current density at rated operating 
conditions exceeding 5 A/cm\2\ or a pulsed (non-continuous) current 
density at rated operating conditions exceeding 10 A/cm\2\;
    b.1.d. ``Vacuum electronic devices'' with the capability to 
operate in a 'dual mode.'
    Technical Note: For the purposes of 3A001.b.1.d, 'dual mode' 
means the ``vacuum electronic device'' beam current can be 
intentionally changed between continuous-wave and pulsed mode 
operation by use of a grid and produces a peak pulse output power 
greater than the continuous-wave output power.
    b.2. ``Monolithic Microwave Integrated Circuit'' (``MMIC'') 
amplifiers that any of the following:
    N.B.: For ``MMIC'' amplifiers that have an integrated phase 
shifter see 3A001.b.12.
    b.2.a. Rated for operation at frequencies exceeding 2.7 GHz up 
to and including 6.8 GHz with a ``fractional bandwidth'' greater 
than 15%, and having any of the following:
    b.2.a.1. A peak saturated power output greater than 75 W (48.75 
dBm) at any frequency exceeding 2.7 GHz up to and including 2.9 GHz;
    b.2.a.2. A peak saturated power output greater than 55 W (47.4 
dBm) at any frequency exceeding 2.9 GHz up to and including 3.2 GHz;
    b.2.a.3. A peak saturated power output greater than 40 W (46 
dBm) at any frequency exceeding 3.2 GHz up to and including 3.7 GHz; 
or
    b.2.a.4. A peak saturated power output greater than 20 W (43 
dBm) at any frequency exceeding 3.7 GHz up to and including 6.8 GHz;
    b.2.b. Rated for operation at frequencies exceeding 6.8 GHz up 
to and including 16 GHz with a ``fractional bandwidth'' greater than 
10%, and having any of the following:
    b.2.b.1. A peak saturated power output greater than 10 W (40 
dBm) at any frequency exceeding 6.8 GHz up to and including 8.5 GHz; 
or
    b.2.b.2. A peak saturated power output greater than 5 W (37 dBm) 
at any frequency exceeding 8.5 GHz up to and including 16 GHz;
    b.2.c. Rated for operation with a peak saturated power output 
greater than 3 W (34.77 dBm) at any frequency exceeding 16 GHz up to 
and including 31.8 GHz, and with a ``fractional bandwidth'' of 
greater than 10%;
    b.2.d. Rated for operation with a peak saturated power output 
greater than 0.1 nW (-70 dBm) at any frequency exceeding 31.8 GHz up 
to and including 37 GHz;
    b.2.e. Rated for operation with a peak saturated power output 
greater than 1 W (30 dBm) at any frequency exceeding 37 GHz up to 
and including 43.5 GHz, and with a ``fractional bandwidth'' of 
greater than 10%;
    b.2.f. Rated for operation with a peak saturated power output 
greater than 31.62 mW (15 dBm) at any frequency exceeding 43.5 GHz 
up to and including 75 GHz, and with a ``fractional bandwidth'' of 
greater than 10%;
    b.2.g. Rated for operation with a peak saturated power output 
greater than 10 mW (10 dBm) at any frequency exceeding 75 GHz up to 
and including 90 GHz, and with a ``fractional bandwidth'' of greater 
than 5%; or
    b.2.h. Rated for operation with a peak saturated power output 
greater than 0.1 nW (-70 dBm) at any frequency exceeding 90 GHz;
    Note 1: [Reserved]
    Note 2: The control status of the ``MMIC'' whose rated operating 
frequency includes frequencies listed in more than one frequency 
range, as defined by 3A001.b.2.a through 3A001.b.2.h, is determined 
by the lowest peak saturated power output control threshold.
    Note 3: Notes 1 and 2 following the Category 3 heading for 
product group A. Systems, Equipment, and Components mean that 
3A001.b.2 does not control ``MMICs'' if they are ``specially 
designed'' for other applications, e.g., telecommunications, radar, 
automobiles.
    b.3. Discrete microwave transistors that are any of the 
following:
    b.3.a. Rated for operation at frequencies exceeding 2.7 GHz up 
to and including 6.8 GHz and having any of the following:
    b.3.a.1. A peak saturated power output greater than 400 W (56 
dBm) at any frequency exceeding 2.7 GHz up to and including 2.9 GHz;
    b.3.a.2. A peak saturated power output greater than 205 W (53.12 
dBm) at any frequency exceeding 2.9 GHz up to and including 3.2 GHz;
    b.3.a.3. A peak saturated power output greater than 115 W (50.61 
dBm) at any frequency exceeding 3.2 GHz up to and including 3.7 GHz; 
or
    b.3.a.4. A peak saturated power output greater than 60 W (47.78 
dBm) at any frequency exceeding 3.7 GHz up to and including 6.8 GHz;
    b.3.b. Rated for operation at frequencies exceeding 6.8 GHz up 
to and including 31.8 GHz and having any of the following:
    b.3.b.1. A peak saturated power output greater than 50 W (47 
dBm) at any frequency exceeding 6.8 GHz up to and including 8.5 GHz;
    b.3.b.2. A peak saturated power output greater than 15 W (41.76 
dBm) at any frequency exceeding 8.5 GHz up to and including 12 GHz;
    b.3.b.3. A peak saturated power output greater than 40 W (46 
dBm) at any frequency exceeding 12 GHz up to and including 16 GHz; 
or
    b.3.b.4. A peak saturated power output greater than 7 W (38.45 
dBm) at any frequency exceeding 16 GHz up to and including 31.8 GHz;
    b.3.c. Rated for operation with a peak saturated power output 
greater than 0.5 W (27 dBm) at any frequency exceeding 31.8 GHz up 
to and including 37 GHz;
    b.3.d. Rated for operation with a peak saturated power output 
greater than 1 W (30 dBm) at any frequency exceeding 37 GHz up to 
and including 43.5 GHz;
    b.3.e. Rated for operation with a peak saturated power output 
greater than 0.1 nW (-70 dBm) at any frequency exceeding 43.5 GHz; 
or
    b.3.f. Other than those specified by 3A001.b.3.a to 3A001.b.3.e 
and rated for operation with a peak saturated power output greater 
than 5 W (37.0 dBm) at all frequencies exceeding 8.5 GHz up to and 
including 31.8 GHz;
    Note 1: The control status of a transistor in 3A001.b.3.a 
through 3A001.b.3.e, whose rated operating frequency includes 
frequencies listed in more than one frequency range, as defined by 
3A001.b.3.a through 3A001.b.3.e, is determined by the lowest peak 
saturated power output control threshold.
    Note 2: 3A001.b.3 includes bare dice, dice mounted on carriers, 
or dice mounted in packages. Some discrete transistors may also

[[Page 4571]]

be referred to as power amplifiers, but the status of these discrete 
transistors is determined by 3A001.b.3.
    b.4. Microwave solid state amplifiers and microwave assemblies/
modules containing microwave solid state amplifiers, that are any of 
the following:
    b.4.a. Rated for operation at frequencies exceeding 2.7 GHz up 
to and including 6.8 GHz with a ``fractional bandwidth'' greater 
than 15%, and having any of the following:
    b.4.a.1. A peak saturated power output greater than 500 W (57 
dBm) at any frequency exceeding 2.7 GHz up to and including 2.9 GHz;
    b.4.a.2. A peak saturated power output greater than 270 W (54.3 
dBm) at any frequency exceeding 2.9 GHz up to and including 3.2 GHz;
    b.4.a.3. A peak saturated power output greater than 200 W (53 
dBm) at any frequency exceeding 3.2 GHz up to and including 3.7 GHz; 
or
    b.4.a.4. A peak saturated power output greater than 90 W (49.54 
dBm) at any frequency exceeding 3.7 GHz up to and including 6.8 GHz;
    b.4.b. Rated for operation at frequencies exceeding 6.8 GHz up 
to and including 31.8 GHz with a ``fractional bandwidth'' greater 
than 10%, and having any of the following:
    b.4.b.1. A peak saturated power output greater than 70 W (48.45 
dBm) at any frequency exceeding 6.8 GHz up to and including 8.5 GHz;
    b.4.b.2. A peak saturated power output greater than 50 W (47 
dBm) at any frequency exceeding 8.5 GHz up to and including 12 GHz;
    b.4.b.3. A peak saturated power output greater than 30 W (44.77 
dBm) at any frequency exceeding 12 GHz up to and including 16 GHz; 
or
    b.4.b.4. A peak saturated power output greater than 20 W (43 
dBm) at any frequency exceeding 16 GHz up to and including 31.8 GHz;
    b.4.c. Rated for operation with a peak saturated power output 
greater than 0.5 W (27 dBm) at any frequency exceeding 31.8 GHz up 
to and including 37 GHz;
    b.4.d. Rated for operation with a peak saturated power output 
greater than 2 W (33 dBm) at any frequency exceeding 37 GHz up to 
and including 43.5 GHz, and with a ``fractional bandwidth'' of 
greater than 10%;
    b.4.e. Rated for operation at frequencies exceeding 43.5 GHz and 
having any of the following:
    b.4.e.1. A peak saturated power output greater than 0.2 W (23 
dBm) at any frequency exceeding 43.5 GHz up to and including 75 GHz, 
and with a ``fractional bandwidth'' of greater than 10%;
    b.4.e.2. A peak saturated power output greater than 20 mW (13 
dBm) at any frequency exceeding 75 GHz up to and including 90 GHz, 
and with a ``fractional bandwidth'' of greater than 5%; or
    b.4.e.3. A peak saturated power output greater than 0.1 nW (-70 
dBm) at any frequency exceeding 90 GHz; or
    b.4.f. [Reserved]
    N.B.:
    1. For ``MMIC'' amplifiers see 3A001.b.2.
    2. For `transmit/receive modules' and `transmit modules' see 
3A001.b.12.
    3. For converters and harmonic mixers, designed to extend the 
operating or frequency range of signal analyzers, signal generators, 
network analyzers or microwave test receivers, see 3A001.b.7.
    Note 1: [Reserved]
    Note 2: The control status of an item whose rated operating 
frequency includes frequencies listed in more than one frequency 
range, as defined by 3A001.b.4.a through 3A001.b.4.e, is determined 
by the lowest peak saturated power output control threshold.
    b.5. Electronically or magnetically tunable band-pass or band-
stop filters, having more than 5 tunable resonators capable of 
tuning across a 1.5:1 frequency band (fmax/
fmin) in less than 10 ms and having any of the following:
    b.5.a. A band-pass bandwidth of more than 0.5% of center 
frequency; or
    b.5.b. A band-stop bandwidth of less than 0.5% of center 
frequency;
    b.6. [Reserved]
    b.7. Converters and harmonic mixers, that are any of the 
following:
    b.7.a. Designed to extend the frequency range of ``signal 
analyzers'' beyond 90 GHz;
    b.7.b. Designed to extend the operating range of signal 
generators as follows:
    b.7.b.1. Beyond 90 GHz;
    b.7.b.2. To an output power greater than 100 mW (20 dBm) 
anywhere within the frequency range exceeding 43.5 GHz but not 
exceeding 90 GHz;
    b.7.c. Designed to extend the operating range of network 
analyzers as follows:
    b.7.c.1. Beyond 110 GHz;
    b.7.c.2. To an output power greater than 31.62 mW (15 dBm) 
anywhere within the frequency range exceeding 43.5 GHz but not 
exceeding 90 GHz;
    b.7.c.3. To an output power greater than 1 mW (0 dBm) anywhere 
within the frequency range exceeding 90 GHz but not exceeding 110 
GHz; or
    b.7.d. Designed to extend the frequency range of microwave test 
receivers beyond 110 GHz;
    b.8. Microwave power amplifiers containing ``vacuum electronic 
devices'' controlled by 3A001.b.1 and having all of the following:
    b.8.a. Operating frequencies above 3 GHz;
    b.8.b. An average output power to mass ratio exceeding 80 W/kg; 
and
    b.8.c. A volume of less than 400 cm\3\;
    Note: 3A001.b.8 does not control equipment designed or rated for 
operation in any frequency band which is ``allocated by the ITU'' 
for radio-communications services, but not for radio-determination.
    b.9. Microwave Power Modules (MPM) consisting of, at least, a 
traveling-wave ``vacuum electronic device,'' a ``Monolithic 
Microwave Integrated Circuit'' (``MMIC'') and an integrated 
electronic power conditioner and having all of the following:
    b.9.a. A 'turn-on time' from off to fully operational in less 
than 10 seconds;
    b.9.b. A volume less than the maximum rated power in Watts 
multiplied by 10 cm\3\/W; and
    b.9.c. An ``instantaneous bandwidth'' greater than 1 octave 
(fmax > 2fmin) and having any of the 
following:
    b.9.c.1. For frequencies equal to or less than 18 GHz, an RF 
output power greater than 100 W; or
    b.9.c.2. A frequency greater than 18 GHz;
    Technical Notes: For the purposes of 3A001.b.9:
    1. To calculate the volume in 3A001.b.9.b, the following example 
is provided: for a maximum rated power of 20 W, the volume would be: 
20 W x 10 cm\3\/W = 200 cm\3\.
    2. The 'turn-on time' in 3A001.b.9.a refers to the time from 
fully-off to fully operational, i.e., it includes the warm-up time 
of the MPM.
    b.10. Oscillators or oscillator assemblies, specified to operate 
with a single sideband (SSB) phase noise, in dBc/Hz, less (better) 
than - (126 + 20log10F - 20log10f) anywhere 
within the range of 10 Hz <= F <= 10 kHz;
    Technical Note: For the purposes of 3A001.b.10, F is the offset 
from the operating frequency in Hz and f is the operating frequency 
in MHz.
    b.11. `Frequency synthesizer' ``electronic assemblies'' having a 
``frequency switching time'' as specified by any of the following:
    b.11.a. Less than 143 ps;
    b.11.b. Less than 100 [micro]s for any frequency change 
exceeding 2.2 GHz within the synthesized frequency range exceeding 
4.8 GHz but not exceeding 31.8 GHz;
    b.11.c. [Reserved]
    b.11.d. Less than 500 [micro]s for any frequency change 
exceeding 550 MHz within the synthesized frequency range exceeding 
31.8 GHz but not exceeding 37 GHz;
    b.11.e. Less than 100 [micro]s for any frequency change 
exceeding 2.2 GHz within the synthesized frequency range exceeding 
37 GHz but not exceeding 75 GHz;
    b.11.f. Less than 100 [micro]s for any frequency change 
exceeding 5.0 GHz within the synthesized frequency range exceeding 
75 GHz but not exceeding 90 GHz; or
    b.11.g. Less than 1 ms within the synthesized frequency range 
exceeding 90 GHz;
    Technical Note: For the purposes of 3A001.b.11, a `frequency 
synthesizer' is any kind of frequency source, regardless of the 
actual technique used, providing a multiplicity of simultaneous or 
alternative output frequencies, from one or more outputs, controlled 
by, derived from or disciplined by a lesser number of standard (or 
master) frequencies.
    N.B.: For general purpose ``signal analyzers'', signal 
generators, network analyzers and microwave test receivers, see 
3A002.c, 3A002.d, 3A002.e and 3A002.f, respectively.
    b.12. 'Transmit/receive modules, `transmit/receive MMICs, 
`transmit modules,' and `transmit MMICs,' rated for operation at 
frequencies above 2.7 GHz and having all of the following:
    b.12.a. A peak saturated power output (in watts), 
Psat, greater than 505.62 divided by the maximum 
operating frequency (in GHz) squared [Psat>505.62 
W*GHz\2\/fGHz\2\] for any channel;
    b.12.b. A ``fractional bandwidth'' of 5% or greater for any 
channel;
    b.12.c. Any planar side with length d (in cm) equal to or less 
than 15 divided by the lowest operating frequency in GHz [d <=

