BIS Expands Military End User/End Use Rule (Part 744.17) for Microprocessors…..

In the continuing saga over at BIS to tighten the noose around the transfer of technology to military end users and military end use in “countries of concern” another new regulation has been published. In a Federal Register Final Rule published and implemented effective December 17th, 2014, the Bureau of Industry and Security (BIS) expanded Part 744.17 of the Export Administration Regulations (EAR) to cover a wider range of microprocessors and related software and technology. Specifically, under the new regulations, a license requirement is now imposed on exports, re-exports or in-country transfers to military end users or military end use within country Group D:1 for any microprocessor and associated software and technology that meets specified performance criteria (i.e. speed of 5 GFLOPS or more and an arithmetic logic unit with an access width of 32 bit or more including those that have “information security” functionality). The new rule covers microprocessors falling under a wide range of ECCNs including 3A001, 3D002, 3D991, 3E001, 5A002, 5A992, 5D002, 5D992, 5D002, 5E992. The relevance of this new rule is a widely expanded scope of electronics, including many “mass market” commodities/software and technology will now require a license (no use of “ENC” or any license exceptions are allowed) when exported, transferred or re-exported to military end users or for military end use in a Group D:1 (see Supplement 1 to Part 740 of the EAR) country.

Call our office for more details or assistance in classifying/making license determinations for your microprocessors and other electronic parts and components.

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