Foreign-Produced Direct Product Rule Additions, and Refinements to Controls for Advanced Computing and Semiconductor Manufacturing Items, 96790-96830 [2024-28270]

Agencies

• DEPARTMENT OF COMMERCE
• Bureau of Industry and Security

[Federal Register Volume 89, Number 234 (Thursday, December 5, 2024)]
[Rules and Regulations]
[Pages 96790-96830]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-28270]



[[Page 96789]]

Vol. 89

Thursday,

No. 234

December 5, 2024

Part III





Department of Commerce





-----------------------------------------------------------------------





Bureau of Industry and Security





-----------------------------------------------------------------------





15 CFR Parts 732, 734, 736 et. al





Foreign-Produced Direct Product Rule Additions, and Refinements to 
Controls for Advanced Computing and Semiconductor Manufacturing Items; 
Additions and Modifications to the Entity List; Removals From the 
Validated End-User (VEU) Program; Final Rules

Federal Register / Vol. 89 , No. 234 / Thursday, December 5, 2024 / 
Rules and Regulations

[[Page 96790]]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 732, 734, 736, 740, 742, 744, 746, 758, 762, 772, and 
774

[Docket No. 241126-0302]
RIN 0694-AJ74


Foreign-Produced Direct Product Rule Additions, and Refinements 
to Controls for Advanced Computing and Semiconductor Manufacturing 
Items

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Interim final rule.

-----------------------------------------------------------------------

SUMMARY: In this interim final rule (IFR), the Bureau of Industry and 
Security (BIS) makes changes to the Export Administration Regulations 
(EAR) controls for certain advanced computing items, supercomputers, 
and semiconductor manufacturing equipment, which includes adding new 
controls for certain semiconductor manufacturing equipment and related 
items, creating new Foreign Direct Product (FDP) rules for certain 
commodities to impair the capability to produce ``advanced-node 
integrated circuits'' (``advanced-node ICs'') by certain destinations 
or entities of concern, adding new controls for certain high bandwidth 
memory important for advanced computing, and clarifying controls on 
certain software keys that allow for the use of items such as software 
tools. This IFR publishes concurrently with another BIS final rule 
entitled, ``Additions and Modifications to the Entity List; and 
Removals from the Validated End-User (VEU) Program'' (Entity List rule) 
that adds to and modifies the Entity List to ensure appropriate EAR 
controls are in place for certain critical technologies and to minimize 
the risk of diversion to entities of concern.

DATES: 
    Effective date: This rule is effective December 2, 2024.
    Compliance dates: Although this rule is effective December 2, 2024, 
exporters, reexporters, and transferors are not required to comply with 
the changes made in the following amendatory instructions until the 
compliance dates specified below for the respective amendatory 
instructions. If no compliance date is provided, the parties must 
comply with those requirements as of the effective date of this IFR.
     The changes made in this IFR in amendatory instructions 2 
(Red Flags) and 6 (Sec.  734.19) have a compliance date of December 2, 
2024.
     The changes made in this IFR in amendatory instructions 4, 
5, 15, 16, 17, 19, 20, 21, 23, 25, 29, and 31 (ECCNs 3B001, 3B002, 
3B991, 3B992, 3B993, 3B994, 3A090, 3D001 (related to 3A090.c and 3B 
commodities), 3D002, 3D992, 3D993, 3D994, 3E001 (related to 3A090.c and 
3B commodities) (HBM controls and related changes), 3E992, 3E993, and 
3E994) FN5, and FDP rules, and related changes, and DRAM definition 
changes) have a compliance date of December 31, 2024.
    Comments due date: Comments must be received by BIS no later than 
January 31, 2025.

ADDRESSES: Comments on this IFR may be submitted to the Federal 
rulemaking portal at: www.regulations.gov. The regulations.gov ID for 
this IFR is BIS-2024-0028. Please refer to RIN 0694-AJ74 in all 
comments.
    All filers using the portal should use the name of the person or 
entity submitting the comments as the name of their files, in 
accordance with the instructions below. Anyone submitting business 
confidential information should clearly identify the business 
confidential portion at the time of submission, file a statement 
justifying nondisclosure and referring to the specific legal authority 
claimed, and provide a non-confidential version of the submission.
    For comments submitted electronically containing business 
confidential information, the file name of the business confidential 
version should begin with the characters ``BC.'' Any page containing 
business confidential information must be clearly marked ``BUSINESS 
CONFIDENTIAL'' on the top of that page. The corresponding non-
confidential version of those comments must be clearly marked 
``PUBLIC.'' The file name of the non-confidential version should begin 
with the character ``P.'' Any submissions with file names that do not 
begin with either a ``BC'' or a ``P'' will be assumed to be public and 
will be made publicly available at: https://www.regulations.gov. 
Commenters submitting business confidential information are encouraged 
to scan a hard copy of the non-confidential version to create an image 
of the file, rather than submitting a digital copy with redactions 
applied, to avoid inadvertent redaction errors which could enable the 
public to read business confidential information.

FOR FURTHER INFORMATION CONTACT: 
     For general questions, contact Regulatory Policy Division, 
Office of Exporter Services, Bureau of Industry and Security, U.S. 
Department of Commerce at 202-482-2440 or by email: [email protected].
     For Category 3 technical questions, contact Carlos Monroy 
at 202-482-3246 or by email: [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

A. BIS's Implementation of Export Controls To Address National Security 
Risks and Foreign Policy Objectives Associated With the People's 
Republic of China (PRC)'s Use of Advanced Computing, Supercomputer, and 
Semiconductor Manufacturing

    PRC leadership at the highest levels has stressed the importance of 
building an indigenous and self-sufficient semiconductor ecosystem, 
referring to ICs in particular as critical to PRC national security 
strategy. Reporting from PRC state-owned media outlets has even 
referred to integrated circuits (ICs) as the ``main battlefield'' of 
the PRC's Military-Civil Fusion (MCF) National Strategy to eliminate 
barriers between the PRC's civilian research and commercial sectors and 
its military and defense industrial sectors to ensure that innovations 
in the civilian sector simultaneously advance the PRC's military 
capabilities. The Chinese Communist Party (CCP) aims to achieve a world 
class military by 2049 through MCF. Due to the significance of 
semiconductors to that strategy and the PRC's technology ambitions, PRC 
political and scientific leaders have sought to develop an 
``independent and controllable'' semiconductor industry for decades--
one that is fully within the government's control and not reliant on 
foreign suppliers. The PRC has also mandated and incentivized relevant 
domestic firms to dedicate significant resources to realizing these 
strategic objectives, demonstrating the top-down, hands-on approach 
that the PRC is taking to shape this ecosystem to benefit itself, with 
a related detriment to the technology leadership of the United States 
and its allies.
    Export controls on semiconductor manufacturing equipment (SME) and 
related parts and components are central to countering the PRC's goal 
of furthering its ``advanced-node ICs'' production capacity in support 
of its military modernization and weapons of mass destruction (WMD) 
programs. Since October 2022, BIS has published a series of IFRs 
imposing controls on advanced computing and supercomputing items and 
SME, starting with an IFR that was issued on October 7, 2022, 
``Implementation of Additional Export Controls: Certain Advanced 
Computing and

[[Page 96791]]

Semiconductor Manufacturing Items; Supercomputer and Semiconductor End 
Use; Entity List Modification'' (October 7 IFR) (87 FR 62186, October 
13, 2022). The October 7 IFR amended the EAR to implement controls on 
advanced computing ICs, computer commodities that contain such ICs, and 
certain SME and parts and components needed to produce those and other 
advanced ICs, and to make other EAR changes to implement appropriate 
related controls, including on certain ``U.S. person'' activities that 
`support' (as defined in Sec.  744.6 of the EAR) the ``development'' or 
``production'' of certain ICs in the PRC.
    The October 7 IFR explained that these controls were aimed at 
limiting the PRC's ability to engage in activities that would pose 
significant threats to U.S. national security and foreign policy. 
Specifically, BIS determined that certain advanced computing ICs and 
related computing items--many of which originated in the United States 
or were produced with U.S. technology, software, or tools--could enable 
the PRC to develop certain enhanced data processing and analysis 
capabilities, including through AI applications because of the high 
processing power of the advanced ICs and related computing items. 
Additionally, BIS determined that the capability to produce advanced 
computing ICs for advanced computing systems, such as AI systems, 
through the use of certain SME, presented significant national security 
and foreign policy concerns because indigenous production is another 
means to obtain ``advanced computing ICs'' and other advanced computing 
systems. These capabilities could be used by the PRC to further its 
military modernization efforts, improve calculations in weapons design 
and testing (including for WMD), and violate basic human rights through 
comprehensive surveillance programs. As previously stated, these 
activities are contrary to U.S. national security and foreign policy as 
set forth in the Export Control Reform Act of 2018 (ECRA) (codified, as 
amended, at 50 U.S.C. 4801-4852), which directs BIS to control items 
subject to the jurisdiction of the United States when those items could 
be used in ``military programs that pose a threat to the security of 
the United States or its allies,'' could lead to ``the proliferation of 
weapons of mass destruction or of conventional weapons,'' or could 
undermine the ``foreign policy of the United States, including the 
protection of human rights and the promotion of democracy'' (50 U.S.C. 
4811(2)).
    To effectuate its controls under the October 7 IFR--and, 
consequently, to help reduce the risk that U.S. technology would 
contribute to activities that threaten U.S. national security and 
foreign policy--BIS added new Export Control Classification Numbers 
(ECCNs) 3A090 (specified high-performance ICs), 4A090 (related 
computing items), and 3B090 (specified SME essential to produce 
``advanced-node ICs'').
    Because many of the advanced computing ICs and related computing 
items controlled by the October 7 IFR are produced by manufacturers 
outside the United States relying on U.S. software, technology, or 
tools, the October 7 IFR also imposed two additional foreign direct 
product (FDP) rules. As a general matter, the EAR asserts jurisdiction 
over certain foreign-produced items made with the use of U.S. 
technology, software, or tools, as described under the various FDP 
rules in Sec.  734.9 of the EAR. The FDP rules do not apply to all 
items and end users. Instead, FDP rules are targeted to cover specific 
combinations of items, destinations, end users, or end uses. 
Accordingly, the October 7 IFR implemented two new FDP rules related to 
advanced computing items and ``supercomputers'' to extend jurisdiction 
over certain items produced in foreign countries and destined to the 
PRC or certain entities in the PRC. BIS also expanded the scope of an 
existing FDP rule that covers items destined for certain entities on 
the Entity List.
    In 2023, BIS issued two rules imposing additional controls on 
advanced computing and semiconductor manufacturing items. In the IFR, 
``Export Controls on Semiconductor Manufacturing Items'' (SME IFR) (88 
FR 73424, October 25, 2023), BIS added controls for additional SME 
essential to producing ``advanced-node ICs'' and required licenses for 
such SME, as well as for SME previously controlled under ECCN 3B090 
(now 3B001 and 3B002), when destined to Macau and Country Group D:5. 
The same day it issued the SME IFR, BIS issued a second rule to address 
advanced computing chips. The IFR, ``Implementation of Additional 
Export Controls: Certain Advanced Computing Items; Supercomputer and 
Semiconductor End Use; Updates and Corrections'' (AC/S IFR) (88 FR 
73458, October 25, 2023), adjusted parameters for advanced computing 
ICs that are critical for advanced computing and AI applications, and 
imposed new measures to address the risk of circumvention of the 
controls, including expanding the license requirement for advanced 
computing ICs to apply to Country Groups D:1, D:4, and D:5.
    Like the October 7 IFR, the SME IFR described the national security 
rationale for expanding controls on SME. The SME IFR noted that the 
controls protect U.S. national security by restricting the PRC's 
military modernization efforts and degrading the PRC's ability to 
violate human rights. The SME IFR further noted that the controlled SME 
has profound implications for U.S. national security, including 
production of the advanced computing ICs that could further development 
of weapons of mass destruction and emerging technologies, such as 
advanced artificial intelligence systems, autonomous weapons, 
cyberweapons, hypersonics, and high-tech surveillance applications. The 
PRC's statements and activities suggest it would use its next 
generation military capabilities to engage in activities contrary to 
U.S. and allied national security interests.

B. In Order Address the Continuing Threat Posed by the PRC's Efforts To 
Acquire Advanced Computing Items, Supercomputing Items, and SME, This 
IFR Imposes Additional Controls Related to Such Items

    There is substantial open source and unclassified information 
detailing the PRC's efforts to respond to the impact of current 
restrictions on SME, including key parts and components, through 
supporting semiconductor research and development, building additional 
facilities as alternate suppliers to fabrication facilities, and 
funding indigenous producers of SME.
    As such, to address the continued threat from the PRC's efforts to 
develop an ``independent and controllable'' semiconductor industry to 
produce ``advanced-node ICs'' to help achieve a world-class military, 
BIS is imposing additional controls on certain types of SME and related 
items that are used to produce ``advanced-node ICs.'' BIS is also 
establishing new foreign FDP controls for certain SME items that 
originate in foreign countries but are produced with U.S. technology, 
software, or tools, as well as SME items that contain essential 
components, like ICs, that could not be produced without U.S. 
technology, software, or tools. These changes, and the related national 
security and foreign policy considerations, are described below under 
sections III.A and III.B. The addition of new FDP rules also requires 
certain additional revisions to parts 734 and 736, which are described 
below under sections III.A.4 (regarding the FDP rules) and III.B.1 
(regarding de minimis changes) of this preamble.
    Additionally, BIS is imposing new controls on certain high-
bandwidth

[[Page 96792]]

memory (HBM) commodities that provide necessary memory capacity and 
bandwidth needed for advanced artificial intelligence (AI) models and 
supercomputing applications. Such applications can enable advanced 
military and intelligence applications, lower the barriers to entry for 
non-experts to develop WMD, support powerful offensive cyber 
operations, and assist in using mass surveillance to commit human 
rights abuses. In accordance with the policy goals described in Sec.  
1752(1)(A) and (2)(D), imposing controls on certain HBM is necessary to 
restrict items that can make a ``significant contribution to the 
military potential of any other country'' and to ``carry out the 
foreign policy of the United States, including the protection of human 
rights.''
    Finally, this IFR also adds new paragraph (b) to 734.19 to specify 
that software keys, also called software license keys, which allow 
users the ability to use ``software'' or hardware by providing access 
to it, and software keys that renew existing ``software'' or hardware 
use licenses, are classified and controlled under the same ECCNs on the 
Commerce Control List (CCL) (15 CFR part 744) as the corresponding 
``software'' or hardware to which they provide access, or in the case 
of hardware, the software key would be classified under the 
corresponding ECCN in the software group (e.g., a software license key 
that allows the use of hardware classified under ECCN 5A992 would be 
classified under ECCN 5D992). This clarification applies to, among 
other items, software keys for electronic computer-aided design (ECAD) 
tools that are important to the development and production of 
``advanced-node ICs'' and thus can have a significant impact on 
military programs posing a threat to the security of the United States 
and its allies (see Sec.  1752(2)(A)(iv) of ECRA). Additionally, as 
noted under Sec.  1752(7) of ECRA, administering export controls in an 
effective manner ``requires a clear understanding both inside and 
outside the U.S. Government of which items are controlled.'' This 
clarification enhances the exporting community's understanding to 
prevent unauthorized access to controlled ``software'' or hardware.

C. Additional Changes and Relation of This IFR With the Accompanying 
BIS Rule, ``Additions and Modifications to the Entity List; and 
Removals From the Validated End-User (VEU) Program.''

    The controls implemented since October 2022 have also added or 
expanded end-use controls under part 744 of the EAR. In particular, the 
addition of Sec.  744.23 and the expansion of the ``U.S. person'' 
control under Sec.  744.6 have supplemented the CCL-based controls to 
address the national security and foreign policy concerns with these 
items. Public comments on both the SME and AC/S IFRs published since 
October 2022 in this area have requested the U.S. Government to 
publicly identify ``production'' ``facilities'' for ``advanced-node 
ICs,'' or entities engaged in the indigenization of SME. In the SME IFR 
and AC/S IFR, BIS noted its support of identifying such entities to 
enhance compliance by exporters, reexporters, and transferors and to 
improve the effectiveness of the controls.
    Consequently, BIS is publishing concurrently with this IFR the 
Entity List rule. The Entity List rule adds entities to the Entity List 
because of specific national security or foreign policy concerns 
regarding those entities, which are described in that rule. The 
addition and modification of certain entities on the Entity List are 
designed to impair their current or potential ``development'' or 
``production'' of ``advanced-node ICs.'' The addition of other entities 
on the Entity List are designed to impair their ability to produce SME 
and related items. The Entity List rule publishes concurrently with 
this IFR as part of the larger effort to ensure appropriate EAR 
controls are in place on these items, including in connection with 
transactions destined to, or otherwise involving, the entities being 
added to the Entity List, as well as for existing entries on the Entity 
List that this final rule modifies.
    The Entity List rule publishing concurrently with this IFR adds 
entities to the Entity List and modifies certain existing entries on 
the Entity List. As part of that Entity List rule, BIS has included a 
Footnote 5 (which extends EAR jurisdiction to certain foreign-produced 
items pursuant to Sec.  734.9(e)(3)) designation for certain entities 
being added to the Entity List and to certain entities already on the 
Entity List. While the Entity List rule adds Footnote 5 designations to 
specific entities, this IFR adds FDP rules, license requirements, 
license exceptions, and Temporary General Licenses (TGLs) that pertain 
to exports, exports from abroad, reexports, and transfers (in-country) 
when these entities are involved in the transaction. See the Entity 
List rule publishing concurrently with this IFR for an identification 
of which new and modified entities on the Entity List will receive a 
Footnote 5 designation.
    As BIS identifies additional entities that warrant being subject to 
these controls, they will be added to the Entity List. However, 
exporters, reexporters, and transferors must continue to conduct due 
diligence, including by reviewing transactions for Red Flags (i.e., 
circumstances in a transaction that indicate that the export may be 
destined for an inappropriate end use, end user, or destination). To 
assist parties in identifying Red Flags, this IFR adds eight new Red 
Flags to supplement no. 3 to part 732. The Red Flags are discussed in 
section III.C.5 of this preamble.
    The controls implemented since October 2022 are calibrated to 
impact ``advanced-node IC'' production (and related development) 
activities without significantly impacting global commercial supply 
chains. However, calibrated controls by their nature tend to be more 
complex than broader controls. BIS has evaluated the effectiveness of 
these controls and has identified revisions to enhance clarity and to 
ensure the controls are effectively addressing national security and 
foreign policy concerns. BIS is still in the process of reviewing and 
responding to the comments received on the SME IFR and AC/S IFR, as 
well as comments on another IFR, ``Implementation of Additional Export 
Controls: Certain Advanced Computing Items; Supercomputer and 
Semiconductor End Use; Updates and Corrections; and Export Controls on 
Semiconductor Manufacturing Items; Corrections and Clarifications'' 
(April 4 IFR) (88 FR 23876, April 4, 2024). However, at this time, BIS 
has identified additional changes that will be implemented in this IFR. 
BIS is soliciting comments on these changes and will address any such 
comments along with comments on the three earlier IFRs as needed in a 
subsequent rule.
    The controls enacted by this IFR, as described in section III 
below, are consistent with ECRA. The underlying purpose of ECRA 
encompasses restricting the products of U.S. ``technology,'' 
``software,'' and ``commodities'' that could be used to undermine U.S. 
national security and foreign policy. As explained above, the PRC's 
goal of achieving a world class military by 2049 is a critical concern 
to U.S. national security and foreign policy. ECRA provides that the 
policy of the United States is ``to restrict the export of items which 
would make a significant contribution to the military potential of any 
other country or combination of countries which would prove detrimental 
to the national security of the United States; and to restrict the 
export of items if necessary to further significantly the foreign

[[Page 96793]]

policy of the United States . . .'' (50 U.S.C. 4811(1)). Because the 
development of a PRC ``independent and controllable'' semiconductor 
industry is a critical factor in the PRC's ability to achieve its goal, 
ECRA authorizes the implementation of sufficient controls to prevent 
the PRC's possession of sensitive items and is necessary to advance the 
U.S. national security and foreign policy interests.

II. Overview of This Interim Final Rule

    In this IFR, BIS makes changes to EAR controls for advanced 
computing items, supercomputers, and SME. The five categories of 
changes implemented by this IFR are described in section III as 
follows:
    A. Addition of two new FDP rules in Sec.  734.9 of the EAR for 
certain types of advanced SME and for entities on the Entity List 
involved in the production of ``advanced-node ICs'';
    B. Additional revisions related to the production of semiconductors 
and other conforming changes, including revisions to de minimis 
provisions that correlate to the new FDP rules, establishment of new 
License Exception Restricted Fabrication ``Facility'' (RFF), addition 
of eight new Red Flags, clarifications to Sec.  744.23, and revisions 
and conforming changes to other parts of the EAR;
    C. Addition of HBM controls, including addition of new ECCN 3A090.c 
and License Exceptions HBM;
    D. Clarification to software keys to address when authorization is 
required; and
    E. Revisions to the CCL in supplement no. 1 to part 774, including 
revisions to eight existing ECCNs and addition of eight new ECCNs.

III. Changes to the EAR

A. Addition of Two New Foreign Direct Product Rules Related to the 
Production of ``Advanced-Node ICs''

1. National Security and Foreign Policy Considerations for New FDP Rule 
for Entities on the Entity List Involved in the Production of 
``Advanced-Node ICs'' in Countries of Concern
    This IFR implements a new FDP rule for certain SME that are 
essential to, or support, producing ``advanced-node ICs,'' which have 
important military applications (SME FDP). This interim final rule also 
implements a new FDP rule for entities on the Entity List designated 
with new Footnote 5 (FN5 FDP). The entities added to the Entity List 
with a Footnote 5 designation are being added because of specific 
national security or foreign policy concerns described in the Entity 
List rule, including supporting, or having the potential to support, 
the PRC's efforts to develop and produce ``advanced-node ICs,'' 
including for military end uses.
    As explained in the October 7 IFR, the SME IFR, and above in this 
IFR, the capability to produce ``advanced-node ICs'' is a force-
multiplying technology that has critical implications for national 
security and foreign policy. SME is needed to produce ``advanced-node 
ICs,'' and the ability to produce ``advanced-node ICs'' has impacts 
across various technology ecosystems critical to national security. For 
example, ``advanced-node ICs'' improve computing power and efficiency 
relative to older IC technology, enabling the compute miniaturization 
necessary for the next generation of autonomous weapons systems, as 
well as the compute scaling necessary for exascale supercomputing and 
advanced AI capabilities, both of which can directly contribute to 
development of WMD, advanced weapons systems, and high-tech 
surveillance applications.
    In particular, advancements in large-scale AI models have shown 
striking performance improvements and can be utilized for advanced 
military and intelligence applications. These large-scale AI models 
have the ability to rapidly review large volumes of information and 
synthesize it into digestible and actionable points, making them well-
suited for battlefield capabilities and thus having the potential to 
alter the nature of warfare. They may also pose threats to national 
security and foreign policy by diffusing dangerous capabilities by 
lowering the barrier to develop cyberweapons or chemical, biological, 
radiological, or nuclear weapons, developing tools with increasingly 
autonomous capabilities relevant to national security applications, and 
utilizing facial and voice recognition to surveil minorities and 
political dissidents.
    As discussed, BIS continues to advance U.S. national security and 
foreign policy interests by imposing controls that reduce the risk U.S. 
technology will contribute to the PRC's ability to carry out those 
activities. Specifically, BIS has imposed controls on the SME and 
related parts and components used to produce ``advanced-node ICs.'' BIS 
has also added several FDP rules to Sec.  734.9 to extend the 
jurisdiction of the EAR to additional foreign-made items, including 
revisions to Sec.  734.9(e) to add a new product scope and end-user 
scope for certain entities on the Entity List. This IFR also revises 
the Sec.  734.9(e) (Entity List FDP rule) introductory text to 
reference this new FN5 FDP and to also revise the paragraph heading, so 
it references Entity List FDP rules to reflect that there is more than 
one Entity List FDP rule described under paragraph (e).
    Although those controls have been effective, BIS has found that PRC 
entities of concern have continued purchasing SME items produced 
outside the United States that include SME items produced with the use 
of U.S. technology, software, or tools, as well as SME items using 
components, such as ICs, necessary for the function of the SME items 
and also produced with the use of U.S. technology, software, or tools. 
U.S. technology, software, and tools therefore remain key to the 
production or function of the SME items being purchased by PRC entities 
of concern.
    Based on these findings, this IFR implements the SME FDP and FN5 
FDP, which will impose additional controls on certain SME items--which 
are used for the production of ``advanced-node ICs''--as described 
further in section 2 below. Both FDPs will regulate the products of 
tools, ``technology,'' and ``software'' that are made or developed 
using U.S.-origin ``technology'' or ``software,'' or which contain a 
foreign product made from tools that are a product of U.S.-origin 
``technology'' or ``software.'' As with the controls previously imposed 
by the October 7 IFR and the SME IFR, the purpose of the SME FDP and 
FN5 FDP rules is to reduce the risk that U.S. technology will 
contribute to the PRC's efforts to produce ``advanced-node ICs'' that 
threaten U.S. national security and foreign policy interests. As 
detailed below, the SME FDP and FN5 FDP rules simply recognize that 
certain SME items--which are already subject to comprehensive 
restrictions when destined for advanced fabrication facilities in 
Country Group D:5 or Macau when they originate from the United States--
should also be subject to controls when destined for such entities when 
produced abroad, if they are directly produced with U.S. ``technology'' 
or otherwise contain a critical component that could not have been 
produced without U.S. ``technology.''
2. Scope of FN5 FDP
    Specifically, this interim final rule implements a new FDP rule for 
entities on the Entity List designated with FN5 FDP. The entities added 
to the Entity List with a Footnote 5 designation are being added 
because of specific national security or foreign policy concerns 
described in the Entity List rule, such as their involvement in 
supporting the PRC's military modernization through

[[Page 96794]]

their potential to produce ``advanced-node ICs,'' including for 
military end uses.
    Because of the critical national security implications of these 
technologies and the need to enhance the effectiveness of the Entity 
List designations to address foreign availability concerns, this rule 
implements the FN5 FDP to make certain foreign-produced items subject 
to the EAR, and requires a license if the exporter, reexporter, or 
transferor has ``knowledge'' (which includes reason to know) that (i) 
such foreign-produced commodities will be incorporated in any ``part,'' 
``component,'' or ``equipment'' produced, purchased, or ordered by an 
entity with a Footnote 5 designation; or (ii) any entity with a 
Footnote 5 designation is a party to any transaction involving such 
foreign-produced commodities.
    The foreign-produced commodities subject to the FN5 FDP rule are 
commodities most relevant to semiconductor production and related 
activities and thus covers foreign-produced commodities meeting the 
descriptions in 3B001 (except 3B001.a.4, c, d, f.1, f.5, g, h, k to n, 
p.2, p.4, r), 3B002 (except 3B002.c), 3B903, 3B991 (except 3B991.b.2.a 
through 3B991.b.2.b), 3B992, 3B993, or 3B994. The commodities covered 
include certain ``equipment'' as well as certain ``specially designed'' 
``parts,'' ``components,'' and ``accessories,'' as described within the 
scope of each ECCN. If a foreign-produced commodity does not meet any 
of the descriptions in those Category 3 ECCNs, then the FN5 FDP does 
not apply.
    The foreign-produced commodities described in the Category 3 ECCNs 
described above meet the product scope prong of the FN5 FDP rule if 
they are: (i) a ``direct product'' of ``technology'' or ``software'' 
subject to the EAR and specified in ECCN 3D001 (for 3B commodities), 
3D901, 3D991 (for 3B991 and 3B992), 3D993, 3D994, 3E001 (for 3B 
commodities), 3E901 (for 3B903), 3E991 (for 3B991 and 3B992), 3E993, or 
3E994 (see Sec.  734.9(e)(3)(i)(A)); (ii) produced by a complete plant 
or `major component' of a plant (located outside the United States) 
when the complete plant or `major component,' whether made in the 
United States or a foreign country, is itself a ``direct product'' of 
U.S.-origin ``technology'' or ``software'' specified in ECCN 3D001 (for 
3B commodities), 3D901, 3D991 (for 3B991 and 3B992), 3D992, 3D993, 
3D994, 3E001 (for 3B commodities), 3E901 (for 3B903), 3E991 (for 3B991 
and 3B992), 3E992, 3E993, or 3E994 (see Sec.  734.9(e)(3)(i)(B)(1)); or 
(iii) contain an commodity that is produced by a complete plant or 
`major component' of a plant (located outside the United States) when 
the complete plant or `major component,' whether made in the United 
States or a foreign country, is itself a ``direct product'' of U.S.-
origin ``technology'' or ``software'' specified in ECCN 3D001 (for 3B 
commodities), 3D901, 3D991 (for 3B991 and 3B992), 3D992, 3D993, 3D994, 
3E001 (for 3B commodities), 3E901 (for 3B903), 3E991 (for 3B991 and 
3B992)), 3E992, 3E993, or 3E994 (see Sec.  734.9(e)(3)(i)(B)(2)).
    With respect to Sec.  734.9(e)(3)(i)(B)(2), this IFR adds Note 3 to 
provide additional guidance on its product scope. Note 3 clarifies that 
if a foreign-produced item contains an IC, and that IC was produced 
with the use of a tool that itself was a ``direct product'' of U.S.-
origin technology or software specified in the ECCNs in Sec.  
734.9(e)(3)(i)(B)(2), then the product scope would be met. In line with 
BIS's application of its FDP rules concerning integrated circuits, the 
note also specifies that the production of an integrated circuit 
includes fabrication of the integrated circuit in a wafer, as well as 
assembly, testing, and packaging of the integrated circuit.
    In addition to the note, BIS is also adding a Red Flag to assist 
parties in determining whether their products fall within Sec.  
734.9(e)(3)(i)(B)(2). Specifically, based in part on its assessment of 
supply chain data, BIS has found that there is a significant prevalence 
of certain types of U.S.-origin tools (or foreign-produced tools that 
are subject to the EAR) in fabrication facilities for the production of 
integrated circuits. It can thus be presumed that any integrated 
circuit has been produced using at least one U.S. tool qualifying as a 
`major component' under Sec.  734.9(e)(3)(i)(B) of the FN5 FDP. 
Therefore, as explained in greater detail below, this IFR adds Red Flag 
26 to supplement no. 3 to part 732 stating that there is a Red Flag 
that the product scope of the FN5 FDP is met if the foreign-produced 
item contains at least one integrated circuit.
    Importantly, as described above, the scope of the FN5 FDP is 
calibrated in multiple places to ensure the rule captures those 
transactions of national security and foreign policy concern. First, 
the FN5 FDP captures only the products of the U.S. tools, technology, 
and software that are relevant to the production of items (e.g., 
``advanced-node ICs'') of national security and foreign policy concern 
by, for, or involving specific parties, who are identified on the 
Entity List as involved in relevant activities of concern. The FN5 FDP 
does not generally apply to the destinations identified in new 
supplement no. 4 to part 742. U.S. national security and foreign policy 
interests inform this approach. Governments in those destinations are 
members of multilateral export control regimes (e.g., the Wassenaar 
Arrangement on Export Controls for Conventional Arms and Dual-use Goods 
and Technologies) and have the authority to control key SME items of 
concern. Lastly, this IFR provides varying compliance dates to provide 
parties time to comport with the new controls where possible consistent 
with U.S. national security and foreign policy concerns. Parties need 
not apply for a license, for example, until the compliance date or the 
effective date, whichever is later. In so doing, this IFR calibrates 
the pertinent restrictions to provide notice of this IFR's provisions 
as well as time for parties to ensure they can properly classify their 
items and otherwise comply with this IFR's new requirements.
3. Scope of SME FDP Rule
    Under the SME FDP rule, specified foreign-produced commodities of 
national security concern meet the destination scope of SME FDP if 
there is ``knowledge'' that the foreign-produced commodity is destined 
to Macau or a destination in Country Group D:5 of supplement no. 1 to 
part 740 of the EAR.
    The product scope of the SME FDP applies to: (i) a foreign-produced 
commodity specified in 3B001.a.4, c, d, f.1, f.5, k to n, p.2, p.4, r, 
or 3B002.c that is the ``direct product'' of ``technology'' or 
``software'' subject to the EAR and specified in 3D992 or 3E992 of the 
CCL; (ii) a foreign-produced commodity that is produced by any complete 
plant or `major component' of a plant that is located outside the 
United States, when the plant or `major component' of a plant, whether 
made in the United States or a foreign country, itself is a ``direct 
product'' of U.S.-origin ``technology'' or ``software'' that is 
specified in ECCN 3D001 (for 3B commodities), 3D901, 3D991 (for 3B991 
and 3B992), 3D992, 3D993, 3D994, 3E001 (for 3B commodities), 3E901 (for 
3B903), 3E991 (for 3B991 or 3B992), 3E992, 3E993, or 3E994 of the CCL; 
or (iii) contains a commodity produced by any complete plant or `major 
component' of a plant that is located outside the United States, when 
the complete plant or `major component' of a plant, whether made in the 
U.S. or a foreign country, itself is a ``direct product'' of U.S.-
origin ``technology'' or ``software'' that is specified in ECCN

[[Page 96795]]