[[Page 4572]]

15cm*GHz*N/fGHz] where N is the number of transmit or 
transmit/receive channels; and
    b.12.d. An electronically variable phase shifter per channel;
    Technical Notes: For the purposes of 3A001.b.12:
    1. A `transmit/receive module' is a multifunction ``electronic 
assembly'' that provides bi-directional amplitude and phase control 
for transmission and reception of signals.
    2. A `transmit module' is an ``electronic assembly'' that 
provides amplitude and phase control for transmission of signals.
    3. A `transmit/receive MMIC' is a multifunction ``MMIC'' that 
provides bi-directional amplitude and phase control for transmission 
and reception of signals.
    4. A `transmit MMIC' is a ``MMIC'' that provides amplitude and 
phase control for transmission of signals.
    5. 2.7 GHz should be used as the lowest operating frequency 
(fGHz) in the formula in 3A001.b.12.c for transmit/
receive or transmit modules that have a rated operation range 
extending downward to 2.7 GHz and below [d<=15cm*GHz*N/2.7 GHz].
    6. 3A001.b.12 applies to `transmit/receive modules' or `transmit 
modules' with or without a heat sink. The value of d in 3A001.b.12.c 
does not include any portion of the `transmit/receive module' or 
`transmit module' that functions as a heat sink.
    7. `Transmit/receive modules' or `transmit modules,' `transmit/
receive MMICs' or `transmit MMICs' may or may not have N integrated 
radiating antenna elements where N is the number of transmit or 
transmit/receive channels.
    c. Acoustic wave devices as follows and ``specially designed'' 
``components'' therefor:
    c.1. Surface acoustic wave and surface skimming (shallow bulk) 
acoustic wave devices, having any of the following:
    c.1.a. A carrier frequency exceeding 6 GHz;
    c.1.b. A carrier frequency exceeding 1 GHz, but not exceeding 6 
GHz and having any of the following:
    c.1.b.1. A `frequency side-lobe rejection' exceeding 65 dB;
    c.1.b.2. A product of the maximum delay time and the bandwidth 
(time in [micro]s and bandwidth in MHz) of more than 100;
    c.1.b.3. A bandwidth greater than 250 MHz; or
    c.1.b.4. A dispersive delay of more than 10 [micro]s; or
    c.1.c. A carrier frequency of 1 GHz or less and having any of 
the following:
    c.1.c.1. A product of the maximum delay time and the bandwidth 
(time in [micro]s and bandwidth in MHz) of more than 100;
    c.1.c.2. A dispersive delay of more than 10 [micro]s; or
    c.1.c.3. A `frequency side-lobe rejection' exceeding 65 dB and a 
bandwidth greater than 100 MHz;
    Technical Note: For the purposes of 3A001.c.1, `frequency side-
lobe rejection' is the maximum rejection value specified in data 
sheet.
    c.2. Bulk (volume) acoustic wave devices that permit the direct 
processing of signals at frequencies exceeding 6 GHz;
    c.3. Acoustic-optic ``signal processing'' devices employing 
interaction between acoustic waves (bulk wave or surface wave) and 
light waves that permit the direct processing of signals or images, 
including spectral analysis, correlation or convolution;
    Note: 3A001.c does not control acoustic wave devices that are 
limited to a single band pass, low pass, high pass or notch 
filtering, or resonating function.
    d. Electronic devices and circuits containing ``components,'' 
manufactured from ``superconductive'' materials, ``specially 
designed'' for operation at temperatures below the ``critical 
temperature'' of at least one of the ``superconductive'' 
constituents and having any of the following:
    d.1. Current switching for digital circuits using 
``superconductive'' gates with a product of delay time per gate (in 
seconds) and power dissipation per gate (in watts) of less than 
10-14 J; or
    d.2. Frequency selection at all frequencies using resonant 
circuits with Q-values exceeding 10,000;
    e. High energy devices as follows:
    e.1. `Cells' as follows:
    e.1.a `Primary cells' having any of the following at 20 [deg]C:
    e.1.a.1. `Energy density' exceeding 550 Wh/kg and a `continuous 
power density' exceeding 50 W/kg; or
    e.1.a.2. `Energy density' exceeding 50 Wh/kg and a 'continuous 
power density' exceeding 350 W/kg;
    e.1.b. `Secondary cells' having an `energy density' exceeding 
350 Wh/kg at 20 [deg]C;
    Technical Notes: 1. For the purposes of 3A001.e.1, `energy 
density' (Wh/kg) is calculated from the nominal voltage multiplied 
by the nominal capacity in ampere-hours (Ah) divided by the mass in 
kilograms. If the nominal capacity is not stated, energy density is 
calculated from the nominal voltage squared then multiplied by the 
discharge duration in hours divided by the discharge load in Ohms 
and the mass in kilograms.
    2. For the purposes of 3A001.e.1, a `cell' is defined as an 
electrochemical device, which has positive and negative electrodes, 
an electrolyte, and is a source of electrical energy. It is the 
basic building block of a battery.
    3. For the purposes of 3A001.e.1.a, a `primary cell' is a `cell' 
that is not designed to be charged by any other source.
    4. For the purposes of 3A001.e.1.b, a `secondary cell' is a 
`cell' that is designed to be charged by an external electrical 
source.
    5. For the purposes of 3A001.e.1.a, `continuous power density' 
(W/kg) is calculated from the nominal voltage multiplied by the 
specified maximum continuous discharge current in ampere (A) divided 
by the mass in kilograms. `Continuous power density' is also 
referred to as specific power.
    Note: 3A001.e does not control batteries, including single-cell 
batteries.
    e.2. High energy storage capacitors as follows:
    e.2.a. Capacitors with a repetition rate of less than 10 Hz 
(single shot capacitors) and having all of the following:
    e.2.a.1. A voltage rating equal to or more than 5 kV;
    e.2.a.2. An energy density equal to or more than 250 J/kg; and
    e.2.a.3. A total energy equal to or more than 25 kJ;
    e.2.b. Capacitors with a repetition rate of 10 Hz or more 
(repetition rated capacitors) and having all of the following:
    e.2.b.1. A voltage rating equal to or more than 5 kV;
    e.2.b.2. An energy density equal to or more than 50 J/kg;
    e.2.b.3. A total energy equal to or more than 100 J; and
    e.2.b.4. A charge/discharge cycle life equal to or more than 
10,000;
    e.3. ``Superconductive'' electromagnets and solenoids, 
``specially designed'' to be fully charged or discharged in less 
than one second and having all of the following:
    Note: 3A001.e.3 does not control ``superconductive'' 
electromagnets or solenoids ``specially designed'' for Magnetic 
Resonance Imaging (MRI) medical equipment.
    e.3.a. Energy delivered during the discharge exceeding 10 kJ in 
the first second;
    e.3.b. Inner diameter of the current carrying windings of more 
than 250 mm; and
    e.3.c. Rated for a magnetic induction of more than 8 T or 
``overall current density'' in the winding of more than 300 A/mm\2\;
    e.4. Solar cells, cell-interconnect-coverglass (CIC) assemblies, 
solar panels, and solar arrays, which are ``space-qualified,'' 
having a minimum average efficiency exceeding 20% at an operating 
temperature of 301 K (28 [deg]C) under simulated `AM0' illumination 
with an irradiance of 1,367 Watts per square meter (W/m\2\);
    Technical Note: For the purposes of 3A001.e.4, `AM0', or `Air 
Mass Zero', refers to the spectral irradiance of sun light in the 
earth's outer atmosphere when the distance between the earth and sun 
is one astronomical unit (AU).
    f. Rotary input type absolute position encoders having an 
``accuracy'' equal to or less (better) than 1.0 second of arc and 
``specially designed'' encoder rings, discs or scales therefor;
    g. Solid-state pulsed power switching thyristor devices and 
`thyristor modules', using either electrically, optically, or 
electron radiation controlled switch methods and having any of the 
following:
    g.1. A maximum turn-on current rate of rise (di/dt) greater than 
30,000 A/[micro]s and off-state voltage greater than 1,100 V; or
    g.2. A maximum turn-on current rate of rise (di/dt) greater than 
2,000 A/[micro]s and having all of the following:
    g.2.a. An off-state peak voltage equal to or greater than 3,000 
V; and
    g.2.b. A peak (surge) current equal to or greater than 3,000 A;
    Note 1: 3A001.g. includes:

--Silicon Controlled Rectifiers (SCRs)
--Electrical Triggering Thyristors (ETTs)
--Light Triggering Thyristors (LTTs)
--Integrated Gate Commutated Thyristors (IGCTs)
--Gate Turn-off Thyristors (GTOs)
--MOS Controlled Thyristors (MCTs)
--Solidtrons

    Note 2: 3A001.g does not control thyristor devices and 
`thyristor modules' incorporated into equipment designed for civil 
railway or ``civil aircraft'' applications.

[[Page 4573]]

    Technical Note: For the purposes of 3A001.g, a `thyristor 
module' contains one or more thyristor devices.
    h. Solid-state power semiconductor switches, diodes, or 
`modules', having all of the following:
    h.1. Rated for a maximum operating junction temperature greater 
than 488 K (215 [deg]C);
    h.2. Repetitive peak off-state voltage (blocking voltage) 
exceeding 300 V; and
    h.3. Continuous current greater than 1 A.
    Technical Note: For the purposes of 3A001.h, `modules' contain 
one or more solid-state power semiconductor switches or diodes.
    Note 1: Repetitive peak off-state voltage in 3A001.h includes 
drain to source voltage, collector to emitter voltage, repetitive 
peak reverse voltage and peak repetitive off-state blocking voltage.
    Note 2: 3A001.h includes:

--Junction Field Effect Transistors (JFETs)
--Vertical Junction Field Effect Transistors (VJFETs)
--Metal Oxide Semiconductor Field Effect Transistors (MOSFETs)
--Double Diffused Metal Oxide Semiconductor Field Effect Transistor 
(DMOSFET)
--Insulated Gate Bipolar Transistor (IGBT)
--High Electron Mobility Transistors (HEMTs)
--Bipolar Junction Transistors (BJTs)
--Thyristors and Silicon Controlled Rectifiers (SCRs)
--Gate Turn-Off Thyristors (GTOs)
--Emitter Turn-Off Thyristors (ETOs)
--PiN Diodes
--Schottky Diodes

