Regulatory intelligence for US exporters

US Issues New Reporting Requirements for Certain China-Related Chip Exports

The Census Bureau and CBP this week announced new reporting requirements for exporters sending certain chip-related items to China under a temporary general license or “authorization letter” from the Bureau of Industry and Security. Electronic filers of export information must now use one of Census’ two new license codes in the Automated Export System when using a BIS authorization that exempts them from certain licensing requirements under the agency’s sweeping China chip controls released in October (see 2210070049).

Exporters must use new License Code C65 if they are using the October rule’s temporary general license, which authorizes certain exports, reexports, transfers and exports from abroad destined to or within China or Macau. Under Code C65, exporters can report items controlled under Export Control Classification Numbers 3A090, 4A090, 3D001, 3E001, 4D090, 4E001 and other items that meet certain “performance parameters.” All export information codes except UG and all modes of transport except 70 (Fixed Transport) will be available for these filings, Census said.

The agency said the code is valid through April 7, when the temporary general license is set to expire. BIS has said it will review license applications case by case once it expires (see 2301270026).

New License Code C66 must be used by exporters that received a “Supply Chain Authorization Letter” from BIS, which allows companies to export certain goods or continue certain chip activities within China based on “exigent circumstances of actual or potential supply chain disruptions,” Census said. Several companies, including South Korea’s Samsung and SK Hynix, received the letters, which authorized them to continue certain chip operations in China for one year (see 2210260014). The agency said it’s working with those companies to allow them to continue certain activities authorized by the waivers after they expire (see 2302240008).

Census said License Code C66 is “allowable” for all ECCNs in the Export Administration Regulations, including EAR99 items. Like Code C65, all export information codes except UG and all modes of transport except 70 (Fixed Transport) will be available for these filings. The agency stressed that an authorization letter from BIS “is only valid for use by the original recipient of the letter or by parties authorized therein,” and recipients “must comply with the specific terms issued by BIS in such letters.”