Expansion of Validated End User Authorization: Data Center Validated End User Authorization, 80080-80093 [2024-22587]

Agencies

• DEPARTMENT OF COMMERCE
• Bureau of Industry and Security

[Federal Register Volume 89, Number 191 (Wednesday, October 2, 2024)]
[Rules and Regulations]
[Pages 80080-80093]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-22587]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 748

[Docket No. 240926-0254]
RIN 0694-AJ82


Expansion of Validated End User Authorization: Data Center 
Validated End User Authorization

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

ACTION: Final rule.

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SUMMARY: In this rule, the Department of Commerce, Bureau of Industry 
and Security (BIS), amends the Export Administration Regulations (EAR) 
to expand the Validated End User Authorization (VEU) program to include 
VEU Authorization for data centers located in specified destinations 
(``Data Center VEU'' or ``Data Center VEU Authorization''). This 
expansion of the VEU program to include Data Center VEU is intended to 
facilitate quick and reliable export or reexport of items on the 
Commerce Control List necessary for a data center, including advanced 
computing items, to preapproved trusted end users. Data Center VEU 
adopts much of the framework of the existing VEU program, with 
additional requirements. This expansion of eligibility is intended to 
update the VEU program to recognize the advancement and benefits of 
artificial intelligence. As under the original VEU Authorization 
Program, the U.S. government will rigorously review Data Center VEU 
candidates' applications subject to detailed and verifiable criteria.

DATES: This rule is effective on October 2, 2024.

FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee, 
Office of the Assistant Secretary for Export Administration, Bureau of 
Industry and Security, Department of Commerce, Phone: (202) 482-5991, 
Email: [email protected].

SUPPLEMENTARY INFORMATION:

Background

    In this rule, the Department of Commerce, Bureau of Industry and 
Security (BIS), amends the Export

[[Page 80081]]

Administration Regulations (EAR) (15 CFR 730-774) to expand the 
Validated End-User (VEU) program in 15 CFR 748.15 to enable VEU 
Authorization for data centers (``Data Center VEU'' or ``Data Center 
VEU Authorization''). Data Center VEU is intended to cultivate trusted 
ecosystems for the responsible use of advanced computing integrated 
circuits. Foreign adversaries seek to use advanced computing integrated 
circuits and supercomputing capacity in the development and deployment 
of AI models to further their military capabilities, contrary to U.S. 
national security and foreign policy interests. For this reason, BIS 
imposed controls on these items in October, 2022 (87 FR 62186, October 
13, 2022) and October, 2023 (88 FR 73424, October 25, 2023 and 88 FR 
73458, October 25, 2023). Although BIS strictly controls the export of 
advanced integrated circuits, BIS also recognizes that in certain 
destinations where a license is currently required, advanced computing 
integrated circuits can be deployed in highly trusted environments, 
enabling the use of AI for technological discoveries and the 
development of new tools that improve the world. Specifically, BIS has 
determined that there could be significant benefits from authorizing 
the export and reexport of advanced computing integrated circuits to 
end users who operate data centers that implement certain security 
measures and satisfy other criteria. Accordingly, BIS is amending the 
EAR to establish a new authorization `Data Center VEU' that is intended 
to facilitate export or reexport of all items on the Commerce Control 
List that require a license to the destination excluding ``600 series'' 
items and are necessary for a data center, including advanced computing 
integrated circuits and electronic assemblies, to trusted end users 
that meet certain prerequisites.
    As a quintessential dual-use technology, AI comes with many 
benefits and risks. This cutting-edge technology holds the potential to 
increase access to healthcare, education, and food and assist with 
combatting complex problems such as climate change. For example, AI-
enabled virtual learning systems can be tailored to a student's needs 
to bridge the education gap in regions that lack resources or qualified 
teachers. AI can also improve access to healthcare by facilitating 
remote-patient monitoring.
    At the same time, AI is revolutionizing the military and 
intelligence capabilities of adversaries. Advanced AI models, trained 
on advanced computing integrated circuits, have the potential to 
diffuse dangerous capabilities by lowering the barrier to develop 
cyberweapons or chemical, biological, radiological, or nuclear weapons. 
Advanced AI capabilities can lead to improved speed and accuracy of 
military decision-making, planning, and logistics. They can also be 
used for cognitive electronic warfare, radar, signals intelligence, 
mass surveillance, and jamming. For example, the February, 2024, Annual 
Threat Assessment of the U.S. Intelligence Community states that the 
People's Republic of China (PRC) is pursuing AI for mass surveillance 
and intelligent weapons platforms. In response to the national security 
and foreign policy risks of AI, as noted above, 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 semiconductor chips 
(chips, advanced computing chips, integrated circuits (ICs)), 
transactions for supercomputer end uses, and transactions involving 
certain entities on the Entity List (supplement no. 4 to part 744). 
Second, the rule adopted additional controls on certain semiconductor 
manufacturing items and transactions for certain IC production end 
uses. In October, 2023, BIS broadened the scope of destinations for 
these controls to cover other destinations of concern (such as Country 
Groups D:1 and D:5 for newly added semiconductor manufacturing 
equipment controls, and D:1, D:4, and D:5 for the advanced computing 
controls). Similarly, BIS imposed worldwide license requirements for 
certain specified 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.
    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. Accordingly, this 
rule expands the VEU program to facilitate the export or reexport of 
items necessary for a data center to preapproved trusted validated end 
users in destinations that require a license for items classified under 
Export Control Classification Numbers (ECCNs) 3A090.a and 4A090.a, and 
.z items in Categories 3, 4, and 5, excluding D:5 countries. Data 
Center VEU adopts much of the framework of the existing VEU program, 
with additional requirements appropriate for a data center environment. 
In addition, this action includes appropriate safeguards to address the 
implications of risks AI might impose on U.S. and allies' national 
security and foreign policy objectives. As under the original VEU 
Authorization Program, the U.S. government will rigorously review Data 
Center VEU candidates' applications subject to detailed and verifiable 
criteria consistent with facilitating U.S. exports.

Addition of Authorization Data Center VEU to the EAR

    To implement Data Center VEU, BIS amends the EAR to refer to the 
existing VEU program that currently applies to India and China as 
`General VEU Authorization' and to refer to the new program as `Data 
Center VEU Authorization.' The framework for both programs is similar, 
although the requirements are different. All VEU authorizations allow 
exports and reexports to the VEUs. However, a separate authorization is 
needed if a VEU reexports to a third party. Although in country 
transfers are permitted under General VEU Authorization, in country 
transfers are not permitted under Data Center VEU Authorization unless 
the transfer (in-country) is to a VEU authorized location by the same 
VEU. Section 748.15 maintains the following subsections: (a) Eligible 
end-users; (b) Eligible destinations; (c) Item restrictions; (d) End-
use restrictions; (e) Certification and recordkeeping; (f) Reporting 
and review requirements; (g) Notification requirement; (h) Termination 
of Conditions on VEU Authorizations; and (i) Records. Supplement no. 7 
to part 748 includes a list of end users who have been approved through 
the VEU program and are eligible for exports or reexports under Data 
Center VEU Authorization or exports, reexports, or transfers (in-
country) under General VEU Authorization. Supplement no. 8 to part 748 
describes information required in requests for both types of VEU 
authorization.

