Background

The Bureau of Industry and Security has issued an interim final rule that, effective March 13, makes the following revisions to the Export Administration Regulations to remove export control obstacles for official U.S. government business, including the departments of Defense and Energy.

The rule expands license exception GOV to authorize the export, reexport, or transfer (in-country) of microelectronics in furtherance of a contract between the exporter, reexporter, or transferor and a federal department or agency if the contract provides for such export, reexport, or transfer of the microelectronics item by the exporter, reexporter, or transferor. BIS states that this change will remove the obstacle of obtaining export authorization that currently hinders contract performance work in producing microelectronics items subject to the EAR by, for, or at the direction of the U.S. government where some exports, reexports, or transfers (in-country) between onshore and offshore development or production partners may transpire.

The rule also revises ECCNs 4A001, 4A101, 5A001, 6A203, and 6A999 to explain that the act of incorporating a radiation-hardened integrated circuit into commodities specified under other ECCNs or designated as EAR99 (e.g., computer and telecommunications equipment) does not, in and of itself, change the export classification of those commodities.

Finally, the rule provides guidance about the classification of integrated circuits on the Commerce Control List when there is U.S. government involvement in the fabrication of the circuit, such as testing or modification requests.

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