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Special Alert - New Regulations on shipments of "Chips" to and from China
On October 7, 2022, the Bureau of Industry and Security (BIS) published a new interim final rule that imposes controls on "certain advanced computing and semiconductor manufacturing items, supercomputer and semiconductor end use, and end-users." This rule applies when engaging with the People's Republic of China (PRC) (directly or indirectly) in semiconductor development and manufacturing of advanced computing and semiconductor chips. The restrictions apply to transactions to and from China of chips, commodities containing these chips, fabrication equipment for supercomputers and semiconductors. The rule also expects US exporters to know all the parties to a transaction, and to determine whether an item is destined for end-use in the development or production of ICs at a facility in China. It is recommended that you contact the export office before engaging with the PRC to assess the implications of these new requirements on your transaction, including procurements, development and fabrication activities, import/export of items to or on behalf of the PRC.
See also tariff penalties for exports from China at: Chapter 99 - US HTS.