Eligibility and Application Requirements

    The introduction to section 748.15 (Authorization Validated End-
User (VEU)) is amended to include references to both `General VEU 
Authorization' and `Data Center VEU Authorization.' Revised section 
748.15(a)(1), includes the eligibility criteria for the current VEU 
program, now called `General VEU Authorization,' and the eligibility 
criteria for `Data Center VEU

[[Page 80082]]

Authorization.' Some requirements are the same for both types of VEU 
authorizations, as described in sections 748.15(a)(2) through (5). 
Paragraphs (b) and (d) are each now bifurcated to distinguish between 
the two VEU Authorizations, each with a new paragraph (1) discussing 
General VEU Authorizations and a new paragraph (2) discussing Data 
Center VEU Authorizations. Paragraph (c) of section 748.15 now includes 
a new paragraph (1) indicating that neither VEU authorization is 
authorized for items controlled under the EAR for missile technology or 
crime control reasons, consistent with current restrictions, and a new 
paragraph (2) providing that all items on the Commerce Control List are 
eligible for Data Center VEU Authorizations if those items require a 
license to the destination (excluding ``600 series'' items) and are 
necessary for a data center.
    Requests for authorization for General VEU Authorizations or Data 
Center VEU must be submitted in the form of an advisory opinion 
request, as described in sections 748.15(a)(2), 748.3(c)(2), and in 
accordance with revised Supplement No. 8 (Information Required in 
Requests for Validated End-User (VEU) Authorization) and existing 
Supplement No. 9 (End-User Review Committee Procedures) to part 748. In 
the request for authorization, as provided in revised Supplement No. 8 
to part 748, in addition to the information required under the General 
VEU program, now in paragraph A of that supplement, particular 
information related to the data center is required, as described in new 
paragraph B of that supplement. The following information will assist 
BIS and its interagency partners in the Departments of Defense, Energy, 
and State in an evaluation of the data center's VEU eligibility:
     Absent a legal prohibition or other such exceptional 
circumstances, a list of current and potential customers of the data 
center;
     An overview of business activities or corporate 
relationships that the candidate has with any organization designated 
on the Entity List or Military End-User List, the Department of the 
Treasury's Specially Designated Nationals and Blocked Persons List, 
Foreign Sanctions Evaders List, or U.S. Sectoral Sanctions 
Identifications List, or the Department of State's Nonproliferation 
Sanctions determinations.
     A description of physical, and logical security 
requirements, including access restrictions for each location the 
controlled items will be housed (e.g., around the clock monitoring, 
cybersecurity requirements, third-party monitoring; and/or physical 
security);
     A description of the policies and procedures governing 
employees physical and logical access to the VEU data center;
     An overview of the data center's information security 
plan, which should include:
    [cir] Cybersecurity plan, including compliance with relevant NIST 
standards;
    [cir] Logging and monitoring plan;
    [cir] Technology control plan that describes how much compute is 
required for the various end uses involved;
    [cir] Baseline cloud configuration and identity and access 
management process for tenants, if a cloud provider;
    [cir] Personnel security plan; and
    [cir] An incident, identification, investigation, and reporting 
plan;
     An explanation of the network infrastructure and 
architecture and service providers;
     An overview of the applicant's supply chain risk 
management plan that will ensure no prohibited technology enters the 
environment and no prohibited vendors are in the supply chain; and
     An overview of the applicant's export control training 
program and compliance program procedures.
    In conjunction with other relevant agencies on the End User Review 
Committee (ERC), consistent with the process identified in existing 
Supplement No. 9 to Part 748, the U.S. government will evaluate 
prospective Data Center VEU applicants based on a range of factors. 
Included in this evaluation will be whether the VEU host country has 
provided assurances to the U.S. government regarding the safe and 
secure use of the technology to be provided under Authorization VEU. 
Should an entity be interested in obtaining Data Center VEU status, its 
national government will need to engage the Commerce and State 
Departments to make such assurances.
    In addition, as described in revised section 748.15(a)(3), the 
agencies will examine the entity's record of the party's compliance 
with U.S. export controls; the entity's capability to comply with the 
requirements for VEU; the entity's agreement to on-site compliance 
reviews by representatives of the United States Government, including 
to guard against both the misuse and diversion of computing resources; 
the entity's relationships with U.S and foreign companies; the party's 
technology roadmap, and technology control plan. When evaluating the 
eligibility of an end-user, agencies would consider the status of 
export controls in the eligible destination and adherence to 
multilateral export control regimes of the government of the eligible 
destination; this information, among other things, may also be the 
subject of government-to-government assurances.

Approval Process and VEU Conditions

    Consistent with the procedures described in existing Supplement No. 
9 to part 748, if the ERC approves the request, BIS will issue a 
response in the form of a letter granting VEU status. The letter will 
state the items that are permitted for export or reexport to the VEU, 
along with any conditions required of the VEU. Conditions will be 
tailored to the national security and foreign policy risks presented. 
Examples of conditions include a commitment to:
     Implement physical and logical security requirements;
     Prohibit access to individuals working for entities and/or 
countries of concern;
     Prohibit access to any national working for or on behalf 
of a party on BIS's Entity List;
     Ensure inspection/onsite reviews by U.S. government 
officials as necessary, to determine whether VEU authorization 
conditions are being met; and/or
     Not provide computing power above prohibited thresholds to 
entities or countries of concern.

Certification and Reporting Requirements

    As provided in revised section 748.15(e), prior to an initial 
export or reexport under General or Data Center VEU authorizations, 
exporters or reexporters must obtain certifications from validated end-
users regarding the end use and compliance with VEU requirements. Such 
certifications must include the information set forth in Supplement no. 
8 to part 748. Certifications and all records related to VEU must be 
retained by the exporters or reexporters in accordance with 
recordkeeping requirements set forth in part 762 of the EAR.
    In addition to the certification requirements, as provided in 
revised section 748.15(f)(1)(i), reexporters who make use of either VEU 
Authorization must file reports to BIS. Reexporters using the General 
VEU Authorization must file reports annually while reexporters using 
the Data Center VEU Authorizations must file reports semiannually. For 
reexporters, these reports must include, for each validated end user to 
whom the exporter or reexporter exported or reexported

[[Page 80083]]

eligible items: (1) the name and address of each validated end-user to 
who eligible items were reexported; (2) a list of any intermediate 
consignees; (3) the eligible destination to which the items were 
reexported; (4) the quantity of such items; (5) the value of such 
items; and (6) the ECCNs of such items.;
    In addition, as provided in revised paragraph 748.15(f)(1)(ii), 
Data Center Validated End Users must submit reports to BIS 
semiannually. For Data Center Validated End Users, Authorizations will 
specify that each report must include, as appropriate, information such 
as: (1) a record of current inventory of eligible items received; (2) 
dates of when eligible items were received and by whom; (3) a 
description of how current compute is being utilized; and (4) a list of 
current customers with a description of their utilization.
    Deadlines for the various reports are set forth in revised section 
748.15(f)(1)(iii).
    In addition to reporting obligations, under revised section 
748.15(f)(2), exporters, reexporters, and validated end users who make 
use of Data Center VEU must maintain and allow review of relevant 
records, including on-site reviews of information set forth in section 
748.15(e) and (f)(1).

