BIS Regulatory Agenda Previews New Emerging Tech Controls, AI Chip Rule
The Commerce Department’s fall 2024 regulatory agenda for the Bureau of Industry and Security features a host of new rules that could soon update U.S. export controls, including restrictions on aircraft engines, biological equipment and reporting requirements for certain weapons sales, AI chips.
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One new proposed rule would solicit comments on controls for Section 1758 items -- the BIS term for sensitive emerging or foundational technologies. The agency said it’s specifically looking at new controls for certain “aircraft reciprocating or rotary engines and powdered metals and alloys.” The rule proposes to amend the Export Administration Regulations to add those items to the Commerce Control List, and it would also propose a new “regional stability control for certain specified countries.”
BIS said it will ask for feedback on the proposed restrictions to “ensure that the scope of these proposed controls will be effective and appropriate, including with respect to their potential impact on legitimate commercial or scientific applications.” The agency said it’s aiming to issue its rule this month.
BIS is also considering new export controls on “certain biological analytical and processing equipment” through another new proposed rule. The agency would again amend the EAR to control those items “that could pose a risk to national security or foreign policy objectives.” The restrictions, if implemented, would create a new Export Control Classification Number on the CCL, BIS said. It’s also hoping to issue the rule this month.
Another new proposed rule could revise BIS reporting regulations around offsets agreements involving sales of weapons systems or defense-related items to foreign countries or firms. “This action will update and provide clarification to the information U.S. firms are required to submit each year” as part of their offsets agreements, which BIS said are “industrial compensation practices” that foreign governments or companies require U.S. firms to enter into as a condition of certain purchases.
This proposal could update the reporting regulations by revising several definitions and adding new terms, which BIS said will help it in the “preparation of the annual Offsets in Defense Trade report to Congress.” The agency said it’s aiming to publish the rule this month.
Another new rule mentioned in the agenda says BIS is aiming to issue new AI-related export controls this month. The final rule, which BIS sent for interagency review in early December (see 2412100012), would add new license requirements for exports, reexports and in-country transfer of AI “advanced compute enabling items,” BIS said. It’s aiming to issue the rule this month.
Other new rules could place new export controls on certain laboratory equipment and related technology and software; clarify how export controls apply to “software keys,” add to and revise the agency’s Validated End-User List for China; revise export restrictions for Russia and Belarus; add to the Entity List an Unverified List; and more. BIS said it’s aiming to issue all those rules this month.
Agenda Highlights
Highlights of the BIS rulemakings that are at the pre-, proposed, final or completed stages are below. New items are marked with an asterisk (*).
| Prerule Stage |
|---|
| Securing the Information and Communications Technology and Services Supply Chain: Unmanned Aerial Systems |
| Proposed Rule Stage |
| Clarification of the Definition of a Routed Export Transaction |
| License Exception AVS Updates and Clarifications |
| Restrictions on Shipments to Aircraft and Vessels or to Installations and Facilities Located in International or Foreign Waters or in Antarctica |
| Commerce Control List: Amendments to Controls Related to Military Vehicles, Vessels of War, Submersible Vessels, Oceanographic Equipment, and Auxiliary and Miscellaneous Military Equipment |
| Commerce Control List Changes due to Revisions to Categories V, X and XI of the USML |
| Export Administration Regulations: Revisions to Space-Related Export Controls, Including Addition of License Exception Commercial Space Activities (CSA) |
| Revision to Country Groups |
| Request for Comments Concerning the Imposition of Export Controls on Certain Brain-Computer Interface (BCI) Emerging Technology |
| Crime Controls for Human Rights Concerns on the Commerce Control List |
| Chemical Weapons Convention Regulations: Mandatory Electronic Submission of Declarations, Reports, and Amendments Through the Web-Data Entry System for Industry (Web-DESI) |
| ICTS Class Rule: Cloud Computing and Data Center Products and Services |
| Allied Governments Favorable Treatment: Proposed Revisions to License Exception Additional Permissive Reexports |
| Proposed Amendments to End-Use and End-User Based Export Controls, Including U.S. Persons Activities Controls: Military and Intelligence End Uses and End Users |
| Securing the Information and Communications Technology and Services Supply Chain: Connected Vehicles |
| Revisions to the EAR for End-User Concerns |
| *Section 1758 Technologies: Proposed Controls; Request for Comments |
| *Reporting of Offsets Agreements in Sales of Weapon Systems or Defense-Related Items to Foreign Countries or Foreign Firms |
| *Commerce Control List Proposed Changes; New Controls on Certain Biological Analytical and Processing Equipment |
| Final Rule Stage |
| Export Administration Regulations: Corrections and Clarifications |
| Updated Statements of Legal Authority for the Export Administration Regulations |
| Modification of License Exception Additional Permissive Reexports (APR) |
| Additional Protocol Regulations: Establishment of a Mandatory Electronic Submission Requirement for Reports |
| Export Administration Regulations: Corrections and Clarifications |
| Export Administration Regulations: Implementation of Wassenaar Arrangement 2023 Plenary Agreements |
| Termination of 232 Investigations |
| Export Administration Regulations: Crime Controls and Expansion/Update of U.S. Persons Controls |
| Implementation of Additional Export Controls: Certain Advanced Computing Items and Semiconductor Manufacturing Items; Supercomputer and Semiconductor End Use; Updates to the Controls and Corrections |
| Implementation of 2022 Wassenaar Arrangement Decisions |
| Clarifications and Updates to Defense Priorities and Allocations System Regulation |
| Corrections to the EAR |
| Export Controls on Semiconductor Manufacturing Items; Entity List Modifications |
| Revisions of the Section 232 Steel and Aluminum Tariff Exclusions Process |
| Enhancements and Simplification of License Exception Strategic Trade Authorization (STA) |
| Taking Additional Steps to Address the National Emergency With Respect to Significant Malicious Cyber-Enabled Activities |
| Clarification of Controls on Radiation Hardened Integrated Circuits and expansion of License Exception GOV |
| Revision of Firearms License Requirements |
| Reporting Requirements for the Development of Advanced Artificial Intelligence Models and Computing Clusters |
| Export Control Revisions for Australia, United Kingdom, United States (AUKUS) Enhanced Trilateral Security Partnership |
| Commerce Control List Additions and Revisions; Implementation of Controls on Advanced Technologies Consistent With Controls Implemented by International Partners |
| Implementation of Supplemental Controls on Pakistan |
| *Foreign-Produced Direct Product Rule Additions, and Refinements to Controls for Advanced Computing and Semiconductor Manufacturing Items |
| *Revision of Entry on the Entity List |
| *Additions and Modifications to the Entity List |
| *Revisions to the EAR |
| *Expansion of Validated End User Authorization: Data Center Validated End User Authorization |
| *Implementation of Certain Australia Group Decisions |
| *Export Administration Regulations: Removal of License Requirements for Certain Spacecraft and Related Items for Australia, Canada and the U.K. |
| *Addition and Revision to Validated End-User Authorizations in the People's Republic of China |
| *Export Administration Regulations: Revisions to Space-Related Export Controls for Changes Made Under Commerce Authorities |
| *License Exception Implemented Export Controls (IEC) eligible items and destinations; update. |
| *Export Control Framework for Artificial Intelligence Diffusion |
| *Revisions to the Unverified List |
| *Clarification to the Export Administration Regulations (EAR): Software Keys |
| *Implementation of Additional Sanctions Against Russia and Belarus Under the Export Administration Regulations (EAR) |
| *Control of Laboratory Equipment and Related Technology and Software |