3D001 (for 3B commodities), 3D901, 3D991 (for 3B991 and 3B992), 3D992, 
3D993, 3D994, 3E001 (for 3B commodities), 3E901 (for 3B903), 3E991 (for 
3B991 or 3B992), 3E992, 3E993, or 3E994 of the CCL. For example, the 
product scope of paragraph (k)(1) is met if a foreign-produced 
commodity contains an integrated circuit that is produced by a complete 
plant or `major component' of a plant that itself is a ``direct 
product'' of U.S.-origin ``technology'' or ``software'' specified in 
the ECCNs described in paragraph (k)(1)(ii)(B).
    The license requirements and exclusions to the license requirements 
associated with this SME FDP rule are found in Sec. Sec.  742.4(a)(4) 
and 742.6(a)(6) of the EAR. See Sec. Sec.  742.4(b)(2) and 742.6(b)(10) 
for license review policy applicable to foreign-produced items that are 
subject to the EAR under this SME FDP rule. These license review 
policies are each clarified by this IFR by adding ``however if Sec.  
744.23 does not apply'' to make clear when the case-by-case license 
review policy applies.
4. License Requirements and License Review Policy for Commodities 
Subject to the EAR Pursuant to the FN5 FDP or SME FDP Rules (FDPR)
i. FN5 FDPR as Well as License Requirements in Sec.  744.11(a)(2)(v)
    This IFR adds Sec.  744.11(a)(2)(v) to impose a license requirement 
for entities listed on the Entity List (supplement no. 4 to part 744) 
that are designated with new Footnote 5 (FN5 entities). This IFR adds 
Sec.  744.11(a)(2)(v)(A) (License requirement) to specify that a 
license is required for foreign-produced commodities to or within any 
destination or to any end user or party, subject to the EAR pursuant to 
Sec. Sec.  734.4(a)(9) or 734.9(e)(3), if any of the license 
requirements under Sec.  744.11(a)(2)(v)(A)(1) through (A)(4) applies. 
See Section B.1 regarding Sec.  734.4 provisions.
    This IFR adds Sec.  744.11(a)(2)(v)(A)(1) for exports from abroad 
or reexports from all countries. Specifically, a license is required 
for commodities specified in ECCN 3B993 when exported from abroad or 
reexported by an entity whose ultimate parent company is headquartered 
in either Macau or a destination specified in Country Group D:5.
    This IFR adds Sec.  744.11(a)(2)(v)(A)(2) for exports from abroad 
or reexports from countries in Country Group A:5 that are not in 
supplement no. 4 to part 742. Specifically, a license is required for 
commodities specified in ECCN 3B993 if the commodity is not subject to 
equivalent controls by the relevant country.
    This IFR adds Sec.  744.11(a)(2)(v)(A)(3) for exports from abroad 
or reexports from all countries not listed in Country Group A:5. These 
license requirements apply under two scenarios. First, under Sec.  
744.11(a)(2)(v)(A)(3)(i), a license is required for commodities 
specified in ECCN 3B001 (except 3B001.a.4, c, d, f.1, f.5, k to n, p.2, 
p.4, r), 3B002 (except 3B002.c), 3B611, 3B903, 3B991 (except 
3B991.b.2.a through 3B991.b.2.b), 3B992, 3B993, or 3B994 to be exported 
from abroad or reexported by an entity that is headquartered or whose 
ultimate parent company is headquartered in a country not specified in 
supplement no. 4 to part 742. Second, under Sec.  
744.11(a)(2)(v)(A)(3)(ii), a license is required for commodities 
specified in ECCN 3B993 to be exported from abroad or reexported by an 
entity headquartered in or whose ultimate parent company is 
headquartered in a country described in supplement no. 4 to part 742.
    This IFR adds Sec.  744.11(a)(2)(v)(A)(4) for transfers (in-
country) within the country of the entity specified by Sec.  
734.9(e)(3)(ii). These license requirements apply under two scenarios. 
First, under Sec.  744.11(a)(2)(v)(A)(4)(i), a license is required for 
transfers by an entity whose ultimate parent company is headquartered 
in a country not described in supplement no. 4 to part 742 and the 
entity is transferring a commodity specified in ECCN 3B001 (except 
3B001.a.4, c, d, f.1, f.5, g, h, k to n, p.2, p.4, or r), 3B002 (except 
3B002.c), 3B611, 3B903, 3B991 (except 3B991.b.2.a through 3B991.b.2.b), 
3B992, 3B993, or 3B994. Second, under Sec.  744.11(a)(2)(v)(A)(4)(ii), 
a license is required for transfers by an entity whose ultimate parent 
company is headquartered in a country described in supplement no. 4 to 
part 742 and the entity is transferring a commodity specified in ECCN 
3B993. With respect to the scope of the license requirements under 
Sec.  744.11(a)(2)(v)(A)(4), note that under the definition of transfer 
(in-country) in Sec.  734.16, an in-country transfer is ``a change in 
end use or end user of an item within the same foreign country.'' Thus, 
if a tool has already been exported to a warehouse and will later be 
moved to and installed in a production facility that was the intended 
end user at the time of the export, the movement from the warehouse to 
the production facility within the same country is not an in-country 
transfer and would not be subject to the license requirements under 
Sec.  744.11(a)(2)(v)(A)(4).
ii. New SME FDP as Well as Amendments to the National Security and 
Regional Stability Controls
    The license requirements for the new SME FDP in Sec.  734.9(k) are 
in Sec. Sec.  742.4(a)(4) and 742.6(a)(6)(i) (national security (NS) 
and regional stability (RS) controls, respectively), which correspond 
to the reasons for control for the commodities that may be subject to 
the EAR under the SME FDP. The license requirements are identical in 
Sec. Sec.  742.4(a)(4) and 742.6(a)(6)(i). Changes to each of those 
provisions is discussed below.
    This rule updates the NS controls in Sec.  742.4(a)(4) to designate 
the regulations at Sec.  742.4(a)(4)(i) as the scope of the license 
requirement and Sec.  742.4(a)(4)(ii) for exclusions to the license 
requirement. Under Sec.  742.4(a)(4)(i), the current license 
requirement remains for exports, reexports, or transfers (in-country) 
to or within either Macau or a destination specified in Country Group 
D:5 of items specified in 3B001.a.4, c, d, f.1, f.5, k to n, p.2, p.4, 
r, 3B002.c and related ``software'' and ``technology.''
    Similarly, for RS controls, this rule also updates Sec.  
742.6(a)(6)(i) to describe the scope of license requirements in Sec.  
742.6(a)(6)(i)(A)(1) and exclusions from the license requirement in 
Sec.  742.6(a)(6)(i)(A)(2). Under Sec.  742.6(a)(6)(i)(A)(1), the 
current license requirement remains for exports, reexports, or 
transfers (in-country) to or within Macau or a destination specified in 
Country Group D:5.
    The NS and RS sections also have identical exclusion paragraphs. 
The existing exclusion from license requirements for deemed exports or 
deemed reexports for both sets of controls is moved to new Sec. Sec.  
742.4(a)(4)(ii) and 742.6(a)(6)(i)(A)(2), respectively. Under those 
provisions, commodities subject to the EAR under Sec. Sec.  734.4(a)(8) 
or the SME FDP do not require a license if the commodity is reexported 
or exported from abroad by an entity located in a country specified in 
supplement no. 4 to part 742, and the entity is not headquartered or 
have an ultimate parent company headquartered in Macau or a destination 
specified in Country Group D:5. Also, subject to the EAR under 
Sec. Sec.  734.4(a)(8) or the SME FDP do not require a license if the 
commodity is reexported or exported from abroad by an entity located in 
a country that has implemented equivalent controls for items specified 
in paragraph (a)(4)(i) of this section, and the entity is not 
headquartered or have an ultimate parent company

[[Page 96796]]

headquartered in Macau or a destination specified in Country Group D:5.
    For license requirements for in-country transfers, note that under 
the definition of transfer (in-country) in Sec.  734.16, an in-country 
transfer is ``a change in end use or end user of an item within the 
same foreign country.'' Thus, if a tool has already been exported to a 
warehouse and will later be moved to and installed in a production 
facility that was the intended end user at the time of the export, the 
movement from the warehouse to the production facility within the same 
country is not an in-country transfer and would not be subject to the 
license requirements in Sec. Sec.  742.4(a)(4)(i) and 
742.6(a)(6)(i)(A)(1).
iii. License Review Policy
    Lastly, this IFR adds Sec.  744.11(a)(2)(v)(B) (License review 
policy) to specify the license review policy for each entity with a 
Footnote 5 designation in the Entity List in supplement no. 4 to part 
744. Unless specified otherwise in the license review policy column of 
the applicable entity with a Footnote 5 designation, there is a case-
by-case license review policy for items subject to the license 
requirements of this section where there is a foreign-made item that is 
not subject to the license requirements of this section and performs 
the same function as an item subject to the EAR license requirements of 
this section.

B. Additional Revisions Related to the Production of Semiconductors and 
Other Conforming Changes

1. Addition of New De Minimis Provisions Corresponding to the FN5 and 
SME FDP Rules and a Conforming Change
    To address the national security and foreign policy concerns 
described above regarding the production of ``advanced-node ICs,'' this 
interim final rule adds new de minimis provisions in Sec. Sec.  
734.4(a)(8) and 734.4(a)(9) of the EAR. Section 734.4(a)(8) specifies 
that there is no de minimis threshold level of U.S. controlled content 
for commodities specified in ECCNs 3B001.a.4, c, d, f.1, f.5, k to n, 
p.2, p.4, r, or 3B002.c when the commodity is incorporated in a U.S.-
origin IC or contains a U.S.-origin IC specified under Category 3, 4, 
or 5 of the CCL, and the commodity is destined for Macau or a 
destination specified in Country Group D:5, unless excluded from the 
national security license requirement in Sec.  742.4(a)(4) or the 
regional stability license requirement in Sec.  742.6(a)(6) of the EAR.
    Section 734.4(a)(9) specifies that there is no de minimis level for 
an item meeting the parameters in ECCNs specified in Category 3B 
(except 3B001.a.4, c, d, f.1, f.5, k to n, p.2, p.4, r, or 3B002.c) of 
the CCL in supplement no. 1 to part 774 of the EAR, when the commodity 
is incorporated in a U.S.-origin integrated circuit or contains a U.S.-
origin integrated circuit specified under Category 3, 4, or 5 of the 
CCL, and the commodity is destined for an entity with a Footnote 5 
designation in the license requirement column of the Entity List in 
supplement no. 4 to part 744 of the EAR.
    These new provisions ensure that foreign-produced SME containing 
U.S.-origin ICs (or other components) are controlled to the same extent 
as foreign-produced SME containing items controlled by the SME FDP rule 
and the FN5 FDP rule.
    This IFR makes a conforming change to Sec.  734.4(a)(3) by 
replacing ECCN 3B001.f.1.b.2.b with 3B993.f.1 because this is the new 
location of the control.
2. Addition of New License Exception Restricted Fabrication Facility 
(RFF)
    The new License Exception RFF will allow certain items, including 
specified SME, to be exported, reexported, exported from abroad, or 
transferred (in-country) to certain fabrication facilities that are 
subject to end user-based license requirements but that are not 
currently producing ``advanced node ICs.'' This license exception is 
available for these fabrication facilities to obtain legacy equipment 
and related items to produce non-``advanced node ICs'' through a 
framework that establishes guardrails and monitoring to address U.S. 
national security concerns. This includes terms and conditions on the 
use of License Exception RFF, such as excluding from eligibility items 
essential for producing ``advanced-node ICs,'' as well as requiring 
pre-shipment notifications, end-use monitoring, and annual reporting. 
The license exception also has restrictions related to the operation, 
installation, maintenance, repair, overhaul, or refurbishing of items 
ineligible under RFF that may already be part of the entity's installed 
base. BIS believes that these restrictions, along with existing 
countrywide license requirements for SME and related items that cannot 
be overcome by RFF, will further U.S. national security and foreign 
policy objectives. Under the concurrently published EL rule, one entity 
is eligible for this license exception.
    License Exception RFF, found in new Sec.  740.26, only overcomes 
license requirements in the license requirements column of a specific 
entity when Sec.  740.26 is referenced in that Entity List entry. This 
license exception does not overcome destination-based license 
requirements, end-use based license requirements in other sections of 
part 744, or license requirements that apply to other entities on the 
Entity List if other listed entities are a party to the transaction. 
License Exception RFF authorizes the export, reexport, export from 
abroad, and transfer (in-country) of items not specified in ECCN 3B001, 
3B002, 3B993, 3B994, 3D992, 3D993, 3D994, 3E992, 3E993, or 3E994. For 
commodities exported, reexported, or transferred prior to December 5, 
2024. License Exception RFF may not be used for the operation, 
installation, maintenance, repair, overhaul, or refurbishing of 
commodities specified in ECCN 3B001.a.4, c, d, f.1, f.5, k to n, p.2, 
p.4, r, or 3B002.c, or 3B993, or 3B994. Also, any item exported, 
exported from abroad, reexported, or transferred under License 
Exception RFF may not be used to produce ``advanced-node ICs.'' There 
is also a notification that must be sent to BIS 45 days prior to 
exporting, reexporting, exporting from abroad, or transferring (in-
country) that includes the end-user's name and address, description of 
item(s), purchase price, and anticipated shipping date of export, 
reexport, or transfer (in-country). These changes are expected to 
result in an increase of 306 prior notifications under Sec.  
740.26(d)(1) to BIS under License Exception RFF.
    In addition, a notification must be sent to BIS within one business 
day of gaining ``knowledge'' that the end use has changed to ``advance-
node IC'' ``production.'' These changes are expected to not result in 
an annual increase of ``one-business day'' notifications under Sec.  
740.26(d)(2) to BIS under License Exception RFF or a minimal number of 
one business day notifications, provided the other terms and conditions 
of License Exception RFF are being followed.
    There is also a reporting requirement for installation of SME that 
must be sent to BIS within 30 days of installation. These changes are 
expected to result in an annual increase of 306 installation reports 
under Sec.  740.26(e)(1) to BIS under License Exception RFF.
    In addition, there is an annual end-use confirmation report that 
must be sent to BIS by the exporter, reexporter, or transferor that 
confirms that the installed equipment is not being used in the 
productions of ``advanced-node ICs.'' These changes are expected to 
result in an annual increase of 102 installation reports under Sec.  
740.26(e)(2) to BIS under License Exception RFF.

[[Page 96797]]

    As a conforming change for the addition of License Exception RFF, 
in Sec.  762.2 (Records to be retained) this IFR revises paragraph (b) 
(Records retention references) to add a new paragraph (b)(57) to 
reference Sec.  740.26, License Exception RFF as a new records 
retention reference. This change is a conforming change with the 
addition of License Exception RFF and the new notification and 
reporting requirements under Sec.  740.26(d) and (e), respectively, 
which are considered ``export control records'' for purposes of the EAR 
and must be kept in accordance with the requirements of part 762 of the 
EAR.
3. Addition of Eight New Red Flags To Assist With Compliance
    In supplement no. 3 to part 732 (BIS's ``Know Your Customer'' 
Guidance and Red Flags), this IFR adds eight new Red Flags under 
paragraphs (b)(20) through (27) that are intended to provide additional 
compliance guidance to assist exporters, reexporters, and transferors 
as part of their compliance programs. These eight new Red Flags are in 
addition to the five Red Flags that were added by the AC/S IFR. As 
specified in the ``Know Your Customer'' Guidance and Red Flags, various 
requirements of the EAR are dependent upon a person's knowledge of the 
end use, end user, ultimate destination, or other facts relating to a 
transaction or activity. BIS provides the ``Know Your Customer'' 
Guidance and Red Flags to advise how individuals and firms should act 
under this knowledge standard.
    New Red Flag 20 identifies a scenario where a non-advanced 
fabrication facility orders equipment designed for ``advanced-node IC'' 
production (e.g., Sec.  742.4(a)(4) ECCNs). This scenario raises a Red 
Flag because this technology mismatch indicates the fabrication 
facility produces or intends to produce ``advanced-node ICs.'' The 
exporter, reexporter, or transferor must resolve this Red Flag before 
proceeding with the transaction.
    New Red Flag 21 identifies a scenario where an exporter, 
reexporter, or transferor receives an order for which the ultimate 
owner or user of the items is uncertain, such as a request to ship 
equipment for the ``development'' or ``production'' of ICs to a 
distributor without a manufacturing operation, when the item is 
ordinarily customized for the end user or installed by the supplier. 
Under this scenario the distributor would never be the end user of such 
equipment, which means that the ultimate owner or beneficiary is 
unknown to the exporter, reexporter, or transferor. This uncertainty 
raises a Red Flag that needs to be resolved before the exporter, 
reexporter, or transferor proceeds with the transaction. New Red Flag 
21 specifies this uncertainty requires the need for due diligence 
particularly for items where such information would typically be known 
to an exporter, reexporter, or transferor, such as for advanced 
computing items, supercomputers, or SME.
    New Red Flag 22 identifies a scenario where an order or request 
related to an item that would require an export, reexport, or in-
country transfer license from BIS or another jurisdiction (i.e., from 
another foreign government) that maintains controls on the item and the 
exporter, reexporter, or transferor has uncertainty about the license 
history for the item--meaning the exporter, reexporter, or transferor 
is not sure whether the export, reexport, or transfer (in-country) was 
properly authorized in accordance with the EAR and/or by the respective 
foreign government. New Red Flag 22 provides an example where there is 
information known to the exporter, reexporter, or transferor indicating 
that a license was not, or was not likely to have been, obtained by the 
end user, such as where the end user or end use, or the ECCN and end-
user destination triggers a license review policy of a presumption of 
denial. New Red Flag 22 specifies that these uncertainties raise a Red 
Flag that needs to be resolved before the exporter, reexporter, or 
transferor proceeds with further transactions related to the item to 
avoid the risk of violating Sec.  764.2(e), which includes acting on 
requests to service, install, upgrade, or otherwise support the item of 
concern.
    New Red Flag 23 identifies a scenario where an exporter, 
reexporter, or transferor receives a request to service, install, 
upgrade, or otherwise maintain an item that was altered after export by 
a third-party for a more advanced end use that would normally require a 
license for the destination. New Red Flag 23 specifies that this 
scenario would raise a Red Flag that the item is employed in a 
prohibited end use that would need to be resolved before proceeding 
further with the transaction.
    New Red Flag 24 identifies another scenario related to a request 
for an item or service from a new customer whose senior management or 
technical leadership (e.g., process engineers that are team leaders or 
otherwise leading development or production activities) overlaps with 
an entity on the Entity List, particularly if the supplier previously 
provided the same or substantially similar item or service to the 
Entity List entity, most likely prior to the listed entity being added 
to the Entity List. New Red Flag 24 specifies that this scenario would 
raise a Red Flag that the entity requesting the item or service is 
engaged in or supporting the same prohibited end use as the Entity List 
entity. The exporter, reexporter, or transferor would need to conduct 
additional due diligence before proceeding with the transaction with 
the new customer.
    New Red Flag 25 identifies another scenario related to servicing a 
request from a new customer for an item or service that was designed or 
modified for an existing or former customer that is now designated on 
the Entity List. New Red Flag 25 specifies that this scenario would 
raise a Red Flag that the new customer has assumed the operations for 
which the item or service is still needed to engage in or support the 
same prohibited end use for which the Entity List entity was listed. 
This Red Flag would need to be resolved by the exporter, reexporter, or 
transferor before proceeding.
    New Red Flag 26 provides additional guidance that will assist 
exporters, reexporters, and transferors in complying with the two new 
FDP rules added to the EAR in this IFR. See section III.A of this 
preamble for a description of the two new FDP rules related to the 
production of ``advanced-node ICs'' implemented by this IFR. Red flag 
26 specifies that when analyzing the scope of the Entity List FDP rules 
for Footnote 5 entities, if a foreign-produced item is described in the 
relevant Category 3B ECCN in Sec. Sec.  734.9(e)(3)(i) or 734.9(k)(1) 
and contains at least one IC, then there is a Red Flag that the 
foreign-produced item meets the product scope of the applicable FDP 
rule and the exporter, reexporter, or transferor must resolve the Red 
Flag before proceeding. Key components, including ICs, are key to the 
functioning of SME, and such components are dependent on U.S. 
technology and software as well as on tools derived from U.S. 
technology and software. BIS has concluded, based on assessments of 
supply chain data, that there is a significant prevalence of certain 
types of U.S.-origin tools (or foreign-produced tools that are the 
direct product of U.S.-origin technology or software) in fabrication 
facilities for the production of ICs. As with all Red Flags, exporters, 
reexporters, and in-country transferors will need to conduct due 
diligence before continuing with the transaction. Such additional 
diligence is necessary in order to ensure that items produced with the 
use of U.S. technology, software, or tools, including ICs that are 
contained in the specified foreign-produced commodities being

[[Page 96798]]

controlled, are not sent to end users contrary to U.S. national 
security and foreign policy interests.
    New Red Flag 27 identifies a scenario where the end user is a 
``facility'' that is physically connected to a ``facility'' where 
``production'' of ``advanced-node ICs'' occurs. Each building is 
considered a separate ``facility,'' but if multiple buildings are 
connected in such a way that allows for the ``production'' of the 
integrated circuits across the physically connected buildings, this 
raises a Red Flag that ``production'' of ``advanced-node ICs'' occurs 
in each one of the connected facilities. The Note to Number 27 states 
that, for example, if an exporter, reexporter, or transferor receives 
an equipment order from a company that is engaged in ``production'' of 
non-``advanced-node ICs'' in one building, and this building is 
physically connected to another building where the ``production'' of 
``advanced-node ICs'' occurs, then both buildings would be subject to 
the controls under Sec.  744.23 of the EAR, unless the exporter can 
demonstrate that the destination facility is not engaged in the 
``production'' of ``advanced-node ICs.'' The Note to Number 27 provides 
that to resolve the red flag, the exporter should submit an advisory 
opinion to BIS. Otherwise, the two buildings are treated as a single 
``facility'' for purposes of license requirements under Sec.  744.23 of 
the EAR.
4. Revisions to the Definition of ``Advanced-Node Integrated Circuit'' 
Related to DRAM
    In Sec.  772.1 (Definitions of terms as used in the Export 
Administration Regulations (EAR)), this IFR revises the definition of 
``Advanced-Node Integrated Circuits (Advanced-Node IC)'' by revising 
the criteria for how DRAM ICs is defined. In paragraph 3 of the 
definition, this IFR removes the criterion using a ``production'' 
`technology node' of `18 nanometer half pitch or less' and adds in its 
place two different criteria. When either of these two criteria are 
met, the commodity would be considered a DRAM integrated circuit for 
purposes of this definition. Specifically, this IFR specifies that DRAM 
integrated circuits meet the definition of ``Advanced-Node Integrated 
Circuits (Advanced-Node IC)'' when the integrated circuit either has a 
memory cell area of less than 0.0019 square micrometers ([mu]m\2\); or 
a memory density greater than 0.288 gigabits per square mm.
    For additional context on the reason for this change, in parts 734 
and 744 of the EAR, ``advanced-node ICs'' include logic, DRAM, and NAND 
ICs that meet certain technical parameters. This IFR updates the 
technical parameters defining advanced-node DRAM ICs. The previous 
definition used half-pitch to characterize advanced-node DRAM ICs. 
However, that definition allowed fabrication facilities to make 
substantial improvements in memory density by using more compact memory 
cell architectures, as well as by stacking DRAM in three dimensions, 
without meeting the definition, thereby avoiding controls. Furthermore, 
the previous definition did not capture HBM, which is crucial to 
frontier AI training and inference and is typically co-packaged with 
advanced logic chips for datacenter AI and supercomputing.
    The definition in this IFR uses a memory density and memory cell 
area standard that captures both advances in memory cell 
miniaturization as well as HBM and other memory devices that stack 
layers of DRAM vertically to achieve greater densities without reducing 
half-pitch. A technical note also defines the cell area. The intent of 
this change in the definition of advanced-node DRAM ICs is not to 
change the current impact of the end-user controls, but to prevent 
possible future workarounds, especially the production of high 
bandwidth memory for advanced computing ICs. As a conforming change, 
the reference to paragraph three is removed from Note 1 to the 
definition.
    This IFR also removes the Technical Note to the definition, as it 
is no longer needed because of the other clarifying changes made to 
this definition, in particular the addition of new Note 2 to the 
definition of ``Advanced-Node Integrated Circuits.'' This IFR adds a 
new Note 2 to the definition of ``Advanced-Node Integrated Circuits 
(Advanced-Node IC)'' to specify that memory density is measured in 
gigabytes (GB) of memory capacity of the package or stack, divided by 
the footprint of the package or stack measured in square millimeters. 
Note 2 also clarifies that in the case where a stack is contained in a 
package, the area of the package should be used in the classification. 
Finally, Note 2 specifies that cell area is defined as Wordline*Bitline 
(which takes into consideration both transistor and capacitor 
dimensions).
5. Clarifications to Section 744.23
(i) Revisions To Address Support for ``Development'' and ``Production'' 
of Advanced-Node ICs
    This IFR adds new paragraph (a)(2)(iii) in Sec.  744.23 to clarify 
that Sec.  744.23(a)(2) restricts the provision of Electronic Computer 
Aided Design (ECAD) and Technology Computer Aided Design (TCAD) 
``software'' and ``technology'' subject to the EAR when you ``know'' it 
will be used in the design of ``advanced-node IC'' whose subsequent 
``production'' will be in Macau or a destination in Country Group D:5.
    This IFR also adds new paragraph (a)(2)(iv) in Sec.  744.23 to add 
an ``advanced node IC'' exclusion to specify the license requirements 
for items specified in paragraphs (a)(2)(i) and (ii) destined to 
entities designated with a Footnote 5 are not subject to the license 
requirements in this section. This IFR adds this exclusion because the 
Entity List license requirements for these Footnote 5 entities will 
already impose a license requirement for these items, so the additional 
license requirement under Sec.  744.23(a)(2)(i) and (ii) is not needed 
to protect U.S. national security and foreign policy interests for 
these entities.
(ii) Revisions To Address Support for Indigenization of Semiconductor 
Manufacturing Supply Chains
    BIS continues to evaluate public comments received on the AC/S IFR, 
the SME IFR, and the April 4 IFR. BIS intends to address those comments 
in a future rulemaking. In the meantime, in this IFR, BIS is revising 
Sec.  744.23(a)(4) to address several specific questions and concerns 
about the application of Sec.  744.23(a)(4)(ii)(B), added in the April 
4 IFR, to both the initial and intermediate ``development'' or 
``production'' of Category 3B SME specified in Sec.  744.23(a)(4). 
Specifically, BIS is revising Sec.  744.23(a)(4)(ii) to make clear that 
the end-use control may apply to any item subject to the EAR and 
specified on the CCL when: (1) the item (either in its original form or 
as subsequently incorporated into a foreign-made item) is for the 
``development'' or ``production'' of any foreign-made item specified in 
the end-use control; and (2) the ``development'' or ``production'' is 
by an entity headquartered in or whose ultimate parent is headquartered 
in Macau or a destination specified in Country Group D:5. Because of 
this clarification to paragraph (a)(4)(ii), paragraph (B) is no longer 
needed, so this IFR removes paragraph (a)(4)(ii)(B) and redesignates 
paragraph (a)(4)(ii)(C) as paragraph (B).
    BIS is also adding the parenthetical phrase ``(and not excepted by 
that paragraph)'' to paragraph (A) of Sec.  744.23(a)(4)(ii)(A) to 
clarify that the exclusions (e.g., for masks) to the ECCNs listed in 
Sec.  744.23(a)(4)(i) also apply in the controls under Sec.  
744.23(a)(4)(ii).

[[Page 96799]]

    Further, BIS is eliminating the qualification for `front-end 
integrated circuit ``production'' equipment' in current Note 1 to Sec.  
744.23(a)(4). BIS believes this approach will simplify compliance with 
the end-use control by eliminating questions about whether an end-use 
involves ``development'' or ``production'' of a `front-end' versus 
`back-end' item, and it will reduce the risk that items subject to the 
EAR are diverted from purported ``development'' or ``production'' of 
back-end items to front-end items specified in the same ECCNs. As noted 
in the SME IFR, BIS continues to welcome feedback from industry on 
specific ECCNs that are not used in front-end production of ICs and 
could be excluded from the ECCN scope of Sec.  744.23(a)(4).
    BIS is also adding ECCN 3B903 to the list of qualifying ECCNs to 
reflect updates to Category 3B under the IFR, ``Commerce Control List 
Additions and Revisions; Implementation of Controls on Advanced 
Technologies Consistent with Controls Implemented by International 
Partners'' (89 FR 72926, September 6, 2024).
    SME specified in ECCNs 3B903, 3B992, 3B993, and 3B994 are added to 
the end-use license requirement in Sec.  744.23(a)(4)(i). Accordingly, 
a license is now required to export, reexport, transfer (in-country) 
any item subject to the EAR and specified on the CCL when destined to 
or within either Macau or a destination specified in Country Group D:5 
for the ``development'' or ``production'' of ``equipment,'' 
``components,'' ``assemblies,'' or ``accessories'' specified in ECCNs 
3B903, 3B992, 3B993, and 3B994.
    Additional changes to Sec.  744.23 are discussed in section III.C.2 
of the preamble.
6. Conforming and Clarifying Revisions to General Prohibition Three
    In Sec.  736.2 (General prohibitions and determination of 
applicability), this IFR revises paragraph (b)(3)(i) (General 
Prohibition Three--Foreign-direct product (FDP) rules), to clarify that 
the prohibition extends to any foreign-produced items that are subject 
to the EAR pursuant to Sec.  734.9 if such items are subject to a 
license requirement in part 736, 742, 744, 746, or 764 of the EAR. The 
existing Entity List FDP rules under Sec.  734.9(e)(1) and (2) already 
extend to foreign-``direct products'' and certain other foreign-
produced items, and the new FN5 FDP will do the same. This revision to 
Sec.  736.2(b)(3)(i) is a conforming and clarifying change.
7. Revision to General Order No. 4 Temporary General License
    The Temporary General License (TGL) in supplement no. 1 to part 
736, General Order no. 4, is amended by adding newly added SME ECCNs 
(i.e., 3B001.c.4, 3B993.b.1, c.2, c.3, d.4, f.2, f.3, o.2, q.1, q.2, 
3B994, 3D993.a (for commodities specified in paragraph (d)(1)(i)(B)), 
3D993.b through .d, 3D994, 3E993.a (for commodities specified in 
paragraph (d)(1)(i)(B)), 3E993.b, and 3E994) to this authorization in 
paragraph (d)(1)(i). Paragraph (d)(2)(ii) is revised by adding 3A090.c 
when destined to or within Macau or a destination in Country Group D:5 
and cascading the paragraph into three separate paragraphs 
(d)(2)(ii)(A)(1) through (3). See Section C.2 for more details 
regarding the addition of 3A090.c (high bandwidth memory). In addition, 
a new paragraph (d)(2)(ii)(B) is added to add an additional ultimate 
end use for 3A090.c. This IFR also revises the paragraph (d)(3) 
validity date to extend it as follows: (1) for SME items controlled 
only for AT reasons, until December 31, 2026; (2) for SME items added 
to the CCL in this rule (i.e., excluding items that were moved from 
3B001 to 3B993, but not previously eligible for paragraph (d)(1)) until 
December 31, 2026; (3) for items specified in paragraph (d)(2)(i)(A), 
until December 2025; and (4) for HBM items specified in paragraph 
(d)(2)(i)(B), until December 2026. In order to not disrupt IC supply 
chains and from discussions with industry, BIS is extending the 
validity period for AT only items for one additional year (December 31, 
2026). BIS is setting the validity period for SME items added to the 
CCL to one year (December 31, 2026). BIS is not extending the validity 
deadline for advanced compute items because it is no longer needed 
because of new licenses and new additions to the VEU for these 
companies. The validity for the new HBM items is set at one year 
(December 31, 2026) to allow for adjustment to the new controls.
8. Revisions to ``U.S. Persons'' Restrictions in Sec.  744.6
    This IFR revises paragraph (c)(2)(iii) of Sec.  744.6 to 
synchronize the product scope with the license requirement product 
scope in Sec. Sec.  742.4(a)(4) and 742.6(a)(6) of the EAR.
9. Revisions to Sec.  770.2
    This IFR revises Sec.  770.2 to make conforming changes to 
paragraph (o)(2)(i) by adding ECCNs 3D992, 3D993, 3E992, and 3E993.
10. Conforming Changes to Foreign Direct Product Rules
    This IFR adds ECCNs 3D901, 3D992, 3D993, 3D994, 3E901, 3E992, 
3E993, and 3E994 to the following foreign direct product rules in Sec.  
734.9: Entity List FDP: Footnote 1 (Sec.  734.9(e)(1)(i)(A) and (B)), 
Entity List FDP: Footnote 4 (Sec.  734.9(e)(2)(i)(A) and (B)), Advanced 
Computing FDP rule (Sec.  734.9(h)(1)(i)(A) introductory text, 
(h)(1)(ii)(A)), Supercomputer FDP rule Sec.  734.9(i)(1)(i) and (ii)).
11. Conforming Changes to Section 742.4
    This IFR corrects a paragraph designation in Sec.  742.4 under 
paragraph (a)(5) to redesignate the second reference to paragraph 
(a)(5)(ii)(B)(i) and (ii) as paragraphs (a)(5)(ii)(B)(1) and (2) as 
intended. This IFR does not change the first reference to paragraph 
(a)(5)(ii) in Sec.  742.4, which is correct.