Conforming Amendments

    This rule also makes conforming amendments to paragraphs (g) 
through (i) of section 748.15 to reference Data Center VEU 
Authorization. Similarly, supplement No. 7 to Part 748 is amended by 
adding a column indicating the type of VEU authorization.

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 implemented 
through rulemaking without prior notice and comment.

Rulemaking Requirements

    1. This rule is not a significant regulatory action for purposes 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 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. This regulation involves 
collections previously approved by OMB under control number 0694-0088, 
Simplified Network Application Processing System, which includes, among 
other things, license applications and commodity classifications, and 
carries a burden estimate of 29.4 minutes for a manual or electronic 
submission for a total burden estimate of 33,133 hours. Total license 
applications associated with the PRA and OMB control number 0694-0088 
are expected to be ten as a result of this rule. Therefore, the change 
in burden hours associated with the information collection requirements 
of this rule is not expected to exceed that approved for OMB control 
number 0694-0088.
    This rule does not contain policies with Federalism implications as 
that term is defined in Executive Order 13132.
    4. Pursuant to section 1762 of the Export Control Reform Act of 
2018 (50 U.S.C. 4801-4852), this action is exempt from the 
Administrative Procedure Act (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 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 in 15 CFR Part 748

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

    Accordingly, part 748 of the EAR (15 CFR parts 730-774) is amended 
as follows:

PART 748--[AMENDED]

0
1. The authority citation for part 748 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. Revise Sec.  748.15 to read as follows:


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

    Authorization Validated End-user (VEU) includes two types of VEUs: 
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. In country transfers are 
not permitted under Data Center VEU Authorization unless the transfer 
(in-country) is to a VEU authorized location by the same VEU. Reexports 
by a VEU require separate authorization. Validated end-users 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 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.
    (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 exported or reexported under a Data Center VEU 
Authorization are those validated end-users identified in supplement 
no. 7 to part 748, according to the provisions in this section and 
those set forth in supplement nos. 8 and 9 to this part that have been 
granted VEU status by the End-User Review Committee (ERC) according to 
the process set forth in supplement no. 9 to this part.

[[Page 80084]]

    (2) Requests for authorizations. To apply for a General VEU 
Authorizations 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 (items for purposes of authorization VEU include commodities, 
software and technology, except as excluded by paragraph (c) of this 
section), identified by ECCN, that exporters or reexporters intend to 
export, reexport or transfer to an eligible end-user, once approved. To 
ensure a thorough review, requests for VEU authorization must include 
the information described in supplement no. 8 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 either ``General'' or ``Data Center,'' as 
appropriate] Authorization Validated End-user.''
    (3) Conditions and Restrictions. In evaluating an end user for 
eligibility under authorization VEU, the ERC will consider a range of 
information, including but not limited to such factors as: the end 
user's record of exclusive engagement in appropriate end-use 
activities; the end user's compliance with U.S. export controls; the 
need for an on-site review prior to approval; the end user's capability 
of complying with the requirements of authorization VEU, the ability of 
the end user to guard against both the misuse and diversion of 
computing resources; the end user's technology roadmap; the end user's 
technology control plan; the end user's agreement to on-site reviews by 
representatives of the U.S. Government to ensure adherence to the 
conditions of the VEU authorization; and the end user's relationships 
with U.S. and foreign companies. In addition, when evaluating the 
eligibility of an end user, the ERC will consider the status of the 
eligible destination country's export controls and the support and 
adherence to multilateral export control regimes of the government of 
the eligible destination.
    (4) VEU Status. The VEU authorization is subject to revision, 
suspension, or revocation entirely or in part.
    (5) Continuing Representations. Information submitted in a VEU 
request is deemed to constitute continuing representations of existing 
facts or circumstances. Any material or substantive change relating to 
the authorization must be promptly reported to BIS, whether VEU 
authorization has been granted or is still under consideration.
    (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. Data Center VEU Authorizations 
may be used for any destination for which a license is required for 
ECCN 3A090, 4A090 items, and .z items in Categories 3, 4, and 5, except 
for destinations in Country Groups D:5 countries.
    (c) Item restrictions. (1) Items controlled under the EAR for 
missile technology (MT) and crime control (CC) reasons may not be 
exported or reexported under General or Data Center VEU Authorizations.
    (2) Eligible items for Data Center VEU Authorizations are all those 
items on the Commerce Control List, that require a license to the 
destination excluding ``600 series'' items, and are necessary for a 
data center.
    (d) End-use restrictions--(1) General VEU Authorizations. Items 
obtained under General VEU Authorizations in China may be used only for 
civil end uses and may not be used for any activities described in part 
744 of the EAR. The restrictions of Sec. Sec.  744.6(c)(2)(i) through 
(iii) and 744.23(a)(1) and (a)(2) of the EAR do not apply to VEUs 
identified in supplement no. 7 to part 748 as excluded from Sec. Sec.  
744.6(c)(2)(i) through (iii) and 744.23(a)(1) and (a)(2) of the EAR. 
Items obtained under General VEU Authorizations in India may be used 
for either civil or military end uses and may not be used for any 
activities described in part 744 of the EAR. Exports, reexports, or 
transfers made under authorization VEU may be made to an end user 
listed in supplement No. 7 to this part only if the items will be 
consigned to and for use by the validated end user. Eligible end-users 
who obtain items under VEU may only:
    (i) Use such items at the end-user's own facility located in an 
eligible destination or at a facility located in an eligible 
destination over which the end-user demonstrates effective control;
    (ii) Consume such items during use; or
    (iii) Transfer or reexport such items only as authorized by BIS.
    (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) Reexport such items by a Data Center VEU is permitted only as 
specifically authorized by BIS. In country transfers are not permitted 
under Data Center VEU Authorization unless the transfer (in-country) is 
to a VEU authorized location by the same VEU.

    Note 1 to paragraph (d): Authorizations set forth in supplement 
no. 7 to this part 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.