    Note 3: 3A001.h does not apply to switches, diodes, or 
`modules', incorporated into equipment designed for civil 
automobile, civil railway, or ``civil aircraft'' applications.
    i. Intensity, amplitude, or phase electro-optic modulators, 
designed for analog signals and having any of the following:
    i.1. A maximum operating frequency of more than 10 GHz but less 
than 20 GHz, an optical insertion loss equal to or less than 3 dB 
and having any of the following:
    i.1.a. A `half-wave voltage' (`V[pi]') less than 2.7 V when 
measured at a frequency of 1 GHz or below; or
    i.1.b. A `V[pi]' of less than 4 V when measured at a frequency 
of more than 1 GHz; or
    i.2. A maximum operating frequency equal to or greater than 20 
GHz, an optical insertion loss equal to or less than 3 dB and having 
any of the following:
    i.2.a. A `V[pi]' less than 3.3 V when measured at a frequency of 
1 GHz or below; or
    i.2.b. A `V[pi]' less than 5 V when measured at a frequency of 
more than 1 GHz.
    Note: 3A001.i includes electro-optic modulators having optical 
input and output connectors (e.g., fiber-optic pigtails).
    Technical Note: For the purposes of 3A001.i, a `half-wave 
voltage' (`V[pi]') is the applied voltage necessary to make a phase 
change of 180 degrees in the wavelength of light propagating through 
the optical modulator.
    j. through y. [Reserved]
    z. Any commodity described in 3A001 that meets or exceeds the 
performance parameters in 3A090, as follows:
    z.1.a ``Monolithic Microwave Integrated Circuit'' (``MMIC'') 
amplifiers described in 3A001.b.2 and discrete microwave transistors 
in 3A001.b.3 that also meet or exceed the performance parameters in 
ECCN 3A090.a, except those 3A001.b.2 and b.3 items being exported or 
reexported for use in civil telecommunications applications;
    z.1.b ``Monolithic Microwave Integrated Circuit'' (``MMIC'') 
amplifiers described in 3A001.b.2 and discrete microwave transistors 
in 3A001.b.3 that also meet or exceed the performance parameters in 
ECCN 3A090.b, except those 3A001.b.2 and b.3 items being exported or 
reexported for use in civil telecommunications applications;
    z.2.a Commodities that are described in 3A001.a.1.a when usable 
in ``missiles'' that also meet or exceed the performance parameters 
in ECCN 3A090.a; and to 3A001.a.5.a when ``designed or modified'' 
for military use, hermetically sealed and rated for operation in the 
temperature range from below -54 [deg]C to above +125 [deg]C and 
that also meet or exceed the performance parameters in ECCN 3A090.a;
    z.2.b Commodities that are described in 3A001.a.1.a when usable 
in ``missiles'' that also meet or exceed the performance parameters 
in ECCN 3A090.b; and to 3A001.a.5.a when ``designed or modified'' 
for military use, hermetically sealed and rated for operation in the 
temperature range from below -54 [deg]C to above +125 [deg]C and 
that also meet or exceed the performance parameters in ECCN 3A090.b;
    z.3.a. Pulse discharge capacitors described in 3A001.e.2 and 
superconducting solenoidal electromagnets in 3A001.e.3 that meet or 
exceed the technical parameters in 3A201.a and 3A201.b, respectively 
and that also meet or exceed the performance parameters in ECCN 
3A090.a;
    z.3.b Pulse discharge capacitors described in 3A001.e.2 and 
superconducting solenoidal electromagnets in 3A001.e.3 that meet or 
exceed the technical parameters in 3A201.a and 3A201.b, respectively 
and that also meet or exceed the performance parameters in ECCN 
3A090.b;
    z.4.a. All other commodities specified in this ECCN that meet or 
exceed the performance parameters of ECCN 3A090.a; or
    z.4.b All other commodities specified in this ECCN that meet or 
exceed the performance parameters of ECCN 3A090.b.
* * * * *
3A090 Integrated circuits as follows (see List of Items Controlled).

License Requirements

Reason for Control: RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
RS applies to 3A090.a.....................  To or within any destination
                                             worldwide. See Sec.
                                             742.6(a)(6)(iii)(A) of the
                                             EAR.
RS applies to 3A090.b.....................  To or within destinations
                                             specified in Country Groups
                                             D:1, D:4, and D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR, excluding
                                             any destination also
                                             specified in Country Groups
                                             A:5 or A:6. See Sec.
                                             742.6(a)(6)(iii)(B) of the
                                             EAR.
RS applies to 3A090.c.....................  To or within Macau or a
                                             destination specified in
                                             Country Group D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR. See Sec.
                                             742.6(a)(6)(i)(B) of the
                                             EAR.
AT applies to entire entry................  AT Column 1.
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: N/A
GBS: N/A
NAC/ACA: Yes, for 3A090.a, if the item is not designed or marketed 
for use in datacenters and has a `total processing performance' of 
4800 or more; yes, for 3A090.b, if the item is designed or marketed 
for use in datacenters. N/A for 3A090.c.
HBM: Yes, for 3A090.c. See Sec.  740.25 of the EAR.
AIA: Yes for 3A090.a
ACM: Yes
LPP: Yes for 3A090.a

List of Items Controlled

Related Controls: (1) See ECCNs 3D001, 3E001, 5D002.z, and 5D992.z 
for associated technology and software controls. (2) See ECCNs 
3A001.z, 5A002.z, 5A004.z, and 5A992.z.
Related Definitions: N/A
Items:

    a. Integrated circuits having one or more digital processing 
units having either of the following:
    a.1. A `total processing performance' of 4800 or more, or
    a.2. A `total processing performance' of 1600 or more and a 
`performance density' of 5.92 or more.
    b. Integrated circuits having one or more digital processing 
units having either of the following:
    b.1. A `total processing performance' of 2400 or more and less 
than 4800 and a `performance density' of 1.6 or more and less than 
5.92, or
    b.2. A `total processing performance' of 1600 or more and a 
`performance density' of 3.2 or more and less than 5.92.
    Note 1 to 3A090.a and 3A090.b: 3A090.a and 3A090.b do not apply 
to items that are not designed or marketed for use in datacenters 
and do not have a `total processing performance' of 4800 or more. 
For 3A090.a and 3A090.b items that are not designed or marketed for 
use in datacenters and that have a `total processing performance' of 
4800 or more, see license exceptions NAC and ACA.
    Note 2 to 3A090.a and 3A090.b: Integrated circuits specified by 
3A090 include graphical processing units (GPUs), tensor processing

[[Page 4574]]

units (TPUs), neural processors, in-memory processors, vision 
processors, text processors, co-processors/accelerators, adaptive 
processors, field-programmable logic devices (FPLDs), and 
application-specific integrated circuits (ASICs). Examples of 
integrated circuits are in the Note to 3A001.a.
    Note 3 to 3A090.a and 3A090.b: For ICs that are excluded from 
ECCN 3A090 under Note 2 or 3 to 3A090, those ICs are also not 
applicable for classifications made under ECCNs 3A001.z, 4A003.z, 
4A004.z, 4A005.z, 4A090, 5A002.z, 5A004.z, 5A992.z, 5D002.z, or 
5D992.z because those other CCL classifications are based on the 
incorporation of an IC that meets the control parameters under ECCN 
3A090 or otherwise meets or exceeds the control parameters or ECCNs 
3A090 or 4A090. See the Related Controls paragraphs of 3A001.z, 
4A003.z, 4A004.z, 4A005.z, 4A090, 5A002.z, 5A004.z, 5A992.z, 
5D002.z, or 5D992.z.
    Technical Notes to 3A090.a and 3A090.b:
    1. `Total processing performance' (`TPP') is 2 x `MacTOPS' x 
`bit length of the operation', aggregated over all processing units 
on the integrated circuit.
    a. For purposes of 3A090, `MacTOPS' is the theoretical peak 
number of Tera (10\12\) operations per second for multiply-
accumulate computation (D = A x B + C).
    b. The 2 in the `TPP' formula is based on industry convention of 
counting one multiply-accumulate computation, D = A x B + C, as 2 
operations for purpose of datasheets. Therefore, 2 x MacTOPS may 
correspond to the reported TOPS or FLOPS on a datasheet.
    c. For purposes of 3A090, `bit length of the operation' for a 
multiply-accumulate computation is the largest bit-length of the 
inputs to the multiply operation.
    d. Aggregate the TPPs for each processing unit on the integrated 
circuit to arrive at a total. `TPP' = TPP1 + TPP2 + . . . . + TPPn 
(where n is the number or processing units on the integrated 
circuit).
    2. The rate of `MacTOPS' is to be calculated at its maximum 
value theoretically possible. The rate of `MacTOPS' is assumed to be 
the highest value the manufacturer claims in annual or brochure for 
the integrated circuit. For example, the `TPP' threshold of 4800 can 
be met with 600 tera integer operations (or 2 x 300 `MacTOPS') at 8 
bits or 300 tera FLOPS (or 2 x 150 `MacTOPS') at 16 bits. If the IC 
is designed for MAC computation with multiple bit lengths that 
achieve different `TPP' values, the highest `TPP' value should be 
evaluated against parameters in 3A090.
    3. For integrated circuits specified by 3A090 that provide 
processing of both sparse and dense matrices, the `TPP' values are 
the values for processing of dense matrices (e.g., without 
sparsity).
    4. `Performance density' is `TPP' divided by `applicable die 
area'. For purposes of 3A090, `applicable die area' is measured in 
millimeters squared and includes all die area of logic dies 
manufactured with a process node that uses a non-planar transistor 
architecture.
    c. High bandwidth memory having a `memory bandwidth density' 
greater than 2 gigabytes per second per square millimeter.
    Technical note to 3A090.c: `Memory bandwidth density' is the 
memory bandwidth measured in gigabytes per second divided by the 
area of the package or stack measured in square millimeters. In the 
case where a stack is contained in a package, use the memory 
bandwidth of the packaged device and the area of the package. High 
bandwidth memory includes dynamic random access memory integrated 
circuits, regardless of whether they conform to the JEDEC standards 
for high bandwidth memory, provided they have a `memory bandwidth 
density' greater than 2 gigabytes per second per square millimeter. 
This control does not cover co-packaged integrated circuits with 
both high bandwidth memory and logic integrated circuit where the 
dominant function of the co-packaged integrated circuit is 
processing. It does include high bandwidth memory permanently 
affixed to a logic integrated circuit designed as a control 
interface and incorporating a physical layer (PHY) function.
* * * * *
3D001 ``Software'' ``specially designed'' for the ``development'' or 
``production'' of commodities controlled by 3A001.b to 3A002.h, 
3A090, or 3B (except 3B001.a.4, c, d, f.1, f.5, k to n, p.2, p.4, r, 
3B002.c, 3B903, 3B904, 3B991, 3B992, 3B993, or 3B994).

License Requirements

Reason for Control: NS, RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to ``software'' for equipment    Worldwide control. See Sec.
 controlled by 3B001.q.                       742.4(a)(5) and (b)(10) of
                                             the EAR.
RS applies to ``software'' for equipment    Worldwide control. See Sec.
 controlled by 3B001.q.                       742.6(a)(10) and (b)(11)
                                             of the EAR.
NS applies to ``software'' for commodities  NS Column 1.
 controlled by 3A001.b to 3A001.h,
 3A001.z, and 3B (except as specified in
 the heading).
RS applies to ``software'' for commodities  To or within any destination
 controlled by 3A001.z.1.a, z.2.a, z.3.a,    worldwide. See Sec.
 z.4.a and 3A090.a.                          742.6(a)(6)(iii)(A) of the
                                             EAR.
RS applies to ``software'' for commodities  To or within destinations
 controlled by 3A001.z. 1.b, z.2.b, z.3.b,   specified in Country Groups
 z.4.b and 3A090.b.                          D:1, D:4, and D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR, excluding
                                             any destination also
                                             specified in Country Groups
                                             A:5 or A:6. See Sec.
                                             742.6(a)(6)(iii)(B) of the
                                             EAR.
RS applies to ``software'' for commodities  To or within Macau or a
 controlled by 3A090.c.                      destination specified in
                                             Country Group D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR. See Sec.
                                             742.6(a)(6)(i) of the EAR.
AT applies to entire entry................  AT Column 1.
 

Reporting Requirements

    See Sec.  743.1 of the EAR for reporting requirements for 
exports under License Exceptions, and Validated End-User 
authorizations.

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

TSR: Yes, except for ``software'' ``specially designed'' for the 
``development'' or ``production'' of Traveling Wave Tube Amplifiers 
described in 3A001.b.8 having operating frequencies exceeding 18 
GHz; or commodities specified in 3A090.
AIA: Yes for ``software'' for commodities controlled by 3A001.z.1.a, 
z.2.a, z.3.a, z.4.a, and 3A090.a
ACM: Yes for ``software'' for commodities controlled by 3A001.z
    Note: See Sec.  740.2(a)(9)(ii) of the EAR for license exception 
restrictions for ECCN 3D001 ``software'' for commodities controlled 
by 3A001.z and 3A090.
IEC: Yes, for ``software'' for equipment controlled by 3B001.q, see 
Sec.  740.2(a)(22) and Sec.  740.24 of the EAR.

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit 
``software'' ``specially designed'' for the ``development'' or 
``production'' of equipment specified by 3A090.a or 3B001. q to any 
of the destinations listed in Country Group A:5 or A:6 (See 
Supplement No.1 to part 740 of the EAR); and 3A090.b or 3A002.g.1 to 
any of the destinations listed in Country Group A:6.

List of Items Controlled

Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.
* * * * *
3E001 ``Technology'' according to the General Technology Note for 
the ``development'' or ``production'' of commodities controlled by 
3A (except 3A901, 3A904, 3A980, 3A981, 3A991, 3A992, or 3A999), 3B 
(except 3B001.a.4, c, d, f.1, f.5, k to n, p.2, p.4, r, 3B002.c, 
3B903, 3B904, 3B991, 3B992, 3B993, or 3B994) or 3C (except 3C907, 
3C908, 3C909, or 3C992).

License Requirements

Reason for Control: NS, MT, NP, RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to ``technology'' for            NS Column 1.
 commodities controlled by 3A001, 3A002,
 3A003, 3B001 (except as noted in the
 heading), 3B002 (except 3B002.c), or
 3C001 to 3C006.
MT applies to ``technology'' for            MT Column 1.
 commodities controlled by 3A001 or 3A101
 for MT Reasons.
NP applies to ``technology'' for            NP Column 1.
 commodities controlled by 3A001, 3A201,
 or 3A225 to 3A234 for NP reasons.