C. Addition of High Bandwidth Memory (HBM) Controls

1. Addition of New 3A090.c
    Control of advanced memory chips is key to national security 
because of their military, intelligence, and surveillance applications. 
In particular, advanced AI models rely on a type of advanced memory 
called HBM, which is found in almost all advanced computing ICs 
destined for advanced AI data centers. As the speed of advanced logic 
increases, a similar increase in memory capacity and bandwidth is 
required; otherwise, the full capabilities of the processor cannot be 
realized. In advanced AI and supercomputing, advanced logic chips must 
be paired with advanced memory to avoid this memory bottleneck. As 
such, HBM is critical to both AI training and inference at scale and a 
key component of advanced computing ICs.
    Based on the importance of HBM described above, BIS is adding a new 
ECCN control on HBM stacks with a specific memory bandwidth density to 
ECCN 3A090.c. HBM units are optimized for very high memory bandwidth, 
unlike general consumer-grade dynamic random access memory (DRAM) 
chips, so this threshold will narrowly target controls at HBM. BIS uses 
the bandwidth density--rather than just the bandwidth--to ensure 
controls will still apply if an IC uses a larger quantity of smaller 
HBM chips at little additional cost. As indigenous PRC advanced 
computing ICs rely upon imported HBM, new ECCN 3A090.c implements 
restrictions to slow PRC attempts to indigenize advanced AI chip 
production, which, as explained above,

[[Page 96800]]

raises national security and foreign policy concerns.
    Under ECCN 3A090, this IFR adds a new items paragraph .c to impose 
a new CCL-based control for certain HBM commodities. Also, under the 
advanced computing FDP rule in Sec.  734.9(h), foreign-produced 3A090.c 
items will be subject to the EAR if they meet the scope of that FDP 
rule. Under new 3A090.c, this IFR will control HBM having a `memory 
bandwidth density' greater than 2 GB per second per square millimeter 
(mm). All HBM stacks currently in production exceed this threshold.
    This IFR also adds a technical note to 3A090.c to define for 
purposes of this ECCN that `memory bandwidth density' is the memory 
bandwidth of the package or stack measured in GB per second divided by 
the area of the package or stack measured in square mm. The new 
technical note to 3A090.c includes a sentence to clarify that where a 
stack is contained in a package, the item should be classified using 
the memory bandwidth of the packaged device and the area of the 
package. The new technical note to 3A090.c also includes a sentence 
highlighting that high bandwidth memory includes dynamic random access 
memory integrated circuits, regardless of whether they conform to the 
JEDEC standards for high bandwidth memory, provided they have a `memory 
bandwidth density' greater than 2 GB per second per square mm. Lastly, 
technical note to 3A090.c specifies that certain co-packaged integrated 
circuits are excluded from the scope of 3A090.c, as this control does 
not cover co-packaged integrated circuits with both HBM and logic, 
where the dominant function of the co-packaged integrated circuit is 
processing. The technical note further clarifies that this control does 
include HBM permanently affixed to a logic integrated circuit designed 
as a control interface and incorporating a physical layer (PHY) 
function. Advanced computing ICs containing co-packaged logic and HBM 
are not controlled by 3A090.c, though they may be controlled by other 
ECCNs such as 3A090.a or 3A090.b depending on their Total Processing 
Performance (TPP) and performance density.
    This IFR imposes these new controls on HBM stacks under ECCN 
3A090.c because these commodities are an important part of the 
``production'' process for making advanced computing ICs, which prior 
to this IFR were not being controlled under ECCN 3A090. In order to 
more effectively address the national security and foreign policy 
concerns which are being addressed under ECCN 3A090, BIS added a 
control on HBM to prevent the PRC, as well as other destinations of 
concern, from producing advanced computing ICs incorporating HBM.
    If these HBM stacks are incorporated into an IC or a higher-level 
commodity, such as a computer or electronic assembly, then ECCN 
3A090.a, .b, 4A090.a or .b, or the respective .z controls may impose 
controls on the commodities containing HBM. The national security and 
foreign policy concerns are focused on HBM, as covered under 3A090.c, 
that is exported as a stand-alone commodity (i.e., when not 
incorporated into a higher-level commodity). When a 3A090.c commodity 
is incorporated into another commodity, such as a 3A090.a, .b, or 
another commodity, the EAR controls applicable to those other 
commodities are sufficient to address the export control concerns with 
these 3A090.c commodities.
    This IFR also redesignates and revises Note 2 to 3A090 as new Note 
1 to 3A090.a and 3A090.b, including adding references to 3A090.a and 
3A090.b in the note and repositioning the note, so it appears 
immediately after 3A090.a and .b. This IFR also redesignates Note 1 to 
3A090 as Note 2 to 3A090 to reflect the reordering of the notes in ECCN 
3A090.
2. Conforming Changes for Addition of 3A090.c
    This IFR also makes the following eight conforming changes to other 
parts of the EAR to address the addition of 3A090.c:
    In supplement no. 1 to part 736--General Orders, this IFR revises 
General Order No. 4 under paragraph (d)(2) (TGL--Advanced computing 
items) to redesignate the introductory text of (d)(2)(ii) (End-use 
scope), except for the heading that is added by this rule, as new 
paragraph (d)(2)(ii)(A) (For all items under paragraph (d)(2)(i)). This 
IFR also adds a new paragraph (d)(2)(ii)(B) (Additional permitted 
ultimate end use for 3A090.c.) to clarify the application of the 
ultimate end use requirement for 3A090.c commodities that are 
authorized under the TGL. As described in new paragraph (d)(2)(ii)(A), 
for other items, the TGL requires the ultimate end use of these other 
items to be outside of destinations specified in Country Groups D:1, 
D:4, or D:5 (and not specified in Country Groups A:5 or A:6) by 
entities not headquartered in or whose ultimate parent company is not 
headquartered in Macau or a destination specified in Country Group D:5 
in all cases. The first sentence under new paragraph (d)(2)(ii)(B) 
specifies that the ultimate end use of 3A090.c commodities allows for 
use in any destination once the 3A090.c commodity is incorporated into 
another commodity, provided that higher-level commodity is not a 
commodity that is identified under paragraph (d)(2)(i) of this General 
Order No. 4. This sentence is needed because 3A090.c in certain cases 
may be incorporated into consumer electronics that would not otherwise 
be of concern for advanced AI, so therefore the ultimate end-use 
restriction is qualified with the addition of this sentence. The second 
sentence under new paragraph (d)(2)(ii)(B) specifies that if the higher 
level commodity is identified under paragraph (d)(2)(i), of this 
General Order No. 4, then the ultimate end use of these items is 
authorized under paragraph (d)(2)(ii) for destinations other than those 
specified in Country Groups D:1, D:4, or D:5 (and not specified in 
Country Groups A:5 or A:6) by entities not headquartered in or whose 
ultimate parent company is not headquartered in Macau or a destination 
specified in Country Group D:5. Lastly, the third sentence under new 
paragraph (d)(2)(ii)(B) clarifies that any subsequent export, reexport, 
or transfer (in-country) of a 3A090.c commodity (regardless of whether 
it was incorporated into a higher-level commodity) would also need to 
comply with any other applicable EAR license requirements that may be 
applicable, such as those based on the classification (including, if 
relevant, of the higher-level commodity) and the end use and parties to 
the transaction.
    This IFR revises the introductory text in Sec.  740.8 (Notified 
Advanced Computing (NAC) and Advanced Computing Authorized (ACA)), 
paragraph (a) (Eligibility requirements) to specify that ECCN 3A090.c 
is not eligible for License Exception NAC or ACA. This exclusion is 
made because of concerns that HBM classified under 3A090.c could be 
diverted for incorporation into other items that would be of national 
security and foreign policy concern for advanced AI model training 
applications. However, if the HBM is incorporated into another 
commodity, those concerns are sufficiently addressed through the export 
controls imposed under the EAR for the higher-level commodity. Based on 
the same rationale, this IFR does not extend the .z controls to items 
that meet or exceed the controls parameters under 3A090.c, because if a 
3A090.c item is incorporated into a higher-level commodity, the 
classification and controls for the higher-level commodity

[[Page 96801]]

applies. Lastly, if a 3A090.c commodity were incorporated into a 
commodity that is eligible for License Exception NAC or ACA, that 
higher-level commodity (e.g., a 3A090.b commodity) would not be 
precluded from being authorized under License Exception NAC or ACA. See 
Sec.  770.2 (Item interpretations) under paragraph (b) (Interpretation 
2: Classification of ``parts'' of machinery, equipment, or other 
items). As an additional conforming change for this exclusion of 
3A090.c from NAC and ACA, this IFR also revises the NAC/ACA paragraph 
in the License Exceptions section of ECCN 3A090 to specify that NAC/ACA 
is N/A for 3A090.c.
    This IFR makes a third conforming change in Sec.  742.6 (Regional 
stability). Paragraph (a)(6)(i) (Exports, reexports, transfers (in-
country) to or within Macau or Country Group D:5) is revised to 
designate the text in paragraph (a)(6)(i) as paragraph (a)(6)(i)(A) and 
add a new paragraph (a)(6)(i)(B) to set forth license requirements for 
high bandwidth memory (HBM) items specified in ECCNs 3A090.c, 3D001 
(for 3A090.c), and 3E001 (for 3A090.c) when exported, reexported, or 
transferred (in-country) to or within Macau or a destination specified 
in Country Group D:5 in supplement no. 1 to part 740 of the EAR.
    This IFR also revises, as a conforming change, paragraph 
(a)(6)(iii) (Exports, reexports, transfers (in-country) to or within 
destinations specified in Country Groups D:1, D:4, and D:5, excluding 
destinations also specified in Country Groups A:5 or A:6) to specify 
that 3A090.c, 3D001 (for 3A090.c), and 3E001 (for 3A090.c) are excluded 
from the license requirements in this paragraph. These conforming 
changes are needed because the license requirements described in 
paragraph (a)(6)(iii) that apply for 3A090 and for the related software 
and technology controls for 3A090 will not apply for 3A090.c, which 
will have narrower RS license requirements than the rest of 3A090, as 
this IFR specifies in paragraph (a)(6)(i).
    This IFR also revises paragraph (b)(10)(i) to update the reference 
to newly designated paragraph (a)(6)(i)(A), in alignment with the 
change made to that paragraph. This IFR redesignates paragraph 
(b)(10)(ii) as paragraph (b)(10)(iii), and new paragraph (b)(10)(ii) 
now sets forth the license review policy for new paragraph (a)(6)(i)(B) 
(for HBM). There is a presumption of approval review policy for license 
applications for items specified in paragraph (a)(6)(i)(B) to or within 
Macau or a destination specified in Country Group D:5 in supplement no. 
1 to part 740 of the EAR for entities neither headquartered in, nor 
whose ultimate parent company is headquartered in, either Macau or a 
destination specified in Country Group D:5. There is a presumption of 
denial policy for all other license applications.
    This IFR also revises former paragraph (b)(10)(ii) (License review 
policy for paragraph (a)(6)(iii)) to cascade it into two new paragraphs 
(b)(10)(iii)(A) for presumption of approval policy and paragraph 
(b)(10)(iii)(B) for presumption of denial and case-by-case policy. The 
presumption of approval policy in paragraph (b)(10)(iii)(A) and the 
presumption of denial policy in paragraph (b)(10)(iii)(B) is unchanged 
by this IFR. BIS has added a case-by-case license review policy for 
paragraphs (b)(10)(iii)(B)(i) and (ii), which are those that would 
qualify for License Exception NAC in Sec.  740.8 of the EAR.
    This IFR makes a fourth and fifth conforming change in Sec.  744.23 
(``Supercomputer,'' ``advanced-node ICs,'' and SME end use controls). 
This IFR makes a conforming change to paragraph (a)(3)(i) to account 
for the RS license requirement for 3A090.c items destined to Macau or 
destinations specified in Country Group D:5, requiring a different 
destination scope for the end-use control under Sec.  744.23(a)(3)(i) 
compared to the other items referenced in this paragraph. This IFR 
addresses this needed end-use control conforming change by making the 
following changes. In Sec.  744.23(a)(3)(i), this IFR adds a heading to 
paragraph (i) (ECCNs 3A090, 4A090, and .z items destined to entities 
headquartered in, or whose ultimate parent company is headquartered in, 
either Macau or a destination specified in Country Group D:5 in certain 
destinations) and removes the text from paragraph (i) and adds that 
text to new paragraph (a)(3)(i)(A). BIS also amends that paragraph by 
excluding 3A090.c from the scope of this end-use license requirement 
and revising the parenthetical phrase at the end of the paragraph to 
make that example easier to understand. In another conforming change 
related to 3A090.c, this IFR adds a new paragraph (a)(3)(i)(B) to 
impose an end-use license requirement for ECCN 3A090.c commodities when 
there is ``knowledge'' these commodities are destined to any 
destination other than Macau or those specified in Country Group D:5, 
for an entity that is headquartered in, or whose ultimate parent 
company is headquartered in, either Macau or a destination specified in 
Country Group D:5. Lastly, this IFR adds a parenthetical phrase with an 
application example under new paragraphs (a)(3)(ii) to provide a better 
understanding of this provision.
    In addition, paragraph (a)(3)(ii) introductory text and paragraph 
(a)(ii)(D) of Sec.  744.23 are revised to add an exclusion for 3E001 
technology for 3A090.c, because the intent of this end-use control for 
certain 3E001 technology is focused, for example, on preventing a PRC 
company located in PRC from sending its designs to a logic foundry in a 
third country to manufacture 3A090 chips under 3A090.a or .b for the 
PRC company. The license review policy for 3A090.c and related 
``technology'' and ``software'' destined to Macau, destinations 
specified in Country Group D:5, or any entity headquartered in, or with 
an ultimate parent headquartered in, either Macau or a destination 
specified in Country Group D:5 will be consistent with the current 
policy for ECCN 3A090 pursuant to Sec.  744.23(d)(1) of the EAR. 
Additional changes to Sec.  744.23 are discussed in section III.B.5 of 
this preamble.
    This IFR makes a sixth conforming change related to 3A090.c in 
Sec.  758.6 (Destination control statement and other information 
furnished to consignees). The last sentence of paragraph (a)(2) is 
revised by adding .c to the reference to 3A090.a or .b, so it is clear 
that, for tangible exports of ECCN 3A090 commodities, 3A090.c needs to 
be identified on the commercial invoice, in the same way as 3A090.a or 
.b needs to be identified on the commercial invoice.
    As the seventh and eighth conforming changes related to 3A090.c, 
this IFR revises two ECCNs in the Commerce Control List, 3D001 and 
3E001, for the related software and technology controls for 3A090.c to 
conform with the revisions to Sec.  742.6 for the RS controls that are 
applicable to these related software and technology ECCNs.
    Under ECCN 3D001, this IFR revises the RS Controls paragraph in the 
License Requirements section to exclude software for 3A090.c from RS 
license requirements under Sec.  742.6(a)(6)(iii), consistent with the 
exclusion of 3A090.c and 3E001 technology for 3A090.c from the scope of 
Sec.  742.6(a)(6)(iii). In addition, this IFR also adds an RS Controls 
paragraph in the License Requirements section to reference Sec.  
742.6(a)(6)(i), including adding 3A090.c to this RS license requirement 
because software for 3A090.c is included in the scope of Sec.  
742.6(a)(6)(i). Previously, this RS Controls paragraph that references 
Sec.  742.6(a)(6)(i) was not included in the License Requirements 
section. To conform with the RS license

[[Page 96802]]

requirements in Sec.  742.6(a)(6)(i), this IFR corrects that omission 
by adding this intended RS Controls paragraph, along with including a 
reference to new ECCN 3A090.c.
    Under ECCN 3E001, this IFR revises the RS Controls paragraph in the 
License Requirements section that references Sec.  742.6(a)(6)(iii), to 
exclude 3A090.c from this RS license requirement because 3E001 
technology for 3A090.c is excluded from the scope of Sec.  
742.6(a)(6)(iii). In addition, this IFR adds a new RS Controls 
paragraph in the License Requirements section of ECCN 3E001 for 3A090.c 
to impose a RS license requirement under Sec.  742.6(a)(6)(i)(B) for 
exports, reexports, and transfers to or within Macau or a destination 
specified in Country Group D:5 of supplement no. 1 to part 740.
3. Addition of New License Exception HBM for 3A090.c
    In part 740 (License Exceptions), this IFR adds a new License 
Exception HBM under Sec.  740.25. This IFR adds License Exception HBM 
to authorize certain exports, reexports, and transfers (in-country) for 
some of the new HBM commodities that this IFR adds to ECCN 3A090.c. 
License Exception HBM consists of paragraphs (a) through (e), which 
specify the terms and conditions of this new license exception and 
create a more efficient authorization for certain exports, reexports, 
or transfers (in-country) of these new ECCN 3A090.c commodities that 
are in U.S. national security and foreign policy interests. This 
license exception authorizes exports, reexports, and transfers (in-
country) when both: (1) the export, reexport, or transfer (in-country) 
is completed by and to packaging sites that, even if located within a 
country of concern, are owned and operated by U.S. or allied 
headquartered companies, alleviating the national security concerns 
about those destinations; and (2) where the U.S. or allied 
headquartered company carefully tracks the HBM being sent and returned 
by the packaging site and resolves discrepancies or report them to BIS. 
As a result, the exception helps ensure that national security and 
foreign policy considerations are addressed without delaying the 
ability of U.S. and allied headquartered companies to continue 
operations that do not raise national security or foreign policy 
concerns.
    Specifically, this IFR adds paragraph (a) (Scope) to specify that 
License Exception HBM authorizes the export, reexport, or transfer (in-
country) of items specified in ECCN 3A090.c on the CCL if all terms and 
conditions within this section are met.
    This IFR adds paragraph (b) (Exporter, reexporter, transferor) to 
impose requirements on who may be an exporter, reexporter or transferor 
under License Exception HBM. This IFR specifies under paragraph (b) 
that the exporter, reexporter, or transferor must be headquartered in 
the United States or a destination specified in Country Group A:5 of 
supplement no. 1 to part 740, without an ultimate parent headquartered 
in Macau or a destination specified in Country Group D:5 of supplement 
no. 1 to part 740. No other exporter, reexporter, or transferor may use 
License Exception HBM.
    This IFR adds paragraph (c) (Conditions) to specify that exports, 
reexports, or transfers (in-country) are authorized under this License 
Exception HBM only when the 3A090.c item has a memory bandwidth density 
less than 3.3 GB/s/mm[supcaret]2. Only HBM at less than this parameter 
may be authorized under License Exception HBM. HBM at equal to or 
greater than this parameter referenced under paragraph (c) are of 
greater sensitivity, so those HBM of greater sensitivity are not 
eligible for HBM to ensure U.S. national security and foreign policy 
interests are protected. In order to export, reexport, or transfer (in-
country) such HBM, both of the conditions that are specified under 
paragraphs (c)(1) and (c)(2) must be met.
    New paragraph (c)(1) of License Exception HBM specifies that the 
3A090.c items exported, reexported, or transferred to or within Macau 
or a destination specified in Country Group D:5 must be directly 
purchased by the designer of the co-packaged commodity. Because of the 
greater export control concerns with shipments through distributors 
related to diversion, this condition ensures that the exporter, 
reexporter, or transferor must know who the designer of the co-packaged 
commodity is and that the designer is the entity that the co-packaged 
commodity is being exported, reexported, or transferred (in-country) to 
under License Exception HBM.
    New paragraph (c)(2) of License Exception HBM specifies that the 
3A090.c items must be shipped directly to the packaging site, which is 
included to prevent diversion. HBM are used at packaging sites, so this 
condition is intended to further ensure that the HBM are being 
exported, reexported, or transferred (in-country) directly to the end 
user and not to other parties that would pose a greater risk of 
diversion.
    Paragraph (c)(2)(i) of License Exception HBM applies to 3A090.c 
items that are destined for packaging at a U.S.- or Country Group A:5 
or A:6-headquartered packaging site without an ultimate parent 
headquartered in Macau or a destination specified in Country Group D:5 
and meet the additional conditions this IFR adds under paragraph 
(c)(2)(i)(A) and (B). New paragraph (c)(2)(i)(A) specifies that the 
packaging site must confirm in writing to the producer of the chips 
that the 3A090.c item was packaged and exported, reexported, or 
transferred (in-country) to the specified designer of the co-packaged 
commodity. The second sentence to paragraph (c)(2)(i)(A) specifies that 
this confirmation is considered an ``export control document'' and is 
subject to recordkeeping requirements in part 762. New paragraph 
(c)(2)(i)(B) specifies that the co-packaged commodities must not exceed 
the technical thresholds in ECCN 3A090, unless packaging the item is 
permitted under the TGL specified in paragraph (d) of General Order No. 
4 in of supplement no. 1 to part 736. This condition under paragraph 
(c)(2)(i)(B) is excluded because there is greater export control 
concern if a 3A090.c item is being incorporated into a 3A090.a or 
3A090.b commodity, unless that activity is within the scope of the TGL.
    Paragraph (c)(2)(ii) of License Exception HBM specifies that if the 
3A090.c items are destined for packaging at any other packaging site, 
then the co-packaged commodities must be sent back to the exporter, 
reexporter, or transferor for export, reexport, or transfer (in-
country) to the purchaser and meet the additional conditions under new 
paragraphs (c)(2)(ii)(A) and (B). New paragraph (c)(2)(ii)(A) specifies 
that upon receipt of the co-packaged commodities, the exporter, 
reexporter, or transferor must confirm the number of 3A090.c units 
contained within the co-packaged chips received from the packaging site 
matches the number of 3A090.c items exported, reexported, or 
transferred (in-country) to the packaging site. Similar to the text 
this IFR adds to paragraph (c)(2)(i)(A), this IFR adds a second 
sentence to paragraph (c)(2)(ii)(A) to specify that this confirmation 
is considered an ``export control document'' and is subject to 
recordkeeping requirements in part 762. As with all export control 
records, the IFR specifies under paragraph (c)(2)(ii)(A) that a copy of 
this record must be provided to BIS upon request. Paragraph 
(c)(2)(ii)(B) specifies that the co-packaged commodity must not exceed 
the technical thresholds in ECCN 3A090.a or 3A090.b. This is necessary 
because the logic die co-packaged with the HBM may still

[[Page 96803]]

exceed the TPP or performance density thresholds in 3A090.a or 3A090.b.
    This IFR adds paragraph (d) (Restrictions) to specify certain 
exports, reexports, or transfers (in-country) of 3A090.c items that are 
not authorized under this License Exception HBM when specified under 
paragraphs (d)(1), (2), or (3). New paragraph (d)(1) excludes exports, 
reexports or transfers (in-country) to distributors. New paragraph 
(d)(2) excludes exports, reexports, or transfers (in-country) to 
intermediate consignees, unless hired by the packaging site for freight 
forwarding or customs clearance. New paragraph (d)(3) excludes exports, 
reexports, or transfers (in-country) to co-packaging at a ``facility'' 
located in Macau or a destination specified in Country Group D:5 where 
``production'' of ``advanced-node ICs'' occurs. These three 
restrictions specified under paragraphs (d)(1) through (3) are needed 
to ensure the exports, reexports, and transfers (in-country) authorized 
under License Exception HBM will not be diverted contrary to U.S. 
national security and foreign policy interests.
    This IFR adds paragraph (e) (Reporting requirement) to specify that 
in the event that the exporter, reexporter, or transferor identifies a 
discrepancy of greater than 1 percent between the number of 3A090.c 
units exported, reexported, or transferred (in-country) to the 
packaging site and the number of 3A090.c units contained within the co-
packaged commodities received from the packaging site under paragraph 
(c)(2)(A) of this section, this generates a `Red Flag' that must be 
resolved before exporting, reexporting, or transferring (in-country) 
the co-packaged commodities to the designer of the co-packaged 
commodities or engaging in any further exports, reexports, or transfers 
(in-country) of 3A090.c items to the designer of the co-packaged 
commodities or packaging site involved in the transaction that raised 
the Red Flag. The IFR adds a second sentence to the introductory text 
of paragraph (e) to specify that if the Red Flag cannot be resolved, 
then within 60 days of identifying the discrepancy, the exporter, 
reexporter, or transferor must report the information in new paragraph 
(e)(1) to BIS on the unresolved Red Flag, following the requirements 
under paragraph (e)(2).
    New paragraph (e)(1) (Information required) specifies under 
paragraphs (e)(1)(i) through (vi) the information that needs to be 
reported to BIS. Specifically, paragraphs (e)(1)(i) through (e)(vi) 
specifies that the following information must be reported to BIS: (i) 
the date of shipment; (ii) the quantity shipped, and quantity returned; 
(iii) the name of Consignee or designer of the co-packaged commodities; 
(iv) the name and address of the packaging site; (v) the end use; and 
(6) an explanation of measures already taken or planned to resolve the 
Red Flag.
    New paragraph (e)(2) (Submission requirements) specifies that 
reports must be provided in electronic form. Paragraph (e)(2) specifies 
that the recommended file formats for electronic submission include 
spreadsheets, tabular text, or structured text. Paragraph (e)(2) allows 
for submitters of such reports to request other reporting arrangements 
with BIS to better reflect their business models. Lastly, paragraph 
(e)(2) specifies that reports are to be sent electronically to BIS at 
the email address: [email protected] with the email subject line 
Attn: LE HBM Discrepancy Reports. These changes are expected to result 
annually in an increase of 10 notifications to BIS under License 
Exception HBM.
    As a conforming change for the addition of License Exception HBM, 
this IFR revises section 740.2(a)(9)(ii) to add the phrase ``HBM under 
the provisions of Sec.  740.25'' to specify this is an additional EAR 
license exception that may overcome the general restriction, even 
though License Exception HBM is only available for ECCN 3A090.c. This 
IFR also adds a new Note to paragraph (a)(9)(ii) to provide guidance on 
why ECCN 3A090.c is included within the scope of this paragraph even 
though the destination scope referenced in this paragraph is broader 
than the destination scope of license requirements for 3A090.c. This 
new Note specifies under the first sentence that ECCN 3A090.c requires 
a license for exports, reexports, transfers (in-country) to or within 
Macau or Country Group D:5 but is still included within the scope of 
this paragraph because it generally shares the same EAR license 
exception eligibility as other 3A090 commodities. The last sentence of 
this note specifies that an export, reexport, or transfer (in-country) 
of an ECCN 3A090.c commodity to a destination specified in Country 
Groups D:1 or D:4 that is not specified in Country Group D:5, may be 
made under the No License Required (NLR) designation, provided no part 
744 or 746 license requirements are applicable.
    As a conforming change for the addition of License Exception HBM, 
in Sec.  762.2 (Records to be retained) this IFR revises paragraph (b) 
(Records retention references) to add a new paragraph (b)(56) to 
reference Sec.  740.25, License Exception HBM as a new record retention 
reference. This change is a conforming change with the addition of 
License Exception HBM and the new reporting requirement under Sec.  
740.25(e), which is considered an ``export control record'' for 
purposes of the EAR and must be kept in accordance with the 
requirements of part 762 of the EAR.

D. Clarification to the EAR: Software Keys

    This IFR also clarifies the export controls that apply to the 
export, reexport, and transfer (in-country) of software keys that allow 
access to the use of certain software and hardware. This IFR revises 
existing Sec.  734.19 (Transfer of access information) by redesignating 
the existing introductory text of the section as new paragraph (a) and 
adding a new paragraph (b), including adding a new Note 2 to paragraph 
(b), to describe the export control treatment of software license keys.
    This clarification adds software keys, or software license keys, to 
new paragraph (b) in Sec.  734.19(b). These keys allow the use of 
specific ``software'' (e.g., to ``unlock'' the use of the software or 
hardware) and software keys that allow the renewal of existing software 
and hardware use licenses, thereby allowing the use of the ``software'' 
or hardware by the licensed end user.
    Prior to this rule, the introductory text to Sec.  734.19 described 
the transfer of ``access information'' only and did not otherwise 
address the export control status of software license keys that allow 
access but are not ``access information'' as defined in part 772 of the 
EAR. In this IFR, BIS is clarifying the scope of Sec.  734.19 by adding 
a new paragraph (b) to specify the EAR treatment of software keys. To 
implement these changes, this IFR makes the following revisions:
    To reflect the clarification of the intended scope of Sec.  734.19, 
this IFR revises the heading of the section to read as ``Transfer of 
access information and export, reexport, and transfer (in-country) of 
software keys,'' so that it is clear that this section applies to both 
transfer of access information now described under paragraph (a) and 
the export, reexport, and transfer (in-country) of software keys 
described under new paragraph (b) that this IFR adds to this section.
    This IFR redesignates the existing text of Sec.  734.19 as new 
paragraph (a). This IFR as a conforming change redesignates Note 1 to 
Sec.  734.19 as new Note 1 to Sec.  734.19(a).
    New paragraph (b) is added to specify that software keys, also 
called software license keys, which allow users the ability to use 
``software'' or hardware by

[[Page 96804]]

providing access to it, and software keys that renew existing 
``software'' or hardware use licenses, are classified and controlled 
under the same ECCNs on the CCL as the corresponding ``software'' or 
hardware to which they provide access, or in the case of hardware, the 
software key would be classified under the corresponding ECCN in the 
software group (e.g., a software license key that allows the use of 
hardware classified under ECCN 5A992 would be classified under ECCN 
5D992). This clarification is needed to inform exporters, reexporters, 
and transferors of the EAR's approach to software keys.
    If authorization is required for the export, reexport, or transfer 
(in-country) of the ``software'' or hardware, authorization is likewise 
required for the software key. For example, if a license is required to 
export ECCN 5D992 software to an entity listed on the Entity List (see 
supplement no. 4 to part 744 of the EAR), a license is also required to 
release the associated software key that allows the entity access to 
that ``software.'' Importantly, this would apply even if the listed 
entity already had previous access to the ``software'' in question but 
needs a software key for current or future access to the ``software.''
    Additionally, if authorization via an export license is obtained 
for the export, reexport, or transfer (in-country) of the ``software'' 
or hardware, that license also authorizes the export, reexport, or 
transfer (in-country) to the corresponding software license key, 
consistent with the terms and conditions set forth in the license. The 
license would continue to authorize access to the use of the 
``software'' or hardware (not upgrades) until the license expires, 
provided the license did not specifically exclude such a release of the 
software license key, or require separate authorization for the 
software key.
    If no authorization was required for the initial export of the 
``software'' or hardware and the associated software key, but a license 
requirement is later imposed on the ``software'' or hardware (e.g., a 
license requirement is imposed because the end user becomes listed on 
the Entity List), then subsequent exports, reexports, or transfers (in-
country) of the ``software,'' hardware, and the software license key 
are subject to the new license requirement. This clarifies the 
application of paragraph (b) requirements when a change in the license 
requirement occurs between the initial export, reexport, or transfer 
(in-country) of the ``software'' or hardware, and the release of the 
software license key to access it.
    Note 2 to paragraph (b) is added in Sec.  734.19 to clarify that 
paragraph (b) does not impact keys that unlock dormant functionality in 
a controlled item. Note 2 to paragraph (b) addresses items with dormant 
functionality that can be activated using a license key. This typically 
occurs when an item is already activated and useable, but a customer 
wants to purchase and add additional features. In some cases, those 
additional features take an item from an uncontrolled to a controlled 
state, or from a lower to a higher control (e.g., an AT-controlled item 
becomes NS-controlled). BIS has existing policies on the way it treats 
such a scenario that vary by category. The purpose of Note 2 to 
paragraph (b) is to make it clear that this rule is not intended to 
impact those existing policies.
    As a conforming change, this IFR also revises the definition of 
``access information'' in part 772 to specify that the definition of 
``access information'' applies only to Sec.  734.19(a), and not to 
Sec.  734.19(b).
    Instructions for submission of comments, including comments that 
contain business confidential information, are found in the ADDRESSES 
section of this IFR. BIS is requesting comments on whether the 
revisions promulgated in this IFR effectively describe the treatment of 
software keys, that allow users the ability to use the ``software'' and 
hardware, and software keys that renew existing ``software'' use 
licenses. Additionally, whether BIS should address the export control 
status of other types of keys and software access control mechanisms 
under the EAR. BIS will also accept comments on the relationship 
between the treatment of software keys as described in new Sec.  
734.19(b) and the treatment of keys that activate new dormant 
functionality in ``software'' or hardware that has already been 
activated.