    (e) Certification and recordkeeping. Prior to an initial export or 
reexport to a validated end-user under General or Data Center VEU 
Authorization, exporters or reexporters must obtain certifications from 
the validated end-user regarding end-use and compliance with VEU 
requirements. Such certifications must include the contents set forth 
in supplement no. 8 to this part. Certifications and all records 
relating to VEU must be retained by exporters or reexporters in 
accordance with the recordkeeping requirements set forth in part 762 of 
the EAR.
    (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;

[[Page 80085]]

    (B) Dates of when eligible items were received and by whom;
    (C) A description of how current compute is being utilized; and
    (D) A list of current customers with a description of their 
utilization.
    (iii) Deadlines. For reexporters making use of General VEU 
Authorization, reports are due by February 15 of each year, and must 
cover the period of 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:
    (1) The first report is due July 15 of each year and must cover the 
period of January 1 through June 30;
    (2) The second report is due January 15 and must cover the period 
from June 30 to December 31 of the previous year.
    (iii) 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 validated end-users who make use of 
authorization 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.
    (g) Notification requirement. Exporters and reexporters shipping 
under General or Data Center VEU Authorizations and persons 
transferring (in-country) under General VEU Authorization are required 
to provide the VEUs to which they are shipping or transferring notice 
of the shipment or transfer. Such notification must be conveyed to the 
VEU in writing and must include a list of the VEU-authorized contents 
of the shipment or transfer and a list of the ECCNs under which the 
VEU-authorized items in the shipment or transfer are classified, as 
well as a statement that the items are being, will be, or were shipped 
or transferred pursuant to relevant VEU Authorization. Notification of 
the export, reexport or transfer (in-country) to the VEU must be made 
within a timeframe agreed to in writing by the VEU and the person 
exporting, reexporting or transferring (in-country). The VEU and the 
person exporting, reexporting or transferring (in-country) must agree 
to the notification timeframe prior to the initial shipment or transfer 
under the VEU Authorizations. Depending on the agreement between the 
VEU and the person exporting, reexporting or transferring (in-country), 
a notification may be for individual shipments or for multiple 
shipments. Exporters, reexporters and VEUs are required to maintain the 
notifications they send or receive in accordance with their 
recordkeeping requirements.
    (h) Termination of Conditions on VEU Authorizations. VEUs that are 
subject to item-specific conditions and have received items subject to 
such conditions under General or Data Center VEU Authorizations are no 
longer bound by the conditions associated with the items if the items 
no longer require a license for export or reexport to the PRC, India, 
or data center location, as applicable, or become eligible for shipment 
under a license exception to the destination. Items that become 
eligible for a license exception are subject to the terms and 
conditions of the applicable license exception and the restrictions in 
Sec.  740.2 of the EAR. Items that become eligible for export without a 
license and that remain subject to the EAR may only be exported, 
reexported, transferred (in-country) or disposed of in accordance with 
the requirements of the EAR. Termination of VEU conditions does not 
relieve a validated end-user of its responsibility for violations that 
occurred prior to the availability of a license exception or prior to 
the removal of license requirements.
    (i) Records. Records of items that were shipped under General or 
Data Center VEU Authorizations prior to the removal of a license 
requirement or the availability of a license exception remain subject 
to the review requirements of paragraph (f)(2) of this section on and 
after the date that the license requirement was removed or the license 
exception became applicable.

0
3. Revise Supplement No. 7 to part 748 to read as follows:

[[Page 80086]]



 Supplement No. 7 to Part 748--Validated End-User (VEU) Authorization: List of Validated End-Users, Respective Items Eligible for Export, Reexport, and
                                                    Transfer (In-Country), and Eligible Destinations
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                       Federal Register
             VEU Type                     Country         Validated end-user    Eligible items (by ECCN)     Eligible destination          citation
--------------------------------------------------------------------------------------------------------------------------------------------------------
           Nothing in this Supplement shall be deemed to supersede other provisions in the EAR, including but not limited to Sec.   748.15(c).
--------------------------------------------------------------------------------------------------------------------------------------------------------
General..........................  China (People's       Advanced Micro        3D002, 3D003, 3E001        Advanced Micro Devices     75 FR 25763, 5/10/
                                    Republic of).         Devices China, Inc.   (limited to                (Shanghai) Co., Ltd.,      10.
                                                                                ``technology'' for items   Buildings 33 (Unit 1),    76 FR 2802, 1/18/
                                                                                classified under 3C002     46, 47, 48 & 49, River     11.
                                                                                and 3C004 and              Front Harbor, Zhangjiang  78 FR 3319, 1/16/
                                                                                ``technology'' for use     Hi-Tech Park, No. 1387     13.
                                                                                during the International   Zhang Dong Road, Pudong   81 FR 40785, 6/23/
                                                                                Technology Roadmap for     District, Shanghai,        16.
                                                                                Semiconductors (ITRS)      China 201203.             88 FR 73496, 10/25/
                                                                                process for items         AMD Technology              23.
                                                                                classified under ECCNs     Development (Beijing)
                                                                                3B001 and 3B002), 3E002    Co., Ltd., North and
                                                                                (limited to                South Buildings,
                                                                                ``technology'' for use     RaycomInfotech, Park
                                                                                during the ITRS process    Tower C, No. 2 Science
                                                                                for items classified       Institute South Rd.,
                                                                                under ECCNs 3B001 and      Zhong Guan Cun, Haidian
                                                                                3B002), 3E003.e (limited   District, Beijing, China
                                                                                to the ``development''     100190.
                                                                                and ``production'' of     AMD Products (China) Co.
                                                                                integrated circuits for    Ltd., North and South
                                                                                commercial                 Buildings,
                                                                                applications), 4D001 and   RaycomInfotech Park
                                                                                4E001 (limited to the      Tower C, No. 2 Science
                                                                                ``development'' of         Institute South Rd.,
                                                                                products under ECCN        Zhong Guan Cun, Haidian
                                                                                4A003.b through .g).       District, Beijing, China
                                                                                                           100190.
General..........................  ....................  Advanced Micro-       2B230, 3B001.a.2, and      Advanced Micro-            78 FR 41291, 7/10/
                                                          Fabrication           3B001.e (items             Fabrication Equipment,     13. 80 FR 65932,
                                                          Equipment, Inc.,      classified under ECCNs     Inc., 188 Taihua Road,     10/28/15.
                                                          China.                3B001.a.2, and 3B001.e     Jinqiao Export
                                                                                are limited to             Processing Zone (South
                                                                                components and             Area), Pudong, Shanghai
                                                                                accessories).              201201, China.
General..........................  ....................  Applied Materials     These Items Authorized     * Applied Materials South  72 FR 59164, 10/19/
                                                          (China), Inc.         for those Applied          East Asia Pte. Ltd.--      07. 74 FR 19382, 4/
                                                                                Materials Destinations     Shanghai Depot, c/o        29/09. 75 FR
                                                                                Identified by one          Shanghai Applied           27185, 5/14/10. 77
                                                                                asterisk (*): 2B006.b,     Materials Technical        FR 10953, 2/24/12.
                                                                                2B230, 2B350.g.3,          Service Center, No. 2667   80 FR 65932, 10/28/
                                                                                2B350.i, 3B001.a,          Zuchongzhi Road,           15.
                                                                                3B001.b, 3B001.e,          Shanghai, China 201203.
                                                                                3B001.f, 3C001, 3C002,    * Applied Materials South
                                                                                3D002 (limited to          East Asia Pte. Ltd.--
                                                                                ``software'' specially     Beijing Depot, c/o
                                                                                designed for the ``use''   Beijing Applied
                                                                                of stored program          Materials Technical
                                                                                controlled items           Service Center, No. 1
                                                                                classified under ECCN      North Di Sheng Street,
                                                                                3B001).                    BDA, Beijing, China
                                                                                                           100176.
                                                                                                          * Applied Materials South  ...................
                                                                                                           East Asia Pte. Ltd.--
                                                                                                           Wuxi Depot, c/o
                                                                                                           Sinotrans Jiangsu
                                                                                                           Fuchang Logistics Co.,
                                                                                                           Ltd., 1 Xi Qin Road,
                                                                                                           Wuxi Export Processing
                                                                                                           Zone, Wuxi, Jiangsu,
                                                                                                           China 214028.
                                                                                                          * Applied Materials South  ...................
                                                                                                           East Asia Pte. Ltd.--
                                                                                                           Wuhan Depot, c/o Wuhan
                                                                                                           Optics Valley Import &
                                                                                                           Export Co., Ltd., No.
                                                                                                           101 Guanggu Road, East
                                                                                                           Lake High-Tec
                                                                                                           Development Zone, Wuhan,
                                                                                                           Hubei, China 430074.
                                                                                                          * Applied Materials        ...................
                                                                                                           (China), Inc.--Shanghai
                                                                                                           Depot, No. 2667,
                                                                                                           Zuchongzhi Road,
                                                                                                           Shanghai, China 201203.