[[Page 4575]]

 
RS applies to ``technology'' for            Worldwide (See Sec.
 commodities controlled in 3A090, when       742.6(a)(6)(ii).
 exported from Macau or a destination
 specified in Country Group D:5.
RS applies to ``technology'' for            To or within any destination
 commodities controlled by 3A001.z.1.a,      worldwide. See Sec.
 z.2.a, z.3.a, z.4.a, and 3A090.a.           742.6(a)(6)(iii)(A) of the
                                             EAR.
RS applies to ``technology'' for            To or within destinations
 commodities controlled by 3A001.z.1.b,      specified in Country Groups
 z.2.b, z.3.b, z.4.b and 3A090.b.            D:1, D:4, and D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR, excluding
                                             any destination also
                                             specified in Country Groups
                                             A:5 or A:6. See Sec.
                                             742.6(a)(6)(iii)(B) of the
                                             EAR.
RS applies to ``technology'' for            To or within Macau or a
 commodities controlled by 3A090.c.          destination specified in
                                             Country Group D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR. See Sec.
                                             742.6(a)(6)(i)(B) of the
                                             EAR.
RS applies to ``technology'' for            RS Column 2.
 commodities controlled by 3A001.a.15 or
 b.13, 3A004, 3B003, 3C007, 3C008, or
 3C009.
AT applies to entire entry................  AT Column 1.
 

    License Requirements Note: See Sec.  744.17 of the EAR for 
additional license requirements for microprocessors having a 
processing speed of 5 GFLOPS or more and an arithmetic logic unit 
with an access width of 32 bit or more, including those 
incorporating ``information security'' functionality, and associated 
``software'' and ``technology'' for the ``production'' or 
``development'' of such microprocessors.

Reporting Requirements

    See Sec.  743.1 of the EAR for reporting requirements for 
exports under License Exceptions, and Validated End-User 
authorizations.

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

TSR: Yes, except N/A for MT, and ``technology'' for the 
``development'' or ``production'' of: (a) vacuum electronic device 
amplifiers described in 3A001.b.8, having operating frequencies 
exceeding 19 GHz; (b) solar cells, coverglass-interconnect-cells or 
covered-interconnect-cells (CIC) ``assemblies'', solar arrays and/or 
solar panels described in 3A001.e.4; (c) ``Monolithic Microwave 
Integrated Circuit'' (``MMIC'') amplifiers in 3A001.b.2; and (d) 
discrete microwave transistors in 3A001.b.3; and (e) commodities 
described in 3A090.
AIA: Yes for ``technology'' for commodities controlled by 
3A001.z.1.a, z.2.a, z.3.a, z.4.a, and 3A090.a
ACM: Yes for ``technology'' for commodities controlled by 3A001.z 
and 3A090
    Note: See Sec.  740.2(a)(9)(ii) of the EAR for license exception 
restrictions for ECCN 3E001 ``technology'' for commodities 
controlled by 3A001.z, 3A090.
IEC: Yes, for ``technology'' for equipment controlled by 3B001.q, 
see Sec.  740.2(a)(22) and Sec.  740.24 of the EAR.

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit 
``technology'' according to the General Technology Note for the 
``development'' or ``production'' of equipment specified by ECCNs 
3A002.g.1 or 3B001.a.2 to any of the destinations listed in Country 
Group A:6 (See Supplement No.1 to part 740 of the EAR). License 
Exception STA may not be used to ship or transmit ``technology'' 
according to the General Technology Note for the ``development'' or 
``production'' of components specified by ECCN 3A001.b.2, b.3, or 
commodities specified in 3A090, to any of the destinations listed in 
Country Group A:5 or A:6 (See Supplement No.1 to part 740 of the 
EAR).

List of Items Controlled

Related Controls: (1) ``Technology'' according to the General 
Technology Note for the ``development'' or ``production'' of certain 
``space-qualified'' atomic frequency standards described in Category 
XV(e)(9), MMICs described in Category XV(e)(14), and oscillators 
described in Category XV(e)(15) of the USML are ``subject to the 
ITAR'' (see 22 CFR parts 120 through 130). See also 3E101, 3E201 and 
9E515. (2) ``Technology'' for ``development'' or ``production'' of 
``Microwave Monolithic Integrated Circuits'' (``MMIC'') amplifiers 
in 3A001.b.2 is controlled in this ECCN 3E001; 5E001.d refers only 
to that additional ``technology'' ``required'' for 
telecommunications.
Related Definition: N/A
Items: The list of items controlled is contained in the ECCN 
heading.
    Note 1: 3E001 does not control ``technology'' for equipment or 
``components'' controlled by 3A003.
    Note 2: 3E001 does not control ``technology'' for integrated 
circuits controlled by 3A001.a.3 to a.14 or .z, having all of the 
following:
    (a) Using ``technology'' at or above 0.130 mm; and
    (b) Incorporating multi-layer structures with three or fewer 
metal layers.
* * * * *
4A003 ``Digital computers'', ``electronic assemblies'', and related 
equipment therefor, as follows (see List of Items Controlled) and 
``specially designed'' ``components'' therefor.

License Requirements

Reason for Control: NS, RS, CC, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to 4A003.b, .c, and .z.1.......  NS Column 1.
NS applies to 4A003.g and z.2.............  NS Column 2.
RS applies to 4A003.z.1.a, z.2.a..........  To or within any destination
                                             worldwide. See Sec.
                                             742.6(a)(6)(iii)(A) of the
                                             EAR.
RS applies to 4A003.z.1.b, z.2.b..........  To or within destinations
                                             specified in Country Groups
                                             D:1, D:4, and D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR, excluding
                                             any destination also
                                             specified in Country Groups
                                             A:5 or A:6. See Sec.
                                             742.6(a)(6)(iii)(B) of the
                                             EAR.
CC applies to ``digital computers'' for     CC Column 1.
 computerized finger-print equipment.
AT applies to entire entry (refer to 4A994  AT Column 1.
 for controls on ``digital computers''
 with an APP >0.0128 but <=70 WT).
 

    Note: For all destinations, except those countries in Country 
Group E:1 or E:2 of Supplement No. 1 to part 740 of the EAR, no 
license is required (NLR) for computers with an ``Adjusted Peak 
Performance'' (``APP'') not exceeding 70 Weighted TeraFLOPS (WT) and 
for ``electronic assemblies'' described in 4A003.c that are not 
capable of exceeding an ``Adjusted Peak Performance'' (``APP'') 
exceeding 70 Weighted TeraFLOPS (WT) in aggregation, except certain 
transfers as set forth in Sec.  746.3 (Iraq).

Reporting Requirements

    Special Post Shipment Verification reporting and recordkeeping 
requirements for exports of computers to destinations in Computer 
Tier 3 may be found in Sec.  743.2 of the EAR.

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: $5000; N/A for 4A003.b, c, and z.
GBS: Yes, for 4A003.g and ``specially designed'' ``parts'' and 
``components'' therefor, exported separately or as part of a system.
APP: Yes, for computers controlled by 4A003.b, and ``electronic 
assemblies'' controlled by 4A003.c, to the exclusion of other 
technical parameters. See Sec.  740.7 of the EAR.
NAC/ACA: Yes, for 4A003.z.
AIA: Yes for 4A003.z.1.a, z.2.a
ACM: Yes for 4A003.z
LPP: Yes for 4A003.z.1.a, z.2.a

    Note to List Based License Exceptions: See Sec.  740.2(a)(9)(ii) 
of the EAR for license exception restrictions for ECCN 4A003.z.

List of Items Controlled

Related Controls: See also ECCNs 4A090, 4A994 and 4A980.
Related Definitions: N/A
Items:

Note 1: 4A003 includes the following:

--`Vector processors' (as defined in Note 7 of the ``Technical Note 
on ``Adjusted Peak Performance'' (``APP'')'');
--Array processors;

[[Page 4576]]

--Digital signal processors;
--Logic processors;
--Equipment designed for ``image enhancement.''

    Note 2: The control status of the ``digital computers'' and 
related equipment described in 4A003 is determined by the control 
status of other equipment or systems provided:
    a. The ``digital computers'' or related equipment are essential 
for the operation of the other equipment or systems;
    b. The ``digital computers'' or related equipment are not a 
``principal element'' of the other equipment or systems; and
    N.B. 1: The control status of ``signal processing'' or ``image 
enhancement'' equipment ``specially designed'' for other equipment 
with functions limited to those required for the other equipment is 
determined by the control status of the other equipment even if it 
exceeds the ``principal element'' criterion.
    N.B. 2: For the control status of ``digital computers'' or 
related equipment for telecommunications equipment, see Category 5, 
Part 1 (Telecommunications).
    c. The ``technology'' for the ``digital computers'' and related 
equipment is determined by 4E.
    a. [Reserved]
    b. ``Digital computers'' having an ``Adjusted Peak Performance'' 
(``APP'') exceeding 70 Weighted TeraFLOPS (WT);
    c. ``Electronic assemblies'' ``specially designed'' or modified 
to be capable of enhancing performance by aggregation of processors 
so that the ``APP'' of the aggregation exceeds the limit in 
4A003.b.;
    Note 1: 4A003.c applies only to ``electronic assemblies'' and 
programmable interconnections not exceeding the limit in 4A003.b 
when shipped as unintegrated ``electronic assemblies.''
    Note 2: 4A003.c does not control ``electronic assemblies'' 
``specially designed'' for a product or family of products whose 
maximum configuration does not exceed the limit of 4A003.b.
    d. to f. [Reserved]
    N.B.: For ``electronic assemblies,'' modules or equipment, 
performing analog-to-digital conversions, see 3A002.h.
    g. Equipment ``specially designed'' for aggregating the 
performance of ``digital computers'' by providing external 
interconnections which allow communications at unidirectional data 
rates exceeding 2.0 Gbyte/s per link.
    Note: 4A003.g does not control internal interconnection 
equipment (e.g., backplanes, buses) passive interconnection 
equipment, ``network access controllers'' or ``communication channel 
controllers''.
    h. through y. [Reserved]
    z. Commodities specified in this ECCN 4A003 that also meet or 
exceed the performance parameters in 4A090.
    z.1.a. Commodities specified in 4A003.b or .c that also meet or 
exceed the performance parameters in ECCN 4A090.a;
    z.1.b Commodities specified in 4A003.b or .c that also meet or 
exceed the performance parameters in ECCN 4A090.b;
    z.2.a. Commodities specified in 4A003.g that also meet or exceed 
the performance parameters in ECCN 4A090a; or
    z.2.b Commodities specified in 4A003.g that also meet or exceed 
the performance parameters in ECCN 4A090.b.

4A004 Computers as follows (see List of Items Controlled) and 
``specially designed'' related equipment, ``electronic assemblies'' 
and ``components'' therefor.

License Requirements

Reason for Control: NS, RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry................  NS Column 2.
RS applies to 4A004.z.1...................  To or within any destination
                                             worldwide. See Sec.
                                             742.6(a)(6)(iii)(A) of the
                                             EAR.
RS applies to 4A004.z.2...................  To or within destinations
                                             specified in Country Groups
                                             D:1, D:4, and D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR, excluding
                                             any destination also
                                             specified in Country Groups
                                             A:5 or A:6. See Sec.
                                             742.6(a)(6)(iii)(B) of the
                                             EAR.
AT applies to entire entry................  AT Column 1.
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: $5000, N/A for 4A004.z
GBS: N/A
NAC/ACA: Yes, for 4A004.z.
AIA: Yes for 4A004.z.1
LPP: Yes for 4A004.z.1

    Note: See Sec.  740.2(a)(9)(ii) of the EAR for license exception 
restrictions for ECCN 4A004.z.

List of Items Controlled

Related Controls: See also ECCN 4A090.
Related Definitions: N/A
Items:

    a. `Systolic array computers';
    b. `Neural computers';
    c. `Optical computers'.
    Technical Notes:
    1. For the purposes of 4A004.a, `systolic array computers' are 
computers where the flow and modification of the data is dynamically 
controllable at the logic gate level by the user.
    2. For the purposes of 4A004.b, `neural computers' are 
computational devices designed or modified to mimic the behavior of 
a neuron or a collection of neurons, i.e., computational devices 
which are distinguished by their hardware capability to modulate the 
weights and numbers of the interconnections of a multiplicity of 
computational components based on previous data.
    3. For the purposes of 4A004.c, `optical computers' are 
computers designed or modified to use light to represent data and 
whose computational logic elements are based on directly coupled 
optical devices.
    d. through y. [Reserved]
    z.1. Commodities that are described in 4A004 and that also meet 
or exceed the performance parameters in 4A090.a; or
    z.2 Commodities that are described in 4A004 and that also meet 
or exceed the performance parameters in 4A090.b.

4A005 ``Systems,'' ``equipment,'' and ``components'' therefor, 
``specially designed'' or modified for the generation, command and 
control, or delivery of ``intrusion software'' (see List of Items 
Controlled).

License Requirements

Reason for Control: NS, RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry................  NS Column 1.
RS applies to items controlled by           To or within any destination
 4A005.z.1.                                  worldwide. See Sec.
                                             742.6(a)(6)(iii)(A) of the
                                             EAR.
RS applies to items controlled by           To or within destinations
 4A005.z.2.                                  specified in Country Groups
                                             D:1, D:4, and D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR, excluding
                                             any destination also
                                             specified in Country Groups
                                             A:5 or A:6. See Sec.
                                             742.6(a)(6)(iii)(B) of the
                                             EAR.
AT applies to entire entry................  AT Column 1.
 

Reporting Requirements

    See Sec.  743.1 of the EAR for reporting requirements for 
exports under License Exceptions, and Validated End-User 
authorizations.

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: N/A
GBS: N/A
APP: N/A
ACE: Yes, except to Country Group E:1 or E:2. See Sec.  740.22 of 
the EAR for eligibility criteria.
NAC/ACA: Yes, for 4A005.z.
AIA: Yes for 4A005.z.1
ACM: Yes for 4A005.z
LPP: Yes for 4A005.z.1
    Note: See Sec.  740.2(a)(9)(ii) of the EAR for license exception 
restrictions for ECCN 4A005.z.

Special Conditions for STA

STA: License Exception STA may not be used to ship items specified 
by ECCN 4A005.

