Implementation of Additional Due Diligence Measures for Advanced Computing Integrated Circuits; Amendments and Clarifications; and Extension of Comment Period; Correction

<RULE> DEPARTMENT OF COMMERCE <SUBAGY>Bureau of Industry and Security</SUBAGY> <CFR>15 CFR Part 774</CFR> <DEPDOC>[Docket No. 250207-0014]</DEPDOC> <RIN>RIN 0694-AJ98</RIN> <SUBJECT>Implementation of Additional Due Diligence Measures for Advanced Computing Integrated Circuits; Amendments and Clarifications; and Extension of Comment Period; Correction</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Bureau of Industry and Security, Department of Commerce. <HD SOURCE="HED">ACTION:</HD> Correcting amendment. <SUM> <HD SOURCE="HED">SUMMARY:</HD> On January 16, 2025, BIS published in the <E T="04">Federal Register</E> an interim final rule (IFR), “Implementation of Additional Due Diligence Measures for Advanced Computing Integrated Circuits; Amendments and Clarifications; and Extension of Comment Period” (January 16 IFR). This rule revises Export Control Classification Number (ECCN) 3A090 to correct this ECCN's license requirement added in the January 16 IFR. </SUM> <EFFDATE> <HD SOURCE="HED">DATES:</HD> • <E T="03">Effective date:</E> The effective date of this rule is February 11, 2025. • <E T="03">Comment date:</E> Comments on the correction in this rule must be received by BIS no later than March 14, 2025. </EFFDATE> <HD SOURCE="HED">ADDRESSES:</HD> Comments for the corrections in this rule may be submitted to the Federal rulemaking portal at: <E T="03">www.regulations.gov.</E> The <E T="03">regulations.gov</E> ID for this IFR is BIS-2024-0055. Please refer to RIN 0694-AJ98 in all comments. All filers using the portal should use the name of the person or entity submitting the comments as the name of their files, in accordance with the instructions below. Anyone submitting business confidential information should clearly identify the business confidential portion at the time of submission, file a statement justifying nondisclosure and referring to the specific legal authority claimed, and provide a non-confidential version of the submission. For comments submitted electronically containing business confidential information, the file name of the business confidential version should begin with the characters “BC.” Any page containing business confidential information must be clearly marked “BUSINESS CONFIDENTIAL” on the top of that page. The corresponding non-confidential version of those comments must be clearly marked “PUBLIC.” The file name of the non-confidential version should begin with the character “P.” Any submissions with file names that do not begin with either a “BC” or a “P” will be assumed to be public and will be made publicly available at: <E T="03">https://www.regulations.gov.</E> Commenters submitting business confidential information are encouraged to scan a hard copy of the non-confidential version to create an image of the file, rather than submitting a digital copy with redactions applied, to avoid inadvertent redaction errors which could enable the public to read business confidential information. <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> • For general questions, contact Regulatory Policy Division, Office of Exporter Services, Bureau of Industry and Security, U.S. Department of Commerce at 202-482-2440 or by email: <E T="03">RPD2@bis.doc.gov.</E> • For Category 3 technical questions, contact Carlos Monroy at 202-482-3246 or by email: <E T="03">Carlos.Monroy@bis.doc.gov.</E> </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> On January 16, 2025, BIS published in the <E T="04">Federal Register</E> the IFR, “Implementation of Additional Due Diligence Measures for Advanced Computing Integrated Circuits; Amendments and Clarifications; and Extension of Comment Period” (90 FR 5298). This correction amends ECCN 3A090 to correct the license requirement. <HD SOURCE="HD1">Correction to ECCN 3A090 License Requirement Table</HD> This rule amends ECCN 3A090 by revising the first row and column in the license requirements table. The first column of the first row of the license requirements table is revised from “RS applies to the entire entry, except 3A090.a” to read “RS applies to 3A090.a”. The regional stability section of the EAR already states the license requirements for 3A090.a in § 742.6(a)(6)(iii)(A). That provision provides that there is a worldwide license requirement for ECCN 3A090.a items. If Note 1 to 3A090.a does not apply, then the license requirements for exports, reexports, or transfers (in-country) of ECCN 3A090.a items to destinations specified in Country Groups D:1, D:4, and D:5 remain in effect with a compliance date of December 2, 2024, consistent with the FDD IFR. Any items subject to Note 1 to ECCN 3A090.a are subject to worldwide license requirements with a compliance date of January 31, 2025, consistent with the