[[Page 80087]]

 
                                                                                                          * Applied Materials        ...................
                                                                                                           (China), Inc.--Beijing
                                                                                                           Depot, No. 1 North Di
                                                                                                           Sheng Street, BDA,
                                                                                                           Beijing, China 100176.
                                                                               These Items Authorized     ** Applied Materials       ...................
                                                                                for the Applied            (Xi'an) Ltd., No. 28 Xin
                                                                                Materials Destination      Xi Ave., Xi'an High Tech
                                                                                Identified by two          Park, Export Processing
                                                                                asterisks (**): 2B006.b,   Zone, Xi'an, Shaanxi,
                                                                                2B230, 2B350.g.3,          China 710075.
                                                                                2B350.i, 3B001.a,
                                                                                3B001.b, 3B001.e,
                                                                                3B001.f, 3C001, 3C002,
                                                                                3D002 (limited to
                                                                                ``software'' specially
                                                                                designed for the ``use''
                                                                                of stored program
                                                                                controlled items
                                                                                classified under ECCN
                                                                                3B001), and 3E001
                                                                                (limited to
                                                                                ``technology'' according
                                                                                to the General
                                                                                Technology Note for the
                                                                                ``development'' or
                                                                                ``production'' of items
                                                                                controlled by ECCN
                                                                                3B001).
                                                                               This item is authorized    *** Applied Materials      ...................
                                                                                for those Applied          (China), Inc.--
                                                                                Materials Destination      Headquarters, 1388
                                                                                Identified by three        Zhangdong Road, Bldg.
                                                                                asterisks (***): 3E001     22, Zhangjiang Hi-Tech
                                                                                (limited to                Park, Pudong, Shanghai,
                                                                                ``technology'' according   201203, China.
                                                                                to the General
                                                                                Technology Note for the
                                                                                ``development'' or
                                                                                ``production'' of items
                                                                                controlled by ECCN
                                                                                3B001).
General..........................  ....................  Boeing Tianjin        1B001.f, 1D001 (limited    Boeing Tianjin Composites  72 FR 59164, 10/19/
                                                          Composites Co. Ltd.   to ``software''            Co. Ltd., 4566 Hebei       07. 74 FR 19382, 4/
                                                                                specially designed or      Road, Marine Hi-Tech       29/09. 77 FR
                                                                                modified for the ``use''   Development Area, Tanggu   10953, 2/24/12. 77
                                                                                of equipment controlled    District, Tianjin, China   FR 40258, 7/9/12.
                                                                                by 1B001.f), 2B001.b.2     300451.                    81 FR 61106, 9/6/
                                                                                (limited to machine                                   16.
                                                                                tools with accuracies no
                                                                                better than (i.e., not
                                                                                less than) 13 microns),
                                                                                2D001 (limited to
                                                                                ``software,'' other than
                                                                                that controlled by
                                                                                2D002, specially
                                                                                designed or modified for
                                                                                the ``use'' of equipment
                                                                                controlled by
                                                                                2B001.b.2), and 2D002
                                                                                (limited to ``software''
                                                                                for electronic devices,
                                                                                even when residing in an
                                                                                electronic device or
                                                                                system, enabling such
                                                                                devices or systems to
                                                                                function as a
                                                                                ``numerical control''
                                                                                unit, capable of
                                                                                coordinating
                                                                                simultaneously more than
                                                                                4 axes for ``contouring
                                                                                control'' controlled by
                                                                                2B001.b.2).

[[Page 80088]]

 
General..........................  ....................  CSMC Technologies     1C350.c.4, 1C350.c.12,     CSMC Technologies Fab 1    76 FR 2802, 1/18/
                                                          Corporation.          2B230.a, 2B230.b,          Co., Ltd., 14 Liangxi      11. 76 FR 37634, 6/
                                                                                2B350.f, 2B350.g,          Road, Wuxi, Jiangsu        28/11. 77 FR
                                                                                2B350.h, 3B001.e,          214061, China CSMC         10953, 2/24/12. 78
                                                                                3B001.h (except for        Technologies Fab 2 Co.,    FR 23472, 4/19/13.
                                                                                multilayer masks with a    Ltd., 8 Xinzhou Rd.,       78 FR 32981, 6/3/
                                                                                phase shift layer          Wuxi National New Hi-      13.
                                                                                designed to produce        Tech Industrial
                                                                                ``space qualified''        Development Zone, Wuxi,
                                                                                semiconductor devices),    Jiangsu 214028, China.
                                                                                3C002.a, and 3C004.
General..........................  ....................  Intel Semiconductor   These items authorized     * Intel Semiconductor      78 FR 54754, 9/6/
                                                          (Dalian) Ltd.         for the Intel              (Dalian) Ltd., No. 109     13. 81 FR 85145,
                                                                                destination identified     Huai He Road East,         11/25/16.
                                                                                by one asterisk (*):       Dalian Economic and
                                                                                1A004, 1C006.d, 2A226,     Technology Development
                                                                                2B006.b, 2B230, 2B231,     Area, Dalian, Liao Ning
                                                                                2B350, 3A233.a, 3B001      Province, 116600, China.
                                                                                (except for multilayer
                                                                                masks with a phase shift
                                                                                layer designed to
                                                                                produce ``space
                                                                                qualified''
                                                                                semiconductor devices),
                                                                                3C002, 3E002 (excluding
                                                                                development and
                                                                                production technology
                                                                                specific to digital
                                                                                signal processors and
                                                                                digital array processors
                                                                                and further limited to
                                                                                ``technology'' based on
                                                                                the international
                                                                                technology roadmap for
                                                                                semiconductors (ITRS)),
                                                                                and 4E001(limited to
                                                                                technology for computer
                                                                                products or components
                                                                                not exceeding an
                                                                                adjusted peak
                                                                                performance (APP) level
                                                                                of 12.0 weighted
                                                                                teraflops).
                                                                               These items authorized     ** Intel Semiconductor     ...................
                                                                                for the Intel              (Dalian) Ltd., c/o
                                                                                destination identified     Dalian Kintetsu
                                                                                by two asterisks (**):     Logistics Co., Ltd,
                                                                                1A004, 1C006.d, 2A226,     Dayaowan Bonded Port No.
                                                                                2B006.b, 2B230, 2B231,     6 Road W4 Unit A1,
                                                                                2B350, 3A233.a, 3B001      Dalian Economic and
                                                                                (except for multilayer     Technology Development
                                                                                masks with a phase shift   Area, Dalian, Liao Ning
                                                                                layer designed to          Province, 116601, China.
                                                                                produce ``space
                                                                                qualified''
                                                                                semiconductor devices),
                                                                                and 3C002.