List of Items Controlled

Related Controls: (1) Defense articles described in USML Category 
XI(b), and software directly related to a defense article, are 
``subject to the ITAR'' (see 22 CFR parts 120 through 130). (2) See 
also ECCN 4A090.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading, except for the commodities controlled under 4A005.z.

    a. through y. [Reserved]
    z.1. Commodities that are specified in 4A005 that also meet or 
exceed the performance parameters in 4A090.a.

[[Page 4577]]

    z.2 Commodities that are specified in 4A005 that also meet or 
exceed the performance parameters in 4A090.b.
4A090 Computers as follows (see List of Items Controlled) and 
related equipment, ``electronic assemblies,'' and ``components'' 
therefor.

License Requirements

Reason for Control: RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
RS applies to 4A090.a.....................  To or within any destination
                                             worldwide. See Sec.
                                             742.6(a)(6)(iii)(A) of the
                                             EAR.
RS applies to 4A090.b.....................  To or within destinations
                                             specified in Country Groups
                                             D:1, D:4, and D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR, excluding
                                             any destination also
                                             specified in Country Groups
                                             A:5 or A:6. See Sec.
                                             742.6(a)(6)(iii)(B) of the
                                             EAR.
AT applies to entire entry................  AT Column 1.
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: N/A
GBS: N/A
NAC/ACA: Yes
AIA: Yes for 4A090.a
ACM: Yes
LPP: Yes for 4A090.a

List of Items Controlled

Related Controls: (1) For associated ``software'' for commodities in 
this ECCN, see 4D090, 5D002.z, and 5D992.z and for associated 
``technology'' for commodities in this ECCN, see 4E001. (2) Also 
ECCNs 4A003.z, 4A004.z, 4A005.z, 5A002.z, 5A004.z, and 5A992.z.
Related Definitions: N/A
Items:

    a. Computers, ``electronic assemblies,'' and ``components'' 
containing integrated circuits, any of which meets or exceeds the 
limits in 3A090.a.
    b. Computers, ``electronic assemblies,'' and ``components'' 
containing integrated circuits, any of which meets or exceeds the 
limits in 3A090.b.
    Technical Note: For purposes of 4A090.a and .b, computers 
include ``digital computers,'' ``hybrid computers,'' and analog 
computers.
* * * * *
4D001 ``Software'' as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, CC, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry................  NS Column 1.
RS applies to ``software'' for commodities  To or within any destination
 controlled by 4A003.z.1.a, z.2.a,           worldwide. See Sec.
 4A004.z.1, and 4A005.z.1.                   742.6(a)(6)(iii)(A) of the
                                             EAR.
RS applies to ``software'' for commodities  To or within destinations
 controlled by 4A003.z.1.b, z.2.b,           specified in Country Groups
 4A004.z.2, and 4A005.z.2.                   D:1, D:4, and D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR, excluding
                                             any destination also
                                             specified in Country Groups
                                             A:5 or A:6. See Sec.
                                             742.6(a)(6)(iii)(B) of the
                                             EAR.
CC applies to ``software'' for              CC Column 1.
 computerized finger-print equipment
 controlled by 4A003 for CC reasons.
AT applies to entire entry................  AT Column 1.
 

Reporting Requirements

    See Sec.  743.1 of the EAR for reporting requirements for 
exports under License Exceptions, and Validated End-User 
authorizations.

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

TSR: Yes, except for ``software'' for the following:

    (1) The ``development'' or ``production'' of commodities with an 
``Adjusted Peak Performance'' (``APP'') exceeding 29 WT;
    (2) The ``development'' or ``production'' of commodities 
controlled by 4A005 or ``software'' controlled by 4D004; or
    (3) Commodities controlled by 4A003.z, 4A004.z, and 4A005.z

APP: Yes to specific countries (see Sec.  740.7 of the EAR for 
eligibility criteria).
ACE: Yes for 4D001.a (for the ``development'', ``production'' or 
``use'' of equipment or ``software'' specified in ECCN 4A005 or 
4D004), except to Country Group E:1 or E:2. See Sec.  740.22 of the 
EAR for eligibility criteria.
AIA: Yes for ``software'' for commodities controlled by 4A003.z.1.a, 
z.2.a, 4A004.z.1, and 4A005.z.1
ACM: Yes for ``software'' for commodities controlled by 4A003.z
    Note: See Sec.  740.2(a)(9)(ii) for license exception 
restrictions for ``software'' for commodities controlled by 4A003.z, 
4A004.z, and 4A005.z.

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit 
``software'' ``specially designed'' or modified for the 
``development'' or ``production'' of equipment specified by ECCN 
4A001.a.2 or for the ``development'' or ``production'' of ``digital 
computers'' having an `Adjusted Peak Performance' (`APP') exceeding 
29 Weighted TeraFLOPS (WT) to any of the destinations listed in 
Country Group A:6 (See Supplement No.1 to part 740 of the EAR); may 
not be used to ship or transmit ``software'' specified in 4D001.a 
``specially designed'' for the ``development'' or ``production'' of 
equipment specified by ECCN 4A005; and may not be used to ship or 
transmit ``software'' for commodities controlled by 4A003.z.1.a, 
z.2.a, 4A004.z.1, and 4A005.z.1 to any of the destinations listed in 
Country Group A:5 or A:6.

List of Items Controlled

Related Controls: N/A
Related Definitions: N/A
Items:

    a. ``Software'' ``specially designed'' or modified for the 
``development'' or ``production'', of equipment or ``software'' 
controlled by 4A001, 4A003, 4A004, 4A005 or 4D (except 4D090, 4D906, 
4D980, 4D993 or 4D994).
    b. ``Software'', other than that controlled by 4D001.a, 
``specially designed'' or modified for the ``development'' or 
``production'' of equipment as follows:
    b.1. ``Digital computers'' having an ``Adjusted Peak 
Performance'' (``APP'') exceeding 24 Weighted TeraFLOPS (WT);
    b.2. ``Electronic assemblies'' ``specially designed'' or 
modified for enhancing performance by aggregation of processors so 
that the ``APP'' of the aggregation exceeds the limit in 4D001.b.1.
* * * * *
4D090 ``Software'' ``specially designed'' or modified for the 
``development'' or ``production,'' of computers and related 
equipment, ``electronic assemblies,'' and ``components'' therefor 
specified in ECCN 4A090.

License Requirements

Reason for Control: RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
RS applies to ``software'' for commodities  To or within any destination
 controlled by 4A090.a.                      worldwide. See Sec.
                                             742.6(a)(6)(iii)(A) of the
                                             EAR.
RS applies to ``software'' for commodities  To or within destinations
 controlled by 4A090.b.                      specified in Country Groups
                                             D:1, D:4, and D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR, excluding
                                             any destination also
                                             specified in Country Groups
                                             A:5 or A:6. See Sec.
                                             742.6(a)(6)(iii)(B) of the
                                             EAR.
AT applies to entire entry................  AT Column 1.
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

TSR: N/A
AIA: Yes for commodities controlled by 4A090.a
ACM: Yes

List of Items Controlled

Related Controls: For associated ``technology'' for software in this 
ECCN, see 4E001.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.
* * * * *
4E001 ``Technology'' as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, MT, RS, CC, AT

[[Page 4578]]



 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry, except for      NS Column 1.
 ``technology'' for 4A090 or ``software''
 specified by 4D090.
MT applies to ``technology'' for items      MT Column 1.
 controlled by 4A001.a and 4A101 for MT
 reasons.
RS applies to ``technology'' for            To or within any destination
 commodities controlled by 4A003.z.1.a,      worldwide. See Sec.
 z.2.a, 4A004.z.1, 4A005.z.1, 4A090.a or     742.6(a)(6)(iii)(A) of the
 ``software'' specified by 4D001 (for        EAR.
 4A003.z.1.a, z.2.a, 4A004.z.1 and
 4A005.z.1), or 4D090.a.
RS applies to ``technology'' for            To or within destinations
 commodities controlled by 4A003.z.1.b,      specified in Country Groups
 z.2.b, 4A004.z.2, 4A005.z.2, 4A090.b or     D:1, D:4, and D:5 of
 ``software'' specified by 4D001 (for        supplement no. 1 to part
 4A003.z.1.b, z.2.b, 4A004.z.2, and          740 of the EAR, excluding
 4A005.z.2), or 4D090.b.                     any destination also
                                             specified in Country Groups
                                             A:5 or A:6. See Sec.
                                             742.6(a)(6)(iii)(B) of the
                                             EAR.
CC applies to ``technology'' for            CC Column 1.
 computerized finger-print equipment
 controlled by 4A003 for CC reasons.
AT applies to entire entry................  AT Column 1.
 

Reporting Requirements

    See Sec.  743.1 of the EAR for reporting requirements for 
exports under License Exceptions, and Validated End-User 
authorizations.

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

TSR: Yes, except for the following:

    (1) ``Technology'' for the ``development'' or ``production'' of 
commodities with an ``Adjusted Peak Performance'' (``APP'') 
exceeding 70 WT or for the ``development'' or ``production'' of 
commodities controlled by 4A005 or ``software'' controlled by 4D004;
    (2) ``Technology'' for the ``development'' of ``intrusion 
software''; or
    (3) ``Technology'' for commodities controlled by 4A003.z, 
4A004.z, 4A005.z, 4A090 or ``software'' specified by 4D001 (for 
4A003.z, 4A004.z, and 4A005.z), or 4D090

APP: Yes, to specific countries (see Sec.  740.7 of the EAR for 
eligibility criteria).
ACE: Yes for 4E001.a (for the ``development'', ``production'' or 
``use'' of equipment or ``software'' specified in ECCN 4A005 or 
4D004); and for 4E001.c, except to Country Group E:1 or E:2. See 
Sec.  740.22 of the EAR for eligibility criteria.
AIA: Yes for ``technology'' for commodities controlled by 
4A003.z.1.a, z.2.a, 4A004.z.1, 4A005.z.1, 4A090.a or ``software'' 
specified by 4D001 (for 4A003.z.1.a, z.2.a, 4A004.z.1 and 
4A005.z.1), or 4D090.a
ACM: Yes for ``technology'' for commodities controlled by 4A003.z, 
4A004.z, 4A005.z, 4A090 or ``software'' specified by 4D001 (for 
4A003.z, 4A004.z and 4A005.z), or 4D090.

    Note: See Sec.  740.2(a)(9)(ii) of the EAR for license exception 
restrictions for technology for .z paragraphs under ECCNs 4A003, 
4A004, 4A005 or 4A090, or ``software'' specified by 4D001 (for 
4A003.z, 4A004.z, 4A005.z, and 4A090).

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit 
``technology'' according to the General Technology Note for the 
``development'' or ``production'' of any of the following equipment 
or ``software'': a. Equipment specified by ECCN 4A001.a.2; b. 
``Digital computers'' having an `Adjusted Peak Performance' (`APP') 
exceeding 70 Weighted TeraFLOPS (WT); c. ``software'' specified in 
the License Exception STA paragraph found in the License Exception 
section of ECCN 4D001; or ``technology'' for commodities controlled 
by 4A003.z.1.b, z.2.b, 4A004.z.2, 4A005.z.2, 4A090.b or ``software'' 
specified by 4D001 (for 4A003.z.1.b, z.2.b, 4A004.z.2, and 
4A005.z.2), or 4D090.b to any of the destinations listed in Country 
Group A:6 (See Supplement No. 1 to part 740 of the EAR). License 
Exception STA may not be used to ship or transmit ``technology'' for 
commodities controlled by 4A003.z.1.a, z.2.a, 4A004.z.1, 4A005.z.1, 
4A090.a or ``software'' specified by 4D001 (for 4A003.z.1.a, z.2.a, 
4A004.z.1 and 4A005.z.1), or 4D090.a to any of the destinations 
listed in Country Group A:5 or A:6 (See Supplement No. 1 to part 740 
of the EAR).

List of Items Controlled

Related Controls: N/A
Related Definitions: N/A
Items:

    a. ``Technology'' according to the General Technology Note, for 
the ``development'', ``production'', or ``use'' of equipment or 
``software'' controlled by 4A (except 4A906, 4A980 or 4A994 and 
``use'' of equipment controlled under 4A090) or 4D (except 4D906, 
4D980, 4D993, 4D994 and ``use'' of software controlled under 4D090).
    b. ``Technology'' according to the General Technology Note, 
other than that controlled by 4E001.a, for the ``development'' or 
``production'' of equipment as follows:
    b.1. ``Digital computers'' having an ``Adjusted Peak 
Performance'' (``APP'') exceeding 24 Weighted TeraFLOPS (WT);
    b.2. ``Electronic assemblies'' ``specially designed'' or 
modified for enhancing performance by aggregation of processors so 
that the ``APP'' of the aggregation exceeds the limit in 4E001.b.1.
    c. ``Technology'' for the ``development'' of ``intrusion 
software.''
    Note 1: 4E001.a and .c do not apply to ``vulnerability 
disclosure'' or ``cyber incident response''.
    Note 2: Note 1 does not diminish national authorities' rights to 
ascertain compliance with 4E001.a and .c.

4E091 `Parameters' for an artificial intelligence model trained 
utilizing 10\26\ or more `operations.'

License Requirements

Reason for Control: RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
RS applies entire entry...................  To or within any destination
                                             worldwide. See Sec.
                                             742.6(a)(13).
AT applies to entire entry................  AT Column 1.
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

TSR: N/A
AIA: Yes
ACM: No

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit 
``technology'' specified by ECCN 4E091 to any of the destinations 
listed in Country Group A:5 or A:6 (See Supplement No.1 to part 740 
of the EAR).

List of Items Controlled

Related Controls: N/A
Related Definition: N/A
Items: The list of items controlled is contained in the ECCN 
heading.

