BIS Strengthens Military End-Use Controls on Microprocessors

The Commerce Department is strengthening its military end-use and end-user controls on microprocessors in the Export Administration Regulations (here). Specifically, Commerce’s Bureau of Industry and Security is “expanding the scope of microprocessors subject to the restriction to harmonize with technological advances to microprocessor chips.” BIS is expanding the scope of controls on software and technology that can be used for the development and manufacture of those chips, as well. This new rule also bars the use of license exceptions for exports, reexports and transfers of microprocessors subject to the military end-use or end-user restrictions, including through license exception ENC. Further, BIS is expanding controls to cover in-country transfers of U.S. military end-use sales of microprocessors in the destination country. The rule is effective on Dec. 17.