[[Page 80089]]

 
General..........................  ....................  Lam Research Service  These Items Authorized     * Lam Research             72 FR 59164, 10/19/
                                                          Co., Ltd.             for those Lam's            International Sarl (Lam    07, 74 FR 19382, 4/
                                                                                Destinations Identified    Beijing Warehouse), c/o    29/09. 77 FR
                                                                                by a single asterisk       Beijing Lam Electronics    10953, 2/24/12. 77
                                                                                (*):                       Tech Center, 1 Building,   FR 40258, 7/9/12.
                                                                               2B230, 2B350.c, 2B350.d,    No. 28, Jinghai Second     82 FR 48929, 10/23/
                                                                                2B350.g, 2B350.h,          Road, BDA, Beijing,        17.
                                                                                2B350.i, and 3B001.e       China 100176.
                                                                                (limited to               * Lam Research
                                                                                installation, warranty     International Sarl (Lam
                                                                                maintenance/repair, or     Beijing Warehouse), c/o
                                                                                maintenance/repair         Beijing STE
                                                                                service of semiconductor   International Logistics
                                                                                manufacturing equipment    Co., Ltd., Building 3,
                                                                                manufactured by Lam, and   No. 9 Ke Chuang Er
                                                                                items classified under     Street Beijing Economic
                                                                                ECCN 3B001.e are limited   & Technological
                                                                                to specially designed      Development Area,
                                                                                components and             Beijing, China 100176.
                                                                                accessories), 3D001       * Lam Research
                                                                                (limited to ``software''   International Sarl (Lam
                                                                                (excluding source code)    Beijing Warehouse), c/o
                                                                                specially designed for     China International
                                                                                the ``development'' or     Electronic Service
                                                                                ``production'' of          Company, 1 Building, No.
                                                                                equipment controlled by    28, Jinghai Second Road,
                                                                                ECCN 3B001.e)), 3D002      BDA, Beijing, China
                                                                                (limited to ``software''   100176.
                                                                                (excluding source code)   * Lam Research
                                                                                specially designed for     International Sarl (Lam
                                                                                the ``use'' of equipment   Beijing Warehouse), c/o
                                                                                controlled by ECCN         HMG Hi-Tech Logistics
                                                                                3B001.e)), and 3E001       (Beijing) Co., Ltd.,
                                                                                (limited to                Building 3, No. 9 Ke
                                                                                ``development''            Chuang Er Street,
                                                                                ``technology'' according   Beijing Economic &
                                                                                to the General             Technological
                                                                                Technology Note of a       Development Area,
                                                                                type of equipment          Beijing, China 100176.
                                                                                classified under ECCN     * Lam Research
                                                                                3B001.e).                  International Sarl (Lam
                                                                                                           Dalian Warehouse), c/o
                                                                                                           Liaoning JD Logistics
                                                                                                           International Co., Ltd.,
                                                                                                           Dalian Bonded Logistics
                                                                                                           Port, W5-B8, No. 6, Road
                                                                                                           #3, Dalian, China 116600.
                                                                                                          * Lam Research             ...................
                                                                                                           International Sarl (Lam
                                                                                                           Dalian Warehouse), c/o
                                                                                                           Liaoning JD Logistics
                                                                                                           International Co., Ltd.,
                                                                                                           Dalian Bonded Logistics
                                                                                                           Zone No. 1 Public
                                                                                                           Warehouse Dalian, China
                                                                                                           116600.
                                                                                                          * Lam Research             ...................
                                                                                                           International Sarl (Lam
                                                                                                           Shanghai Warehouse), c/o
                                                                                                           HMG Supply Chain
                                                                                                           (Shanghai) Co., Ltd.,
                                                                                                           No. 633, Shangfeng Road,
                                                                                                           Pudong New District,
                                                                                                           Shanghai, China 201201.
                                                                                                          * Lam Research             ...................
                                                                                                           International Sarl (Lam
                                                                                                           Shanghai Warehouse), c/o
                                                                                                           Regal Harmony Logistics
                                                                                                           Co., Ltd., No. 799,
                                                                                                           Yihua Road, Pudong New
                                                                                                           District, Shanghai,
                                                                                                           China 201299.

[[Page 80090]]

 
                                                                                                          * Lam Research             ...................
                                                                                                           International Sarl (Lam
                                                                                                           Shanghai Warehouse
                                                                                                           Operator), c/o Shanghai
                                                                                                           Well-Win Logistics Co.,
                                                                                                           Ltd., No. 2667
                                                                                                           Zuchongzhi Road, Pudong
                                                                                                           New District, Shanghai,
                                                                                                           China.
                                                                                                          * Lam Research             ...................
                                                                                                           International Sarl (Lam
                                                                                                           Shanghai Warehouse; WGQ
                                                                                                           Bonded Warehouse), c/o
                                                                                                           HMG Supply Chain
                                                                                                           (Shanghai) Co., Ltd.,
                                                                                                           No. 55, Fei La Road,
                                                                                                           Waigaoqiao Free Trade
                                                                                                           Zone Pudong New Area,
                                                                                                           Shanghai, China 200131.
                                                                                                          * Lam Research             ...................
                                                                                                           International Sarl (Lam
                                                                                                           Wuhan Warehouse), c/o
                                                                                                           Wuhan HMG Logistics Co.,
                                                                                                           Ltd., Factory C101/201,
                                                                                                           1-2F Building 1, Central
                                                                                                           China Normal, University
                                                                                                           Park Road, Wuhan, China
                                                                                                           430223.
                                                                                                          * Lam Research             ...................
                                                                                                           International Sarl (Lam
                                                                                                           Wuxi Warehouse), c/o HMG
                                                                                                           WHL Logistics (Wuxi)
                                                                                                           Co., Ltd., Plot J3-4,
                                                                                                           No. 5 Gaolang East Road,
                                                                                                           CBZ, New District Wuxi,
                                                                                                           Wuxi, China 214208.
                                                                                                          * Lam Research             ...................
                                                                                                           International Sarl (Lam
                                                                                                           Xiamen Warehouse), c/o
                                                                                                           VR Int'l Logistics
                                                                                                           (Xiamen) Co., Ltd., C3
                                                                                                           Area No. 3 Warehouse,
                                                                                                           No. 1007 West Fangshan
                                                                                                           Road, Bonded Logistics
                                                                                                           Center (Type B) Xiang'an
                                                                                                           District, Xiamen, China
                                                                                                           361101.
                                                                                                          * Lam Research             ...................
                                                                                                           International Sarl (Lam
                                                                                                           Xi'an Warehouse), c/o VR
                                                                                                           International Logistics
                                                                                                           (Xi'an) Co., Ltd., No.
                                                                                                           28 Information Road, EPZ
                                                                                                           B Zone, Xi'an New
                                                                                                           District, Xi'an, China
                                                                                                           710119.
                                                                                                          * Lam Research             ...................
                                                                                                           International Sarl (Wuxi
                                                                                                           EPZ Bonded Warehouse), c/
                                                                                                           o HMG WHL Logistics
                                                                                                           (Wuxi) Co., Ltd., 1st
                                                                                                           Floor, Area 4, No. 1,
                                                                                                           Plot J3, No. 5 Gaolang
                                                                                                           East Road, Export
                                                                                                           Processing Zone, Wuxi,
                                                                                                           Jiangsu, China 214028.

