The Bureau of Industry and Security (BIS) has released revisions to the Export Administration Regulations (EAR) to limit semiconductor and advanced computing commodities to China and Macau. These changes have been made to ensure that United States national security interests are met and that and that proposed exports would not reduce global integrated circuit production available to U.S. customers.
Revision of License Review for Advanced Computing Commodities
The BIS is revising its policy for license review for Nvidia H200, AMD MI325X, and equivalent commercially available semiconductor devices from a presumption of denial to a case-by-case review. Conditions for this review include that the integrated circuits (IC) are commercially available in the U.S. and that proposed exports would not endanger U.S. supply. Additionally, it is a requirement that items operate below a Total Processing Performance (TPP) rating of 21,000 operations per second and a total DRAM bandwidty of less that 6,500 GB/s.
Presumption of denial policies will still be maintained for exports to nations in Country Group D:5, (Central African Republic, North Korea, Iran, Syria, Belarus, and Russia). Applicants for exports to countries outside of the D:5 Group must provide supporting data as specified in part I of the final ruling.
This ruling revises § 742.6 Regional Stability (RS) for case-by-case review. It makes minor changes to § 744.23 “Supercomputer,” “Advanced-Node Integrated Circuits,” and Semiconductor Manufacturing Equipment End Use Controls. It also revises Supplement No. 2 to Part 748—Unique Application and Submission Requirements to include third-party testing labs to review the technical capabilities and functions of Artificial Intelligence (AI) chip commodities.
Third-party labs must be headquartered in the United States and be free of control from entities in Country Group D:5 or Macau. These labs must not have any financial interest or ownership in any party to the transaction.
Concern for Supply of Advanced Computing Semiconductors
Howard Lutnick, Secretary of the U.S. Department of Commerce, stated his concerns about an insufficient supply of advanced AI chips in a letter to the House of Representatives. He referred to reports indicating orders for over two million Nvidia H200 chips from Chinese technology firms, a number far exceeding the current inventory of approximately 700,000. The Secretary requested a briefing on the matter by January 25, 2026.
CVG Strategy Export Compliance Management Programs
Organizations involved with export must adhere to regulations regardless of export regulations effectiveness. Remaining informed and having an effective export compliance program is essential for avoiding criminal and civil penalties.
Export Compliance Management Programs establish clearly defined policies and procedures for all departments within an organization. They ensure that registration, item classifications, license applications, denied part screening, and security measures are taken that will prevent violation. They also ensure that training, auditing, and record keeping are maintained according to requirements.
CVG Strategy can help you understand revisions to the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR), and help you establish a coherent and effective export compliance program. We can perform export control classifications, perform audits, assist in filings for export licenses and educate your team. Regardless of whether your business falls under EAR or ITAR, CVG Strategy has the expertise to help