    Technical Notes: For the purposes of 4E091:
    1. `Parameters' refers to any value learned during training 
(e.g., network weights, biases, etc.). `Parameters' for an 
artificial intelligence model are also known as model weights.
    2. `Operations' refers to mathematical operations used for pre-
training and any subsequent training, such as fine-tuning the pre-
trained model, but does not include the collection and curation of 
the input training data. Training `operations' should account for 
operations required to perform all steps in the pre-training and 
subsequent training process, including those for forward and 
backward propagation for all relevant layers, pooling, and 
convolutions, regardless of the implementation and hardware 
limitations, and applied to all relevant operations. For example, 
consider a model composed of a single densely connected layer with I 
input neurons, O output neurons, and no biases being trained with 
backpropagation. Such a model would have a total of N = I * O 
learned parameters. Each forward pass would require N multiply 
accumulate operations, or (assuming floating point arithmetic) 2N 
FLOP. Each backward pass would require 2N multiply accumulate 
operations, or 4N FLOP. Then, in total, each training data point 
would require 6N FLOP. Training on a data set of size D would 
require 6ND total FLOP.
    3. If more than ten percent of the `operations' involve training 
on data that was not ``published'' as defined in Sec.  734.7(a) and 
was generated by a single data-generation model, then `operations' 
the data-generation model used to generate the data should be 
counted, and if the data-generation model's `parameters' were not 
``published,'' then the training `operations' used to train the 
data-generating model should be counted as well. A single data-
generation model includes variants of the same model, such as 
different checkpoints or fine-tuned variants. If multiple models 
with `parameters' that were not ``published'' were used to generate 
data used for more than ten percent of the training `operations,' 
then only the training

[[Page 4579]]

`operations' of the data-generation model using the most training 
`operations' should be counted. No actual training `operation' 
should be counted more than once, so if data-generation model A is 
used to train data-generation model B and data-generation model C, 
and models B and C are used to train model D, then the operations to 
train A are only added to the number of operations for model D once.
    Notes: 1. In accordance with Sec.  734.7 of the EAR, 4E091 does 
not control the `parameters' of any artificial intelligence model 
that have been ``published'' as defined in Sec.  734.7(a). 4E091 
also does not control the `parameters' of any artificial 
intelligence model derived from a model whose parameters have been 
`published,' except where the model has been derived using 
additional training `operations' that constitute more than 2.5 x 
10\25\ `operations' or more than 25 percent of the training 
`operations' defined in Note 2, whichever is higher.
    2. 4E091 does not control the `parameters' of any artificial 
intelligence model trained utilizing fewer `operations' than the 
number needed, based on the most efficient ``published'' methods to 
train artificial intelligence models, to train an artificial 
intelligence model as capable, according to an aggregate of widely 
used benchmarks, as the most advanced artificial intelligence model 
that has been ``published'' as defined in Sec.  734.7(a) of the EAR. 
To provide certainty for this exclusion, the number of `operations' 
needed should not decrease with algorithmic improvements.
    2.a. An exporter may determine whether an AI model falls within 
this exclusion by either:
    2.a.1. Self classifying by relying on guidance published by BIS 
or technical opinions issued by the U.S. AI Safety Institute and the 
Department of Energy, should such opinions have been published, or
    2.a.2. A classification request to BIS in accordance with the 
procedures in Sec. Sec.  748.1 and 748.3 of the EAR.
* * * * *
5A002 ``Information security'' systems, equipment and 
``components,'' as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, EI

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry................  NS Column 1.
RS applies to items controlled by           To or within any destination
 5A002.z.1.a, z.2.a, z.3.a, z.4.a, z.5.a.    worldwide. See Sec.
                                             742.6(a)(6)(iii)(A) of the
                                             EAR.
RS applies to items controlled by           To or within destinations
 5A002.z.1.b, z.2.b, z.3.b, z.4.b, z.5.b.    specified in Country Groups
                                             D:1, D:4, and D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR, excluding
                                             any destination also
                                             specified in Country Groups
                                             A:5 or A:6. See Sec.
                                             742.6(a)(6)(iii)(B) of the
                                             EAR.
AT applies to entire entry................  AT Column 1.
EI applies to entire entry................  Refer to Sec.   742.15 of
                                             the EAR.
 

    License Requirements Note: See Sec.  744.17 of the EAR for 
additional license requirements for microprocessors having a 
processing speed of 5 GFLOPS or more and an arithmetic logic unit 
with an access width of 32 bit or more, including those 
incorporating ``information security'' functionality, and associated 
``software'' and ``technology'' for the ``production'' or 
``development'' of such microprocessors.

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: Yes: $500 for ``components,''

    N/A for systems and equipment. N/A for 5A002.z.

GBS: N/A
ENC: Yes for certain EI controlled commodities, see Sec.  740.17 of 
the EAR for eligibility.
NAC/ACA: Yes, for 5A002.z.1.b, z.2.b
AIA: Yes 5A002.z.1.a, z.2.a, z.3.a, z.4.a, z.5.a
ACM: Yes for 5A002.z
LPP: Yes for 5A002.z.1.a, z.2.a, z.3.a, z.4.a, z.5.a

    Note: See Sec.  740.2(a)(9)(ii) of the EAR for license exception 
restrictions for ECCN 5A002.z.

List of Items Controlled

    Related Controls: (1) ECCN 5A002.a controls ``components'' 
providing the means or functions necessary for ``information 
security.'' All such ``components'' are presumptively ``specially 
designed'' and controlled by 5A002.a. (2) See USML Categories XI 
(including XI(b)) and XIII(b) (including XIII(b)(2)) for controls on 
systems, equipment, and components described in 5A002.d or .e that 
are ``subject to the ITAR'' (see 22 CFR parts 120 through 130). (3) 
For ``satellite navigation system'' receiving equipment containing 
or employing decryption see 7A005, and for related decryption 
``software'' and ``technology'' see 7D005 and 7E001. (4) Noting that 
items may be controlled elsewhere on the CCL, examples of items not 
controlled by ECCN 5A002.a.4 include the following: (a) An 
automobile where the only `cryptography for data confidentiality' 
having a `described security algorithm' is performed by a Category 
5--Part 2 Note 3 eligible mobile telephone that is built into the 
car. In this case, secure phone communications support a non-primary 
function of the automobile but the mobile telephone (equipment), as 
a standalone item, is not controlled by ECCN 5A002 because it is 
excluded by the Cryptography Note (Note 3) (See ECCN 5A992.c). (b) 
An exercise bike with an embedded Category 5--Part 2 Note 3 eligible 
web browser, where the only controlled cryptography is performed by 
the web browser. In this case, secure web browsing supports a non-
primary function of the exercise bike but the web browser 
(``software''), as a standalone item, is not controlled by ECCN 
5D002 because it is excluded by the Cryptography Note (Note 3) (See 
ECCN 5D992.c). (5) After classification or self-classification in 
accordance with Sec.  740.17(b) of the EAR, mass market encryption 
commodities that meet eligibility requirements are released from 
``EI'' and ``NS'' controls. These commodities are designated 
5A992.c. (6) See also ECCNs 3A090 and 4A090.

Related Definitions: N/A
Items:

    a. Designed or modified to use `cryptography for data 
confidentiality' having a `described security algorithm', where that 
cryptographic capability is usable, has been activated, or can be 
activated by any means other than secure ``cryptographic 
activation'', as follows:
    a.1. Items having ``information security'' as a primary 
function;
    a.2. Digital communication or networking systems, equipment or 
components, not specified in paragraph 5A002.a.1;
    a.3. Computers, other items having information storage or 
processing as a primary function, and components therefor, not 
specified in paragraphs 5A002.a.1 or .a.2;
    N.B.: For operating systems see also 5D002.a.1 and .c.1.
    a.4. Items, not specified in paragraphs 5A002.a.1 to a.3, where 
the `cryptography for data confidentiality' having a `described 
security algorithm' meets all of the following:
    a.4.a. It supports a non-primary function of the item; and
    a.4.b. It is performed by incorporated equipment or ``software'' 
that would, as a standalone item, be specified by ECCNs 5A002, 
5A003, 5A004, 5B002 or 5D002.
    N.B. to paragraph a.4: See Related Control Paragraph (4) of this 
ECCN 5A002 for examples of items not controlled by 5A002.a.4.
    Technical Notes:
    1. For the purposes of 5A002.a, `cryptography for data 
confidentiality' means ``cryptography'' that employs digital 
techniques and performs any cryptographic function other than any of 
the following:
    1.a. ``Authentication;''
    1.b. Digital signature;
    1.c. Data integrity;
    1.d. Non-repudiation;
    1.e. Digital rights management, including the execution of copy-
protected ``software;''
    1.f. Encryption or decryption in support of entertainment, mass 
commercial broadcasts or medical records management; or
    1.g. Key management in support of any function described in 
paragraphs 1.a to 1.f of this Technical Note paragraph 1.
    2. For the purposes of 5A002.a, `described security algorithm' 
means any of the following:
    2.a. A ``symmetric algorithm'' employing a key length in excess 
of 56 bits, not including parity bits;
    2.b. An ``asymmetric algorithm'' where the security of the 
algorithm is based on any of the following:
    2.b.1. Factorization of integers in excess of 512 bits (e.g., 
RSA);
    2.b.2. Computation of discrete logarithms in a multiplicative 
group of a finite field of size greater than 512 bits (e.g., Diffie-
Hellman over Z/pZ); or
    2.b.3. Discrete logarithms in a group other than mentioned in 
paragraph 2.b.2 of this

[[Page 4580]]

Technical Note in excess of 112 bits (e.g., Diffie-Hellman over an 
elliptic curve); or
    2.c. An ``asymmetric algorithm'' where the security of the 
algorithm is based on any of the following:
    2.c.1. Shortest vector or closest vector problems associated 
with lattices (e.g., NewHope, Frodo, NTRUEncrypt, Kyber, Titanium);
    2.c.2. Finding isogenies between Supersingular elliptic curves 
(e.g., Supersingular Isogeny Key Encapsulation); or
    2.c.3. Decoding random codes (e.g., McEliece, Niederreiter).
    Technical Note: An algorithm described by Technical Note 2.c. 
may be referred to as being post-quantum, quantum-safe or quantum-
resistant.
    Note 1: Details of items must be accessible and provided upon 
request, in order to establish any of the following:
    a. Whether the item meets the criteria of 5A002.a.1 to a.4; or
    b. Whether the cryptographic capability for data confidentiality 
specified by 5A002.a is usable without ``cryptographic activation.''
    Note 2: 5A002.a does not control any of the following items, or 
specially designed ``information security'' components therefor:
    a. Smart cards and smart card `readers/writers' as follows:
    a.1. A smart card or an electronically readable personal 
document (e.g., token coin, e-passport) that meets any of the 
following:
    a.1.a. The cryptographic capability meets all of the following:
    a.1.a.1. It is restricted for use in any of the following:
    a.1.a.1.a. Equipment or systems, not described by 5A002.a.1 to 
a.4;
    a.1.a.1.b. Equipment or systems, not using `cryptography for 
data confidentiality' having a `described security algorithm'; or
    a.1.a.1.c. Equipment or systems, excluded from 5A002.a by 
entries b. to f. of this Note; and
    a.1.a.2. It cannot be reprogrammed for any other use; or
    a.1.b. Having all of the following:
    a.1.b.1. It is specially designed and limited to allow 
protection of `personal data' stored within;
    a.1.b.2. Has been, or can only be, personalized for public or 
commercial transactions or individual identification; and
    a.1.b.3. Where the cryptographic capability is not user-
accessible;
    Technical Note to paragraph a.1.b.1 of Note 2: For the purposes 
of 5A002.a Note 2.-a.1.b.1, `personal data' includes any data 
specific to a particular person or entity, such as the amount of 
money stored and data necessary for ``authentication.''
    a.2. `Readers/writers' specially designed or modified, and 
limited, for items specified by paragraph a.1 of this Note;
    Technical Note to paragraph a.2 of Note 2: 'For the purposes of 
5A002.a Note 2.a.2, `readers/writers' include equipment that 
communicates with smart cards or electronically readable documents 
through a network.
    b. Cryptographic equipment specially designed and limited for 
banking use or `money transactions';
    Technical Note to paragraph b. of Note 2: For the purposes of 
5A002.a Note 2.b, `money transactions' in 5A002 Note 2 paragraph b. 
includes the collection and settlement of fares or credit functions.
    c. Portable or mobile radiotelephones for civil use (e.g., for 
use with commercial civil cellular radio communication systems) that 
are not capable of transmitting encrypted data directly to another 
radiotelephone or equipment (other than Radio Access Network (RAN) 
equipment), nor of passing encrypted data through RAN equipment 
(e.g., Radio Network Controller (RNC) or Base Station Controller 
(BSC));
    d. Cordless telephone equipment not capable of end-to-end 
encryption where the maximum effective range of unboosted cordless 
operation (i.e., a single, unrelayed hop between terminal and home 
base station) is less than 400 meters according to the 
manufacturer's specifications;
    e. Portable or mobile radiotelephones and similar client 
wireless devices for civil use, that implement only published or 
commercial cryptographic standards (except for anti-piracy 
functions, which may be non-published) and also meet the provisions 
of paragraphs a.2 to a.4 of the Cryptography Note (Note 3 in 
Category 5--Part 2), that have been customized for a specific civil 
industry application with features that do not affect the 
cryptographic functionality of these original non-customized 
devices;
    f. Items, where the ``information security'' functionality is 
limited to wireless ``personal area network '' functionality 
implementing only published or commercial cryptographic standards;
    g. Mobile telecommunications Radio Access Network (RAN) 
equipment designed for civil use, which also meet the provisions of 
paragraphs a.2 to a.4 of the Cryptography Note (Note 3 in Category 
5--Part 2), having an RF output power limited to 0.1W (20 dBm) or 
less, and supporting 16 or fewer concurrent users;
    h. Routers, switches, gateways or relays, where the 
``information security'' functionality is limited to the tasks of 
``Operations, Administration or Maintenance'' (``OAM[hairsp]'') 
implementing only published or commercial cryptographic standards;
    i. General purpose computing equipment or servers, where the 
``information security'' functionality meets all of the following:
    i.1. Uses only published or commercial cryptographic standards; 
and
    i.2. Is any of the following:
    i.2.a. Integral to a CPU that meets the provisions of Note 3 in 
Category 5--Part 2;
    i.2.b. Integral to an operating system that is not specified by 
5D002; or
    i.2.c. Limited to ``OAM[hairsp]'' of the equipment; or
    j. Items specially designed for a `connected civil industry 
application', meeting all of the following:
    j.1. Being any of the following:
    j.1.a. A network-capable endpoint device meeting any of the 
following:
    j.1.a.1. The ``information security'' functionality is limited 
to securing `non-arbitrary data' or the tasks of ``Operations, 
Administration or Maintenance'' (``OAM[hairsp]''); or
    j.1.a.2. The device is limited to a specific `connected civil 
industry application'; or
    j.1.b. Networking equipment meeting all of the following:
    j.1.b.1. Being specially designed to communicate with the 
devices specified by paragraph j.1.a. above; and
    j.1.b.2. The ``information security'' functionality is limited 
to supporting the `connected civil industry application' of devices 
specified by paragraph j.1.a. above, or the tasks of ``OAM[hairsp]'' 
of this networking equipment or of other items specified by 
paragraph j. of this Note; and
    j.2. Where the ``information security'' functionality implements 
only published or commercial cryptographic standards, and the 
cryptographic functionality cannot easily be changed by the user.
    Technical Notes:
    1. For the purposes of 5A002.a Note 2.j, `connected civil 
industry application' means a network-connected consumer or civil 
industry application other than ``information security'', digital 
communication, general purpose networking or computing.
    2. For the purposes of 5A002.a Note 2.j.1.a.1, `non-arbitrary 
data' means sensor or metering data directly related to the 
stability, performance or physical measurement of a system (e.g., 
temperature, pressure, flow rate, mass, volume, voltage, physical 
location, etc.), that cannot be changed by the user of the device.
    b. Being a `cryptographic activation token';
    Technical Note: For the purposes of 5A002.b, a `cryptographic 
activation token' is an item designed or modified for any of the 
following:
    1. Converting, by means of ``cryptographic activation'', an item 
not specified by Category 5--Part 2 into an item specified by 
5A002.a or 5D002.c.1, and not released by the Cryptography Note 
(Note 3 in Category 5--Part 2); or
    2. Enabling by means of ``cryptographic activation'', additional 
functionality specified by 5A002.a of an item already specified by 
Category 5--Part 2;
    c. Designed or modified to use or perform ``quantum 
cryptography'';
    Technical Note: For the purposes of 5A002.c,''quantum 
cryptography'' is also known as Quantum Key Distribution (QKD).
    d. Designed or modified to use cryptographic techniques to 
generate channelizing codes, scrambling codes or network 
identification codes, for systems using ultra-wideband modulation 
techniques and having any of the following:
    d.1. A bandwidth exceeding 500 MHz; or
    d.2. A ``fractional bandwidth'' of 20% or more;
    e. Designed or modified to use cryptographic techniques to 
generate the spreading code for ``spread spectrum'' systems, not 
specified by 5A002.d, including the hopping code for ``frequency 
hopping'' systems.
    f. through y. [Reserved]
    z. Other commodities, as follows:
    z.1.a. Commodities that are described in 5A002.a and that also 
meet or exceed the performance parameters in 3A090.a or 4A090.a;
    z.1.b Commodities that are described in 5A002.a and that also 
meet or exceed the performance parameters in 3A090.b or 4A090.b;

