The Bureau of Industry and Security has completed a round of interagency review for a new interim final rule that’s expected to place new export controls on advanced AI-related chips. The rule, “Export Control Framework for Artificial Intelligence Diffusion,” was sent for interagency review Dec. 9 and the review was completed Jan. 7. The upcoming restrictions have received criticism from at least one major technology company and two industry groups for being overbroad (see 2501060015 and 2501080034).
Bureau of Industry and Security (BIS)
The Bureau of Industry and Security (BIS) is an agency within the Commerce Department responsible for overseeing dual-use export controls outlined within the Export Administration Regulations. BIS says its mission is to protect strategic U.S. industries and prevent illegal transfers of sensitive American technology.
The Bureau of Industry and Security's upcoming export controls on advanced AI-related semiconductors will introduce expansive compliance hurdles and sales limitations that will hurt American firms and could push U.S. allies to work closer with China, a major technology think tank and a leading semiconductor industry group said this week.
The leaders of the House Select Committee on China said Jan. 6 that they support the Bureau of Industry and Security’s plans to place new export controls on advanced AI-related chips and believe the agency's upcoming interim final rule should include several specific measures to help keep sensitive technology out of China’s hands.
An upcoming Bureau of Industry and Security rule that’s expected to place new export controls on advanced AI-related chips will “go down as one of the most destructive to ever hit the U.S. technology industry,” major cloud services provider Oracle said this week.
The Bureau of Industry and Security is adding 13 companies and research institutes to the Entity List for illegally shipping export controlled items to other Entity Listed firms, supporting China’s military modernization efforts or aiding Pakistan’s ballistic missile program, the agency said in a final rule released last week and effective Jan. 6
The Bureau of Industry and Security on Dec. 31 suspended the export privileges of four people after they were convicted of export-related offenses, including illegal shipments involving guns, ammunition and Iranian oil. The suspensions took effect from the date of their convictions.
The Bureau of Industry and Security on Jan. 2 published its annual export enforcement year in review, outlining the various penalties it imposed, indictments and guilty pleas it helped bring, guidance documents it issued and Entity List additions during 2024. The summary highlights enforcement actions against China, Russia and Iran; the due diligence best practices and recommendations BIS issued to exporters, financial institutions, and academia; export control-related partnerships the U.S. formed with trading partners; and more.
The Bureau of Industry and Security’s record-setting enforcement pace over the last several years has raised the agency’s profile and convinced more businesses to invest in compliance, said Matthew Axelrod, the top BIS export enforcement official. But Axelrod said he thinks companies can do more.
The Bureau of Industry and Security on Jan. 6 will add 13 companies to the Entity List for illegally shipping export-controlled items in support of China’s military modernization efforts or Pakistan’s ballistic missile program. The entities are located in Myanmar, China and Pakistan, the agency said in a final rule released Jan. 3. They will be subject to license requirements for all items subject to the Export Administration Regulations, and licenses will be reviewed under a presumption of denial.
Nathan Swinton is leaving DOJ to become the Bureau of Industry and Security's new chief counsel, he announced on LinkedIn. He was DOJ's senior counsel to the assistant attorney general for national security.