[[Page 80091]]

 
                                                                               These Items Authorized     ** Lam Research Service    ...................
                                                                                for those Lam's            Co., Ltd. (Shanghai),
                                                                                Destinations Identified    1st Floor, Area C, Hua
                                                                                by double asterisks        Hong Science &
                                                                                (**): 2B230, 2B350.c,      Technology Park, 177 Bi
                                                                                2B350.d, 2B350.g,          Bo Road, Zhangjiang Hi-
                                                                                2B350.h, 2B350.i, and      Tech Park, Pudong New
                                                                                3B001.e (limited to        District, Shanghai,
                                                                                installation, warranty     China 201203.
                                                                                maintenance/repair, or    ** Lam Research Service
                                                                                maintenance/repair         Co., Ltd. (Xiamen), Room
                                                                                service of semiconductor   705A, Qiangye Building,
                                                                                manufacturing equipment    Xiang'an Industrial
                                                                                manufactured by Lam, and   Park, Xiamen Torch Hi-
                                                                                items classified under     tech Zone, Xiamen, China
                                                                                ECCN 3B001.e are limited   361115.
                                                                                to specially designed     ** Lam Research Service
                                                                                components and             Co., Ltd. (Beijing
                                                                                accessories), 3D001        Branch), 6th Floor,
                                                                                (limited to ``software''   Building 52, No. 2,
                                                                                (excluding source code)    Jingyuan North Street,
                                                                                specially designed for     Beijing Economic &
                                                                                the ``development'' or     Technological
                                                                                ``production'' of          Development Area,
                                                                                equipment controlled by    Beijing, China 100176.
                                                                                ECCN 3B001.e)), 3D002     ** Lam Research Service
                                                                                (limited to ``software''   Co., Ltd. (Dalian
                                                                                (excluding source code)    Branch), Units 01, 02,
                                                                                specially designed for     13, 10th Floor, Jinma
                                                                                the ``use'' of equipment   International Building,
                                                                                controlled by ECCN         No. 1 Yongde Street,
                                                                                3B001.e)), and 3E001       Dalian, China 116620.
                                                                                (limited to               ** Lam Research Service
                                                                                ``development''            Co., Ltd. (Lam Dalian
                                                                                ``technology'' or          Representative Office),
                                                                                ``production''             c/o Intel Semiconductor
                                                                                ``technology'' according   (Dalian) Ltd., No. 109
                                                                                to the General             Huaihe Road East, Dalian
                                                                                Technology Note of a       Economic & Technical
                                                                                type to support            Development Area,
                                                                                integration, assembly      Dalian, China 116600.
                                                                                (mounting), inspection,
                                                                                testing, and quality
                                                                                assurance of equipment
                                                                                classified under ECCN
                                                                                3B001.e)).
                                                                                                          ** Lam Research Service    ...................
                                                                                                           Co., Ltd. (Wuhan
                                                                                                           Representative Office),
                                                                                                           Room 302, Guanggu
                                                                                                           Software Park Building
                                                                                                           E4, No. 1 Guanshan Road,
                                                                                                           Wuhan, Hubei Province,
                                                                                                           China 430074.
                                                                                                          ** Lam Research Service    ...................
                                                                                                           Co., Ltd. (Wuxi Branch),
                                                                                                           Room 302, Building 6,
                                                                                                           Singapore International
                                                                                                           Park, No. 89 Xing Chuang
                                                                                                           Si Road, Wuxi New
                                                                                                           District, Wuxi, Jiangsu,
                                                                                                           China 214028.
                                                                                                          ** Lam Research Service    ...................
                                                                                                           (Shanghai) Co., Ltd.
                                                                                                           (Xi'an Branch), Room
                                                                                                           602, Building G, Wangzuo
                                                                                                           Xiandai City, 35 Tangyan
                                                                                                           Road, Gaoxin District,
                                                                                                           Xi'an, China 710065.

[[Page 80092]]

 
General..........................  ....................  Samsung China         All items subject to the   Samsung China              78 FR 41291, 7/10/
                                                          Semiconductor Co.     Export Administration      Semiconductor Co., Ltd.,   13. 78 FR 69535,
                                                          Ltd.                  Regulations (EAR),         No. 1999, North Xiaohe     11/20/13. 79 FR
                                                                                except ``extreme           Road, Xi'an, China         30713, 5/29/14. 80
                                                                                ultraviolet'' (``EUV'')    710119.                    FR 11863, 3/5/15.
                                                                                equipment and                                         88 FR 71480, 10/17/
                                                                                ``specially designed''                                23.
                                                                                ``parts,''
                                                                                ``components,''
                                                                                ``software,'' and
                                                                                ``technology'' therefor,
                                                                                necessary for the
                                                                                ``development'' or
                                                                                ``production'' of NAND
                                                                                memory. Excluded from
                                                                                Sec.  Sec.
                                                                                744.6(c)(2)(i-iii) and
                                                                                744.23(a)(1)(iii) and
                                                                                (a)(2)(iii) of the EAR.
                                                                                See Sec.   748.15(d).
General..........................  ....................  Shanghai Huahong      1C350.c.4, 1C350.d.14,     Shanghai Huahong Grace     78 FR 32981, 6/3/
                                                          Grace Semiconductor   2B230, 2B350.d.2,          Semiconductor              13. 88 FR 73496,
                                                          Manufacturing         2B350.g.3, 2B350.i.4,      Manufacturing              10/25/23.
                                                          Corporation.          3B001.a.1, 3B001.b,        Corporation--HFab 2, 668
                                                                                3B001.e, 3B001.f,          Guoshoujing Road,
                                                                                3B001.h, 3C002, 3C004,     Zhangjiang Hi-Tech Park,
                                                                                5B002, and 5E002           Shanghai 201203 China.
                                                                                (controlled by ECCNs      Shanghai Huahong Grace
                                                                                5A002.a through .e,        Semiconductor
                                                                                5A004.a through .b, or     Manufacturing
                                                                                5A992.c that have been     Corporation--HFab 1,
                                                                                successfully reviewed      1188 Chuanqiao Road,
                                                                                under the encryption       Pudong, Shanghai 201206
                                                                                review process specified   China.
                                                                                in Sections 740.17(b)(2)  Shanghai Huahong Grace
                                                                                or 740.17(b)(3) of the     Semiconductor
                                                                                EAR).                      Manufacturing
                                                                                                           Corporation--GFab1, 1399
                                                                                                           Zuchongzhi Road,
                                                                                                           Zhangjiang Hi-Tech Park,
                                                                                                           Shanghai 201203 China.
General..........................  ....................  SK hynix              All items subject to the   SK hynix Semiconductor     78 FR 41291, 7/10/
                                                          Semiconductor         Export Administration      (China) Ltd., Lot K7,      13. 78 FR 69535,
                                                          (China) Ltd.          Regulations, except        Wuxi High-tech Zone,       11/20/13. 79 FR
                                                                                ``extreme ultraviolet''    Comprehensive Bonded       30713, 5/29/14. 80
                                                                                (``EUV'') equipment and    Zone, Wuxi New District,   FR 11863, 3/5/15.
                                                                                ``specially designed''     Jiangsu Province, China    88 FR 71478, 10/17/
                                                                                ``parts,''                 214028.                    23.
                                                                                ``components,''
                                                                                ``software,'' and
                                                                                ``technology'' therefor,
                                                                                necessary for the
                                                                                ``development'' or
                                                                                ``production'' of
                                                                                dynamic random-access
                                                                                memory (DRAM). Excluded
                                                                                from Sec.  Sec.
                                                                                744.6(c)(2)(i)-(iii) and
                                                                                744.23(a)(1)(iii) and
                                                                                (a)(2)(iii) of the EAR.
                                                                                See Sec.   748.15(d).
General..........................  India...............  GE India Industrial   1C002.a.1, 1C002.a.2,      GE India Technology        74 FR 31620, 7/2/
                                                          Pvt Ltd.              1C002.b.1.a,               Centre Private Limited     09. 74 FR 68147,
                                                                                1C002.b.1.b, 1E001,        (GEITC), No. 122, EPIP,    12/23/09. 77 FR
                                                                                2E003.f, 9E003.a.1,        Phase II, Hoodi Village,   10953, 2/24/12.
                                                                                9E003.a.2, 9E003.a.4,      Whitefield Road,
                                                                                9E003.a.5, 9E003.a.6,      Bangalore 560066,
                                                                                9E003.a.8, and 9E003.c.    Karnataka, India.
                                                                                                          Bangalore Engineering
                                                                                                           Center (BEC), c/o GE
                                                                                                           India Technology Centre
                                                                                                           Private Limited (GEITC),
                                                                                                           No. 122, EPIP, Phase II,
                                                                                                           Hoodi Village,
                                                                                                           Whitefield Road,
                                                                                                           Bangalore 560066,
                                                                                                           Karnataka, India.
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 80093]]