E. Revisions to the Commerce Control List

1. Revisions to 3B001
    This rule revises 3B001 by adding ``oxygen'' to paragraph 3B001.a.2 
to implement a revision of a WA agreement. Oxygen is added due to 
recent developments in the epitaxial growth rate of gallium oxide in 
metal organic chemical vapor deposition (MOCVD) systems. Double quotes 
are added around the word ``production'' in Technical Note 1 to 
paragraph 3B001.e to indicate it is a defined term in Sec.  772.1 of 
the EAR.
    This section discusses the amendments to ECCN 3B001 other than the 
commodities moved to new ECCN 3B993, discussion of which is found in 
Section D.4 of the rule. No changes were made to ECCN 3B001 paragraphs 
.b, or .g through .n.
    The ECCN 3B001 paragraphs amended and added in this rule are 
controlled for NS and RS reasons, as identified in Sec. Sec.  
742.4(a)(4) (NS) and 742.6(a)(6) (RS), which applies only to Macau and 
destinations specified in Country Group D:5. The entire entry is also 
controlled for anti-terrorism (AT) reasons and subject to an AT:1 
license requirement. The License Requirement table is revised as needed 
to identify these reasons for control.
    3B001.a.4 is updated as follows. The list of epitaxy materials is 
updated to only specify silicon and silicon germanium, but not carbon 
doped silicon. Carbon doped silicon epitaxy is still included under 
silicon epitaxy. The parameter specifying the chamber atmosphere has 
been removed. The parameter specifying temperature is updated to 
reflect that it refers to the chamber temperature, and the temperature 
value is converted from degrees Celsius to Kelvin. These changes are 
made to ensure that all systems capable of achieving similar epitaxial 
performance are specified regardless of their architecture or 
configuration. These changes are not intended to alter the original 
scope of control as published in October 2023, and BIS welcomes 
feedback on whether any fewer or additional systems are specified by 
the updated control text.
    3B001.c.3 controls the etch equipment used to package a chip 
containing a through-silicon via (TSV) (e.g., a HBM chip). The 
equipment specified by 3B001.c.3 performs a ``reveal etch,'' which 
removes silicon from the backside of the wafer and ``reveals'' the vias 
for subsequent packaging steps. To perform this process in high-volume 
manufacturing and at a high yield, this equipment employs endpoint 
detection to remove a highly precise thickness of material as well as 
``process uniformity tuning,'' which is defined in the Technical Note 
to 3B001.c.3 to refer to the ability to compensate for incoming wafer 
thickness variation caused by the wafer grinding process.
    3B001.c.4 controls etch equipment designed to create TSVs, which 
are formed by first etching a high-aspect ratio hole. This control 
specifies equipment designed for TSV etch with an aspect ratio of 
greater than or equal to 10:1, which BIS believes describes the TSVs 
used in advanced packaging applications, but not the TSVs used in 
legacy processes. The control further specifies that the equipment 
produces low non-uniformity (less than 2%) and

[[Page 96805]]

a high etch rate (greater than 7 microns per minute), which are 
important to maintain the throughput and yield necessary for high-
volume manufacturing. BIS notes that 3B001.c.4 items are listed under 
3B001 to reflect that they are subject to a destination-based license 
requirement for destinations specified in Country Group D:5 or Macau. 
If Sec.  744.23 does not apply, applications will be reviewed on a 
case-by-case basis if no license would be required under any other 
provision of part 744 of the EAR.
    3B001.d.3 is updated to specify that the plasma process described 
in d.3.b is a surface treatment.
    3B001.d.4 and 3B001d.12 are updated to remove the specification 
that the transfer chamber or wafer handling system must maintain high 
vacuum (equal to or less than 0.01 Pascal (Pa)) or inert environment 
between process steps. This change is made to ensure relevant systems 
are specified based on their performance criteria (listed in the ECCN 
sub-paragraphs), rather than transfer pressure, which may vary from 
system to system.
    3B001.d.5 is updated to change the specification of the carbon hard 
mask to being more than 2 [mu]m thick and have a density greater than 
1.7 grams per cubic centimeter (g/cm[supcaret]3).
    3B001.d.11: The parameters in this paragraph do not control the 
targeted SME, but 3B001.d.7, 3B001.d.8 and 3B001.10 do. Therefore, the 
control text is removed, and the paragraph is reserved.
    3B001.d.14 has been updated to control a narrower set of equipment 
by specifying that the properties of the deposited film must have a 
lower dielectric constant and be deposited in features with a smaller 
lateral opening and smaller feature-to-feature pitch. As described 
below, the new paragraph 3B993.d.1 is created to be largely similar to 
the former paragraph 3B001.d.14.
    The control text for former paragraph 3B001.d.16 has been moved to 
the new paragraph 3B993.d.2, as described below. Therefore, the control 
text is removed, and the paragraph is reserved.
    New paragraph 3B001.d.17 controls equipment used for depositing 
dielectric material between the metal lines of advanced ICs. This 
material must have very low dielectric constant (low-k). Unlike control 
3B001.d.15--which controls equipment that produces low-k films as-
deposited--3B001.d.17 controls films that achieve a low k after curing 
with ultraviolet (UV) light. This UV curing is typically necessary for 
achieving the dielectric constants necessary for ``advanced-node ICs.'' 
This equipment uses a plasma-enhanced chemical vapor deposition 
process, which allows the substrate to be kept at a temperature below 
500 degrees Celsius ([deg]C). The most advanced equipment also includes 
the curing capability in the same platform as the deposition chamber to 
avoid exposing the deposited film to moisture in-transit between 
different platforms. Finally, this control specifies the geometry of 
the deposited film to be consistent with the advanced metal layers of 
advanced IC production nodes (thickness between 6 nanometers (nm) and 
20 nm at an aspect ratio greater than or equal to 1:1.8, and a metal 
pitch less than 24 nm).
    New paragraph 3B001.d.18 expands on the existing controls on 
equipment that deposits low-resistivity metals used in advanced memory 
integrated circuits. Namely, this expands on the controls on molybdenum 
and ruthenium beyond controls 3B001.d.12.b and 3B001.d.13, 
respectively. 3B001.d.18 includes deposition techniques that utilize a 
reducing agent, rather than keeping the chamber under vacuum. 
Additionally, the control does not specify the type of precursor, but 
instead specifies a precursor temperature above 75[deg]C. 3B001.d.18 
also includes a note to specify that the metal precursor could be 
located on the tool or elsewhere in the facility in a sub-fab. In some 
cases, a fabrication facility will separate out toxic materials from 
the main fabrication facility, instead placing them in a dedicated 
``sub-fab.''
    The new 3B001.d.19 controls equipment designed or modified for 
depositing insulators used in advanced DRAM. As memory cells shrink, 
the DRAM cell's capacitor needs to use an insulator with a higher 
dielectric constant to compensate for its decreased size. 3B001.d.19 
controls equipment that deposits material in very high aspect ratio 
features (greater than 200:1, characteristic of 3D DRAM technology). 
Additionally, 3B001.d.19 specifies the materials and processes used in 
practice to achieve this deposition in high volume manufacturing. 
Namely, the control specifies materials that require two metal 
precursors and result in a film with a very high dielectric constant 
(greater than 40). It further specifies that the two metal precursors 
are delivered through direct liquid injection, which is a technique 
that allows low-volatility precursors to achieve sufficient vapor 
pressure to efficiently deposit on the large surface areas present in 
high aspect ratio features. Also see the related control in the new 
paragraph 3B993.d.4.
    The new 3B001.d.20 is created to control certain physical 
deposition equipment having electromagnets and being ``specially 
designed'' for depositing tungsten into features with a specified 
geometry. This equipment enables the creation of pure tungsten metal 
contacts to overcome resistance challenges in the production of 
``advanced-node ICs.''
    3B001.e.1 is updated to include 3B001.a., .b, and .c and .d, 
because all of these `semiconductor processing tools' all have the same 
configuration.
    3B001.f.1.b is updated to remove the parameter f.1.b.2.b. Items 
previous controlled by this parameter are now controlled under the new 
3B993.f.1.b.
    The new 3B001.f.5 controls nanoimprint lithography equipment 
capable of producing ``advanced-node ICs.'' To accomplish this, the 
equipment must have a small overlay accuracy, in this control an 
overlay accuracy less than 1.5nm. BIS has also created a related new 
control on less advanced nanoimprint lithography, paragraph 3B993.f.2, 
described below.
    3B001.o.1 and 3B001.o.2 are moved to the new paragraphs 3B993.o.1.a 
and o.1.b. Therefore, the control text is removed, and the paragraph is 
reserved.
    New paragraph 3B001.p.4 controls single wafer cleaning equipment, 
which is required for advanced processes due to the need for higher 
control over variables like contamination compared to batch cleaning 
systems. 3B001.p.4 expands on former 3B001.p.3 (current 3B993.p.3) by 
removing the ``surface modification drying'' parameter. That technique 
can be challenging to use for the most advanced processes due to 
pattern collapse from surface tensions. 3B001.p.4 controls an 
alternative technique, supercritical or sublimination drying using 
carbon dioxide (CO2).
    3B001.r.is created to control equipment designed for deposition or 
removal processes that improve the overall patterning achieved by EUV 
lithography. See the Crosswalk for ECCN 3B001 commodities that moved to 
New ECCN 3B993 under section III.D.4 for additional context on these 
movements.
2. Revisions to 3B002
    ECCN 3B002 is amended by removing 3B002.b from certain license 
requirements in the license requirements table. The License Exception 
LVS paragraph is revised by removing the exclusion for 3B002.b. 
Additionally, ECCN 3B993 is added to the related controls for ECCN 
3B002.
3. Revision of ECCNs 3B991 and 3B992
    This IFR revises the headings of ECCN 3B991 and 3B992 to add ECCNs 
3B993 and 3B994 to the equipment not

[[Page 96806]]

controlled by ECCNs 3B991 or 3B992. While ECCNs 3B993 and 3B994 may 
have similar control parameters, they have a higher RS reason for 
control than ECCNs 3B991 and 3B992, which are controlled for AT 
reasons. Therefore, these revisions were made in order to maintain the 
correct order of review.
4. Addition of ECCN 3B993
    This IFR adds new ECCN 3B993 to specify items that enable 
``advanced-node IC'' production, but which BIS believes also have 
legitimate applications in non-advanced-node production, and thus do 
not warrant nationwide license requirements or a presumption of denial. 
These items are differentiated from those in the ECCN 3B001 item 
paragraphs described above, which now specify items that are not only 
enabling ``advanced-node IC'' production but used exclusively or 
designed specifically for that purpose.

                        Crosswalk for ECCN 3B001 Commodities That Moved to New ECCN 3B993
----------------------------------------------------------------------------------------------------------------
                 3B001                                 Description                             3B993
----------------------------------------------------------------------------------------------------------------
c.1.b.................................  High-aspect ratio etch..................  c.1.
d.14..................................  Remotely-generated radical assisted       d.1.
                                         dielectric deposition.
d.16..................................  Dielectric deposition...................  d.2.
f.1.b.2.b.............................  Less-advanced DUV photolithography        f.1.b.2.
                                         equipment.
o.1 and o.2...........................  Annealing equipment.....................  o.1 and o.2.
p.1 and p.3...........................  Cleaning equipment......................  p.1 and p.3.
----------------------------------------------------------------------------------------------------------------

    Seven commodities are moved from former ECCN 3B001 paragraphs into 
the new ECCN 3B993, due to their node-agnostic nature and established 
usage in non-advanced-node fabrication applications. These include 
commodities in former paragraphs 3B001.c.1.b (high-aspect ratio etch), 
3B001.d.14 (remotely-generated radical assisted dielectric deposition), 
3B001.d.16 (dielectric deposition), 3B001.f.1 (less-advanced DUV 
photolithography equipment), 3B001.o.1 (annealing equipment), and 
3B001.p.1 and p.3 (cleaning equipment). BIS has also added several 
other commodities to new 3B993 ECCNs.
    New paragraph 3B993.b.1 augments existing controls on ion 
implantation in 2B005.b, 3B001.b, and 3B991.b.1.g. 3B993.b.1 controls 
equipment that performs ``plasma doping,'' which enables dopant atoms 
to be deposited into the sidewalls of 3D structures like FinFETs and 
GAAFETs. This control also specifies several properties of the 
equipment, including the wafer size it can accept (300 mm diameter), 
power sources it uses (at least one radio frequency source and at least 
one pulsed direct current source), and the atomic species it can 
implant (namely, n-type or p-type dopants, which are the atomic species 
used to tune the electrical properties of semiconductor material).
    3B993.c.1 (formerly 3B001.c.1.b) controls certain equipment 
designed or modified for anisotropic dry etching. Atomic layer etching 
enhanced by the features described in 3B993.c.1 produce the vertical 
edges required in high-quality, leading-edge advanced devices and 
structures, including GAAFET and similar 3D structures. This control 
includes a Note to inform the public that 3B993.c.1 includes etching by 
`radicals', ions, sequential reactions, or non-sequential reactions. In 
addition, it includes a Technical Note to define the term `radical' 
used in the Note.
    3B993.c.2 controls etch equipment used in the fabrication of 
dynamic random access memory (DRAM) chips. As the size of DRAM cells 
decrease, the lateral dimensions of all the features within the memory 
cell also need to shrink. Crucially, this involves shrinking the 
diameter of the capacitor used to store the bit of information 
contained in the cell. One step in fabricating this capacitor is 
etching a high-aspect ratio feature into a dielectric material. 
Accordingly, the control focuses on equipment that can etch dielectric 
materials to an aspect ratio of greater than 30:1. Furthermore, it 
specifies the equipment can create openings with a lateral dimension 
less than 40 nm (necessary for capacitors that fit in a single advanced 
DRAM memory cell). This control also contains a Note to specify that it 
does not apply to equipment designed for wafer diameters less than 300 
mm.
    3B993.c.3 expands on the control in 3B001.c.1.c by broadening the 
scope of the fast gas switching time (from 300 milliseconds (ms) to 500 
ms), and the individually controllable variable temperature elements in 
the electrostatic chuck (from 20 to 10). 3B993.c.3 will not control 
equipment already controlled by 3B001.c.1.c.
    3B993.d.1 (derived from former 3B001.d.14) controls equipment for 
depositing films in features with certain geometry and a specified 
dielectric constant. This is an update to the former 3B001.d.14 control 
by redesignating this equipment specified under new 3B001.d.14 and 
specifying that the aspect ratio in 3B993.d.1.b describes the features. 
These changes are made to differentiate license requirements for more 
(3B001.d.14) versus less (3B993.d.1) advanced dielectric deposition 
equipment.
    3B993.d.2 (formerly 3B001.d.16) controls deposition for silicon and 
carbon containing films while meeting certain temperature requirements, 
having the capability to hold multiple vertically stacked wafers, and 
having certain injector configurations, as specified.
    3B993.d.3 controls equipment designed for chemical vapor deposition 
(CVD) of carbon hard masks. This expands on 3B001.d.5--which controls 
plasma-enhanced CVD (PECVD) of carbon hard masks--to encompass other 
CVD techniques and resulting film properties. Carbon hard masks are 
critical for multipatterning processes, with higher density masks 
providing better etch selectivity and pattern fidelity, enabling the 
creation of smaller features on the wafer.
    3B993.d.4 (related to new 3B001.d.19) controls equipment designed 
for depositing the insulators used in advanced DRAM production. As 
memory cells shrink, the DRAM cell's capacitor needs to use an 
insulator with a higher dielectric constant to compensate for its 
decreased size. It further specifies that this equipment can deposit 
material on very high aspect ratio features (greater than 50:1, 
characteristic of advanced DRAM). Additionally, 3B993.d.4 specifies the 
materials and processes used in practice to achieve this deposition in 
high volume manufacturing. Namely, the control specifies materials that 
require two metal precursors and result in a film with a high 
dielectric constant (greater than 35). It further specifies that the 
two metal precursors are delivered through direct liquid injection.
    3B993.f.1 (formerly part of 3B001.f.1) reflects the scope of former 
3B001.f.1.b.2.b, which specified certain

[[Page 96807]]

less-advanced DUV photolithography equipment. Equipment meeting the 
parameters in 3B993.f.1 is not eligible for de minimis treatment, with 
one exception as set forth in Sec.  734.4(a)(3) of the EAR, as 
described below in Section B.1.
    3B993.f.2 controls nanoimprint lithography equipment capable of 
producing ``advanced-node ICs.'' This control specifies it controls 
equipment with an overlay accuracy between 1.5 nm and 4.0 nm. Also see 
the related new control on nanoimprint lithography, 3B001.f.5.
    3B993.f.3 specified commodities designed or modified to improve the 
productivity of controlled DUV photolithography equipment. BIS has also 
added similar controls in 3D993 and 3E993 that cover ``software'' and 
``technology'' for the ``development'' or ``production'' of commodities 
specified by 3B993, which is intended to restrict ``software'' or 
technology'' that could modify or improve DUV photolithography 
equipment.
    3B993.o.1 (formerly 3B001.o) controls certain annealing equipment 
for reflow of copper, cobalt, and tungsten. The scope of control is 
unchanged.
    3B993.o.2 is created to control certain equipment designed for 
annealing semiconductors. Annealing is an essential step used to modify 
the electrical properties of semiconductor material to be useful in 
transistors. This control is targeted at the ``millisecond spike 
annealing'' technology, which is used in advanced node semiconductor 
fabrication. Millisecond spike annealing allows for precise control of 
dopant activation and diffusion, with the ``spike'' referring to the 
extremely short duration during which the wafer is heated to the 
desired temperature. This brief, intense heating allows for dopant 
activation while minimizing unwanted diffusion, which is critical for 
creating advanced semiconductors. This control covers both lamp-based 
and laser-based millisecond spike annealing systems, as both can 
achieve rapid heating and cooling required for this process. 3B993.o.2 
includes a Technical Note that `duration' is the period of time (i.e., 
total elapsed time) the wafer is above the stated temperature.
    3B993.p is created to control removal and cleaning equipment 
3B993.p.1 (formerly 3B001.p.1) controls equipment designed for removing 
polymeric residue and copper oxide film and enabling deposition of 
copper metal in a vacuum (equal to or less than 0.01 Pa) environment. 
3B993.p.3 (formerly 3B001.p.3) controls equipment designed for dry 
surface oxide removal preclean or dry surface decontamination. BIS 
notes that this control does not capture deposition equipment not 
elsewhere specified, but which may also have the capability described 
in the control.
    3B993.q.1 is created to control metrology and inspection equipment 
for use with patterned 300 mm semiconductor wafers, including equipment 
employing either optical or electron beam techniques. It specifies the 
equipment must be designed or modified to detect defects equal to or 
smaller than 21nm, which BIS believes is critical for advanced-node 
production applications. This control also specifies properties of the 
source. For optical equipment (including broadband plasma equipment), 
it specifies the wavelength must be less than 400 nm, but BIS notes 
that this requirement would be met by equipment that can be tuned to a 
wavelength both below and above 400 nm. For electron beam equipment, it 
specifies the system must have a resolution less than or equal to 
1.65nm, or certain properties for its electron beam source (i.e., a 
cold field emission source, or two sources of any type).
    3B993.q.2 controls metrology equipment that can improve the overlay 
accuracy of photolithography equipment. Overlay accuracy is important 
for multipatterning, a process which enables legacy photolithography 
machines to create ``advanced-node ICs.'' 3B993.q.2 focuses on two 
types of machines. 3B993.q.2.a controls machines that measure wafer 
shape (typically used to feedforward measurements to lithography 
machines). 3B993.q.2.b controls machines that measure focus and overlay 
after resist development (typically used for feedback to a lithography 
machines). 3B993.q.2.a controls only standalone equipment (not 
equipment integrated into the lithography machines itself), whereas 
3B993.q.2.b controls machines designed for integration to a track 
(which maximizes throughput). 3B993.q.2.b also specifies that the 
machine must have fast wavelength switching functionality and an 
overlay measurement accuracy better than 0.5 nm. 3B993.q.2 also 
includes Technical Notes to clarify the terminology in the control. 
Namely, these specify that, for the purposes of 3B993.q.2, a `track' is 
equipment designed for coating and developing photoresist formulated 
for lithography, and `fast wavelength switching functionality' means 
the equipment can the change the measurement wavelength and acquire a 
measurement in less than 25 ms.
5. Addition of ECCN 3B994
    Similar to ECCN 3B993, BIS has added new ECCN 3B994 to specify 
items that can support ``advanced-node IC'' ``production,'' but which 
BIS believes also have legitimate applications in non-advanced-node 
production, and thus do not warrant nationwide license requirements or 
a presumption of denial. ECCN 3B994 will be continually evaluated to 
determine if additions, revisions, or removals are needed. ECCN 3B994 
is controlled for RS and AT reasons; for the former, see Sec.  
742.6(a)(11) and (b)(12) of the EAR.
    3B994.b.2 controls certain ion implantation equipment. 3B994.b.2.a 
controls low- and medium-current ion implantation equipment. This 
equipment is used in advanced processes to maintain low damage and high 
uniformity on the smallest transistors fabricated in advanced 
production. 3B994.b.2.b controls high energy, low current systems which 
can implant dopants at a shallow depth below the surface of the wafer, 
which is used in some advanced processes. 3B994.b.2.c. controls systems 
that can maintain a high angular accuracy between the ion beam and the 
substrate, which is used to implant the non-planar transistor 
structures used in ``advanced-node ICs.''
    3B994.q.3 controls equipment that uses optical measurement 
techniques and advanced software to determine the three-dimensional 
structure of patterns on a semiconductor wafer. Such techniques can be 
used to monitor and optimize process to fabricate the non-planar 
transistors used in ``advanced-node ICs.''
6. Revision to ECCN 3D002
    This IFR is removing the SME previously added to the license 
requirements of ECCN 3D002 and revising it to align with typical 
controls applied to Wassenaar Dual-Use List entries. The NS column 1 
license requirement no longer only applies to certain SME, but now 
applies to the entire entry. The NS and RS license requirements for 
3B001.a.4, c, d, f.1. b, j to p, 3B002.b and c, to Macau and 
destinations in Country Group D:5 are removed, because the WA control 
is broader. The RS control is not necessary, because this entry is 
controlled by a multilateral regime.
7. Addition of ECCN 3D992
    BIS has added new ECCN 3D992 to control software for specified SME. 
3D992.a controls ``software'' for the ``development'' or 
``production,'' of

[[Page 96808]]

commodities specified in 3B001.a.4, c, d, f.1, f.5, k to n, p.2, p.4, 
r, or 3B002.c. In addition, 3D992.b is added to control electronic 
computer-aided design (ECAD) software for advanced semiconductor 
packaging involving multiple chips or chiplets co-packaged in a single 
device. This software must support complex 3D floorplans and must 
conduct advanced simulations to detect and mitigate potential signal 
degradation and electromagnetic interference. The control also includes 
a Technical Note to specify that `multi-chip' includes both multi-die 
and multi-chiplet.
8. Addition of ECCN 3D993
    ECCN 3D993.a is added to control ``software'' for the 
``production'' and ``development'' of commodities in ECCN 3B993. 
Paragraph 3D993.b controls `Electronic Computer-Aided Design' (`ECAD') 
``software'' designed or modified for the ``development'' or 
``production'' of integrated circuits using multipatterning. Paragraph 
3B993.c controls computational lithography software, which enables 
fabrication facilities to decrease their minimum resolvable feature 
size through techniques such as optical proximity correction, inverse 
lithography, and hotspot correction. In some cases, this software acts 
as a digital model of the fabrication facility, allowing for very 
precise optimization of the fabrication process. Existing controls are 
limited to computational lithography equipment specifically for EUV, 
but computational lithography software that is not currently controlled 
can improve the minimum feature size achievable with DUV to less than 
40nm and can facilitate the complex mask decomposition necessary for 
multipatterning. ECCN 3B993.d is added to control software designed or 
modified to improve the productivity of controlled DUV photolithography 
equipment. This addition addresses that potential workaround. 3D993 
also includes a technical note which defines `computational 
lithography'.
9. Addition of ECCNs 3E992 and 3E993
    This IFR adds ECCN 3E992 to control ``technology'' for the 
''production'' or ``development'' of commodities specified in 
3B001.a.4, c, d, f.1, f.5, k to n, p.2, p.4, r; and 3B002.c to or 
within Macau or a destination specified in Country Group D:5 of 
supplement no. 1 to part 740 of the EAR (see Sec.  742.4(a)(4) and 
Sec.  742.6(a)(6)(i) of the EAR). This rule also moves the worldwide NS 
and RS controls for ``software'' for equipment controlled by 
3B001.c.1.a or c.1.c from ECCN 3E001 to ECCN 3E992, as well as the 
License Exception IEC paragraph.
    This rule adds ECCN 3E993.a to control ``technology'' for the 
``development'' or ``production'' of commodities specified in 3B993 
(see Sec.  742.6(a)(11) and (b)(12) of the EAR). ECCN 3E993.b is added 
to control ``technology'' designed or modified to improve the 
productivity of controlled DUV photolithography equipment.
10. Addition of ECCNs 3D994 and 3E994
    This IFR adds ECCNs 3D994 and 3E994 to the CCL to control 
``software'' and ``technology'' for the ``development'' or 
``production'' of commodities specified in ECCN 3B994. These ECCNs will 
be controlled for RS and AT reasons; for the former, see Sec.  
742.6(a)(11) and (b)(12) of the EAR.

IV. Public Comments

    BIS welcomes comments from the public on these additional changes 
and clarifications made to Sec.  744.23(a)(4), as well as for any of 
the other changes included in this IFR.

V. Savings Clauses

     Savings clause for amendatory instructions 4, 5, 15, 16, 
17, 19, 20, 21, 23, 25, 29, and 31: For changes in amendatory 
instructions 4, 5, 15, 16, 17, 19, 20, 21, 23, 25, 29, and 31, 
shipments of items removed from eligibility for a License Exception or 
export, reexport, or transfer (in-country) without a license (NLR) as a 
result of this regulatory action that were en route aboard a carrier to 
a port of export, reexport, or transfer (in-country), on January 6, 
2025, pursuant to actual orders for export, reexport, or transfer (in-
country) to or within a foreign destination, may proceed to that 
destination under the previous eligibility for a License Exception or 
export, reexport, or transfer (in-country) without a license (NLR), 
provided the export, reexport, or transfer (in-country) is completed no 
later than on February 3, 2025.
     There is no savings clause for other amendatory 
instructions in this IFR.

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

VII. Rulemaking Requirements

    1. Executive Orders 12866, 13563, and 14094 direct agencies to 
assess all costs and benefits of available regulatory alternatives and, 
if regulation is necessary, to select regulatory approaches that 
maximize net benefits (including potential economic, environmental, 
public health and safety effects and distributive impacts and equity). 
Executive Order 13563 emphasizes the importance of quantifying both 
costs and benefits and of reducing costs, harmonizing rules, and 
promoting flexibility. Pursuant to Executive Order 12866, as amended, 
this final rule has not been determined to be a ``significant 
regulatory action.''
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et 
seq.) (PRA), unless that collection of information displays a currently 
valid Office of Management and Budget (OMB) Control Number.
    This rule involves the following OMB-approved collections of 
information subject to the PRA:
     0694-0088, ``Multi-Purpose Application,'' which carries a 
burden hour estimate of 29.4 minutes for a manual or electronic 
submission;
     0694-0096 ``Five Year Records Retention Period,'' which 
carries a burden hour estimate of less than 1 minute;
     0694-0122, ``Licensing Responsibilities and Enforcement;'' 
which carries a burden hour estimate of 10 minutes per electronic 
submission;
     0694-0137, ``License Exceptions and Exclusions;'' which 
carries a burden hour estimate of 5 minutes per electronic submission; 
and

[[Page 96809]]

     0607-0152 ``Automated Export System (AES) Program,'' which 
carries a burden hour estimate of 3 minutes per electronic submission.
    This IFR will affect the collection under control number 0694-0088, 
for the multipurpose application because of the addition of HBM 
controls to ECCN 3A090.c, the eight new Red Flags added to supplement 
no. 3 to part 732, and the addition of the new FDP rules under Sec.  
734.9(e)(3) and (k), which will result in additional license 
applications. BIS estimates that the changes included in this IFR will 
result in an increase of 75 multi-purpose applications (i.e., an 
increase of 75 license applications) submitted annually to BIS. 
However, the additional burden falls within the existing burden 
estimates currently associated with these control numbers.
    This regulation also involves a collection previously approved by 
the OMB under control number 0694-0122, ``Licensing Responsibilities 
and Enforcement'' because this rule under the revision to Sec.  
758.6(a)(2) will require the items level classification for ECCN(s) 
3A090.c to be included on the commercial invoice, similar to the 
previous requirement to include this classification information on the 
commercial invoice, which will now require identifying new 3A090.c when 
applicable on the commercial invoice. BIS does not anticipate a change 
in the total burden hours associated with the PRA and OMB control 
number 0694-0122 as a result of this rule.
    This IFR also involves a collection previously approved by the OMB 
under control number 0694-0137, ``License Exceptions and Exclusions'' 
because this rule includes the addition of two new EAR license 
exceptions, which each include new notification or reporting 
requirements that are being added to this BIS information collection 
under OMB Control Number 0694-0137. Specifically, this IFR adds new 
reporting requirements with the addition of License Exception HBM under 
Sec.  740.25 of the EAR and adds new notification and reporting 
requirements for the addition of License Exception RFF under Sec.  
740.26 of the EAR. These changes are expected to result in an increase 
of 10 notifications to BIS under License Exception HBM. BIS estimates 
that the time needed to submit each notification to BIS is 20 minutes, 
resulting in an increase in burden hours of 3 hours. This collection of 
information fits within the scope of this IC. These changes are 
expected to result in an increase of 306 prior notifications under 
Sec.  740.26(d)(1) to BIS under License Exception RFF. BIS estimates 
that the time needed to submit each notification to BIS is 5 minutes, 
resulting in an increase in burden hours of 26 hours. This collection 
of information fits within the scope of this IC.
    These changes are expected to result in an increase of not more 
than 3 notifications within one business day under Sec.  740.26(d)(2) 
to BIS under License Exception RFF. BIS estimates that the time needed 
to submit each notification to BIS is 5 minutes, resulting in an 
increase in burden hours of no more than 15 minutes. This collection of 
information fits within the scope of this IC. These changes are 
expected to result in an increase of 306 installation reports under 
Sec.  740.26(e)(1) to BIS under License Exception RFF. BIS estimates 
that the time needed to submit each notification to BIS is 5 minutes, 
resulting in an increase in burden hours of 26 hours. These changes are 
expected to result in an increase of 306 annual end-use confirmation 
reports under Sec.  740.26(e)(2) to BIS under License Exception RFF. 
BIS estimates that the time needed to submit each notification to BIS 
is 5 minutes, resulting in an increase in burden hours of 26 hours. 
This collection of information fits within the scope of this IC.
    Additional information regarding these collections of information--
including all background materials--can be found at https://www.reginfo.gov/public/do/PRAMain by using the search function to enter 
either the title of the collection or the OMB Control Number.
    3. This rule does not contain policies with federalism implications 
as that term is defined in Executive Order 13132.
    4. Pursuant to Section 1762 of ECRA (50 U.S.C. 4821), this action 
is exempt from the Administrative Procedure Act (APA) (5 U.S.C. 553) 
requirements for notice of proposed rulemaking, opportunity for public 
participation, and delay in effective date. While Section 1762 of ECRA 
provides sufficient authority for such an exemption, this action is 
also independently exempt from these APA requirements because it 
involves a military or foreign affairs function of the United States (5 
U.S.C. 553(a)(1)). However, BIS is accepting comments on this IFR.
    5. Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule under the APA 
(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

15 CFR Parts 732

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

15 CFR Part 734

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

15 CFR Parts 740 and 758

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

15 CFR Part 742

    Exports, Terrorism.

15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

15 CFR Parts 736, 770, and 772

    Exports.