[[Page 4581]]

    z.2.a Commodities that are described in 5A002.b and that also 
meet or exceed the performance parameters in 3A090.a or 4A090.a;
    z.2.b Commodities that are described in 5A002.b and that also 
meet or exceed the performance parameters in 3A090.b or 4A090.b;
    z.3.a Commodities that are described in 5A002.c and that also 
meet or exceed the performance parameters in 3A090.a or 4A090.a;
    z.3.b Commodities that are described in 5A002.c and that also 
meet or exceed the performance parameters in 3A090.b or 4A090.b;
    z.4.a Commodities that are described in 5A002.d and that also 
meet or exceed the performance parameters in 3A090.a or 4A090.a;
    z.4.b Commodities that are described in 5A002.d and that also 
meet or exceed the performance parameters in 3A090.b or 4A090.b;
    z.5.a Commodities that are described in 5A002.e and that also 
meet or exceed the performance parameters in 3A090.a or 4A090.a; or
    z.5.b Commodities that are described in 5A002.e and that also 
meet or exceed the performance parameters in 3A090.b or 4A090.b.

5A992 Equipment not controlled by 5A002 (see List of Items 
Controlled)

License Requirements

Reason for Control: RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
RS applies to items controlled by           To or within any destination
 5A992.z.1.                                  worldwide. See Sec.
                                             742.6(a)(6)(iii)(A) of the
                                             EAR.
RS applies to items controlled by           To or within destinations
 5A992.z.2.                                  specified in Country Groups
                                             D:1, D:4, and D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR, excluding
                                             any destination also
                                             specified in Country Groups
                                             A:5 or A:6. See Sec.
                                             742.6(a)(6)(iii)(B) of the
                                             EAR.
AT applies to entire entry................  AT Column 1.
 

    License Requirements Note: See Sec.  744.17 of the EAR for 
additional license requirements for microprocessors having a 
processing speed of 5 GFLOPS or more and an arithmetic logic unit 
with an access width of 32 bit or more, including those 
incorporating ``information security'' functionality, and associated 
``software'' and ``technology'' for the ``production'' or 
``development'' of such microprocessors.

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: N/A
GBS: N/A
NAC/ACA: Yes, for 5A992.z.2; N/A for all other 5A992 commodities.
AIA: Yes for 5A992.z.1
ACM: Yes for 5A992.z
LPP: Yes for 5A992.z.1
    Note: See Sec.  740.2(a)(9)(ii) of the EAR for license exception 
restrictions for ECCN 5A992.z.

List of Items Controlled

Related Controls: See also ECCNs 3A090 and 4A090.
Related Definitions: N/A
Items:

    a. [Reserved]
    b. [Reserved]
    c. Commodities classified as mass market encryption commodities 
in accordance with Sec.  740.17(b) of the EAR.
    d. through y. [Reserved]
    z.1. Commodities that are described in 5A992.c and that also 
meet or exceed the performance parameters in 3A090.a or 4A090.a; or
    z.2 Commodities that are described in 5A992.c and that also meet 
or exceed the performance parameters in 3A090.b or 4A090.b.
* * * * *
5A004 ``Systems,'' ``equipment'' and ``components'' for defeating, 
weakening or bypassing ``information security,'' as follows (see 
List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, EI

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry................  NS Column 1.
RS applies to items controlled by           To or within any destination
 5A004.z.1.a, z.2.a.                         worldwide. See Sec.
                                             742.6(a)(6)(iii)(A) of the
                                             EAR.
RS applies to items controlled by           To or within destinations
 5A004.z.1.b, z.2.b.                         specified in Country Groups
                                             D:1, D:4, and D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR, excluding
                                             any destination also
                                             specified in Country Groups
                                             A:5 or A:6. See Sec.
                                             742.6(a)(6)(iii)(B) of the
                                             EAR.
AT applies to entire entry................  AT Column 1.
EI applies to entire entry................  Refer to Sec.   742.15 of
                                             the EAR.
 

License Requirements

    See Sec.  744.17 of the EAR for additional license requirements 
for microprocessors having a processing speed of 5 GFLOPS or more 
and an arithmetic logic unit with an access width of 32 bit or more, 
including those incorporating ``information security'' 
functionality, and associated ``software'' and ``technology'' for 
the ``production'' or ``development'' of such microprocessors.

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: Yes: $500 for ``components''; N/A for 5A004.z. N/A for systems 
and equipment.
GBS: N/A
ENC: Yes for certain EI controlled commodities. See Sec.  740.17 of 
the EAR for eligibility.
NAC/ACA: Yes, for 5A004.z.1.b, z.2.b
AIA: Yes for 5A004.z.1.a, z.2.a
ACM: Yes for 5A004.z
LPP: Yes for 5A004.z.1.a, z.2.a
    Note: See Sec.  740.2(a)(9)(ii) of the EAR for license exception 
restrictions for ECCN 5A004.z.

List of Items Controlled

Related Controls: (1) ECCN 5A004.a controls ``components'' providing 
the means or functions necessary for ``information security.'' All 
such ``components'' are presumptively ``specially designed'' and 
controlled by 5A004.a. (2) See also ECCNs 3A090 and 4A090.
Related Definitions: N/A
Items:
    a. Designed or modified to perform `cryptanalytic functions.'
    Note: 5A004.a includes systems or equipment, designed or 
modified to perform `cryptanalytic functions' by means of reverse 
engineering.
    Technical Note: For the purposes of 5A004.a, `cryptanalytic 
functions' are functions designed to defeat cryptographic mechanisms 
in order to derive confidential variables or sensitive data, 
including clear text, passwords or cryptographic keys.
    b. Items, not specified by ECCNs 4A005 or 5A004.a, designed to 
perform all of the following:
    b.1. `Extract raw data' from a computing or communications 
device; and
    b.2. Circumvent ``authentication'' or authorization controls of 
the device, in order to perform the function described in 5A004.b.1.
    Technical Note: For the purposes of 5A004.b.1, `extract raw 
data' from a computing or communications device means to retrieve 
binary data from a storage medium, e.g., RAM, flash or hard disk, of 
the device without interpretation by the device's operating system 
or filesystem.
    Note 1: 5A004.b does not apply to systems or equipment specially 
designed for the ``development'' or ``production'' of a computing or 
communications device.
    Note 2: 5A004.b does not include:
    a. Debuggers, hypervisors;
    b. Items limited to logical data extraction;
    c. Data extraction items using chip-off or JTAG; or
    d. Items specially designed and limited to jail-breaking or 
rooting.
    c. through y. [Reserved]
    z. Other commodities, as follows:
    z.1.a Commodities that are described in 5A004.a and that also 
meet or exceed the performance parameters in 3A090.a or 4A090.a;
    z.1.b Commodities that are described in 5A004.a and that also 
meet or exceed the performance parameters in 3A090.b or 4A090.b;
    z.2.a Commodities that are described in 5A004.b and that also 
meet or exceed the performance parameters in 3A090.a or 4A090.a; or
    z.2.b Commodities that are described in 5A004.b and that also 
meet or exceed the performance parameters in 3A090.b or 4A090.b.
* * * * *
5D002 ``Software'' as follows (see List of Items Controlled).

[[Page 4582]]

License Requirements

Reason for Control: NS, RS, AT, EI

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry................  NS Column 1.
RS applies to ``software'' controlled by    To or within any destination
 5D002.z.1.a, z.2.a, z.3.a, z.4.a, z.5.a,    worldwide. See Sec.
 z.6.a, z.7.a, z.8.a, and z.9.a.             742.6(a)(6)(iii)(A) of the
                                             EAR.
RS applies to ``software'' controlled by    To or within destinations
 5D002.z.1.b, z.2.b, z.3.b, z.4.b, z.5.b,    specified in Country Groups
 z.6.b, z.7.b, z.8.b, and z.9.b.             D:1, D:4, and D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR, excluding
                                             any destination also
                                             specified in Country Groups
                                             A:5 or A:6. See Sec.
                                             742.6(a)(6)(iii)(B) of the
                                             EAR.
AT applies to entire entry................  AT Column 1.
EI applies to ``software'' in 5D002.a.1,    Refer to Sec.   742.15 of
 a.3, .b, c.1 and c.3, for commodities or    the EAR.
 ``software'' controlled for EI reasons in  Note: Encryption software is
 ECCN 5A002, 5A004 or 5D002.                 controlled because of its
                                             functional capacity, and
                                             not because of any
                                             informational value of such
                                             software; such software is
                                             not accorded the same
                                             treatment under the EAR as
                                             other ``software'; and for
                                             export licensing purposes,
                                             encryption software is
                                             treated under the EAR in
                                             the same manner as a
                                             commodity included in ECCN
                                             5A002.
 

    License Requirements Note: See Sec.  744.17 of the EAR for 
additional license requirements for microprocessors having a 
processing speed of 5 GFLOPS or more and an arithmetic logic unit 
with an access width of 32 bit or more, including those 
incorporating ``information security'' functionality, and associated 
``software'' and ``technology'' for the ``production'' or 
``development'' of such microprocessors.

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

TSR: N/A
ENC: Yes for certain EI controlled software. See Sec.  740.17 of the 
EAR for eligibility.
NAC/ACA: Yes, for 5D002.z.
AIA: Yes for 5D002.z.1.a, z.2.a, z.3.a, z.4.a, z.5.a, z.6.a, z.7.a, 
z.8.a, and z.9.a
ACM: Yes for 5D002.z
    Note: See Sec.  740.2(a)(9)(ii) of the EAR for license exception 
restrictions for ECCN 5D002.z.