January 16 IFR. <HD SOURCE="HD1">Export Control Reform Act of 2018</HD> On August 13, 2018, the President signed into law the John S. McCain National Defense Authorization Act for Fiscal Year 2019, which included ECRA (codified, as amended, at 50 U.S.C. 4801-4852). ECRA provides the legal basis for BIS's principal authorities and serves as the authority under which BIS issues this rule. In particular, and as noted elsewhere, Section 1753 of ECRA (50 U.S.C. 4812) authorizes the regulation of exports, reexports, and transfers (in-country) of items subject to U.S. jurisdiction. Further, Section 1754(a)(1)-(16) of ECRA (50 U.S.C. 4813(a)(1)-(16)) authorizes, <E T="03">inter alia,</E> the establishment of a list of controlled items; the prohibition of unauthorized exports, reexports, and transfers (in-country); the requirement of licenses or other authorizations for exports, reexports, and transfers (in-country) of controlled items; apprising the public of changes in policy, regulations, and procedures; and any other action necessary to carry out ECRA that is not otherwise prohibited by law. Pursuant to Section 1762(a) of ECRA (50 U.S.C. 4821(a)), these changes can be imposed in a final rule without prior notice and comment. <HD SOURCE="HD1">Rulemaking Requirements</HD> 1. Executive Orders 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects and distributive impacts and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits and of reducing costs, harmonizing rules, and promoting flexibility. Pursuant to Executive Order 12866, as amended, this final rule has not been determined to be a “significant regulatory action.” 2. Notwithstanding any other provision of law, no person is required to respond to, nor shall any person be subject to a penalty for failure to comply with, a collection of information subject to the requirements of the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501 <E T="03">et seq.</E> ), unless that collection of information displays a currently valid Office of Management and Budget (OMB) Control Number. This rule involves the following OMB-approved collections of information subject to the PRA: • 0694-0088, “Multi-Purpose Application,” which carries a burden hour estimate of 29.4 minutes for a manual or electronic submission; • 0694-0096, “Five Year Records Retention Period,” which carries a burden hour estimate of less than 1 minute; • 0694-0122, “Licensing Responsibilities and Enforcement;” which carries a burden hour estimate of 10 minutes per electronic submission; • 0694-0137, “License Exceptions and Exclusions;” which carries a burden hour estimate of 5 minutes per electronic submission; and • 0607-0152, “Automated Export System (AES) Program,” which carries a burden hour estimate of 3 minutes per electronic submission. The January 16 IFR that this rule is correcting will affect the collection under control number 0694-0088, for the multipurpose application because of the increase of 375 more license applications. BIS estimates that the changes included in the January 16 IFR will result in a net increase of 375 multi-purpose applications ( <E T="03">i.e.,</E> an increase of 375 license applications) submitted annually to BIS. However, the increase in burden falls within the existing burden estimates currently associated with these control numbers. The January 16 IFR that this rule is correcting also involves a collection previously approved by the OMB under control number 0694-0137, “License Exceptions and Exclusions” because this rule modifies two EAR license exceptions, which now include new notification and reporting requirements. Specifically, the January 16 IFR adds two new types of requests that can be made under the existing advisory opinion process and new reporting requirements. There are two types of entities specified in Note 1 to 3A090.a that require submissions of requests to be added, modified or removed as an approved IC designer or approved “OSAT” company. These new reporting requirements related to License Exceptions ACM and AIA are specified under §§ 743.9 and new Note 1 to 3A090.a of the EAR. These changes are expected to result in an increase of 1,704 submissions related to this use of License Exceptions AIA and ACM, submitted to BIS or to other parties involved in the transaction. BIS estimates that these changes will result in an increase in burden hours of 385 hours. This collection of information fits within the scope of this information collection. Additional information regarding these collections of information—including all background materials—can be found at: <E T="03">https://www.reginfo.gov/public/do/PRAMain</E> by using the search function to enter either the title of the collection or the OMB Control Number. 3. This rule does not contain policies with fed ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 27k characters. 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