Yesterday, the U.S. Bureau of Industry and Security (BIS) issued an interim rule imposing new export controls on four emerging and foundational technologies. The new rules control two substrates of ultra-wide gap semiconductors; Electric Computer-Aided Design (ECAD) software specially designed for the development of integrated circuits with Gate-All-Around Field-Effect Transistor (GAAFET) structure; and Pressure Gain Combustion (PGC) technology for national security and antiterrorism reasons, which means that exports of the items to most countries will require an export license or the use of a license exception. Release of controlled technology to most foreign nationals will similarly require authorization under U.S. export control rules.
The amendment reflects new multilateral controls agreed upon by the United States and other members of the Wassenaar Arrangement at the 2021 Plenary.
Semiconductor Substrates: BIS's interim rule amends the Export Administration Regulations (EAR) by imposing licensing requirements on exports of certain Gallium Oxide and diamond semiconductor substrates used in the production of sophisticated devices capable of operating under severe conditions, such as under higher voltages and temperatures. Because of the significant potential for military application of these technologies, the new rule controls the substrates under ECCNs 3C001.d-.f, 3C005.a-.b, and 3C006.
ECAD Software Specially Designed for GAAFET Structure: BIS imposed licensing requirements on certain ECAD software that are particularly suited to the efficient design of GAAFET circuits by controlling ECAD Software "specially designed" for the "development" of integrated circuits having any GAAFET structure that meets parameters set forth under the newly established ECCN 3D006. BIS has delayed the implementation of the new controls on ECAD software for 60 days to allow time for industry to provide comments on the new proposed controls. Industry comments are due no later than September 14, 2022.
Gas Turbine Technologies: While BIS
has not identified any engines currently in production that utilize
PGC technology, the interim rule notes that PGC technology's
novel use of techniques likeresonant pulsed combustion, constant
volume combustion, and denotation to increase the efficiency of gas
turbine engines provides military advantages in a variety of
applications. The new interim rule adds paragraph 9E003.a.2.e.to
the EAR to control the production and development of combustors
that use PGC technology.
Saving Clause: The new rule contains a saving clause
that allows for certain exports that are on dock for loading, laden
aboard an exporting carrier, or en route aboard a carrier to a port
of export on August 30, 2022 pursuant to actual orders to a foreign
destination so long as they have been exported, reexported, or
transferred before midnight on September 14, 2022. The saving
clause does not apply to export transactions controlled under
3D006, which is subject to a delayed effective date. For shipments
subject to 3D006 controls, the interim rule establishes a saving
clause for orders that are similarly in-transit on October 14,
2022, so long as the export, reexport, or transfer is completed
before midnight on November 14, 2022.
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