List of Items Controlled

Related Controls: (1) After classification or self-classification in 
accordance with Sec.  740.17(b) of the EAR, mass market encryption 
software that meets eligibility requirements is released from ``EI'' 
and ``NS'' controls. This software is designated as 5D992.c. (2) See 
also ECCNs 3D001 as it applies to ``software'' for commodities 
controlled by 3A001.z and 3A090, and 4D001 as it applies to 
``software'' for commodities controlled by 4A003.z, 4A004.z, and 
4A005.z.
Related Definitions: 5D002.a controls ``software'' designed or 
modified to use ``cryptography'' employing digital or analog 
techniques to ensure ``information security.''
Items:

    a. ``Software'' ``specially designed'' or modified for the 
``development,'' ``production'' or ``use'' of any of the following:
    a.1. Equipment specified by 5A002 or ``software'' specified by 
5D002.c.1;
    a.2. Equipment specified by 5A003 or ``software'' specified by 
5D002.c.2; or
    a.3. Equipment or ``software'', as follows:
    a.3.a. Equipment specified by 5A004.a or ``software'' specified 
by 5D002.c.3.a;
    a.3.b. Equipment specified by 5A004.b or ``software'' specified 
by 5D002.c.3.b;
    b. ``Software'' having the characteristics of a `cryptographic 
activation token' specified by 5A002.b;
    c. ``Software'' having the characteristics of, or performing or 
simulating the functions of, any of the following:
    c.1. Equipment specified by 5A002.a, .c, .d or .e;
    Note: 5D002.c.1 does not apply to ``software'' limited to the 
tasks of ``OAM'' implementing only published or commercial 
cryptographic standards.
    c.2. Equipment specified by 5A003; or
    c.3. Equipment, as follows:
    c.3.a. Equipment specified by 5A004.a;
    c.3.b. Equipment specified by 5A004.b.
    Note: 5D002.c.3.b does not apply to ``intrusion software''.
    d. [Reserved]
    N.B.: See 5D002.b for items formerly specified in 5D002.d.
    e. through y. [Reserved]
    z. Other software, as follows:
    z.1.a Software that is described in 5D002.a.1, and that also 
meet or exceed the performance parameters in 3D001 for 3A090.a or 
4D001 for 4A090.a;
    z.1.b Software that is described in 5D002.a.1, and that also 
meet or exceed the performance parameters in 3D001 for 3A090.b or 
4D001 for 4A090.b;
    z.2.a Software that is described in 5D002.a.2, and that also 
meet or exceed the performance parameters in 3D001 for 3A090.a or 
4D001 for 4A090.a;
    z.2.b Software that is described in 5D002.a.2, and that also 
meet or exceed the performance parameters in 3D001 for 3A090.b or 
4D001 for 4A090.b;
    z.3.a Software that is described in 5D002.a.3a, and that also 
meet or exceed the performance parameters in 3D001 for 3A090.a or 
4D001 for 4A090.a;
    z.3.b Software that is described in 5D002.a.3a, and that also 
meet or exceed the performance parameters in 3D001 for 3A090.b or 
4D001 for 4A090.b;
    z.4.a Software that is described in 5D002.a.3.b, and that also 
meet or exceed the performance parameters in 3D001 for 3A090.a or 
4D001 for 4A090.a;
    z.4.b Software that is described in 5D002.a.3.b, and that also 
meet or exceed the performance parameters in 3D001 for 3A090.b or 
4D001 for 4A090.b;
    z.5.a Software that is described in 5D002.b and that also meet 
or exceed the performance parameters in 3D001 for 3A090.a or 4D001 
for 4A090.a;
    z.5.b Software that is described in 5D002.b and that also meet 
or exceed the performance parameters in 3D001 for 3A090.b or 4D001 
for 4A090.b;
    z.6.a Software that is described in 5D002.c.1 and that also meet 
or exceed the performance parameters in 3D001 for 3A090.a or 4D001 
for 4A090.a;
    z.6.b Software that is described in 5D002.c.1 and that also meet 
or exceed the performance parameters in 3D001 for 3A090.b or 4D001 
for 4A090.b;
    z.7.a Software that is described in 5D002.c.2 and that also meet 
or exceed the performance parameters in 3D001 for 3A090.a or 4D001 
for 4A090.a;
    z.7.b Software that is described in 5D002.c.2 and that also meet 
or exceed the performance parameters in 3D001 for 3A090.b or 4D001 
for 4A090.b;
    z.8.a Software that is described in 5D002.c.3.a and that also 
meet or exceed the performance parameters in 3D001 for 3A090.a or 
4D001 for 4A090.a;
    z.8.b Software that is described in 5D002.c.3.a and that also 
meet or exceed the performance parameters in 3D001 for 3A090.b or 
4D001 for 4A090.b;
    z.9.a Software that is described in 5D002.c.3.b and that also 
meet or exceed the performance parameters in 3D001 for 3A090.a or 
4D001 for 4A090.a; or
    z.9.b Software that is described in 5D002.c.3.b and that also 
meet or exceed the performance parameters in 3D001 for 3A090.b or 
4D001 for 4A090.b.
* * * * *
5D992 ``Information Security'' ``software,'' not controlled by 
5D002, as follows (see List of Items Controlled).

License Requirements

Reason for Control: RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
RS applies to ``software'' controlled by    To or within any destination
 5D992.z.1.                                  worldwide. See Sec.
                                             742.6(a)(6)(iii)(A) of the
                                             EAR.
RS applies to ``software'' controlled by    To or within destinations
 5D992.z.2.                                  specified in Country Groups
                                             D:1, D:4, and D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR, excluding
                                             any destination also
                                             specified in Country Groups
                                             A:5 or A:6. See Sec.
                                             742.6(a)(6)(iii)(B) of the
                                             EAR.
AT applies to entire entry................  AT Column 1.
 

    License Requirements Note: See Sec.  744.17 of the EAR for 
additional license requirements for microprocessors having a 
processing speed of 5 GFLOPS or more and an arithmetic logic unit 
with an access width of 32 bit or more, including those 
incorporating ``information security'' functionality, and associated 
``software'' and ``technology'' for the ``production'' or 
``development'' of such microprocessors.

[[Page 4583]]

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

TSR: N/A
NAC/ACA: Yes, for 5D992.z.
AIA: Yes for 5D992.z.1
ACM: Yes for 5D992.z

    Note: See Sec.  740.2(a)(9)(ii) of the EAR for license exception 
restrictions for ECCN 5D992.z.

List of Items Controlled

    Related Controls: (1) This entry does not control ``software'' 
designed or modified to protect against malicious computer damage, 
e.g., viruses, where the use of ``cryptography'' is limited to 
authentication, digital signature and/or the decryption of data or 
files. (2) See also ECCNs 3D001 as it applies to ``software'' for 
commodities controlled by 3A001.z and 3A090, and 4D001 as it applies 
to ``software'' for commodities controlled by 4A003.z, 4A004.z, and 
4A005.z.

Related Definitions: N/A
Items:

    a. [Reserved]
    b. [Reserved]
    c. ``Software'' classified as mass market encryption software in 
accordance with Sec.  740.17(b) of the EAR.
    d. through y. [Reserved]
    z.1 Other software that is described in 5D992 and that also meet 
or exceed the performance parameters in 3D001 for 3A090.a or 4D001 
for 4A090.a; or
    z.2 Other software that is described in 5D992 and that also meet 
or exceed the performance parameters in 3D001 for 3A090.b or 4D001 
for 4A090.b.
* * * * *
5E002 ``Technology'' as follows (see List of Items Controlled).

License Requirements

    Reason for Control: NS, RS, AT, EI

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry................  NS Column 1.
RS applies to ``technology'' for            To or within any destination
 commodities controlled by 5A002.z.1.a,      worldwide. See Sec.
 z.2.a, z.3.a, z.4.a, z.5.a or               742.6(a)(6)(iii)(A) of the
 5A004.z.1.a, z.2.a or ``software''          EAR.
 specified by 5D002 (for 5A002.z.1.a,
 z.2.a, z.3.a, z.4.a, z.5.a or
 5A004.z.1.a, z.2.a commodities).
RS applies to ``technology'' for            To or within destinations
 commodities controlled by 5A002.z.1.b,      specified in Country Groups
 z.2.b, z.3.b, z.4.b, z.5.b or               D:1, D:4, and D:5 of
 5A004.z.1.b, z.2.b or ``software''          supplement no. 1 to part
 specified by 5D002 (for 5A002.z.1.b,        740 of the EAR, excluding
 z.2.b, z.3.b, z.4.b, z.5.b or               any destination also
 5A004.z.1.b, z.2.b commodities).            specified in Country Groups
                                             A:5 or A:6. See Sec.
                                             742.6(a)(6)(iii)(B) of the
                                             EAR.
AT applies to entire entry................  AT Column 1.
EI applies to ``technology'' in 5E002.a     Refer to Sec.   742.15 of
 for commodities or ``software''             the EAR.
 controlled for EI reasons in ECCNs 5A002,
 5A004 or 5D002, and to ``technology'' in
 5E002.b.
 

    License Requirements Notes:
    (1) See Sec.  744.17 of the EAR for additional license 
requirements for microprocessors having a processing speed of 5 
GFLOPS or more and an arithmetic logic unit with an access width of 
32 bit or more, including those incorporating ``information 
security'' functionality, and associated ``software'' and 
``technology'' for the ``production'' or ``development'' of such 
microprocessors.
    (2) When a person performs or provides technical assistance that 
incorporates, or otherwise draws upon, ``technology'' that was 
either obtained in the United States or is of U.S.-origin, then a 
release of the ``technology'' takes place. Such technical 
assistance, when rendered with the intent to aid in the 
``development'' or ``production'' of encryption commodities or 
software that would be controlled for ``EI'' reasons under ECCN 
5A002, 5A004 or 5D002, may require authorization under the EAR even 
if the underlying encryption algorithm to be implemented is from the 
public domain or is not of U.S.-origin.

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

TSR: N/A
ENC: Yes for certain EI controlled technology. See Sec.  740.17 of 
the EAR for eligibility.
AIA: Yes for ``technology'' for commodities controlled by 
5A002.z.1.a, z.2.a, z.3.a, z.4.a, z.5.a or 5A004.z.1.a, z.2.a or 
``software'' specified by 5D002 (for 5A002.z.1.a, z.2.a, z.3.a, 
z.4.a, z.5.a or 5A004.z.1.a, z.2.a commodities)
ACM: Yes for ``technology'' for commodities controlled by 5A002.z or 
5A004.z or ``software'' specified by 5D002 (for 5A002.z or 5A004.z 
commodities

    Note: See Sec.  740.2(a)(9)(ii) of the EAR for license exception 
restrictions for technology for .z paragraphs under ECCNs 5A002, 
5A004 or ``software'' specified by 5D002 (for 5A002.z or 5A004.z 
commodities).

List of Items Controlled

Related Controls: See also 5E992. This entry does not control 
``technology'' ``required'' for the ``use'' of equipment excluded 
from control under the Related Controls paragraph or the Technical 
Notes in ECCN 5A002 or ``technology'' related to equipment excluded 
from control under ECCN 5A002.
Related Definitions: N/A
Items:

    a. ``Technology'' according to the General Technology Note for 
the ``development,'' ``production'' or ``use'' of equipment 
controlled by 5A002, 5A003, 5A004 or 5B002, or of ``software'' 
controlled by 5D002.a, z.1 through z.3, or 5D002.c, z.6 through z.8.
    Note: 5E002.a does not apply to ``technology'' for items 
specified by 5A004.b, z.3 or z.4, 5D002.a.3.b, z.4, or 5D002.c.3.b.
    b. ``Technology'' having the characteristics of a `cryptographic 
activation token' specified by 5A002.b, z.2.
    Note: 5E002 includes ``information security'' technical data 
resulting from procedures carried out to evaluate or determine the 
implementation of functions, features or techniques specified in 
Category 5--Part 2.

5E992 ``Information Security'' ``technology'' according to the 
General Technology Note, not controlled by 5E002, as follows (see 
List of Items Controlled).

License Requirements

Reason for Control: RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
RS applies to ``technology'' for            To or within any destination
 commodities controlled by 5A992.z.1 or      worldwide. See Sec.
 ``software'' controlled by 5D992.z.1.       742.6(a)(6)(iii)(A) of the
                                             EAR.
RS applies to ``technology'' for            To or within destinations
 commodities controlled by 5A992.z.2 or      specified in Country Groups
 ``software'' controlled by 5D992.z.2.       D:1, D:4, and D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR, excluding
                                             any destination also
                                             specified in Country Groups
                                             A:5 or A:6. See Sec.
                                             742.6(a)(6)(iii)(B) of the
                                             EAR.
AT applies to entire entry................  AT Column 1.
 

    License Requirements Note: See Sec.  744.17 of the EAR for 
additional license requirements for microprocessors having a 
processing speed of 5 GFLOPS or more and an arithmetic logic unit 
with an access width of 32 bit or more, including those 
incorporating ``information security'' functionality, and associated 
``software'' and ``technology'' for the ``production'' or 
``development'' of such microprocessors.

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

TSR: N/A
NAC/ACA: N/A
AIA: Yes for ``technology'' for commodities controlled by 5A992.z.1 
or ``software'' controlled by 5D992.z.1
ACM: Yes for ``technology'' for commodities controlled by 5A992.z or 
``software'' controlled by 5D992.z

    Note: See Sec.  740.2(a)(9)(ii) of the EAR for license exception 
restrictions for technology for .z paragraphs under ``technology'' 
for commodities controlled by 5A992.z or ``software'' controlled by 
5D992.z.

[[Page 4584]]

List of Items Controlled

Related Controls: N/A
Related Definitions: N/A
Items:

    a. [Reserved]
    b. ``Technology'', n.e.s., for the ``use'' of mass market 
commodities controlled by 5A992 or mass market ``software'' 
controlled by 5D992.
* * * * *

Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2025-00636 Filed 1-13-25; 8:45 am]
BILLING CODE 3510-33-P`