15 CFR Part 762

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

15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

    For the reasons stated in the preamble, parts 732, 734, 736, 740, 
742, 744, 758, 762, 770, 772, and 774 of the Export Administration 
Regulations (15 CFR parts 730 through 774) are amended as follows:

PART 732--STEPS FOR USING THE EAR

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

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


0
2. In supplement no. 3 to part 732 amend paragraph (b) by adding 
paragraphs 20 through 27 to read as follows:

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

* * * * *
    (b) * * *
    20. A non-advanced fabrication facility orders equipment 
designed for ``advanced-

[[Page 96810]]

node IC'' production, (e.g., Sec.  742.4(a)(4) ECCNs) that it would 
not need given its technology level. This technology mismatch 
indicates the fabrication facility produces or intends to produce 
``advanced-node ICs,'' and it requires resolution before the 
exporter, reexporter, or transferor proceeds with the transaction.
    21. An exporter, reexporter, or transferor receives an order for 
which the ultimate owner or user of the items is uncertain, such as 
a request to ship equipment for developing or producing integrated 
circuits to a distributor without a manufacturing operation, when 
the item is ordinarily customized for the end user or installed by 
the supplier. Because the distributor would never be the end user of 
such equipment, the ultimate owner or beneficiary is unknown to the 
exporter, reexporter, or transferor. This uncertainty raises a Red 
Flag that needs to be resolved before the exporter, reexporter, or 
transferor proceeds with the transaction, in particular for items 
where such information would typically be known to an exporter, 
reexporter, or transferor, such as for advanced computing items, 
supercomputers, or SME.
    22. An exporter, reexporter, or transferor receives an order or 
request related to an item that would require an export, reexport, 
or in-country transfer license from BIS or another jurisdiction that 
maintains controls on the item, and there is uncertainty about the 
license history for the item. For example, there is information 
known to the exporter, reexporter, or transferor indicating that a 
required license was not, or would not have likely been obtained by 
the end user, such as where the end user or end use, or the ECCN and 
end-user destination triggers a license review policy of a 
presumption of denial. These uncertainties raise a Red Flag that 
needs to be resolved before the exporter, reexporter, or transferor 
proceeds with further transactions related to the item to avoid the 
risk of violating Sec.  764.2(e) (``Acting with knowledge of a 
violation.''). This would include acting on requests to service, 
install, upgrade, or otherwise maintain the item of concern.
    23. An exporter, reexporter, or transferor receives a request to 
service, install, upgrade, or otherwise maintain an item that was 
altered after export, reexport, or transfer by a third-party for a 
more advanced end use that would normally require a license for the 
destination. This scenario raises a Red Flag that the item is 
employed in a prohibited end use that would need to be resolved 
before proceeding further with the transaction.
    24. An exporter, reexporter, or transferor receives a request 
for an item or service from a new customer. The new customer's 
senior management or technical leadership (e.g., process engineers 
that are team leaders or otherwise leading development or production 
activities) overlaps with an entity on the Entity List in supplement 
no. 4 to part 744 of the EAR, particularly if the supplier 
previously provided the same or substantially similar item or 
service to the Entity List entity, most likely prior to the listed 
entity being added to the Entity List. This scenario would raise a 
Red Flag that the entity requesting the item or service is engaged 
in or supporting the same prohibited end use as the Entity List 
entity, and the supplier would need to conduct additional due 
diligence before proceeding with the transaction with the new 
customer.
    25. An exporter, reexporter, or transferor receives a request 
from a new customer for an item or service that was designed or 
modified for an existing or former customer that is now designated 
on the Entity List. This scenario would raise a Red Flag that the 
new customer has assumed the operations for which the item or 
service is still needed to engage in or support the same prohibited 
end-use for which the Entity List entity was listed. The exporter, 
reexporter, or transferor must resolve this Red Flag before 
proceeding with the transaction.
    26. For purposes of analyzing the scope of the Entity List FDP 
rule for Footnote 5 entities described in Sec.  734.9(e)(3) and the 
SME FDP rule in Sec.  734.9(k), if a foreign-produced item is 
described in the relevant Category 3B ECCN in Sec.  734.9(e)(3)(i) 
or Sec.  734.9(k)(1) and contains at least one integrated circuit, 
then there is a Red Flag that the foreign-produced item meets the 
product scope of the applicable FDP rule. The exporter, reexporter, 
or transferor must resolve this Red Flag before proceeding.
    27. The end user is a ``facility'' that is physically connected 
to a ``facility'' where ``production'' of ``advanced-node ICs'' 
occurs. This scenario raises a Red Flag that the end user is also a 
``facility'' where the ``production'' of ``advanced-node ICs'' 
occurs, and the supplier would need to conduct additional due 
diligence before proceeding with the transaction. For example, if an 
exporter, reexporter, or transferor receives an equipment order from 
a company that is engaged in ``production'' of non-``advanced-node 
ICs'' in a building with a bridge, tunnel, or other connection to 
another building where the ``production'' of ``advanced-node ICs'' 
occurs, then both buildings would be subject to the controls under 
Sec.  744.23 of the EAR. However, if the exporter or fabrication 
facility has received an Advisory Opinion from BIS confirming that 
the ``production'' technology node for the relevant facility does 
not qualify as an ``advanced-node IC'' technology node, that would 
resolve the Red Flag of the connection to the advanced facility. 
Unless the Red Flag is resolved through an Advisory Opinion, the two 
buildings are treated as a single ``facility'' for purposes of Sec.  
744.23 of the EAR.

PART 734--SCOPE OF THE EXPORT ADMINISTRATION REGULATIONS

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

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


0
4. Section 734.4 is amended by:
0
a. Revising paragraph (a)(3); and
0
b. Adding paragraphs (a)(8) and (9).
    The revision and additions read as follows:


Sec.  734.4  De minimis U.S. content.

    (a) * * *
    (3) There is no de minimis level for equipment meeting the 
parameters in ECCN 3B993.f.1 of the Commerce Control List in supplement 
no. 1 to part 774 of the EAR, when the equipment is destined for use in 
the ``development'' or ``production'' of ``advanced-node integrated 
circuits'' and the ``advanced-node integrated circuits'' meet the 
parameter specified in paragraph (1) of that definition in Sec.  772.1 
of the EAR, unless the country from which the foreign-made item was 
first exported \1\ has a commodity specified on an export control list.
* * * * *
    (8) There is no de minimis level related to the SME FDP rule for a 
commodity meeting the parameters in ECCNs 3B001.a.4, c, d, f.1, f.5, k 
to n, p.2, p.4, r, or 3B002.c of the Commerce Control List (CCL) in 
supplement no. 1 to part 774 of the EAR, when the commodity contains a 
U.S.-origin integrated circuit specified under Category 3, 4, or 5 of 
the CCL, and the commodity is destined for Macau or a destination 
specified in Country Group D:5, unless excluded from the national 
security license requirement in Sec.  742.4(a)(4) or the regional 
stability license requirement in Sec.  742.6(a)(6) of the EAR.
    (9) There is no de minimis level related to the Footnote 5 FDP rule 
for an item meeting the parameters in ECCNs specified in Category 3B 
(except 3B001.a.4, c, d, f.1, f.5, k to n, p.2, p.4, r, or 3B002.c) of 
the Commerce Control List (CCL) in supplement no. 1 to part 774 of the 
EAR, when the commodity contains a U.S.-origin integrated circuit 
specified under Category 3, 4, or 5 of the CCL, and the commodity is 
destined for an entity with a Footnote 5 designation in the license 
requirement column of the Entity List in supplement no. 4 to part 744 
of the EAR.
* * * * *
    \1\ The Government of Japan added ArF-wet lithography equipment 
and other advanced semiconductor manufacturing equipment to its 
control list for all regions on July 23, 2023.
* * * * *

0
5. Section 734.9 is amended by:
0
a. Revising the introductory text;
0
b. Revising paragraphs (e) introductory text, (e)(1)(i)(A) and (B), and 
(e)(2)(i)(A) and (B);
0
c. Adding paragraph (e)(3);

[[Page 96811]]

0
d. Revising paragraphs (h)(1)(i)(A) introductory text, (h)(1)(ii)(A), 
and (i)(1)(i) and (ii); and
0
e. Adding paragraph (k).
    The revisions and additions read as follows:


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

    Foreign-produced items located outside the United States are 
subject to the EAR when they are a ``direct product'' of specified 
``technology'' or ``software,'' produced by a complete plant or `major 
component' of a plant that itself is a ``direct product'' of specified 
``technology'' or ``software,'' or, for specified foreign-produced 
items in paragraph (e)(3)(i)(B)(2) of this section, contain an item 
produced by a complete plant or `major component' of a plant that 
itself is a ``direct product'' of specified ``technology'' or 
``software.'' If a foreign-produced item is subject to the EAR, then 
you should separately determine the license requirements that apply to 
that foreign-produced item (e.g., by assessing the item classification, 
destination, end-use, and end-user in the relevant transaction). Not 
all transactions involving foreign-produced items that are subject to 
the EAR require a license. Those transactions that do require a license 
may be eligible for a license exception.
* * * * *
    (e) Entity List FDP rules. A foreign-produced item is subject to 
the EAR if it meets the product scope and end-user scope in either 
Entity List FDP rule footnote 1 provision in paragraph (e)(1) of this 
section; the Entity List FDP rule footnote 4 provision in paragraph 
(e)(2) of this section; or the Entity List FDP rule Footnote 5 
provision in paragraph (e)(3) of this section.
    (1) * * *
    (i) * * *
    (A) ``Direct product'' of ``technology'' or ``software.'' A 
foreign-produced item meets the product scope of this paragraph 
(e)(1)(i)(A) if the foreign-produced item is a ``direct product'' of 
``technology'' or ``software'' subject to the EAR and specified in ECCN 
3D001, 3D901, 3D991, 3D992, 3D993, 3D994, 3E001, 3E002, 3E003, 3E901, 
3E991, 3E992, 3E993, 3E994, 4D001, 4D993, 4D994, 4E001, 4E992, 4E993, 
5D001, 5D991, 5E001, or 5E991 of the Commerce Control List (CCL) in 
supplement no. 1 to part 774 of the EAR; or
    (B) Product of a complete plant or 'major component' of a plant 
that is a ``direct product.'' A foreign-produced item meets the product 
scope of this paragraph if the foreign-produced item is produced by any 
complete plant or `major component' of a plant that is located outside 
the United States, when the complete plant or `major component' of a 
plant, whether made in the U.S. or a foreign country, itself is a 
``direct product'' of U.S.-origin ``technology'' or ``software'' that 
is specified in ECCN 3D001, 3D901, 3D991, 3D992, 3D993, 3D994, 3E001, 
3E002, 3E003, 3E901, 3E991, 3E992, 3E993, 3E994, 4D001, 4D993, 4D994, 
4E001, 4E992, 4E993, 5D001, 5D991, 5E001, or 5E991 of the CCL.

    Note 2 to paragraph (e)(1)(i): A foreign-produced item includes 
any foreign-produced wafer whether finished or unfinished.

* * * * *
    (2) * * *
    (i) * * *
    (A) ``Direct product'' of ``technology'' or ``software.'' The 
foreign-produced item is a ``direct product'' of ``technology'' or 
``software'' subject to the EAR and specified in ECCN 3D001, 3D901 
3D991, 3D992, 3D993, 3D994, 3E001, 3E002, 3E003, 3E901, 3E991, 3E992, 
3E993, 3E994, 4D001, 4D993, 4D994, 4E001, 4E992, 4E993, 5D001, 5D002, 
5D991, 5E001, 5E002, or 5E991 of the CCL; or
    (B) Product of a complete plant or 'major component' of a plant 
that is a ``direct product.'' A foreign-produced item meets the product 
scope of this paragraph if the foreign-produced item is produced by any 
complete plant or `major component' of a plant that is located outside 
the United States, when the complete plant or `major component' of a 
plant, whether made in the U.S. or a foreign country, itself is a 
``direct product'' of U.S.-origin ``technology'' or ``software'' that 
is specified in ECCN 3D001, 3D901, 3D991, 3D992, 3D993, 3D994, 3E001, 
3E002, 3E003, 3E901, 3E991, 3E992, 3E993, 3E994, 4D001, 4D993, 4D994, 
4E001, 4E992, 4E993, 5D001, 5D002, 5D991, 5E001, 5E002, or 5E991 of the 
CCL.
* * * * *
    (3) Entity List FDP rule: Footnote 5. A foreign-produced commodity 
is subject to the EAR if it meets both the product scope in paragraph 
(e)(3)(i) of this section and the end-user scope in paragraph 
(e)(3)(ii) of this section. See Sec.  744.11(a)(2)(v) of the EAR for 
license requirements, exclusion from license requirements, and license 
review policy, applicable to foreign-produced commodities that are 
subject to the EAR pursuant to this paragraph (e)(3).
    (i) Product Scope Entity List FDP rule: Footnote 5. The product 
scope applies if a foreign-produced commodity is specified in ECCN 
3B001 (except 3B001.a.4, c, d, f.1, f.5, g, h, k to n, p.2, p.4, r), 
3B002 (except 3B002.c), 3B903, 3B991 (except 3B991.b.2.a through 
3B991.b.2.b), 3B992, 3B993, or 3B994, and meets the conditions of 
either paragraph (e)(3)(i)(A) or (B) of this section.
    (A) ``Direct product'' of ``technology'' or ``software.'' A 
foreign-produced item meets the product scope of this paragraph if the 
foreign-produced commodity is a ``direct product'' of ``technology'' or 
``software'' subject to the EAR and specified in ECCN 3D001 (for 3B 
commodities), 3D901(for 3B903), 3D991 (for 3B991 and 3B992), 3D993, 
3D994, 3E001 (for 3B commodities), 3E901 (for 3B903), 3E991 (for 3B991 
and 3B992), 3E993, or 3E994 of the Commerce Control List (CCL) in 
supplement no. 1 to part 774 of the EAR; or
    (B) Product of a complete plant or `major component' of a plant 
that is a ``direct product,'' or a commodity that contains a product of 
a complete plant or `major component' of a plant that is a ``direct 
product.'' A foreign-produced commodity meets the product scope of this 
paragraph if the foreign-produced commodity meets at least one of the 
following conditions:
    (1) Is produced by any complete plant or `major component' of a 
plant that is located outside the United States, when the complete 
plant or `major component' of a plant, whether made in the United 
States or a foreign country, itself is a ``direct product'' of U.S.-
origin ``technology'' or ``software'' that is specified in ECCN 3D001 
(for 3B commodities), 3D901, 3D991 (for 3B991 and 3B992), 3D992, 3D993, 
3D994, 3E001 (for 3B commodities), 3E901 (for 3B903), 3E991 (for 3B991 
and 3B992), 3E992, 3E993, or 3E994 of the CCL; or
    (2) Contains a commodity produced by any complete plant or `major 
component' of a plant that is located outside the United States, when 
the complete plant or `major component' of a plant, whether made in the 
United States or a foreign country, itself is a ``direct product'' of 
U.S.-origin ``technology'' or ``software'' that is specified in ECCN 
3D001 (for 3B commodities), 3D901, 3D991 (for 3B991 and 3B992), 3D992, 
3D993, 3D994, 3E001 (for 3B commodities), 3E901 (for 3B903), 3E991 (for 
3B991 and 3B992)), 3E992, 3E993, or 3E994 of the CCL.

    Note 3 to paragraph (e)(3)(i)(B)(2):
    The product scope of paragraph (e)(3)(i) is met if a foreign-
produced commodity contains an integrated circuit that is produced 
by a complete plant or `major component' of a plant that itself is a 
``direct product'' of U.S.-origin ``technology'' or ``software'' 
specified in the ECCNs described in paragraph

[[Page 96812]]

(e)(3)(i)(B)(2). See Red Flag 26 in supplement no. 3 to part 732 for 
additional guidance on the scope of paragraph (e)(3)(i). Production 
of an integrated circuit includes fabrication of the integrated 
circuit in a wafer, as well as assembly, testing, and packaging of 
the integrated circuit.

    (ii) End-user scope of the Entity List FDP rule: Footnote 5. A 
foreign-produced commodity meets the end-user scope of this paragraph 
(e)(3)(ii) if there is ``knowledge'' that:
    (A) Activities involving Footnote 5 designated entities. The 
foreign-produced commodity will be incorporated into any ``part,'' 
``component,'' or ``equipment'' produced, purchased, or ordered by any 
entity with a Footnote 5 designation in the license requirement column 
of the Entity List in supplement no. 4 to part 744 of the EAR; or
    (B) Footnote 5 designated entities as transaction parties. Any 
entity with a Footnote 5 designation in the license requirement column 
of the Entity List in supplement no. 4 to part 744 of the EAR is a 
party to any transaction involving the foreign-produced commodity 
(e.g., as a ``purchaser,'' ``intermediate consignee,'' ``ultimate 
consignee,'' or ``end-user'').
* * * * *
    (h) * * *
    (1) * * *
    (i) * * *
    (A) The foreign-produced item is the ``direct product'' of 
``technology'' or ``software'' subject to the EAR and specified in ECCN 
3D001, 3D901, 3D991, 3D992, 3D993, 3D994, 3E001, 3E002, 3E003, 3E901, 
3E991, 3E992, 3E993, 3E994, 4D001, 4D090, 4D993, 4D994, 4E001, 4E992, 
4E993, 5D001, 5D002, 5D991, 5E001, 5E991, or 5E002 of the CCL; and
* * * * *
    (ii) * * *
    (A) The foreign-produced item is produced by any complete plant or 
`major component' of a plant that is located outside the United States, 
when the plant or `major component' of a plant, whether made in the 
United States or a foreign country, itself is a ``direct product'' of 
U.S.-origin ``technology'' or ``software'' that is specified in ECCN 
3D001, 3D901, 3D991, 3D992, 3D993, 3D994, 3E001, 3E002, 3E003, 3E901, 
3E991, 3E992, 3E993, 3E994, 4D001, 4D090, 4D993, 4D994, 4E001, 4E992, 
4E993, 5D001, 5D991, 5E001, 5E991, 5D002, or 5E002 of the CCL; and
* * * * *
    (i) * * *
    (1) * * *
    (i) ``Direct product'' of ``technology'' or ``software.'' The 
foreign-produced item meets the product scope of this paragraph 
(i)(1)(i) if the foreign-produced item is a ``direct product'' of 
``technology'' or ``software'' subject to the EAR and specified in ECCN 
3D001, 3D901, 3D991, 3D992, 3D993, 3D994, 3E001, 3E002, 3E003, 3E901, 
3E991, 3E992, 3E993, 3E994, 4D001, 4D993, 4D994, 4E001, 4E992, 4E993, 
5D001, 5D002, 5D991, 5E001, 5E002, or 5E991 of the CCL; or
    (ii) Product of a complete plant or 'major component' of a plant 
that is a ``direct product.'' A foreign-produced item meets the product 
scope of this paragraph if the foreign-produced item is produced by any 
complete plant or `major component' of a plant that is located outside 
the United States, when the complete plant or `major component' of a 
plant, whether made in the United States or a foreign country, itself 
is a ``direct product'' of U.S.-origin ``technology'' or ``software'' 
that is specified in ECCN 3D001, 3D901, 3D991, 3D992, 3D993, 3D994, 
3E001, 3E002, 3E003, 3E901, 3E991, 3E992, 3E993, 3E994, 4D001, 4D994, 
4E001, 4E992, 4E993, 5D001, 5D002, 5D991, 5E001, 5E002, or 5E991 of the 
CCL.
* * * * *
    (k) Semiconductor Manufacturing Equipment (SME) FDP rule. A 
foreign-produced commodity is subject to the EAR if it meets both the 
product scope in paragraph (k)(1) of this section and the destination 
scope in paragraph (k)(2) of this section. See Sec. Sec.  742.4(a)(4) 
and 742.6(a)(6)(i)(A) of the EAR for license requirements and 
exclusions to the license requirements and Sec. Sec.  742.4(b)(2) and 
742.6(b)(10) for license review policy applicable to foreign-produced 
commodities that are subject to the EAR under this paragraph (k).
    (1) Product scope. The product scope applies to a foreign-produced 
commodity specified in ECCN 3B001.a.4, c, d, f.1, f.5, k to n, p.2, 
p.4, r, or 3B002.c that meets the conditions of either paragraph 
(k)(1)(i) or (ii) of this section.
    (i) ``Direct product'' of ``technology'' or ``software.'' A 
foreign-produced commodity meets the product scope of this paragraph 
(k) if the foreign-produced commodity is the ``direct product'' of 
``technology'' or ``software'' subject to the EAR and specified in 
3D992 or 3E992 of the CCL; or
    (ii) Product of a complete plant or `major component' of a plant 
that is a ``direct product.'' A foreign-produced commodity meets the 
product scope of this paragraph if it meets either of the following 
conditions:
    (A) Is produced by any complete plant or `major component' of a 
plant that is located outside the United States, when the plant or 
`major component' of a plant, whether made in the United States or a 
foreign country, itself is a ``direct product'' of U.S.-origin 
``technology'' or ``software'' that is specified in ECCN 3D001 (for 3B 
commodities), 3D901, 3D991 (for 3B991 and 3B992), 3D992, 3D993, 3D994, 
3E001 (for 3B commodities), 3E901 (for 3B903), 3E991 (for 3B991 or 
3B992), 3E992, 3E993, or 3E994 of the CCL; or
    (B) Contains a commodity produced by any complete plant or `major 
component' of a plant that is located outside the United States, when 
the complete plant or `major component' of a plant, whether made in the 
U.S. or a foreign country, itself is a ``direct product'' of U.S.-
origin ``technology'' or ``software'' that is specified in ECCN 3D001 
(for 3B commodities), 3D901, 3D991 (for 3B991 and 3B992), 3D992, 3D993, 
3D994, 3E001 (for 3B commodities), 3E901 (for 3B903), 3E991 (for 3B991 
or 3B992), 3E992, 3E993, or 3E994 of the CCL.

    Note 3 to paragraph (k)(1)(ii)(B): The product scope of 
paragraph (k)(1) is met if a foreign-produced commodity contains an 
integrated circuit that is produced by a complete plant or `major 
component' of a plant that itself is a ``direct product'' of U.S.-
origin ``technology'' or ``software'' specified in the ECCNs 
described in paragraph (k)(1)(ii)(B). See Red Flag 26 in supplement 
no. 3 to part 732 for additional guidance on the scope of paragraph 
(k)(1). Production of an integrated circuit includes fabrication of 
the integrated circuit in a wafer, as well as assembly, testing, and 
packaging of the integrated circuit.

    (2) Destination scope of the SME FDP rule. A foreign-produced item 
meets the destination scope of this paragraph (k)(2) if there is 
``knowledge'' that the foreign-produced item is destined to Macau or a 
destination in Country Group D:5 of supplement no. 1 to part 740 of the 
EAR.
* * * * *

0
6. Section 734.19 is revised to read as follows:


Sec.  734.19  Transfer of access information and export, reexport, and 
transfer (in-country) of software keys.

    (a) To the extent an authorization would be required to transfer 
``technology'' or ``software,'' a comparable authorization is required 
to transfer ``access information'' if done with ``knowledge'' that such 
transfer would result in the release of such ``technology'' or 
``software'' without a required authorization.

    Note 1 to paragraph (a): For purposes of this section, a release 
of ``software'' includes source code and object code.


[[Page 96813]]


    (b) Software keys, also called software license keys, that allow 
users the ability to use the ``software'' or hardware, or software keys 
that renew existing ``software'' or hardware use licenses, are 
classified and controlled under the same ECCNs on the CCL as the 
corresponding ``software'' or hardware to which they provide access. If 
authorization is required for the export, reexport, or transfer (in-
country) of the ``software'' or hardware, the same level of 
authorization is required for the software key. If authorization is 
obtained for the export, reexport, or transfer (in-country) of the 
``software'' or hardware, that authorization also applies to the 
corresponding software license key. If no authorization was required 
for the initial export of the ``software'' or hardware and the 
associated software key, but a license requirement is later imposed on 
the ``software'' or hardware, (e.g., a license requirement is imposed 
because the end user becomes listed on the Entity List in supplement 
no. 4 to part 744), then subsequent exports, reexports, or transfers 
(in-country) of both the ``software'' and hardware, and the associated 
software license key will be subject to the new license requirement.

    Note 2 to paragraph (b): This paragraph does not apply to keys 
that unlock dormant functionality in an item. However, in some 
cases, changes to, or the addition of, features may impact the 
classification of the item.

PART 736--GENERAL PROHIBITIONS

0
7. The authority citation for part 736 is revised to read as follows:

    Authority:  50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 
950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 
CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp., 
p. 168; Notice of May 8, 2024, 89 FR 40355 (May 9, 2024); Notice of 
November 7, 2024, 89 FR 88867 (November 8, 2024).


0
8. Section 736.2 is amended by revising paragraph (b)(3)(i) to read as 
follows:


Sec.  736.2  General prohibitions and determination of applicability.

* * * * *
    (b) * * *
    (3) General Prohibition Three--Foreign-direct product (FDP) rules. 
(i) You may not, without a license or license exception, export from 
abroad, reexport, or transfer (in-country) foreign-``direct products'' 
or other foreign-produced items subject to the EAR pursuant to Sec.  
734.9 if such items are subject to a license requirement in part 736, 
742, 744, 746, or 764 of the EAR.
* * * * *

0
9. Supplement no. 1 to part 736 is amended by revising paragraphs 
(d)(1), (2), and (3), to read as follows:

Supplement No. 1 to Part 736--General Orders

* * * * *
    (d) * * *
    (1) TGL--Less restricted SME ``parts,'' ``components,'' or 
``equipment.'' This TGL only overcomes the license requirements 
described in Sec.  744.23(a)(4) of EAR when:
    (i) Product scope. The items subject to the EAR that are 
specified on the Commerce Control List (CCL) in supplement no. 1 to 
part 774 of the EAR, as follows:
    (A) ECCNs that are designated as controlled on the CCL only for 
AT reasons (3A991, 3B992, and associated ``software'' and 
``technology''); or
    (B) ECCN 3B001.c.4, 3B993.b.1, c.2, c.3, d.4, f.2, f.3, o.2, 
q.1, q.2, 3B994, 3D993.a (for commodities specified in this 
paragraph), 3D993.b through d, 3D994, 3E993.a (for commodities 
specified in this paragraph), 3E993.b, or 3E994; and
    (ii) End-use scope. The recipient is ``developing'' or 
``producing'' ``parts,'' ``components,'' or ``equipment'' (as 
specified in Sec. Sec.  744.23(a)(4) and 742.6(a)(11)) of the EAR) 
at the direction of a company that is headquartered in the United 
States or a destination specified in Country Group A:5 or A:6 and 
not majority-owned by an entity headquartered in either Macau or a 
destination specified in Country Group D:5.
    (2) TGL--Advanced computing items. This TGL only overcomes the 
license requirements described in Sec.  742.6(a)(6)(iii) of the EAR 
when the criteria in paragraphs (d)(2)(i) and either (d)(2)(ii)(A) 
or (d)(2)(ii)(B) are met.
    (i) Product scope. The items subject to the EAR are specified 
in, either:
    (A) ECCNs 3A001.z; 3A090.a and 3A090.b; 3D001 (for ``software'' 
for commodities controlled by 3A001.z, 3A090.a and 3A090.b); 3E001 
(for ``technology'' for commodities controlled by 3A001.z, 3A090.a 
and .b); 4A003.z; 4A004.z; 4A005.z; 4A090; 4D001 (for ``software'' 
for commodities controlled by 4A003.z, 4A004.z, and 4A005.z); 4D090; 
4E001 (for ``technology'' for commodities controlled by 4A003.z, 
4A004.z, 4A005.z, 4A090 or ``software'' specified by 4D001 (for 
4A003.z, 4A004.z, and 4A005.z); 4D090; 5A002.z; 5A004.z; 5A992.z; 
5D002.z; 5D992.z; 5E002 (for ``technology'' for commodities 
controlled by 5A002.z or 5A004.z or ``software'' specified by 5D002 
(for 5A002.z or 5A004.z commodities)); or 5E992 (for ``technology'' 
for commodities controlled by 5A992.z or ``software'' controlled by 
5D992.z) of the Commerce Control List (CCL); or
    (B) ECCN 3A090.c.
    (ii) End-use scope--(A) For all items under paragraph (d)(2)(i). 
Any item identified under the paragraph (d)(2)(i) of this 
supplement, may be exported, reexported, or transferred (in-country) 
to or within a destination specified in Country Groups D:1, D:4, or 
D:5 (and not specified in Country Groups A:5 or A:6) or for 3A090.c 
to or within Macau or a destination specified in Country Group D:5 
when either of the following apply:
    (1) The end user is located in, but is not headquartered in, or 
whose ultimate parent company is not headquartered in, Macau or 
Country Group D:5 and the end use is to continue or engage in the 
following activities: integration, assembly (mounting), inspection, 
testing, quality assurance, and distribution of items covered by 
items specified in paragraph (d)(2)(i); and
    (2) The ultimate end user of these items is located outside of 
destinations specified in Country Groups D:1, D:4, or D:5 (and not 
specified in Country Groups A:5 or A:6) by entities not 
headquartered in or whose ultimate parent company is not 
headquartered in Macau or a destination specified in Country Group 
D:5.
    (B) Additional permitted ultimate end use for 3A090.c. ECCN 
3A090.c commodities are authorized under this paragraph (d)(2)(ii) 
of this General Order No. 4 for use in any destination if the 
3A090.c commodity is incorporated into another commodity, provided 
that the higher-level commodity is not identified in paragraph 
(d)(2)(i) of this General Order No. 4. If the higher-level commodity 
is identified under paragraph (d)(2)(i), of this General Order No. 
4, then the ultimate end use of these items is authorized under this 
paragraph (d)(2)(ii) for destinations other than those specified in 
Country Groups D:1, D:4, or D:5 (and not specified in Country Groups 
A:5 or A:6) by entities not headquartered in, or whose ultimate 
parent company is not headquartered in, Macau or a destination 
specified in Country Group D:5. Any subsequent export, reexport, or 
transfer (in-country) of a 3A090.c commodity (regardless of whether 
it was incorporated into a higher-level commodity) would also need 
to comply with any other applicable EAR license requirements such as 
those based on the classification (including, if relevant, the 
higher-level commodity) and the end use and parties to the 
transaction.
    (3) Validity date follows:
    (i) Paragraph (d)(1)(i)(A) expires on December 31, 2026;
    (ii) Paragraph (d)(1)(i)(B) expires on December 31, 2026;
    (iii) Paragraph (d)(2)(i)(A) expires on December 31, 2025; and
    (iv) Paragraph (d)(2)(i)(B) expires on December 31, 2026.
* * * * *

PART 740--LICENSE EXCEPTIONS

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

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


0
11. Section 740.2 is amended by:
0
a. Revising paragraph (a)(9)(i) and paragraph (a)(9)(ii) introductory 
text;

[[Page 96814]]

0
b. Adding a new note to paragraph (a)(9)(ii).
    The revisions and addition read as follows:


Sec.  740.2  Restrictions on all License Exceptions.

* * * * *
    (a) * * *
    (9) * * *
    (i) The item is controlled under ECCN 3B001.a.4, c, d, f.1, f.5, k 
to n, p.2, p.4, r, 3B002.c, 3B993, 3B994, or associated software and 
technology in ECCN 3D001, 3D002, 3D003, 3D992, 3D993, 3D994, 3E001, 
3E992, 3E993, or 3E994 and is being exported, exported from abroad, 
reexported, or transferred (in-country) to or within either Macau or a 
destination specified in Country Group D:5 of supplement no. 1 to this 
part, and the license exception is other than License Exception GOV, 
restricted to eligibility under the provisions of Sec.  740.11(b).
    (ii) The item is identified in paragraph (a)(9)(ii)(A) or (B) of 
this section, is being exported, reexported, or transferred (in-
country) to or within a destination specified in Country Group D:1, 
D:4, or D:5, excluding any destination also specified in Country Groups 
A:5 or A:6, or to an entity headquartered in or whose ultimate parent 
headquartered in, Macau or a destination specified in Country Group 
D:5, wherever located, and the license exception is other than: TMP, 
restricted to eligibility under the provisions of Sec.  740.9(a)(6); 
NAC/ACA, under the provisions of Sec.  740.8; RPL, under the provisions 
of Sec.  740.10; GOV, restricted to eligibility under the provisions of 
Sec.  740.11(b); TSU under the provisions of Sec.  740.13(a) and (c); 
or HBM under the provisions of Sec.  740.25. Items restricted to 
eligibility only for the foregoing license exceptions are:
* * * * *

    Note 1 to paragraph (a)(9)(ii): ECCN 3A090.c requires a license 
for exports, reexports, and transfers (in-country) to or within 
Macau or destinations specified in Country Group D:5, but is still 
included within the scope of this paragraph because it generally 
shares the same EAR license exception eligibility as other 3A090 
commodities, except for NAC/ACA, under the provisions of Sec.  
740.8., which ECCN 3A090.c is not eligible. An export, reexport, or 
transfer (in-country) of an ECCN 3A090.c commodity to a destination 
specified in Country Groups D:1 or D:4 that is not specified in 
Country Group D:5, may be made under the No License Required (NLR) 
designation, provided no part 744 or 746 license requirements are 
applicable.

* * * * *

0
12. Section 740.8 is amended by revising paragraph (a) introductory 
text to read as follows:


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

    (a) Eligibility requirements. License Exception NAC authorizes the 
export and reexport of any item classified in ECCN 3A090 (except for 
3A090.c), 4A090, 3A001.z, 4A003.z, 4A004.z, 4A005.z, 5A002.z, 5A004.z, 
5A992.z, 5D002.z, or 5D992.z, except for items designed or marketed for 
use in a datacenter and meeting the parameters of 3A090.a, to Macau and 
Country Group D:5 or an entity headquartered in, or whose ultimate 
parent headquartered in, Macau or a destination specified in Country 
Group D:5, wherever located. License Exception ACA authorizes the 
export, reexport, and transfer (in-country) of any item classified in 
ECCN 3A090 (except for 3A090.c), 4A090, 3A001.z, 4A003.z, 4A004.z, 
4A005.z, 5A002.z, 5A004.z, 5A992.z, 5D002.z, or 5D992.z, except for 
items designed or marketed for use in a datacenter and meeting the 
parameters of 3A090.a, to or within any destination specified in 
Country Groups D:1 and D:4 (except Macau, a destination in Country 
Group D:5, or an entity headquartered in, or whose ultimate parent 
headquartered in, Macau or a destination specified in Country Group 
D:5, wherever located), as well as transfers (in-country) within Macau 
and destinations in Country Group D:5. These license exceptions may be 
used provided the export, reexport, or transfer (in-country) meets all 
of the applicable criteria identified under this paragraph (a) and none 
of the restrictions in paragraph (b) of this section.
* * * * *

0
13. Sections 740.25 and 740.26 are added to read as follows:


Sec.  740.25  License Exception High Bandwidth Memory (HBM).

