The Department of Commerce, Bureau of Industry and Security (BIS) is issuing this guidance to
clarify that a license is required to export advanced computing items to entities headquartered in
Country Group D:5 (see supplement no. 1 to part 740 of the Export Administration Regulations
(EAR) (15 CFR parts 730-774)) or Macau or with an ultimate parent company headquartered in
Country Group D:5 or Macau – even if the entities themselves are located outside Country
Group D:5 or Macau.
This license requirement was first introduced on November 17, 2023. It was implemented via an
end-user control in § 744.23(a)(3) of the EAR and applied to all advanced computing items (e.g.,
those specified in Export Control Classification Numbers (ECCNs) 3A090.a and .b, 4A090.a and
.b, and related .z paragraph items). In January 2025, the AI Diffusion Rule transferred the
requirement for these “.a” items from § 744.23(a) into § 742.6 as part of a new worldwide
license requirement. In May 2025, BIS announced that it would not be enforcing the AI
Diffusion Rule’s new compliance requirements.
Recently, BIS has received questions as to whether the preexisting license requirement
established in November 2023 is still being enforced for “.a” advanced computing items to
Country Group D:5 and Macau-headquartered entities located outside of destinations that were
subject to a license requirement prior to the AI Diffusion Rule. The answer is yes. Specifically,
a license requirement continues to apply under § 742.6(a)(6)(iii)(A) of the EAR to all
destinations outside the United States for these advanced computing items when such items are
for entities headquartered in, or whose ultimate parent company is headquartered in, Country
Group D:5 or Macau. Because this license requirement predates the AI Diffusion Rule, BIS’s
non-enforcement policy with respect to the destination-based license requirements for these
advanced computing items under § 742.6(a)(6)(iii)(A) applies only to the extent such items are
not for entities headquartered in or that have ultimate parent companies headquartered in
Country Group D:5 or Macau. Exporters should continue to seek BIS licenses for such
transactions, unless a license exception specified in § 740.2(a)(9)(ii) is available.
Bona fide operators of data centers who are otherwise engaged in activities consistent with the
EAR are not required to cease the ongoing use, storage, disposal, or servicing of advanced
computing items because of this guidance, until further notice from BIS.
For information regarding the submission of voluntary self-disclosures, see Section 764.5 of the
EAR. For guidance on the submission of license applications, see part 748 of the EAR.
This Blog is made available by Wilmarth & Associates for educational purposes as well as to give you general information and a general understanding of export law and compliance, not to provide specific legal advice. This blog is not legal advice and should not be treated as such. You must not rely on this blog as an alternative to legal advice from your attorney or other professional legal services provider. The information provided on this website is presented “as is” without any representations or warranties, express or implied.