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4. Revise Supplement No. 8 to part 748 to read as follows:

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

    VEU authorization applicants must provide to BIS certain 
information about the prospective and related respective validated 
end-user. This information must be included in requests for 
authorization submitted by prospective validated end-users, or 
exporters or reexporters who seek to have certain entities approved 
as validated end-users. BIS may, in the course of its evaluation, 
request additional information.

A. Required Information for Both General and Data Center Validated End-
user Authorization Requests

    (1) Name of proposed VEU candidates, including all names under 
which the candidate conducts business; complete company physical 
address (simply listing a post office box is insufficient); 
telephone number; fax number; email address; company website (if 
available); and name of individual who should be contacted if BIS 
has any questions. If the entity submitting the application is 
different from the prospective validated end-user identified in the 
application, this information must be submitted for both entities. 
If the candidate has multiple locations, all physical addresses 
located in the eligible destination must be listed.
    (2) Provide an overview of the structure, ownership and business 
of the prospective validated end-user. Include a description of the 
entity, including type of business activity, ownership, 
subsidiaries, and joint-venture projects, as well as an overview of 
any business activity or corporate relationship that the entity has 
with either government or military organizations.
    (3) List the items proposed for VEU authorization approval and 
their intended end-uses. Include a description of the items; the 
ECCN for all items, classified to the subparagraph level, as 
appropriate; technical parameters for the items including 
performance specifications; and end-use description for the items. 
If BIS has previously classified the item, the Commodity 
Classification Automated Tracking System (CCATS) number may be 
provided in lieu of the information listed in the foregoing 
provisions of this paragraph.
    (4) Provide the physical address(es) of the location(s) where 
the item(s) will be used, if this address is different from the 
address of the prospective validated end-user provided in paragraph 
(1) of this supplement.
    (5) If the prospective validated end-user plans to reexport the 
item, specify the destination to which the items will be reexported.
    (6) Specify how the prospective validated end-user's record 
keeping system will allow compliance with the recordkeeping 
requirements set forth in Sec.  748.15(e) of the EAR. Describe the 
system that is in place to ensure compliance with VEU requirements.
    (7) Include an original statement on letterhead of the 
prospective validated end-user, signed and dated by a person who has 
authority to legally bind the prospective validated end-user, 
certifying that the end-user will comply with all VEU requirements. 
This statement must include acknowledgement that the prospective 
end-user:
    (i) Has been informed of and understands that the item(s) it may 
receive as a validated end-user will have been exported in 
accordance with the EAR and that use or diversion of such items 
contrary to the EAR is prohibited;
    (ii) Understands and will abide by all authorization VEU end-use 
restrictions, including the requirement that items received under 
authorization VEU will only be used for authorized end-uses and may 
not be used for any activities described in part 744 of the EAR 
unless authorized by Sec.  748.15(d);
    (iii) Will comply with VEU recordkeeping requirements; and
    (iv) Agrees to allow on-site reviews by U.S. Government 
officials to verify the end-user's compliance with the conditions of 
the VEU authorization.

B. Additional Required Information for Data Center Validated End-User 
Authorization Requests

    (1) A description of controlled items required in the data 
center and an accompanying rationale for why these items are 
required;
    (2) An overview of any business activity or corporate 
relationship that the candidate has with either government or 
military organizations;
    (3) An overview of business activities or corporate 
relationships that the candidate has with any organization 
designated on the Entity List in Supp. No. 4 to part 744 and/or 
Military End-User List in Supp. No. 7 to part 744;
    (4) Describe physical and logical security requirements for each 
location the controlled items will be housed (e.g., around the clock 
monitoring, cybersecurity requirements, third-party monitoring; and/
or physical security);
    (5) A description of the policies and procedures governing 
employees physical and logical access to the VEU data center;
    (6) Absent a legal prohibition or other such exceptional 
circumstances, a list of current and potential customers of the data 
center;
    (7) An overview of the data center's information security plan, 
which should include:
    (i) Cybersecurity plan;
    (ii) Logging and monitoring plan;
    (iii) Technology control plan that describes how much compute is 
required for the various end uses involved;
    (iv) Baseline cloud configuration and identity and access 
management process for tenants, if a cloud provider;
    (v) Personnel security plan; and
    (vi) An incident, identification, investigation, and reporting 
plan;
    (8) An explanation of the network infrastructure and 
architecture and service providers;
    (9) An overview of the applicant's supply chain risk management 
plan that will prevent PRC-origin equipment entering the data-center 
environment and no PRC vendors are in the supply chain; and
    (10) An overview of the applicant's export control training 
program and compliance program procedures.

Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2024-22587 Filed 9-30-24; 8:45 am]
BILLING CODE 3510-33-P