    (a) Scope. This License Exception High Bandwidth Memory (HBM) 
authorizes the export, reexport, or transfer (in-country) of items 
specified in ECCN 3A090.c on the Commerce Control List (CCL) in 
supplement no. 1 to part 774 if all terms and conditions within this 
section are met.
    (b) Exporter, reexporter, transferor. The exporter, reexporter, or 
transferor must be headquartered in the United States or a destination 
specified in Country Group A:5 of supplement no. 1 to this part, 
without an ultimate parent headquartered in Macau or a destination 
specified in Country Group D:5 of supplement no. 1 to this part.
    (c) Conditions. The following exports, reexports, or transfers (in-
country) are only authorized under this License Exception HBM if the 
3A090.c item has a memory bandwidth density less than 3.3 GB/s/
mm[supcaret]2 and both of the following conditions apply:
    (1) The 3A090.c items exported, reexported, or transferred to or 
within Macau or a destination specified in Country Group D:5 must be 
directly purchased by the designer of the co-packaged commodity not 
otherwise prohibited from receipt of the item; and
    (2) The 3A090.c items must be exported, reexported, or transferred 
(in-country) directly to the packaging site.
    (i) For 3A090.c items exported, reexported, or transferred (in-
country) to a U.S., or Country Group A:5 or A:6-headquartered packaging 
site without an ultimate parent headquartered in Macau or a destination 
specified in Country Group D:5 of supplement no. 1 to part 740:
    (A) The packaging site must confirm in writing to the producer of 
the chips that the 3A090.c item was packaged and exported, reexported, 
or transferred (in-country) to the specified designer of the co-
packaged commodity. This confirmation is considered an ``export control 
document'' and is subject to recordkeeping requirements in part 762. A 
copy of this record must be provided to BIS upon request; and
    (B) The finished, co-packaged commodities must not exceed the 
technical thresholds in ECCN 3A090, unless packaging the item is 
permitted under the Temporary General License (TGL) specified in 
paragraph (d) of General Order No. 4 in of supplement no. 1 to part 
736.
    (ii) For 3A090.c items exported, reexported, or transferred (in-
country) to any other packaging site, the finished, co-packaged 
commodities must be sent back to the exporter, reexporter, or 
transferor for export, reexport, or transfer (in-country) to the 
purchaser:
    (A) Upon receipt of the finished, co-packaged commodities, the 
exporter, reexporter, transferor must confirm the number of 3A090.c 
units contained within the finished, co-packaged chips received from 
the packaging site matches the number of 3A090.c items exported, 
reexported, or transferred (in-country) to the packaging site. This 
confirmation is considered an ``export control document'' and is 
subject to recordkeeping requirements in part 762. A copy of this 
record must be provided to BIS upon request; and
    (B) The finished, co-packaged commodities must not exceed the 
technical thresholds in ECCN 3A090.a or 3A090.b.

[[Page 96815]]

    (d) Restrictions. The following exports, reexports, or transfers 
(in-country) of 3A090.c items are not authorized under this License 
Exception HBM:
    (1) To distributors.
    (2) To intermediate consignees, unless hired by the packaging site 
for freight forwarding or customs clearance.
    (3) To co-packaging at a ``facility'' located in Macau or a 
destination specified in Country Group D:5 where ``production'' of 
``advanced-node ICs'' occurs.
    (e) Reporting requirement. In the event that the exporter, 
reexporter, or transferor identifies a discrepancy of greater than 1 
percent between the number of 3A090.c units exported, reexported, or 
transferred (in-country) to the packaging site and the number of 
3A090.c units contained within the finished, co-packaged commodities 
received from the packaging site under paragraph (c)(2)(ii) of this 
section, this generates a `Red Flag' that must be resolved before 
exporting, reexporting, or transferring (in-country) the finished, co-
packaged commodities to the designer of the co-packaged commodity or 
engaging in any further exports, reexports, or transfers (in-country) 
of 3A090.c items to the designer of the co-packaged commodity or 
packaging site involved in the transaction that raised the Red Flag. If 
the Red Flag cannot be resolved, then within 60 days of identifying the 
discrepancy, the exporter, reexporter, or transferor must report the 
information in paragraph (e)(1) to BIS consistent with the requirements 
under paragraph (e)(2).
    (1) Information required. (i) Date of shipment;
    (ii) Quantity exported and quantity returned;
    (iii) Name of Consignee or designer of the co-packaged commodity;
    (iv) Name and address of the packaging site;
    (v) End use; and
    (vi) Explanation of measures already taken or planned to resolve 
the Red Flag.
    (2) Submission requirements. Reports must be provided in electronic 
form. Recommended file formats for electronic submission include 
spreadsheets, tabular text or structured text. Submitters may request 
other reporting arrangements with BIS to better reflect their business 
models. Reports are to be sent electronically to BIS at the email 
address: [email protected] with the email subject line Attn: LE 
HBM Discrepancy Reports.


Sec.  740.26  License Exception Restricted Fabrication ``Facility'' 
(RFF).

    (a) Scope. License Exception Restricted Fabrication ``Facility'' 
(RFF) authorizes the export, reexport, export from abroad, and transfer 
(in-country) of items not specified in ECCNs 3B001, 3B002, 3B993, 
3B994, 3D992, 3D993, 3D994, 3E992, 3E993, or 3E994. Additionally, this 
license exception does not overcome destination-based license 
requirements in part 742, end-use based license requirements in other 
sections of part 744, or license requirements that apply to other 
entities on the Entity List if other listed entities that are not 
eligible for this license exception are a party to the transaction.
    (b) Definition. A restricted fabrication ``facility'' is an entity 
that is on the Entity List in supplement no. 4 to part 744 of the EAR 
that has a reference to Sec.  740.26 in the license requirement column.
    (c) Restrictions. License Exception RFF is subject to the following 
restrictions.
    (1) Items may not be used for the operation, installation, 
maintenance, repair, overhaul, or refurbishing of items specified in 
ECCNs 3B001.a.4, c, d, f.1, f.5, k to n, p.2, p.4, r, 3B002.c, 3B993, 
or 3B994 at a `restricted fabrication facility'.
    (2) The item may not be used to produce ``advanced-node integrated 
circuits.''
    (d) Notification requirements. Notifications must be sent to 
[email protected]. Subject line `LE RFF Notification pursuant to 
(d)(1)' for notifications required under (d)(1) and with the subject 
line `LE RFF Notification pursuant to (d)(2)' for notifications 
required under (d)(2) of this section.
    (1) 45-Days Prior. 45 days prior to exporting, reexporting, 
exporting from abroad, or transferring (in-country) items eligible 
under this license exception, a notification must be sent to BIS that 
includes the end-user's name and address, description of item(s), 
purchase price, and anticipated shipping date of shipment.
    (2) Within one business day. If you gain ``knowledge'' that the end 
use has changed to ``advance-node integrated circuit'' ``production,'' 
you must notify BIS within one business day.
    (e) Reporting requirements. Reports must be provided in electronic 
form. Recommended file formats for electronic submission include 
spreadsheets, tabular text, or structured text. Submitters may request 
other reporting arrangements with BIS to better reflect their business 
models. Reports are to be sent electronically to BIS at the email 
address: [email protected]. Subject line Attn: LE RFF Installation 
Reports for paragraph (e)(1) or Attn: LE RFF Annual Confirmation Report 
for paragraph (e)(2) of this section.
    (1) Installation. Within 30 days of installation of semiconductor 
manufacturing equipment, you must submit a report to BIS that includes 
the end-user's name and address, description of equipment that was 
installed, and date of installation. This email should reference 
previous notifications sent to BIS, including notifications.
    (2) Annual end-use confirmation. On February 1 of each year that 
the exporter, reexporter, or transferor is continuing to provide 
service or for at least for five years from the date of last service, 
you must submit a report to BIS that you have confirmed that the 
installed semiconductor manufacturing equipment is not being used in 
the production of ``advanced-node integrated circuits.''
* * * * *

PART 742--CONTROL POLICY--CCL BASED CONTROLS

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

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


0
15. Section 742.4 is amended by:
    (a) Revising paragraph (a)(4);
    (b) Redesignating paragraphs (a)(5)(ii)(B)(i) and (ii) as 
paragraphs (a)(5)(ii)(B)(1) and (2); and
    (c) Revising paragraph (b)(2).
    The revisions read as follows:


Sec.  742.4  National security.

    (a) * * *
    (4) Certain semiconductor manufacturing equipment and associated 
software and technology--(i) Scope. A license is required for exports, 
reexports, exports from abroad, and transfers (in-country) to or within 
either Macau or a destination specified in Country Group D:5 in 
supplement no. 1 to part 740 of the EAR of items specified in 
3B001.a.4, c, d, f.1, f.5, k to n, p.2, p.4, r, 3B002.c, 3D992, or 
3E992.

[[Page 96816]]

    (ii) Exclusions. The license requirements in this paragraph (a)(4) 
do not apply to any of the following:
    (A) Deemed exports or deemed reexports.
    (B) An item subject to the EAR pursuant to Sec. Sec.  734.4(a)(8) 
or 734.9(k) if the item is reexported or exported from abroad by an 
entity located in a country specified in supplement no. 4 to this part, 
and the entity is not headquartered or have an ultimate parent company 
headquartered in either Macau or a destination specified in Country 
Group D:5.
    (C) An item subject to the EAR pursuant to Sec. Sec.  734.4(a)(8) 
or 734.9(k) if the item is reexported or exported from abroad by an 
entity located in a country that has implemented equivalent controls 
for items specified in paragraph (a)(4)(i) of this section, and the 
entity is not headquartered or have an ultimate parent company 
headquartered in either Macau or a destination specified in Country 
Group D:5. For the purposes of this paragraph, equivalent means the 
item is listed on the country's export control list and the country 
applies the same license review policy. To receive assistance in 
determining countries with equivalent controls, you may submit an 
advisory opinion in accordance with Sec.  748.3(c) of the EAR.
* * * * *
    (b) * * *
    (2) License applications for items specified in paragraph (a)(4) of 
this section will be reviewed consistent with license review policies 
in Sec.  744.23(d) of the EAR. However, if Sec.  744.23 does not apply, 
applications will be reviewed on a case-by-case basis if no license 
would be required under part 744 of the EAR. applications will be 
reviewed on a case-by-case basis if no license would be required under 
part 744 of the EAR.
* * * * *

0
16. Section 742.6 is amended by:
0
a. Revising paragraphs (a)(6)(i) and (a)(6)(iii);
0
c. Adding paragraph (a)(11);
0
d. Revising paragraph (b)(10); and
0
e. Adding paragraph (b)(12).
    The additions and revisions read as follows:


Sec.  742.6  Regional stability.

    (a) * * *
    (6) RS requirement that applies to advanced computing and 
semiconductor manufacturing items--(i) Exports, reexports, transfers 
(in-country) to or within Macau or Country Group D:5--(A) Certain 
semiconductor manufacturing equipment and associated software and 
technology--(1) Scope. A license is required for exports, reexports, 
and transfers (in-country) to or within either Macau or a destination 
specified in Country Group D:5 in supplement no. 1 to part 740 of the 
EAR of items specified in 3B001.a.4, c, d, f.1, f.5, k to n, p.2, p.4, 
r, 3B002.c, 3D992, or 3E992.
    (2) Exclusions. The license requirements in this paragraph 
(a)(6)(i)(A) do not apply to any of the following:
    (i) Deemed exports or deemed reexports.
    (ii) An item subject to the EAR pursuant to Sec. Sec.  734.4(a)(8) 
or 734.9(k) if the item is reexported or exported from abroad by an 
entity located in a country specified in supplement. no. 4 to this 
part, and the entity is not headquartered or have an ultimate parent 
company headquartered in Country Group D:5 or Macau.
    (iii) An item subject to the EAR pursuant to Sec. Sec.  734.4(a)(8) 
or 734.9(k) if the item is reexported or exported from abroad by an 
entity located in a country that has implemented equivalent controls 
for items specified in paragraph (a)(6)(i)(A)(1) of this section, and 
the entity is not headquartered or have an ultimate parent company 
headquartered in Country Group D:5 or Macau. For the purposes of this 
paragraph, `equivalent' means the item is listed on the country's 
export control list and the country applies the same license review 
policy. To receive assistance in determining countries with equivalent 
controls, you may submit an advisory opinion request in accordance with 
Sec.  748.3(c) of the EAR.
    (B) High Bandwidth Memory (HBM). A license is required for items 
specified in ECCNs 3A090.c, 3D001 (for 3A090.c), and 3E001 (for 
3A090.c) when exported, reexported, or transferred (in-country) to or 
within Macau or a destination specified in Country Group D:5 in 
supplement no. 1 to part 740 of the EAR. The license requirements in 
this paragraph (a)(6)(i)(B) do not apply to deemed exports or deemed 
reexports.
* * * * *
    (iii) Exports, reexports, transfers (in-country) to or within 
destinations specified in Country Groups D:1, D:4, and D:5, excluding 
destinations also specified in Country Groups A:5 or A:6. A license is 
required for items specified in ECCNs 3A001.z; 3A090 (except for 
3A090.c); 3D001 (for ``software'' for commodities controlled by 
3A001.z, 3A090 (except for 3A090.c)); 3E001 (for ``technology'' for 
commodities controlled by 3A001.z, 3A090 (except for 3A090.c)); 
4A003.z; 4A004.z; 4A005.z; 4A090; 4D001 (for ``software'' for 
commodities controlled by 4A003.z, 4A004.z, and 4A005.z); 4D090 (for 
``software'' for commodities controlled by 4A090); 4E001 (for 
``technology'' for commodities controlled by 4A003.z, 4A004.z, 4A005.z, 
4A090 or ``software'' specified by 4D001 (for 4A003.z, 4A004.z, and 
4A005.z), 4D090 (for ``software'' for commodities controlled by 
4A090)); 5A002.z; 5A004.z; 5A992.z; 5D002.z; 5D992.z; 5E002 (for 
``technology'' for commodities controlled by 5A002.z or 5A004.z or 
``software'' specified by 5D002 (for 5A002.z or 5A004.z commodities)); 
or 5E992 (for ``technology'' for commodities controlled by 5A992.z or 
``software'' controlled by 5D992.z) being exported, reexported, or 
transferred (in-country) to or within a destination specified in 
Country Groups D:1, D:4, and D:5, excluding destinations also specified 
in Country Groups A:5 or A:6, in supplement no. 1 to part 740 of the 
EAR.
* * * * *
    (11) License requirement for ECCN 3B993, 3B994, 3D993, 3D994, 
3E993, and 3E994. A license is required for the export, reexport, or 
transfer (in-country) of items specified in ECCN 3B993, 3B994, 3D993, 
3D994, 3E993, or 3E994 to a Footnote 5 designated entity listed on the 
Entity List in supplement no. 4 to part 744 of the EAR when the item is 
not subject to the EA pursuant to Sec. Sec.  734.4(a)(9) or 734.9(e)(3) 
of the EAR. See Sec.  744.11(a)(2)(v)(a) for license requirements for 
these items when subject to the EAR pursuant to Sec. Sec.  734.4(a)(9) 
and 734.9(e)(3) of the EAR.
    (b) * * *
    (10) Advanced computing and semiconductor manufacturing items--(i) 
License review policy for paragraphs (a)(6)(i)(A) and (ii) of this 
section. License applications for items specified in paragraphs 
(a)(6)(i)(A) and (ii) of this section will be reviewed consistent with 
license review policies in Sec.  744.23(d) of the EAR. However, if 
Sec.  744.23 does not apply, applications will be reviewed on a case-
by-case basis if no license would be required under part 744 of the 
EAR.
    (ii) License review policy for paragraph (a)(6)(i)(B) of this 
section (for 3A090.c). There is a presumption of approval review policy 
for license applications for items specified in paragraph (a)(6)(i)(B) 
to or within Macau or a destination specified in Country Group D:5 in 
supplement no. 1 to part 740 of the EAR for entities neither 
headquartered in nor whose ultimate parent company is headquartered in 
either Macau or a destination specified in Country Group D:5. There is 
a

[[Page 96817]]

presumption of denial policy for all other license applications.
    (iii) License review policy for paragraph (a)(6)(iii) of this 
section. (A) License applications will be reviewed under a presumption 
of approval for export, reexport, or transfer (in-country) of items 
specified in paragraph (a)(6)(iii) to or within destinations other than 
Country Group D:5 or Macau or to entities not headquartered in or whose 
ultimate parent company is not headquartered in destinations in Country 
Group D:5 or Macau. (B) License applications will be reviewed under a 
presumption of denial for the export, reexport, or transfer (in-
country) of items specified in paragraph (a)(6)(iii) of this section to 
or within destinations in Country Group D:5 or Macau, or to an entity 
headquartered in or whose ultimate parent company is headquartered in a 
destination in Country Group D:5 or Macau, unless either of the 
following apply, in which case they will be subject to a case-by-case 
license review policy if either of the following apply:
    (1) The commodity meets the parameters of 3A090.a and is not 
designed or marketed for use in a datacenter; or
    (2) The commodity meets the parameters of 3A090.b and is designed 
or marketed for use in a datacenter.
* * * * *
    (12) License review policy for paragraph (a)(11). The license 
review policy for items subject to a license pursuant to paragraph 
(a)(11) of this section will be reviewed as specified in the license 
review policy column for the listed entity. See also Sec.  
744.11(a)(2)(v) of the EAR.
* * * * *

0
17. Supplement no. 4 to part 742 is added to read as follows:

Supplement No. 4 to Part 742--Countries Excluded From Certain 
Semiconductor Manufacturing Equipment License Requirements

Australia
Austria
Belgium
Bulgaria
Canada
Croatia
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Iceland
Ireland
Italy
Japan
Latvia
Lithuania
Luxembourg
Netherlands
New Zealand
Norway
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden
Switzerland
United Kingdom
* * * * *

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

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

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


0
19. Section 744.6 is amended by revising paragraph (c)(2)(iii) to read 
as follows:


Sec.  744.6  Restrictions on specific activities of ``U.S. persons.''

* * * * *
    (c) * * *
    (2) * * *
    (iii) Semiconductor manufacturing equipment. To or within either 
Macau or a destination specified in Country Group D:5, any item not 
subject to the EAR and meeting the parameters of ECCNs 3B001.a.4, c, d, 
f.1, f.5, k to n, p.2, p.4, r, 3B002.c, 3D992, or 3E992 regardless of 
end use or end user.
* * * * *

0
20. Section 744.11 is amended by adding paragraph (a)(2)(v), to read as 
follows:


Sec.  744.11  License requirements that apply to entities acting or at 
significant risk of acting contrary to the national security or foreign 
policy interests of the United States.

* * * * *
    (a) * * *
    (2) * * *
    (v) Footnote 5 entities--(A) License requirement. You may not, 
without a license, reexport, export from abroad, or transfer (in-
country) to or within any destination or to any end user or party any 
foreign-produced item subject to the EAR pursuant to Sec. Sec.  
734.4(a)(9) or 734.9(e)(3), for each of the following paragraphs (A)(1) 
through (A)(4):
    (1) Exports from abroad or reexports from all countries. A license 
is required for commodities specified in ECCN 3B993 when exported from 
abroad or reexported by an entity headquartered in, or whose ultimate 
parent company is headquartered in, Macau or a destination specified in 
Country Group D:5.
    (2) Exports from abroad or reexports from countries in Country 
Group A:5 that are not in supplement no. 4 to part 742. A license is 
required for the export from abroad or reexport from countries 
specified in Country Group A:5 that are not in supplement no. 4 to part 
742 of commodities specified in ECCN 3B993 if the commodity is not 
subject to equivalent controls by the relevant country.
    (3) Exports from abroad or reexports from all countries not listed 
in Country Group A:5. Exports from abroad or reexports from all 
countries not listed in Country Group A:5, as follows:
    (i) A license is required for commodities specified in ECCNs 3B001 
(except 3B001.a.4, c, d, f.1, f.5, g, h, k to n, p.2, p.4, r), 3B002 
(except 3B002.c), 3B611, 3B903, 3B991 (except 3B991.b.2.a through 
3B991.b.2.b), 3B992, 3B993, or 3B994 by an entity that is headquartered 
or whose ultimate parent company is headquartered in a country not 
specified in supplement no. 4 to part 742.
    (ii) A license is required for commodities specified in ECCN 3B993 
by an entity headquartered or whose ultimate parent company is 
headquartered in a country specified in supplement no. 4 to part 742 of 
this section.
    (4) Transfers (in-country). The commodity is to be transferred 
within the country of the entity specified by Sec.  734.9(e)(3)(ii):
    (i) By an entity whose ultimate parent company is headquartered in 
a country not described in supplement no. 4 to part 742 and the entity 
is transferring a commodity specified in ECCNs 3B001 (except 3B001.a.4, 
c, d, f.1, f.5, g, h, k to n, p.2, p.4, or r), 3B002 (except 3B002.c), 
3B611, 3B903, 3B991 (except 3B991.b.2.a through 3B991.b.2.b), 3B992, 
3B993, or 3B994; or
    (ii) By an entity whose ultimate parent company is headquartered in 
a country described in supplement no. 4 to part 742 destination and the 
entity is transferring a commodity specified in ECCN 3B993.
    (B) License review policy. The license review policy is set forth 
in the entry of

[[Page 96818]]

the Entity List in supplement no. 4 to this part for each entity with a 
Footnote 5 designation. Unless otherwise stated in the license review 
policy column of the specific entity, there is a case-by-case license 
review policy for items subject to the license requirements of this 
section where there is a foreign-made item that is not subject to the 
license requirements of this section and performs the same function as 
an item subject to the EAR license requirements of this section.
* * * * *

0
21. Section 744.23 is amended by:
0
a. Adding paragraph (a)(2)(iii) and (iv); and
0
b. Revising paragraphs (a)(3)(i), (a)(3)(ii) introductory text, 
(a)(3)(ii)(D). and (a)(4).
    The additions and revisions read as follows:


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

* * * * *
    (a) * * *
    (2) * * *
    (iii) Design of ``advanced-node ICs''. Any Electronic Computer 
Aided Design (ECAD) or Technology Computer Aided Design (TCAD) 
``software'' and ``technology'' subject to the EAR when you ``know'' it 
will be used in the design of an ``advanced-node integrated circuit'' 
that will be ``produced'' in Macau or a destination specified in 
Country Group D:5 in supplement no. 1 to part 740 of the EAR.
    (iv) ``Advanced Node IC'' exclusion. Items specified in paragraphs 
(a)(2)(i) and (ii) destined to entities designated with a Footnote 5 
are not subject to the license requirements in this section.
    (3) * * *
    (i) ECCNs 3A090, 4A090, and .z items destined to entities 
headquartered in, or whose ultimate parent company is headquartered in, 
either Macau or a destination specified in Country Group D:5 in certain 
destinations.
    (A) Any item subject to the EAR and specified in ECCNs 3A001.z, 
3A090 (except for 3A090.c), 4A003.z, 4A004.z, 4A005.z, 4A090, 5A002.z, 
5A004.z, 5A992.z, 5D002.z, or 5D992.z destined to any destination other 
than those specified in Country Groups D:1, D:4, or D:5 (excluding any 
destination also specified in Country Groups A:5 or A:6) for an entity 
that is headquartered in, or whose ultimate parent company is 
headquartered in, either Macau or a destination specified in Country 
Group D:5 (e.g., a PRC-headquartered cloud or data server provider 
located outside of Country Groups D:1, D:4, or D:5 (excluding any 
destination also specified in Country Groups A:5 or A:6)), or
    (B) Any item subject to the EAR and specified in ECCN 3A090.c 
destined to any destination other than Macau or those specified in 
Country Group D:5, for an entity that is headquartered in, or whose 
ultimate parent company is headquartered in, either Macau or a 
destination specified in Country Group D:5.
    (ii) ECCN 3E001 (for 3A090, except for 3A090.c) ``technology'' when 
it meets all of the following:
* * * * *
    (D) The ``technology'' is for the ``production'' of commodities or 
software specified in ECCN 3A001.z, 3A090 (except for 3A090.c), 
4A003.z, 4A004.z, 4A005.z, 4A090, 5A002.z, 5A004.z, or 5A992.z.
    (4) Semiconductor manufacturing equipment (SME) and ``components,'' 
``assemblies,'' and ``accessories.'' A license is required for export, 
reexport, or transfer (in-country) if paragraph (a)(4)(i) or (ii) of 
this section applies.
    (i) Directly destined to Macau and Country Group D:5. Any item 
subject to the EAR and specified on the CCL when destined to or within 
either Macau or a destination specified in Country Group D:5 for the 
``development'' or ``production'' of ``equipment,'' ``components,'' 
``assemblies,'' or ``accessories'' specified in ECCNs 3B001 (except 
3B001.g and .h), 3B002, 3B611, 3B903, 3B991 (except 3B991.b.2.a through 
3B991.b.2.b), 3B992, 3B993, 3B994 or associated ``software'' and 
``technology'' in 3D or 3E of the CCL.
    (ii) Indirect exports, reexports, or transfers (in-country). Any 
item subject to the EAR and specified on the CCL for export, reexport, 
or transfer (in-country), if all of the following apply:
    (A) The item (either in its original form or as subsequently 
incorporated into a foreign-made item) is for ``development'' or 
``production'' of a foreign-made item, whether subject to the EAR or 
not, that is specified in an ECCN listed in paragraph (a)(4)(i) of this 
section (and not excepted by that paragraph); and
    (B) The ``development'' or ``production'' is by an entity 
headquartered in, or whose ultimate parent is headquartered in, Macau 
or a destination specified in Country Group D:5.

    Note 1 to paragraph (a)(4): For transactions involving 
``development'' or ``production'' in Macau or a destination 
specified in Country Group D:5 by an entity that is headquartered in 
Macau or a destination specified in Country Group D:5, but the 
``development'' or ``production'' is undertaken at the direction of 
an entity headquartered in the United States or a destination 
specified in Country Group A:5 or A:6, refer to General Order No. 4 
in supp. no. 1 to part 736 (Temporary General License--Less 
restricted SME ``parts,'' ``components,'' or ``equipment'').

* * * * *

PART 758--EXPORT CLEARANCE REQUIREMENTS

0
22. The authority citation for part 758 continues to read as follows:

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


0
23. Section 758.6 is amended by revising paragraph (a)(2) to read as 
follows:


Sec.  758.6  Destination control statement and other information 
furnished to consignees.

    (a) * * *
    (2) The ECCN(s) for any 3A001.z, 3A090, 4A003.z, 4A004.z, 4A005.z, 
4A090, 5A002.z, 5A004.z, 5A992.z, 9x515 or ``600 series'' ``items'' 
being shipped (i.e., exported in tangible form). For the seven ECCNs 
with a .z paragraph, the requirement to include the classification only 
applies to commodities specified under the .z paragraphs. If the 
commodity is specified under any other paragraph in one of those seven 
ECCNs, then the requirement under this paragraph is not applicable. For 
ECCN 3A090, identify the commodity as either 3A090.a, .b, or .c.
* * * * *

PART 762--RECORDKEEPING

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

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


0
25. Section 762.2 is amended by adding paragraph (b)(56) and (57) to 
read as follows:


Sec.  762.2  Records to be retained.

* * * * *
    (b) * * *
    (56) Sec.  740.25, License Exception HBM.
    (57) Sec.  740.26, License Exception RFF.
* * * * *

PART 770--INTERPRETATIONS

0
26. The authority citation for part 770 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.

[[Page 96819]]

13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783.


0
27. Section 770.2 is amended by revising paragraph (o)(2)(i) to read as 
follows:


Sec.  770.2  Item interpretations.

* * * * *
    (o) * * *
    (2) * * *
    (i) Any utilized existing commercial ``software'' or ``technology'' 
specified under ECCNs 3D991, 3D992, 3D993, 3E001, 3E991, 3E992, 3E993, 
9D515.d, 9D515.e, 9E515.d or 9E515.e does not meet the ``required'' 
standard (as defined in part 772 of the EAR) of any other ECCN on the 
CCL; and

    Note 1 to paragraph (o)(2)(i): The use of existing commercial 
``software'' or ``technology'' by or for the USG for the purposes 
described in paragraph (o)(1) of this section does not, in and of 
itself, establish the ``required'' standard to meet the 
specifications of any ECCN on the CCL.

* * * * *

PART 772--DEFINITIONS OF TERMS

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

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


0
29. Section 772.1 is amended by revising the definitions for ``access 
information'' and ``Advanced-Node Integrated Circuit'' to read as 
follows:


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

* * * * *
    Access information. For purposes of Sec.  734.19(a), information 
that allows access to encrypted technology or encrypted software in an 
unencrypted form. Examples include decryption keys, network access 
codes, and passwords.
* * * * *
    Advanced-Node Integrated Circuits (Advanced-Node IC). For parts 734 
and 744 of the EAR, ``advanced-node integrated circuits'' include 
integrated circuits that meet any of the following criteria:
    (1) Logic integrated circuits using a non-planar transistor 
architecture or with a ``production'' `technology node' of 16/14 
nanometers or less;
    (2) NOT AND (NAND) memory integrated circuits with 128 layers or 
more; or
    (3) Dynamic random-access memory (DRAM) integrated circuits having:
    (i) A memory cell area of less than 0.0019 [micro]m\2\; or
    (ii) A memory density greater than 0.288 gigabits per square 
millimeter.

    Note 1 to definition of ``Advanced-Node Integrated Circuits'': 
For the purposes of paragraph (1) of this definition, the term 
technology node refers to the Logic Industry ``Node Range'' figure 
described in the International Roadmap for Devices and Systems, 2016 
edition (``More Moore'' White Paper), available at: https://irds.ieee.org/images/files/pdf/2016_MM.pdf.


    Note 2 to definition of ``Advanced-Node Integrated Circuits'': 
For the purposes of paragraph (3) of this definition, the term 
memory density refers to the capacity of the package or stack 
comprising the DRAM integrated circuit measured in gigabytes divided 
by the footprint of the package or stack measured in square 
millimeters. In the case where a stack is contained in a package, 
use the area of the package. Cell area is defined as 
Wordline*Bitline (which takes into consideration both transistor and 
capacitor dimensions).

* * * * *

PART 774--THE COMMERCE CONTROL LIST

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

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


0
31. Supplement no. 1 to part 774 is amended by:
0
a. Revising ECCNs 3A090, 3B001, 3B002, 3B991, and 3B992;
0
b. Adding ECCNs 3B993 and 3B994;
0
c. Revising ECCNs 3D001 and 3D002;
0
d. Adding ECCNs 3D992, 3D993, 3D994;
0
e. Revising ECCN 3E001; and
0
b. Adding ECCNs 3E992, 3E993, and 3E994.
    The additions and revisions read as follows:

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

* * * * *
3A090 Integrated circuits as follows (see List of Items Controlled).

License Requirements

Reason for Control: RS, AT

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

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

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

List of Items Controlled

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

    a. Integrated circuits having one or more digital processing 
units having either of the following:
    a.1. A `total processing performance' of 4800 or more, or
    a.2. A `total processing performance' of 1600 or more and a 
`performance density' of 5.92 or more.
    b. Integrated circuits having one or more digital processing 
units having either of the following:
    b.1. A 'total processing performance' of 2400 or more and less 
than 4800 and a 'performance density' of 1.6 or more and less than 
5.92, or
    b.2. A `total processing performance' of 1600 or more and a 
`performance density' of 3.2 or more and less than 5.92.

    Note 1 to 3A090.a and 3A090.b: 3A090.a and 3A090.b do not apply 
to items that are not designed or marketed for use in datacenters 
and do not have a `total processing performance' of 4800 or more. 
For 3A090.a and 3A090.b items that are not designed or marketed for 
use in datacenters and that have a `total processing

[[Page 96820]]

performance' of 4800 or more, see license exceptions NAC and ACA.


    Note 2 to 3A090.a and 3A090.b: Integrated circuits specified by 
3A090 include graphical processing units (GPUs), tensor processing 
units (TPUs), neural processors, in-memory processors, vision 
processors, text processors, co-processors/accelerators, adaptive 
processors, field-programmable logic devices (FPLDs), and 
application-specific integrated circuits (ASICs). Examples of 
integrated circuits are in the Note to 3A001.a.


    Note 3 to 3A090.a and 3A090.b: For integrated circuits (ICs) 
that are excluded from ECCN 3A090 under Note 2 or 3 to 3A090, those 
ICs are also not applicable for classifications made under ECCNs 
3A001.z, 4A003.z, 4A004.z, 4A005.z, 4A090, 5A002.z, 5A004.z, 
5A992.z, 5D002.z, or 5D992.z because those other CCL classifications 
are based on the incorporation of an integrated circuit (IC) that 
meets the control parameters under ECCN 3A090 or otherwise meets or 
exceeds the control parameters or ECCNs 3A090 or 4A090. The 
performance parameters under ECCN 3A090.c are not used for 
determining whether an item is classified in a .z ECCN. See the 
Related Controls paragraphs of ECCNs 3A001.z, 4A003.z, 4A004.z, 
4A005.z, 4A090, 5A002.z, 5A004.z, 5A992.z, 5D002.z, or 5D992.z.


