The OverRuled: Russia Trade Controls Resource Center has been updated with the following actions:
- 02 Dec 2024 (BIS):
The U.S. Department of Justice (“DOJ”) announced that Sergey Nechaev, a dual U.S.-Russian citizen, was arrested on charges of attempting to export controlled goods to Russia without a license in violation of the Export Control Reform Act (“ECRA”), smuggling goods contrary to U.S. law, and submitting false and misleading information through the Automated Export System. The charges stem from Nechaev’s attempt to export two small aircraft to Russia. The U.S. government also seized the aircraft in the course of the arrest.
The OverRuled: China Trade Controls Resource Center has been updated with the following actions:
- 05 Dec 2024 (China - Measures and Countermeasures):
The Ministry of Foreign Affairs announced sanctions against thirteen U.S. entities and six senior managers of the sanctioned entities, in relation to the United States' sales of arms to Taiwan.
- 02 Dec 2024 (BIS):
BIS issued an interim final rule ("IFR") to impose new export controls on 24 types of semiconductor manufacturing equipment ("SME") and three types of software tools for developing or producing semiconductors; new controls on high-bandwidth memory ("HBM"); new red flag guidance to address compliance and diversion concerns; and several other changes to enhance the effectiveness of existing controls.
These changes were designed to limit the PRC's ability to develop an indigenous semiconductor ecosystem, including capabilities to manufacture advanced-node integrated circuits ("ICs"), and to slow the PRC's development of advanced artificial intelligence.
- 02 Dec 2024 (BIS):
BIS added 140 entities to the Entity List, including 136 under the destination of the PRC, for the following reasons:
- Developing or producing ICs for military end use or advanced-node ICs;
- Acquiring U.S. tools or components for advanced-node ICs production;
- Contributing to Huawei's efforts to support the production of advanced-node ICs;
- Aiding PRC efforts to acquire entities with sensitive semiconductor manufacturing capability;
- Co-developing lithography technology with advanced-node fabrication facilities; and
- Diverting U.S.-origin items to Entity List parties.
Second, BIS modified seven entries on the Entity List under the destination of the PRC by adding a footnote 5 designation to restrict their ability to obtain foreign-produced items that could support the production of advanced-node ICs.
Third, BIS modified the existing entries for Fujian Jinhua Integrated Circuit Company, Ltd. and Semiconductor Manufacturing South China Corporation to update addresses.
Fourth, BIS modified the license review policy for Semiconductor Manufacturing International (Beijing) Corporation, Semiconductor Manufacturing South China Corporation, and SMIC Northern Integrated Circuit Manufacturing (Beijing) Co., Ltd. to a "presumption of denial."
Fifth, BIS modified the license review policy for Semiconductor Manufacturing International Corporation ("SMIC") to "presumption of denial" for all items subject to the EAR, except a case-by-base review will apply for items used for production of 200mm wafers destined to a 200mm production facility.
Sixth, BIS modified the license review policy for seven other SMIC entries to a "presumption of denial," except case-by-case when Section 744.23(d)(3) of the EAR applies.
Lastly, BIS removed CSMC Technologies Corporation (CSMC), Shanghai Huahong Grace Semiconductor Manufacturing Corporation (HHGrace), and Advanced Micro-Fabrication Equipment, Inc. (AMEC) from the Validated End-User (VEU) Program.
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