    Technical Notes to 3A090.a and 3A090.b: 1. `Total processing 
performance' (`TPP') is 2 x `MacTOPS' x `bit length of the 
operation', aggregated over all processing units on the integrated 
circuit.
    a. For purposes of 3A090, `MacTOPS' is the theoretical peak 
number of Tera (10\12\) operations per second for multiply-
accumulate computation (D = A x B + C).
    b. The 2 in the `TPP' formula is based on industry convention of 
counting one multiply-accumulate computation, D = A x B + C, as 2 
operations for purpose of datasheets. Therefore, 2 x MacTOPS may 
correspond to the reported TOPS or FLOPS on a datasheet.
    c. For purposes of 3A090, `bit length of the operation' for a 
multiply-accumulate computation is the largest bit-length of the 
inputs to the multiply operation.
    d. Aggregate the TPPs for each processing unit on the integrated 
circuit to arrive at a total. 'TPP' = TPP1 + TPP2 + . . . . + TPPn 
(where n is the number or processing units on the integrated 
circuit).
    2. The rate of `MacTOPS' is to be calculated at its maximum 
value theoretically possible. The rate of `MacTOPS' is assumed to be 
the highest value the manufacturer claims in annual or brochure for 
the integrated circuit. For example, the `TPP' threshold of 4800 can 
be met with 600 tera integer operations (or 2 x 300 `MacTOPS') at 8 
bits or 300 tera FLOPS (or 2 x 150 `MacTOPS') at 16 bits. If the 
integrated circuit (IC) is designed for MAC computation with 
multiple bit lengths that achieve different `TPP' values, the 
highest `TPP' value should be evaluated against parameters in 3A090.
    3. For integrated circuits specified by 3A090 that provide 
processing of both sparse and dense matrices, the `TPP' values are 
the values for processing of dense matrices (e.g., without 
sparsity).
    4. `Performance density' is `TPP' divided by `applicable die 
area'. For purposes of 3A090, `applicable die area' is measured in 
millimeters squared and includes all die area of logic dies 
manufactured with a process node that uses a non-planar transistor 
architecture.

    c. High bandwidth memory (HBM) having a `memory bandwidth 
density' greater than 2 gigabytes per second per square millimeter.

    Technical note to 3A090.c: `Memory bandwidth density' is the 
memory bandwidth measured in gigabytes per second divided by the 
area of the package or stack measured in square millimeters. In the 
case where a stack is contained in a package, use the memory 
bandwidth of the packaged device and the area of the package. High 
bandwidth memory (HBM) includes dynamic random access memory 
integrated circuits, regardless of whether they conform to the JEDEC 
standards for high bandwidth memory, provided they have a `memory 
bandwidth density' greater than 2 gigabytes per second per square 
millimeter. This control does not cover co-packaged integrated 
circuits with both HBM and logic integrated circuit where the 
dominant function of the co-packaged integrated circuit is 
processing. It does include HBM permanently affixed to a logic 
integrated circuit designed as a control interface and incorporating 
a physical layer (PHY) function.

* * * * *
3B001 Equipment for the manufacturing of semiconductor devices, 
materials, or related equipment, as follows (see List of Items 
Controlled) and ``specially designed'' ``components'' and 
``accessories'' therefor.

License Requirements

Reason for Control: NS, RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to 3B001.c.1.a, 3B001.c.1.c,     Worldwide control. See Sec.
 and 3B001.q.                                 742.4(a)(5) and (b)(10) of
                                             the EAR.
RS applies to 3B001.c.1.a, 3B001.c.1.c,     Worldwide control. See Sec.
 and 3B001.q.                                 742.6(a)(10) and (b)(11)
                                             of the EAR.
NS applies to 3B001.a.1 to a.3, b, e, f.2   NS Column 2.
 to f.4, g to j.
NS applies to 3B001.a.4, c, d, f.1, f.5, k  To or within Macau or a
 to n, p.2, p.4, r.                          destination specified in
                                             Country Group D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR. See Sec.
                                             742.4(a)(4) of the EAR.
RS applies to 3B001.a.4, c, d, f.1, f.5, k  To or within Macau or a
 to n, p.2, p.4, r.                          destination specified in
                                             Country Group D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR. See Sec.
                                             742.6(a)(6) of the EAR.
AT applies to entire entry................  AT Column 1.
 

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

LVS: $500, except semiconductor manufacturing equipment specified in 
3B001.a.4, c, d, f.1, f.5, k to n, p.2, p.4, r.
GBS: Yes, except a.3 (molecular beam epitaxial growth equipment 
using gas sources), c.1.a (Equipment designed or modified for 
isotropic dry etching), c.1.c (Equipment designed or modified for 
anisotropic dry etching), .e (automatic loading multi-chamber 
central wafer handling systems only if connected to equipment 
controlled by 3B001.a.3, or .f), .f (lithography equipment) and .q 
(``EUV'' masks and reticles designed for integrated circuits, not 
specified by 3B001.g, and having a mask ``substrate blank'' 
specified by 3B001.j).
IEC: Yes, for 3B001.c.1.a, c.1.c, and .q, see Sec.  740.2(a)(22) and 
Sec.  740.24 of the EAR.

Special Conditions for STA

STA: License Exception STA may not be used to ship 3B001.c.1.a, 
c.1.c, and .q to any of the destinations listed in Country Group A:5 
or A:6 (See supplement no. 1 to part 740 of the EAR).

List of Items Controlled

Related Controls: See also 3B903 and 3B991. See ECCNs 3D001, 3D992, 
3E001, and 3E992 for related ``software'' and ``technology'' 
controls.
Related Definitions: N/A
Items:

    a. Equipment designed for epitaxial growth as follows:
    a.1. Equipment designed or modified to produce a layer of any 
material other than silicon with a thickness uniform to less than 
2.5% across a distance of 75 mm or more;

    Note: 3B001.a.1 includes atomic layer epitaxy (ALE) equipment.

    a.2. Metal Organic Chemical Vapor Deposition (MOCVD) reactors 
designed for compound semiconductor epitaxial growth of material 
having two or more of the following elements: aluminum, gallium, 
indium, arsenic, phosphorus, antimony, oxygen, or nitrogen;
    a.3. Molecular beam epitaxial growth equipment using gas or 
solid sources;
    a.4. Equipment designed for epitaxial growth of silicon (Si) or 
silicon germanium (SiGe), and having all of the following:
    a.4.a. At least one preclean chamber designed to provide a 
surface preparation means to clean the surface of the wafer; and

[[Page 96821]]

    a.4.b. An epitaxial deposition chamber designed to operate at a 
temperature equal to or below 958 K (685 [deg]C).
    b. Semiconductor wafer fabrication equipment designed for ion 
implantation and having any of the following:
    b.1. [Reserved]
    b.2. Being designed and optimized to operate at a beam energy of 
20 keV or more and a beam current of 10 mA or more for hydrogen, 
deuterium, or helium implant;
    b.3. Direct write capability;
    b.4. A beam energy of 65 keV or more and a beam current of 45 mA 
or more for high energy oxygen implant into a heated semiconductor 
material ``substrate''; or
    b.5. Being designed and optimized to operate at beam energy of 
20 keV or more and a beam current of 10mA or more for silicon 
implant into a semiconductor material ``substrate'' heated to 600 
[deg]C or greater;
    c. Etch equipment.
    c.1. Equipment designed for dry etching as follows:
    c.1.a. Equipment designed or modified for isotropic dry etching, 
having a largest `silicon germanium-to-silicon (SiGe:Si) etch 
selectivity' of greater than or equal to 100:1; or
    c.1.b. [Reserved]
    c.1.c. Equipment designed or modified for anisotropic dry 
etching, having all of the following;
    c.1.c.1. Radio Frequency (RF) power source(s) with at least one 
pulsed RF output;
    c.1.c.2. One or more fast gas switching valve(s) with switching 
time less than 300 milliseconds; and
    c.1.c.3. Electrostatic chuck with twenty or more individually 
controllable variable temperature elements;
    c.2. Equipment designed for wet chemical processing and having a 
largest `silicon germanium-to-silicon (SiGe:Si) etch selectivity' of 
greater than or equal to 100:1;
    c.3. Equipment designed for anisotropic dry etching having all 
of following:
    c.3.a Two or more RF independent sources;
    c.3.b Two or more independent gas sources;
    c.3.c `Process uniformity tuning' for wafer thickness variation 
compensation; and
    c.3.d Through Silicon Via (TSV) reveal Endpoint Detection (EPD);
    c.4. Equipment designed for Through Silicon Via (TSV) etch 
having all of the following:
    c.4.a. Silicon etch rate greater than 7 microns per minute;
    c.4.b. Within wafer (WIW) etch depth non-uniformity of less than 
or equal 2 percent; and
    c.4.c. A Through Silicon Via (TSV) aspect ratio greater than or 
equal to 10:1.

    Note 1: 3B001.c includes etching by `radicals', ions, sequential 
reactions, or non-sequential reaction.


    Note 2: 3B001.c.1.c includes etching using RF pulse excited 
plasma, pulsed duty cycle excited plasma, pulsed voltage on 
electrodes modified plasma, cyclic injection and purging of gases 
combined with a plasma, plasma atomic layer etching, or plasma 
quasi-atomic layer etching.


    Technical Notes: 
    1. For the purposes of 3B001.c, `silicon germanium-to-silicon 
(SiGe:Si) etch selectivity' is measured for a Ge concentration of 
greater than or equal to 30% (Si0.70Ge0.30).
    2. For the purposes of 3B001.c Note 1 and 3B001.d.14, `radical' 
is defined as an atom, molecule, or ion that has an unpaired 
electron in an open electron shell configuration.
    3. For the purposes of 3B001.c.3, `process uniformity tuning' is 
the process of compensating for incoming wafer thickness variations 
after grinding.

    d. Semiconductor manufacturing deposition equipment, as follows:
    d.1. Equipment designed for cobalt (Co) electroplating or cobalt 
electroless-plating deposition processes;

    Note: 3B001.d.1 controls semiconductor wafer processing 
equipment.

    d.2. Equipment designed for:
    d.2.a. Chemical vapor deposition of cobalt (Co) fill metal; or
    d.2.b. Selective bottom-up chemical vapor deposition of tungsten 
(W) fill metal;
    d.3. Semiconductor manufacturing equipment designed to fabricate 
a metal contact by multistep processing within a single chamber by 
performing all of the following:
    d.3.a. Deposition of a tungsten layer, using an organometallic 
compound, while maintaining the wafer substrate temperature greater 
than 100 [deg]C and less than 500 [deg]C; and
    d.3.b. Surface treatment plasma process using hydrogen (H2), 
hydrogen and nitrogen (H2+N2), or ammonia (NH3).
    d.4. Equipment or systems designed for multistep processing in 
multiple chambers or stations, as follows:
    d.4.a. Equipment designed to fabricate a metal contact by 
performing all of the following processes:
    d.4.a.1. Surface treatment plasma process using hydrogen 
(H2), including hydrogen and nitrogen (H2 + 
N2) or ammonia (NH3), while maintaining the 
wafer substrate at a temperature greater than 100 [deg]C and less 
than 500 [deg]C;
    d.4.a.2. Surface treatment plasma process using oxygen 
(O2) or ozone (O3), while maintaining the 
wafer substrate at a temperature greater than 40 [deg]C and less 
than 500 [deg]C; and
    d.4.a.3. Deposition of a tungsten (W) layer while maintaining 
the wafer substrate temperature greater than 100 [deg]C and less 
than 500 [deg]C;
    d.4.b. Equipment designed to fabricate a metal contact by 
performing all of the following processes:
    d.4.b.1 Surface treatment process using a remote plasma 
generator and an ion filter; and
    d.4.b.2. Deposition of a cobalt (Co) layer selectively onto 
copper (Cu) using an organometallic compound;

    Note: This control does not apply to equipment that is non-
selective.

    d.4.c. Equipment designed to fabricate a metal contact by 
performing all the following processes:
    d.4.c.1. Deposition of a titanium nitride (TiN) or tungsten 
carbide (WC) layer, using an organometallic compound, while 
maintaining the wafer substrate at a temperature greater than 20 
[deg]C and less than 500 [deg]C;
    d.4.c.2. Deposition of a cobalt (Co) layer using a physical 
sputter deposition technique and having a process pressure greater 
than 133.3 mPa and less than 13.33 Pa, while maintaining the wafer 
substrate at a temperature below 500 [deg]C; and
    d.4.c.3. Deposition of a cobalt (Co) layer using an 
organometallic compound and having a process pressure greater than 
133.3 Pa and less than 13.33 kPa, while maintaining the wafer 
substrate at a temperature greater than 20 [deg]C and less than 500 
[deg]C;
    d.4.d. Equipment designed to fabricate copper (Cu) interconnects 
by performing all of the following processes:
    d.4.d.1. Deposition of a cobalt (Co) or ruthenium (Ru) layer 
using an organometallic compound and having a process pressure 
greater than 133.3 Pa and less than 13.33 kPa, while maintaining the 
wafer substrate at a temperature greater than 20 [deg]C and less 
than 500 [deg]C; and
    d.4.d.2. Deposition of a copper layer using a physical vapor 
deposition technique and having a process pressure greater than 
133.3 mPa and less than 13.33 Pa, while maintaining the wafer 
substrate at a temperature below 500 [deg]C;
    d.5. Equipment designed for plasma enhanced chemical vapor 
deposition of carbon hard masks more than 2 um thick and with 
density of greater than 1.7g/cc;
    d.6. Atomic Layer Deposition (ALD) equipment designed for area 
selective deposition of a barrier or liner using an organometallic 
compound;

    Note: 3B001.d.6 includes equipment capable of area selective 
deposition of a barrier layer to enable fill metal contact to an 
underlying electrical conductor without a barrier layer at the fill 
metal via interface to an underlying electrical conductor.

    d.7. Equipment designed for Atomic Layer Deposition (ALD) of 
tungsten (W) to fill an entire interconnect or in a channel less 
than 40 nm wide, while maintaining the wafer substrate at a 
temperature less than 500 [deg]C.
    d.8. Equipment designed for Atomic Layer Deposition (ALD) of 
`work function metal' having all of the following:
    d.8.a. More than one metal source of which one is designed for 
an aluminum (Al) precursor;
    d.8.b. Precursor vessel designed and enabled to operate at a 
temperature greater than 30 [deg]C; and
    d.8.c. Designed for depositing a 'work function metal' having 
all of the following:
    d.8.c.1. Deposition of titanium-aluminum carbide (TiAlC); and
    d.8.c.2. Enabling a work function greater than 4.0 eV;

    Technical Note: For the purposes of 3B001.d.8, `work function 
metal' is a material that controls the threshold voltage of a 
transistor.

    d.9. Spatial Atomic Layer Deposition (ALD) equipment having a 
wafer support platform that rotates around an axis having any of the 
following:

[[Page 96822]]

    d.9.a. A spatial plasma enhanced atomic layer deposition mode of 
operation;
    d.9.b. A plasma source; or
    d.9.c. A plasma shield or means to confine the plasma to the 
plasma exposure process region;
    d.10. Equipment designed for Atomic Layer Deposition (ALD) or 
Chemical Vapor Deposition (CVD) of plasma enhanced of low fluorine 
tungsten (FW) (fluorine (F) concentration less than 10\19\ atoms/
cm\3\) films;
    d.11. [Reserved]
    d.12. Equipment designed for depositing a metal layer, and 
having any of the following:
    d.12.a. Selective tungsten (W) growth without a barrier; or
    d.12.b. Selective molybdenum (Mo) growth without a barrier;
    d.13. Equipment designed for depositing a ruthenium layer (Ru) 
using an organometallic compound, while maintaining the wafer 
substrate at a temperature greater than 20 [deg]C and less than 500 
[deg]C;
    d.14. Equipment designed for deposition assisted by remotely 
generated `radicals', enabling the fabrication of a silicon (Si) and 
carbon (C) containing film, and having all of the following 
properties of the deposited film:
    d.14.a. A dielectric constant (k) of less than 4.4;
    d.14.b. In features with an aspect ratio greater than 5:1 with 
lateral openings of less than 35 nm; and
    d.14.c. A feature-to-feature pitch of less than 45 nm;
    d.15. Equipment designed for void free plasma enhanced 
deposition of a low-k dielectric layer in gaps between metal lines 
less than 25 nm and having an aspect ratio greater than or equal to 
1:1 with a less than 3.3 dielectric constant;
    d.16. [Reserved]
    d.17. Equipment designed for plasma enhanced chemical vapor 
deposition (PECVD) or radical assisted chemical vapor deposition and 
UV curing in a single platform of a dielectric film, while 
maintaining a substrate temperature below 500 [deg]C, having all of 
the following:
    d.17.a. A thickness of more than 6 nm and less than 20 nm on 
metal features having less than 24 nm pitch and having an aspect 
ratio equal to or greater than 1:1.8; and
    d.17.b. A dielectric constant less than 3.0;
    d.18. Equipment designed or modified for Atomic Layer Deposition 
(ALD) of molybdenum (Mo), ruthenium (Ru), or combinations Mo or Ru, 
and having all of the following:
    d.18.a. A metal precursor source designed or modified to operate 
at a temperature greater 75 [deg]C; and
    d.18.b. A process chamber (module) using a reducing agent 
containing hydrogen (H) at a pressure greater than or equal to 30 
Torr (4 kPa).

    Note: For the purposes of paragraph d.18.a, the metal precursor 
source need not be integrated with the equipment. The metal 
precursor could be delivered by an on-tool source or from a sub-fab 
source.

    d.19. Deposition equipment having direct-liquid injection of 
more than two metal precursors, designed or modified to deposit a 
conformal dielectric film with a dielectric constant (K) greater 
than 40 in features with aspect ratio greater than 200:1 in a single 
deposition chamber.
    d.20. Physical vapor deposition equipment having electromagnets 
for ion flux guidance, and ``specially designed'' to deposit 
tungsten (W) metal into features having an aspect ratio of 3:1 or 
greater.
    e. Automatic loading multi-chamber central wafer handling 
systems having all of the following:
    e.1. Interfaces for wafer input and output, to which more than 
two functionally different `semiconductor process tools' controlled 
by 3B001.a, .b., .c, and .d are designed to be connected; and
    e.2. Designed to form an integrated system in a vacuum 
environment for `sequential multiple wafer processing';

    Note: 3B001.e does not control automatic robotic wafer handling 
systems ``specially designed'' for parallel wafer processing.


    Technical Notes: 
    1. For the purposes of 3B001.e, `semiconductor process tools' 
refers to modular tools that provide physical processes for 
semiconductor ``production'' that are functionally different, such 
as deposition, implant or thermal processing.
    2. For the purposes of 3B001.e, `sequential multiple wafer 
processing' means the capability to process each wafer in different 
`semiconductor process tools', such as by transferring each wafer 
from one tool to a second tool and on to a third tool with the 
automatic loading multi-chamber central wafer handling systems.

    f. Lithography equipment as follows:
    f.1. Align and expose step and repeat (direct step on wafer) or 
step and scan (scanner) equipment for wafer processing using photo-
optical or X-ray methods and having any of the following:
    f.1.a. A light source wavelength shorter than 193 nm; or
    f.1.b. A light source wavelength equal to or longer than 193 nm 
and having all of the following:
    f.1.b.1. The capability to produce a pattern with a ``Minimum 
Resolvable Feature size'' (MRF) of 45 nm or less; and
    f.1.b.2. A maximum 'dedicated chuck overlay' value of less than 
or equal to 1.50 nm;

    Technical Notes: For the purposes of 3B001.f.1.b:
    1. The `Minimum Resolvable Feature size' (MRF) (i.e., 
resolution) is calculated by the following formula:

[GRAPHIC] [TIFF OMITTED] TR05DE24.008

where, for the purposes of 3B001.f.1.b, the K factor = 0.25 `MRF' is 
also known as resolution.

    2. `Dedicated chuck overlay' is the alignment accuracy of a new 
pattern to an existing pattern printed on a wafer by the same 
lithographic system. `Dedicated chuck overlay' is also known as 
single machine overlay.
    f.2. Imprint lithography equipment capable of production 
features of 45 nm or less;

    Note: 3B001.f.2 includes:

--Micro contact printing tools
--Hot embossing tools
--Nano-imprint lithography tools
--Step and flash imprint lithography (S-FIL) tools

    f.3. Equipment ``specially designed'' for mask making having all 
of the following:
    f.3.a. A deflected focused electron beam, ion beam or ``laser'' 
beam; and
    f.3.b. Having any of the following:
    f.3.b.1. A Full-Width Half-Maximum (FWHM) spot size smaller than 
65 nm and an image placement less than 17 nm (mean + 3 sigma); or
    f.3.b.2. [Reserved]
    f.3.b.3. A second-layer overlay error of less than 23 nm (mean + 
3 sigma) on the mask;
    f.4. Equipment designed for device processing using direct 
writing methods, having all of the following:
    f.4.a. A deflected focused electron beam; and
    f.4.b. Having any of the following:
    f.4.b.1. A minimum beam size equal to or smaller than 15 nm; or
    f.4.b.2. An overlay error less than 27 nm (mean + 3 sigma);
    f.5. Imprint lithography equipment having an overlay accuracy 
less (better) than 1.5;
    g. Masks and reticles, designed for integrated circuits 
controlled by 3A001;
    h. Multi-layer masks with a phase shift layer not specified by 
3B001.g and designed to be used by lithography equipment having a 
light source wavelength less than 245 nm;

    Note: 3B001.h does not control multi-layer masks with a phase 
shift layer designed for the fabrication of memory devices not 
controlled by 3A001.


    N.B.: For masks and reticles, ``specially designed'' for optical 
sensors, see 6B002.


[[Page 96823]]


    i. Imprint lithography templates designed for integrated 
circuits by 3A001;
    j. Mask ``substrate blanks'' with multilayer reflector structure 
consisting of molybdenum and silicon, and having all of the 
following:
    j.1. ``Specially designed'' for ``Extreme Ultraviolet'' 
(``EUV'') lithography; and
    j.2. Compliant with SEMI Standard P37;
    k. Equipment designed for ion beam deposition or physical vapor 
deposition of a multi-layer reflector for ``EUV'' masks;
    l. ``EUV'' pellicles;
    m. Equipment for manufacturing ``EUV'' pellicles;
    n. Equipment designed for coating, depositing, baking, or 
developing photoresist formulated for ``EUV'' lithography;
    o. [Reserved]
    p. Removal and cleaning equipment as follows:
    p.1. [Reserved]
    p.2. Single wafer wet cleaning equipment with surface 
modification drying; or
    p.3. [Reserved]
    p.4. Equipment designed for single wafer cleaning using 
supercritical CO2 or sublimation drying;
    q. ``EUV'' masks and ``EUV'' reticles, designed for integrated 
circuits, not specified by 3B001.g, and having a mask ``substrate 
blank'' specified by 3B001.j; or

    Technical Notes: For the purposes of 3B001.q, masks or reticles 
with a mounted pellicle are considered masks and reticles.

    r. Equipment designed for EUV `pattern shaping.'

    Technical Note: For the purposes of 3B001.r, `pattern shaping' 
is a deposition or removal process used to improve overall 
patterning by reshaping or trimming patterns produced using EUV 
lithography with non-vertical directed particles including ions, 
neutral particles, clusters, radicals, or light.

3B002 Test or inspection equipment ``specially designed'' for 
testing or inspecting finished or unfinished semiconductor devices 
as follows (see List of Items Controlled) and ``specially designed'' 
``components'' and ``accessories'' therefor.

License Requirements

Reason for Control: NS, RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to 3B002.a and b...............  NS Column 2.
NS applies to 3B002.c.....................  To or within Macau or a
                                             destination specified in
                                             Country Group D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR. See Sec.
                                             742.4(a)(4) of the EAR.
RS applies to 3B002.c.....................  To or within Macau or a
                                             destination specified in
                                             Country Group D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR. See Sec.
                                             742.6(a)(6) of the EAR.
AT applies to entire entry................  AT Column 1.
 

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

LVS: $500, except semiconductor manufacturing equipment specified in 
3B002.c.
GBS: Yes

List of Items Controlled

Related Controls: See also 3A999.a, 3B992, and 3B993.
Related Definitions: N/A
Items:

    a. For testing S-parameters of items specified by 3A001.b.3.
    b. For testing microwave integrated circuits controlled by 
3A001.b.2.
    c. Inspection equipment designed for ``EUV'' mask blanks or 
``EUV'' patterned masks.
* * * * *
3B991 Equipment not controlled by 3B001, 3B993, or 3B994, for the 
manufacture of electronic ``parts,'' ``components,'' and materials, 
and ``specially designed'' ``parts,'' ``components,'' and 
``accessories'' therefor.

License Requirements

Reason for Control: AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
AT applies to entire entry................  AT Column 1.
 

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

LVS: N/A
GBS: N/A

List of Items Controlled

Related Controls: N/A
Related Definitions: `Sputtering' is an overlay coating process 
wherein positively charged ions are accelerated by an electric field 
towards the surface of a target (coating material). The kinetic 
energy of the impacting ions is sufficient to cause target surface 
atoms to be released and deposited on the substrate. Note: Triode, 
magnetron or radio frequency sputtering to increase adhesion of 
coating and rate of deposition are ordinary modifications of the 
process.
Items:

    a. Equipment ``specially designed'' for the manufacture of 
electron tubes, optical elements, and ``specially designed'' 
``parts'' and ``components'' therefor controlled by 3A001 or 3A991;
    b. Equipment ``specially designed'' for the manufacture of 
semiconductor devices, integrated circuits and ``electronic 
assemblies,'' as follows, and systems incorporating or having the 
characteristics of such equipment:

    Note: 3B991.b also controls equipment used or modified for use 
in the manufacture of other devices, such as imaging devices, 
electro-optical devices, acoustic-wave devices.

    b.1. Equipment for the processing of materials for the 
manufacture of devices, ``parts,'' and ``components'' as specified 
in the heading of 3B991.b, as follows:

    Note: 3B991 does not control quartz furnace tubes, furnace 
liners, paddles, boats (except ``specially designed'' caged boats), 
bubblers, cassettes or crucibles ``specially designed'' for the 
processing equipment controlled by 3B991.b.1.

    b.1.a. Equipment for producing polycrystalline silicon and 
materials controlled by 3C001;
    b.1.b. Equipment ``specially designed'' for purifying or 
processing III/V and II/VI semiconductor materials controlled by 
ECCNs 3C001, 3C002, 3C003, 3C004, or 3C005 except crystal pullers, 
for which see 3B991.b.1.c below;
    b.1.c. Crystal pullers and furnaces, as follows:

    Note: 3B991.b.1.c does not control diffusion and oxidation 
furnaces.

    b.1.c.1. Annealing or recrystallizing equipment other than 
constant temperature furnaces employing high rates of energy 
transfer capable of processing wafers at a rate exceeding 0.005 m\2\ 
per minute;
    b.1.c.2. ``Stored program controlled'' crystal pullers having 
any of the following characteristics:
    b.1.c.2.a. Rechargeable without replacing the crucible 
container;
    b.1.c.2.b. Capable of operation at pressures above 2.5 x 10\5\ 
Pa; or
    b.1.c.2.c. Capable of pulling crystals of a diameter exceeding 
100 mm;
    b.1.d. ``Stored program controlled'' equipment for epitaxial 
growth having any of the following characteristics:
    b.1.d.1. Capable of producing silicon layer with a thickness 
uniform to less than 2.5% across a distance of 200 mm or 
more;
    b.1.d.2. Capable of producing a layer of any material other than 
silicon with a thickness uniformity across the wafer of equal to or 
better than 3.5%; or
    b.1.d.3. Rotation of individual wafers during processing;
    b.1.e. Molecular beam epitaxial growth equipment;
    b.1.f. Magnetically enhanced 'sputtering' equipment with 
``specially designed'' integral load locks capable of transferring 
wafers in an isolated vacuum environment;
    b.1.g. Equipment ``specially designed'' for ion implantation, 
ion-enhanced, or photo-enhanced diffusion, having any of the 
following characteristics:
    b.1.g.1. Patterning capability;
    b.1.g.2. Beam energy (accelerating voltage) exceeding 200 keV;
    b.1.g.3 Optimized to operate at a beam energy (accelerating 
voltage) of less than 10 keV; or

[[Page 96824]]

    b.1.g.4. Capable of high energy oxygen implant into a heated 
``substrate'';
    b.1.h. ``Stored program controlled'' equipment for the selective 
removal (i.e., etching) by means of anisotropic dry methods (e.g., 
plasma), as follows:
    b.1.h.1. Batch types having either of the following:
    b.1.h.1.a. End-point detection, other than optical emission 
spectroscopy types; or
    b.1.h.1.b. Reactor operational (etching) pressure of 26.66 Pa or 
less;
    b.1.h.2. Single wafer types having any of the following:
    b.1.h.2.a. End-point detection, other than optical emission 
spectroscopy types;
    b.1.h.2.b. Reactor operational (etching) pressure of 26.66 Pa or 
less; or
    b.1.h.2.c. Cassette-to-cassette and load locks wafer handling;

    Note 1: ``Batch types'' refers to machines not ``specially 
designed'' for production processing of single wafers. Such machines 
can process two or more wafers simultaneously with common process 
parameters (e.g., RF power, temperature, etch gas species, flow 
rates).


    Note 2: ``Single wafer types'' refers to machines ``specially 
designed'' for production processing of single wafers. These 
machines may use automatic wafer handling techniques to load a 
single wafer into the equipment for processing. The definition 
includes equipment that can load and process several wafers but 
where the etching parameters (e.g., RF power or end point) can be 
independently determined for each individual wafer.

    b.1.i. ``Chemical vapor deposition'' (CVD) equipment (e.g., 
plasma-enhanced CVD (PECVD) or photo-enhanced CVD) for semiconductor 
device manufacturing, having either of the following capabilities, 
for deposition of oxides, nitrides, metals, or polysilicon:
    b.1.i.1. ``Chemical vapor deposition'' equipment operating below 
10\5\ Pa; or
    b.1.i.2. PECVD equipment operating either below 60 Pa (450 
millitorr) or having automatic cassette-to-cassette and load lock 
wafer handling;

    Note: 3B991.b.1.i does not control low pressure ``chemical vapor 
deposition'' (LPCVD) systems or reactive ``sputtering'' equipment.

    b.1.j. Electron beam systems ``specially designed'' or modified 
for mask making or semiconductor device processing having any of the 
following characteristics:
    b.1.j.1. Electrostatic beam deflection;
    b.1.j.2. Shaped, non-Gaussian beam profile;
    b.1.j.3. Digital-to-analog conversion rate exceeding 3 MHz;
    b.1.j.4. Digital-to-analog conversion accuracy exceeding 12 bit; 
or
    b.1.j.5. Target-to-beam position feedback control precision of 1 
micrometer or finer;

    Note: 3B991.b.1.j does not control electron beam deposition 
systems or general purpose scanning electron microscopes.

    b.1.k. Surface finishing equipment for the processing of 
semiconductor wafers as follows:
    b.1.k.1. ``Specially designed'' equipment for backside 
processing of wafers thinner than 100 micrometer and the subsequent 
separation thereof; or
    b.1.k.2. ``Specially designed'' equipment for achieving a 
surface roughness of the active surface of a processed wafer with a 
two-sigma value of 2 micrometer or less, total indicator reading 
(TIR);

    Note: 3B991.b.1.k does not control single-side lapping and 
polishing equipment for wafer surface finishing.

    b.1.l. Interconnection equipment which includes common single or 
multiple vacuum chambers ``specially designed'' to permit the 
integration of any equipment controlled by 3B991 into a complete 
system;
    b.1.m. ``Stored program controlled'' equipment using ``lasers'' 
for the repair or trimming of ``monolithic integrated circuits'' 
with either of the following characteristics:
    b.1.m.1. Positioning accuracy less than 1 
micrometer; or
    b.1.m.2. Spot size (kerf width) less than 3 micrometer.
    b.2. Masks, mask ``substrates,'' mask-making equipment and image 
transfer equipment for the manufacture of devices, ``parts'' and 
``components'' as specified in the heading of 3B991, as follows:

    Note: The term ``masks'' refers to those used in electron beam 
lithography, X-ray lithography, and ultraviolet lithography, as well 
as the usual ultraviolet and visible photo-lithography.

    b.2.a. Finished masks, reticles and designs therefor, except:
    b.2.a.1. Finished masks or reticles for the production of 
unembargoed integrated circuits; or
    b.2.a.2. Masks or reticles, having both of the following 
characteristics:
    b.2.a.2.a. Their design is based on geometries of 2.5 micrometer 
or more; and
    b.2.a.2.b. The design does not include special features to alter 
the intended use by means of production equipment or ``software'';
    b.2.b. Mask ``substrates'' as follows:
    b.2.b.1. Hard surface (e.g., chromium, silicon, molybdenum) 
coated ``substrates'' (e.g., glass, quartz, sapphire) for the 
preparation of masks having dimensions exceeding 125 mm x 125 mm; or
    b.2.b.2. ``Substrates'' ``specially designed'' for X-ray masks;
    b.2.c. Equipment, other than general purpose computers, 
``specially designed'' for computer aided design (CAD) of 
semiconductor devices or integrated circuits;
    b.2.d. Equipment or machines, as follows, for mask or reticle 
fabrication:
    b.2.d.1. Photo-optical step and repeat cameras capable of 
producing arrays larger than 100 mm x 100 mm, or capable of 
producing a single exposure larger than 6 mm x 6 mm in the image 
(i.e., focal) plane, or capable of producing line widths of less 
than 2.5 micrometer in the photoresist on the ``substrate'';
    b.2.d.2. Mask or reticle fabrication equipment using ion or 
``laser'' beam lithography capable of producing line widths of less 
than 2.5 micrometer; or
    b.2.d.3. Equipment or holders for altering masks or reticles or 
adding pellicles to remove defects;

    Note: 3B991.b.2.d.1 and b.2.d.2 do not control mask fabrication 
equipment using photo-optical methods which was either commercially 
available before the 1st of January, 1980, or has a performance no 
better than such equipment.

    b.2.e. ``Stored program controlled'' equipment for the 
inspection of masks, reticles or pellicles with:
    b.2.e.1. A resolution of 0.25 micrometer or finer; and
    b.2.e.2. A precision of 0.75 micrometer or finer over a distance 
in one or two coordinates of 63.5 mm or more;

    Note: 3B991.b.2.e does not control general purpose scanning 
electron microscopes except when ``specially designed'' and 
instrumented for automatic pattern inspection.

    b.2.f. Align and expose equipment for wafer production using 
photo-optical or X-ray methods (e.g., lithography equipment) 
including both projection image transfer equipment and step and 
repeat (i.e., direct step on wafer) or step and scan (scanner) 
equipment, capable of performing any of the following functions:

    Note: 3B991.b.2.f does not control photo-optical contact and 
proximity mask align and expose equipment or contact image transfer 
equipment.

    b.2.f.1. Production of a pattern size of less than 2.5 
micrometer;
    b.2.f.2. Alignment with a precision finer than 0.25 
micrometer (3 sigma);
    b.2.f.3. Machine-to-machine overlay no better than 0.3 micrometer; or
    b.2.f.4. A light source wavelength shorter than 400 nm;
    b.2.g. Electron beam, ion beam or X-ray equipment for projection 
image transfer capable of producing patterns less than 2.5 
micrometer;

    Note: For focused, deflected-beam systems(direct write systems), 
see 3B991.b.1.j or b.10.

    b.2.h. Equipment using ``lasers'' for direct write on wafers 
capable of producing patterns less than 2.5 micrometer.
    b.3. Equipment for the assembly of integrated circuits, as 
follows:
    b.3.a. ``Stored program controlled'' die bonders having all of 
the following characteristics:
    b.3.a.1. ``Specially designed'' for ``hybrid integrated 
circuits'';
    b.3.a.2. X-Y stage positioning travel exceeding 37.5 x 37.5 mm; 
and
    b.3.a.3. Placement accuracy in the X-Y plane of finer than 
10 micrometer;
    b.3.b. ``Stored program controlled'' equipment for producing 
multiple bonds in a single operation (e.g., beam lead bonders, chip 
carrier bonders, tape bonders);
    b.3.c. Semi-automatic or automatic hot cap sealers, in which the 
cap is heated locally to a higher temperature than the body of the 
package, ``specially designed'' for ceramic microcircuit packages 
controlled by 3A001 and that have a throughput equal to or more than 
one package per minute.

    Note: 3B991.b.3 does not control general purpose resistance type 
spot welders.

    b.4. Filters for clean rooms capable of providing an air 
environment of 10 or less

[[Page 96825]]

particles of 0.3 micrometer or smaller per 0.02832 m\3\ and filter 
materials therefor.
3B992 Equipment not controlled by 3B002, 3B993, or 3B994, for the 
inspection or testing of electronic ``components'' and materials, 
(see List of Items Controlled) and ``specially designed'' ``parts,'' 
``components'' and ``accessories'' therefor.

License Requirements

Reason for Control: AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
AT applies to entire entry................  AT Column 1.
 

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

LVS: N/A
GBS: N/A

List of Items Controlled

Related Controls: See also 3A992.a.
Related Definitions: N/A
Items:

    a. Equipment ``specially designed'' for the inspection or 
testing of electron tubes, optical elements and ``specially 
designed'' ``parts'' and ``components'' therefor controlled by 3A001 
or 3A991;
    b. Equipment ``specially designed'' for the inspection or 
testing of semiconductor devices, integrated circuits and 
``electronic assemblies'', as follows, and systems incorporating or 
having the characteristics of such equipment:

    Note: 3B992.b also controls equipment used or modified for use 
in the inspection or testing of other devices, such as imaging 
devices, electro-optical devices, acoustic-wave devices.

    b.1. ``Stored program controlled'' inspection equipment for the 
automatic detection of defects, errors or contaminants of 0.6 
micrometer or less in or on processed wafers, ``substrates'', other 
than printed circuit boards or chips, using optical image 
acquisition techniques for pattern comparison;

    Note: 3B992.b.1 does not control general purpose scanning 
electron microscopes, except when ``specially designed'' and 
instrumented for automatic pattern inspection.

    b.2. ``specially designed'' ``stored program controlled'' 
measuring and analysis equipment, as follows:
    b.2.a. ``specially designed'' for the measurement of oxygen (O) 
or carbon (C) content in semiconductor materials;
    b.2.b. Equipment for line width measurement with a resolution of 
1 micrometer or finer;
    b.2.c. ``specially designed'' flatness measurement instruments 
capable of measuring deviations from flatness of 10 micrometer or 
less with a resolution of 1 micrometer or finer.
    b.3. ``Stored program controlled'' wafer probing equipment 
having any of the following characteristics:
    b.3.a. Positioning accuracy finer than 3.5 micrometer;
    b.3.b. Capable of testing devices having more than 68 terminals; 
or
    b.3.c. Capable of testing at a frequency exceeding 1 GHz;
    b.4. Test equipment as follows:
    b.4.a. ``Stored program controlled'' equipment ``specially 
designed'' for testing discrete semiconductor devices and 
unencapsulated dice, capable of testing at frequencies exceeding 18 
GHz;

    Technical Note: Discrete semiconductor devices include 
photocells and solar cells.

    b.4.b. ``Stored program controlled'' equipment ``specially 
designed'' for testing integrated circuits and ``electronic 
assemblies'' thereof, capable of functional testing:
    b.4.b.1. At a `pattern rate' exceeding 20 MHz; or
    b.4.b.2. At a `pattern rate' exceeding 10 MHz but not exceeding 
20 MHz and capable of testing packages of more than 68 terminals.

    Note: 3B992.b.4.b does not control test equipment ``specially 
designed'' for testing:

    1. memories;
    2. ``Assemblies'' or a class of ``electronic assemblies'' for 
home and entertainment applications; and
    3. Electronic ``parts,'' ``components,'' ``assemblies'' and 
integrated circuits not controlled by 3A001 or 3A991 provided such 
test equipment does not incorporate computing facilities with ``user 
accessible programmability.''

    Technical Note: For purposes of 3B992.b.4.b, `pattern rate' is 
defined as the maximum frequency of digital operation of a tester. 
It is therefore equivalent to the highest data rate that a tester 
can provide in non-multiplexed mode. It is also referred to as test 
speed, maximum digital frequency or maximum digital speed.

    b.4.c. Equipment ``specially designed'' for determining the 
performance of focal-plane arrays at wavelengths of more than 1,200 
nm, using ``stored program controlled'' measurements or computer 
aided evaluation and having any of the following characteristics:
    b.4.c.1. Using scanning light spot diameters of less than 0.12 
mm;
    b.4.c.2. Designed for measuring photosensitive performance 
parameters and for evaluating frequency response, modulation 
transfer function, uniformity of responsivity or noise; or
    b.4.c.3. Designed for evaluating arrays capable of creating 
images with more than 32 x 32 line elements;
    b.5. Electron beam test systems designed for operation at 3 keV 
or below, or ``laser'' beam systems, for non-contactive probing of 
powered-up semiconductor devices having any of the following:
    b.5.a. Stroboscopic capability with either beam blanking or 
detector strobing;
    b.5.b. An electron spectrometer for voltage measurements with a 
resolution of less than 0.5 V; or
    b.5.c. Electrical tests fixtures for performance analysis of 
integrated circuits;

    Note: 3B992.b.5 does not control scanning electron microscopes, 
except when ``specially designed'' and instrumented for non-
contactive probing of a powered-up semiconductor device.

    b.6. ``Stored program controlled'' multifunctional focused ion 
beam systems ``specially designed'' for manufacturing, repairing, 
physical layout analysis and testing of masks or semiconductor 
devices and having either of the following characteristics:
    b.6.a. Target-to-beam position feedback control precision of 1 
micrometer or finer; or
    b.6.b. Digital-to-analog conversion accuracy exceeding 12 bit;
    b.7. Particle measuring systems employing ``lasers'' designed 
for measuring particle size and concentration in air having both of 
the following characteristics:
    b.7.a. Capable of measuring particle sizes of 0.2 micrometer or 
less at a flow rate of 0.02832 m\3\ per minute or more; and
    b.7.b. Capable of characterizing Class 10 clean air or better.
* * * * *
3B993 Specified semiconductor manufacturing equipment as follows 
(see list of items controls).

License Requirements

Reason for Control: RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1  to part 738)
 
RS applies to entire entry................  See Sec.   742.6(a)(11) of
                                             the EAR.
AT applies to entire entry................  AT Column 1.
 

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

LVS: N/A
GBS: N/A

List of Items Controlled

Related Controls: (1) See ECCNs 3D993 and 3E993 for associated 
``software'' and ``technology'' controls. (2) For additional 
controls that apply to this ECCN, see also Sec.  744.11(a)(2)(v) and 
Sec.  744.23(a)(4) of the EAR.
Related Definitions: N/A
Items:

    a. [Reserved]
    b. Semiconductor wafer fabrication equipment for 300 mm wafers 
designed for ion implantation and having any of the following:
    b.1. Equipment designed for plasma doping, having all of the 
following:
    b.1.a. One or more Radio Frequency (RF) power source(s);
    b.1.b. One or more pulsed DC Power Source; and
    b.1.c. One or more n-type or p-type dopant implants.
    b.2 [Reserved]
    c. Etch equipment as follows:
    c.1. Equipment designed or modified for anisotropic etching of 
dielectric materials and enabling the fabrication of high aspect 
ratio features with aspect ratio greater than 30:1 and a lateral 
dimension on the top surface of less than 100 nm, and having all of 
the following:

[[Page 96826]]

    c.1.a. Radio Frequency (RF) power source(s) with at least one 
pulsed RF output; and
    c.1.b. One or more fast gas switching valve(s) with switching 
time less than 300 milliseconds.

    Note: 3B993.c.1 includes etching by 'radicals', ions, sequential 
reactions, or non-sequential reaction.


    Technical Note: For the purposes of the Note to 3B993.c.1, 
'radical' is defined as an atom, molecule, or ion that has an 
unpaired electron in an open electron shell configuration.

    c.2. Equipment, not specified by 3B993.c.1, designed for 
anisotropic etching of dielectric material and enabling the 
fabrication of high aspect ratio features having all of the 
following:
    c.2.a. An aspect ratio greater than 30:1; and
    c.2.b. A lateral dimension on the top surface of less than 40 
nm.

    Note: 3B993.c.2 does not apply to equipment designed for wafer 
diameters less than 300 mm.

    c.3. Equipment, not specified by 3B001.c.1.c, designed or 
modified for anisotropic dry etching, having all of the following:
    c.3.a. Radio Frequency (RF) power source(s) with at least one 
pulsed RF output;
    c.3.b. One or more fast gas switching valve(s) with switching 
time less than 500 milliseconds; and
    c.3.c. Electrostatic chuck with greater than or equal to 10 
individually controllable variable temperature elements.
    d. Semiconductor manufacturing deposition equipment as follows:
    d.1. Equipment designed, not specified by 3B001.d.14, for 
deposition assisted by remotely generated `radicals', enabling the 
fabrication of a silicon (Si) and carbon (C) containing film, and 
having all of the following properties of the deposited film:
    d.1.a. A dielectric constant (k) of less than 5.3;
    d.1.b. In features with an aspect ratio greater than 5:1 with 
lateral openings of less than 70 nm; and
    d.1.c. A feature-to-feature pitch of less than 100 nm.
    d.2. Equipment designed for deposition of a film, containing 
silicon and carbon, and having a dielectric constant (k) of less 
than 5.3, into lateral openings having widths of less than 70 nm and 
aspect ratios greater than 5:1 (depth: width) and a feature-to-
feature pitch of less than 100 nm, while maintaining the wafer 
substrate at a temperature greater than 400 [deg]C and less than 650 
[deg]C, and having all of the following:
    d.2.a. Boat designed to hold multiple vertically stacked wafers;
    d.2.b. Two or more vertical injectors; and
    d.2.c. A silicon source and propene are introduced to a 
different injector than a nitrogen source or an oxygen source.
    d.3. Equipment designed for chemical vapor deposition of a 
carbon material layer with a density more than 1.6 g/cm\3\.
    d.4. Deposition equipment, not specified by 3B001.d.19, having 
direct-liquid injection of more than two metal precursors, designed 
or modified to deposit a conformal dielectric film with a dielectric 
constant (K) greater than 35 in features with aspect ratio greater 
than 50:1 in a single deposition chamber.
    e. [Reserved]
    f. Lithography equipment as follows:
    f.1. Align and expose step and repeat (direct step on wafer) or 
step and scan (scanner) lithography equipment for wafer processing 
using photo-optical or X-ray methods and having all of the 
following:
    f.1.a. [Reserved]
    f.1.b. A light source wavelength equal to or longer than 193 nm 
and having all of the following:
    f.1.b.1 The capability to produce a pattern with a `Minimum 
Resolvable Feature size' (`MRF') of 45 nm or less; and
    f.1.b.2. A maximum `dedicated chuck overlay' value greater than 
1.50 nm and less than or equal to 2.40 nm.

    Technical Notes for paragraph 3B993.f.1:
    1. The 'Minimum Resolvable Feature size' (`MRF') is calculated 
by the following formula:
[GRAPHIC] [TIFF OMITTED] TR05DE24.009

where, for the purposes of 3B993.f.1, the K factor = 0.25.

    `MRF' is also known as resolution.
    2. `Dedicated chuck overlay' is the alignment accuracy of a new 
pattern to an existing pattern printed on a wafer by the same 
lithographic system. `Dedicated chuck overlay' is also known as 
single machine overlay.

    f.2. Imprint lithography equipment having an overlay accuracy 
above 1.5 nm and less (better) than or equal to 4.0 nm.
    f.3. Commodities designed or modified to increase the number of 
wafers processed per hour, averaged over any time interval, by 
greater than 1%, of equipment specified in 3B001.f.1 or 3B993.f.1.
    g. through n. [Reserved]
    o. Annealing equipment designed for 300 mm wafers as follows:
    o.1 Annealing equipment, operating in a vacuum (equal to or less 
than 0.01 Pa) environment, performing any of the following:
    o.1.a. Reflow of copper (Cu) to minimize or eliminate voids or 
seams in copper (Cu) metal interconnects; or
    o.1.b. Reflow of cobalt (Co) or tungsten (W) fill metal to 
minimize or eliminate voids or seams;
    o.2. Equipment designed to heat a semiconductor wafer to a 
temperature greater than 1000 [deg]C (1832 [deg]F) for a `duration' 
less than 2 ms.

    Technical Note: For the purposes of 3B993.o.2, `duration' is the 
period above stated temperature.

    p. Removal and cleaning equipment as follows:
    p.1. Equipment designed for removing polymeric residue and 
copper oxide (CuO) film and enabling deposition of copper (Cu) metal 
in a vacuum (equal to or less than 0.01 Pa) environment.
    p.2. [Reserved]
    p.3. Equipment designed for dry surface oxide removal preclean 
or dry surface decontamination.

    Note to 3B993.p.1 and p.3: These controls do not apply to 
deposition equipment.

    q. Inspection and metrology equipment as follows:
    q.1. Patterned wafer defect metrology or patterned wafer defect 
inspection equipment, designed or modified to accept wafers greater 
than or equal to 300 mm in diameter, and having all of the 
following:
    q.1.a. Designed or modified to detect defects having a size 
equal to or less than 21 nm; and
    q.1.b. Having any of the following:
    q.1.b.1. A light source with an optical wavelength less than 400 
nm;
    q.1.b.2. An electron-beam source with a resolution less (better) 
than or equal to 1.65 nm;
    q.1.b.3. A Cold Field Emission (CFE) electron-beam source; or
    q.1.b.4. Two or more electron-beam sources.
    q.2. Metrology equipment as follows:
    q.2.a. Stand-alone equipment designed to measure wafer shape 
parameters prior to lithography exposure and utilize measurements to 
improve overlay or focus of a deep ultraviolet (DUV) lithography 
system having an immersion lens having a numerical aperture more 
than 1.3 or an Extreme Ultraviolet lithography (EUV) system; or
    q.2.b. Metrology equipment designed to measure focus or overlay 
after resist development or after etch on product wafers using 
image-based overlay or diffraction-based measurements techniques, 
with an overlay measurement accuracy less (better) than or equal to 
0.5 nm having any of the following:

[[Page 96827]]

    q.2.b.1 designed for integration to a `track'; or
    q.2.b.2 `fast wavelength switching functionality';

    Technical Notes: 
    1. For the purposes of 3B993.q.2, a `track' is equipment 
designed for coating and developing photoresist formulated for 
lithography.
    2. For the purposes of 3B993.q.2, `fast wavelength switching 
functionality' is defined as having the ability the change the 
measurement wavelength and acquire a measurement in less than 25 ms.

* * * * *
3B994 Semiconductor manufacturing equipment that enables ``advanced-
node integrated circuit'' production, as follows (see list of items 
controls).

License Requirements

Reason for Control: RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
RS applies to entire entry................  See Sec.   742.6(a)(11) of
                                             the EAR.
AT applies to entire entry................  AT Column 1.
 

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

LVS: N/A
GBS: N/A

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit 
commodities specified in this ECCN to any of the destinations listed 
in Country Group A:5 or A:6 (See supplement no.1 to part 740 of the 
EAR).

List of Items Controlled

Related Controls: (1) See ECCNs 3D994 and 3E994 for associated 
software and technology controls. (2) For additional controls that 
apply to this ECCN, see also Sec.  744.11(a)(2)(v) and Sec.  
744.23(a)(4) of the EAR.
Related Definitions: N/A
Items:

    Note for 3B994:  Equipment specified in this ECCN 3B994 are 
limited to equipment designed for volume production, such as 
equipment designed to accept a SEMI standard wafer carrier such as a 
200 mm or larger Front Opening Unified Pod or be connected to a 
multi-chamber wafer handling system.

    a. [Reserved]
    b. Semiconductor wafer fabrication equipment designed for ion 
implantation of 300mm wafers as follows:
    b.1. [Reserved]
    b.2. Ion implantation equipment as follows:
    b.2.a. Having all of the following:
    b.2.a.1. Beam current greater than 1uA and less than 5mA; and
    b.2.a.2. Beam energy greater than 5 keV and less than 300 keV; 
or
    b.2.b. Having all of the following:
    b.2.b.1. Beam current greater than 5 mA; and
    b.2.b.2. Beam energy less than 5 keV; or
    b.2.c. Having angular accuracy equal to or less (better) than 
0.1 degrees.
    c. through p. [Reserved]
    q. Inspection and metrology equipment as follows:
    q.1. and q.2. [Reserved]
    q.3. Optical thin film metrology equipment or optical critical 
dimension metrology equipment designed for 300mm wafers and 
containing software designed for measuring non-planar transistors.
* * * * *
3D001 ``Software'' ``specially designed'' for the ``development'' or 
``production'' of commodities controlled by 3A001.b to 3A002.h, 
3A090, or 3B (except 3B001.a.4, c, d, f.1, f.5, k to n, p.2, p.4, r, 
3B002.c, 3B903, 3B904, 3B991, 3B992, 3B993, or 3B994).

License Requirements

Reason for Control: NS, RS, AT

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

Reporting Requirements

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

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

TSR: Yes, except for ``software'' ``specially designed'' for the 
``development'' or ``production'' of Traveling Wave Tube Amplifiers 
described in 3A001.b.8 having operating frequencies exceeding 18 
GHz; or commodities specified in 3A090.

    Note: See Sec.  740.2(a)(9)(ii) of the EAR for license exception 
restrictions for ECCN 3D001 ``software'' for commodities controlled 
by 3A001.z and 3A090.

IEC: Yes, for ``software'' for equipment controlled by 3B001.q, see 
Sec.  740.2(a)(22) and Sec.  740.24 of the EAR.

Special Conditions for STA

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

List of Items Controlled

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

    The list of items controlled is contained in the ECCN heading.

3D002 ``Software'' ``specially designed'' for the ``use'' of 
equipment controlled by 3B001.a to .f, or 3B002.

License Requirements

Reason for Control: NS, RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry................  NS Column 1.
NS applies to ``software'' for equipment    Worldwide control. See Sec.
 controlled by 3B001.c.1.a or c.1.c.          742.4(a)(5) and (b)(10) of
                                             the EAR.
RS applies to ``software'' for equipment    Worldwide control. See Sec.
 controlled by 3B001.c.1.a or c.1.c.          742.6(a)(10) and (b)(11)
                                             of the EAR.
AT applies to entire entry................  AT Column 1.
 


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

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

TSR: Yes, except N/A for RS.

[[Page 96828]]

IEC: Yes, for ``software'' for equipment controlled by 3B001.c.1.a 
and 3B001.c.1.c, see Sec.  740.2(a)(22) and Sec.  740.24 of the EAR.

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit 
``software'' ``specially designed'' for the ``use'' of equipment 
specified by 3B001.c.1.a or c.1.b to any of the destinations listed 
in Country Group A:5 or A:6 (See supplement no.1 to part 740 of the 
EAR)

List of Items Controlled

Related Controls: Also see 3D991.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.
* * * * *
3D992 ``Software'' for the ``development'' or ``production'' of 
commodities specified in 3B001.a.4, c, d, f.1, f.5, k to n, p.2, 
p.4, r, or 3B002.c and ``software'' as follows (see List of Items 
Controlled).

License Requirements

Reason for Control: NS, RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to the entire entry............  To or within Macau or a
                                             destination specified in
                                             Country Group D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR. See Sec.
                                             742.4(a)(4) of the EAR.
RS applies to the entire entry............  To or within Macau or a
                                             destination specified in
                                             Country Group D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR. See Sec.
                                             742.6(a)(6)(i) of the EAR.
NS applies to ``software'' for equipment    Worldwide control. See Sec.
 controlled by 3B001.c.1.a or c.1.c.          742.4(a)(5) and (b)(10) of
                                             the EAR.
RS applies to ``software'' for equipment    Worldwide control. See Sec.
 controlled by 3B001.c.1.a or c.1.c.          742.6(a)(10) and (b)(11)
                                             of the EAR.
AT applies to entire entry................  AT Column 1.
 

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

TSR: N/A
IEC: Yes, for ``software'' for equipment controlled by 3B001.c.1.a 
and 3B001.c.1.c, see Sec.  740.2(a)(22) and Sec.  740.24 of the EAR.

 Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit 
``software'' specified in this ECCN to any of the destinations 
listed in Country Group A:5 or A:6 (See supplement no.1 to part 740 
of the EAR).

List of Items Controlled

Related Controls: For additional controls that apply to this ECCN, 
see also Sec.  744.11(a)(2)(v) and (a)(3) and Sec.  
744.23(a)(4)(iii) of the EAR.
Related Definitions: N/A
Items:

    a. ``Software'' for the ``development'' or ``production,'' of 
commodities specified in 3B001.a.4, c, d, f.1, f.5, k to n, p.2, 
p.4, r, or 3B002.c; and
    b. `Electronic Computer-Aided Design' (`ECAD') ``software'' 
designed for the integration of multiple dies into a `multi-chip' 
integrated circuit, and having all of the following:
    b.1. Floor planning; and
    b.2. Co-design or co-simulation of die and package.

    Technical Note:  For the purposes of 3D992.b, `multi-chip' 
includes multi-die and multi-chiplet.

3D993 ``Software'' for the ``development'' or ``production'' of 
commodities specified in 3B993 and ``software'' as follows (see List 
of Items Controlled).

License Requirements

Reason for Control: RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
RS applies to entire entry................  See Sec.   742.6(a)(11) of
                                             the EAR.
AT applies to entire entry................  AT Column 1.
 

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

TSR: N/A

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit 
``software'' specified in this ECCN to any of the destinations 
listed in Country Group A:5 or A:6 (see supplement no.1 to part 740 
of the EAR).

List of Items Controlled

Related Controls: For additional controls that apply to this ECCN, 
see also Sec.  744.11(a)(2)(v) and (a)(3) and Sec.  
744.23(a)(4)(iii) of the EAR.
Related Definitions: N/A
Items:

    a. ``Software'' for the ``development'' or ``production'' of 
commodities specified in 3B993.
    b. `Electronic Computer-Aided Design' (`ECAD') ``software'' 
designed or modified for the ``development'' or ``production'' of 
integrated circuits using multipatterning.
    c. `Computational lithography' ``software'' designed or modified 
for the ``development'' or ``production'' of patterns on DUV 
lithography masks or reticles.
    d. ``Software'' designed or modified to increase the number of 
wafers processed per hour, averaged over any time interval, by 
greater than 1%, of equipment specified in 3B001.f.1 or 3B993.f.1.

    Technical Note:  For the purposes of 3D993, `computational 
lithography' is the use of computer modelling to predict, correct, 
optimize and verify imaging performance of the lithography process 
over a range of patterns, processes, and system conditions.

* * * * *
3D994 ``Software'' for the ``development'' or ``production'' of 
commodities specified in 3B994 and ``software'' as follows (see List 
of Items Controlled).

License Requirements

Reason for Control: RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
RS applies to entire entry................  See Sec.   742.6(a)(11) of
                                             the EAR.
AT applies to entire entry................  AT Column 1.
 

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

TSR: N/A

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit 
``software'' specified in this ECCN to any of the destinations 
listed in Country Group A:5 or A:6 (see supplement no. 1 to part 740 
of the EAR).

 List of Items Controlled

Related Controls: For additional controls that apply to this ECCN, 
see also Sec.  744.11(a)(2)(v) and (a)(3) and Sec.  
744.23(a)(4)(iii) of the EAR.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.
* * * * *
3E001 ``Technology'' according to the General Technology Note for 
the ``development'' or ``production'' of commodities controlled by 
3A (except 3A901, 3A904, 3A980, 3A981, 3A991, 3A992, or 3A999), 3B 
(except 3B001.a.4, c, d, f.1, f.5, k to n, p.2, p.4, r, 3B002.c, 
3B903, 3B904, 3B991, 3B992, 3B993, or 3B994) or 3C (except 3C907, 
3C908, 3C909, or 3C992).

License Requirements

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

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

[[Page 96829]]

 
NP applies to ``technology'' for            NP Column 1.
 commodities controlled by 3A001, 3A201,
 or 3A225 to 3A234 for NP reasons.
RS applies to ``technology'' for            Worldwide (see Sec.
 commodities controlled in 3A090, when       742.6(a)(6)(ii)).
 exported from Macau or a destination
 specified in Country Group D:5.
RS applies to ``technology'' for            To or within destinations
 commodities controlled by 3A001.z, 3A090    specified in Country Groups
 (except for 3A090.c).                       D:1, D:4, and D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR, excluding
                                             any destination also
                                             specified in Country Groups
                                             A:5 or A:6. See Sec.
                                             742.6(a)(6)(iii) of the
                                             EAR.
RS applies to ``technology'' for            To or within Macau or a
 commodities controlled by 3A090.c.          destination specified in
                                             Country Group D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR. See Sec.
                                             742.6(a)(6)(i)(B) of the
                                             EAR.
RS applies to ``technology'' for            RS Column 2.
 commodities controlled by 3A001.a.15 or
 b.13, 3A004, 3B003, 3C007, 3C008, or
 3C009.
AT applies to entire entry................  AT Column 1.
 


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

Reporting Requirements

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

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

TSR: Yes, except N/A for MT, and ``technology'' for the 
``development'' or ``production'' of: (a) vacuum electronic device 
amplifiers described in 3A001.b.8, having operating frequencies 
exceeding 19 GHz; (b) solar cells, coverglass-interconnect-cells or 
covered-interconnect-cells (CIC) ``assemblies,'' solar arrays and/or 
solar panels described in 3A001.e.4; (c) ``Monolithic Microwave 
Integrated Circuit'' (``MMIC'') amplifiers in 3A001.b.2; (d) 
discrete microwave transistors in 3A001.b.3; and (e) commodities 
described in 3A090.

    Note: See Sec.  740.2(a)(9)(ii) of the EAR for license exception 
restrictions for ECCN 3E001 ``technology'' for commodities 
controlled by 3A001.z, 3A090.

IEC: Yes, for ``technology'' for equipment controlled by 3B001.q, 
see Sec.  740.2(a)(22) and Sec.  740.24 of the EAR.

Special Conditions for STA

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

List of Items Controlled

Related Controls: (1) ``Technology'' according to the General 
Technology Note for the ``development'' or ``production'' of certain 
``space-qualified'' atomic frequency standards described in Category 
XV(e)(9), MMICs described in Category XV(e)(14), and oscillators 
described in Category XV(e)(15) of the USML are ``subject to the 
ITAR'' (see 22 CFR parts 120 through 130). See also ECCNs 3E101, 
3E201 and 9E515. (2) ``Technology'' for ``development'' or 
``production'' of ``Microwave Monolithic Integrated Circuits'' 
(``MMIC'') amplifiers in 3A001.b.2 is controlled in this ECCN 3E001; 
5E001.d refers only to that additional ``technology'' ``required'' 
for telecommunications.
Related Definition: N/A
Items: The list of items controlled is contained in the ECCN 
heading.

    Note 1:  3E001 does not control ``technology'' for equipment or 
``components'' controlled by 3A003.


    Note 2:  3E001 does not control ``technology'' for integrated 
circuits controlled by 3A001.a.3 to a.14 or .z, having all of the 
following:
    (a) Using ``technology'' at or above 0.130 [micro]m; and
    (b) Incorporating multi-layer structures with three or fewer 
metal layers.

* * * * *
3E992 ``Technology'' for the ``production'' or ``development'' of 
commodities specified in 3B001.a.4, c, d, f.1, f.5, k to n, p.2, 
p.4, r; and 3B002.c.

License Requirements

Reason for Control: NS, RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to the entire entry............  To or within Macau or a
                                             destination specified in
                                             Country Group D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR. See Sec.
                                             742.4(a)(4) of the EAR.
RS applies to the entire entry............  To or within Macau or a
                                             destination specified in
                                             Country Group D:5 of
                                             supplement no. 1 to part
                                             740 of the EAR. See Sec.
                                             742.6(a)(6)(i) of the EAR.
NS applies to ``software'' for equipment    Worldwide control. See Sec.
 controlled by 3B001.c.1.a or c.1.c.          742.4(a)(5) and (b)(10) of
                                             the EAR.
RS applies to ``software'' for equipment    Worldwide control. See Sec.
 controlled by 3B001.c.1.a or c.1.c.          742.6(a)(10) and (b)(11)
                                             of the EAR.
AT applies to entire entry................  AT Column 1.
 

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

TSR: N/A
IEC: Yes, for ``technology'' for equipment controlled by 
3B001.c.1.a, and 3B001.c.1.c, see Sec.  740.2(a)(22) and Sec.  
740.24 of the EAR.

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit 
``technology'' specified in this ECCN to any of the destinations 
listed in Country Group A:5 or A:6 (see supplement no. 1 to part 740 
of the EAR).

List of Items Controlled

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

3E993 ``Technology'' for the ``development'' or ``production'' of 
commodities specified in 3B993 as follows.

License Requirements

Reason for Control: RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
RS applies to entire entry................  See Sec.   742.6(a)(11) of
                                             the EAR.
AT applies to entire entry................  AT Column 1.
 

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

TSR: N/A

[[Page 96830]]

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit 
``technology'' specified in this ECCN to any of the destinations 
listed in Country Group A:5 or A:6 (see supplement no. 1 to part 740 
of the EAR).

List of Items Controlled

Related Controls: For additional controls that apply to this ECCN, 
see also Sec.  744.11(a)(2)(v) and (a)(3) and Sec.  
744.23(a)(4)(iii) of the EAR.
Related Definitions: N/A
Items:

    a. ``Technology'' for the ``development'' or ``production'' of 
commodities specified by 3B993.
    b. ``Technology'' designed or modified to increase the number of 
wafers processed per hour, averaged over any time interval, by 
greater than 1%, of equipment specified in 3B001.f.1 or 3B993.f.1.
* * * * *
3E994 ``Technology'' for the ``development'' or ``production'' of 
commodities specified in 3B994 and ``technology'' as follows (see 
List of Items Controlled).

License Requirements

Reason for Control: RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
RS applies to entire entry................  See Sec.   742.6(a)(11) of
                                             the EAR.
AT applies to entire entry................  AT Column 1.
 

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

TSR: N/A

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit 
``technology'' specified in this ECCN to any of the destinations 
listed in Country Group A:5 or A:6 (see supplement no. 1 to part 740 
of the EAR).

List of Items Controlled

Related Controls: For additional controls that apply to this ECCN, 
see also Sec.  744.11(a)(2)(v) and (a)(3) and Sec.  
744.23(a)(4)(iii) of the EAR.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.
* * * * *

Matthew S. Borman,
Principal Deputy Assistant Secretary for Strategic Trade and Technology 
Security.
[FR Doc. 2024-28270 Filed 12-2-24; 8:45 am]
BILLING CODE 3510-33-P