BIS Publishes New Controls on Quantum Computing and Other Advanced Technologies in Accordance with International Partners

This blog post was drafted with assistance from Sean C. Church, Paralegal

On September 5^th, 2024 the Bureau of Industry and Security (BIS) of the U.S. Commerce Department issued an interim final rule (IFR) which imposes controls on advanced technologies, specifically quantum computing, semiconductor manufacturing, gate all-around field effecter transistor (GAAFET) technology, and additive manufacturing items. BIS said that these technologies pose ​“serious threats” to the United States’ national security when wielded by adversaries. The rule is intended to align with similar controls from international partners.

The new rule adds Export Control Classification Numbers (ECCNs) to the Commerce Control List to cover the advanced technologies, revises existing ECCNs, and adds worldwide license requirements for both. It also adds a new license exception to authorize exports and reexports to and by countries that have implemented equivalent technical controls for these newly added items, and addresses the scope of deemed export controls for newly added technology and software ECCNs.

BIS also noted that as technologies with military applications evolve, the Bureau will continue to regulate their movement in the future to prevent such threats to national security and U.S. foreign policy.

In a press release, BIS defined the technologies that they are implementing worldwide export controls on as:

• Quantum Computing Items: quantum computers, related equipment, components, materials, software, and technology that can be used in the development and maintenance of quantum computers.
• Advanced Semiconductor Manufacturing Equipment: tools and machines that are essential for the production of advanced semiconductor devices.
• Gate All-Around Field-Effect Transistor (GAAFET) Technology: technology that produces or develops high-performance computing chips that can be used in supercomputers.
• Additive Manufacturing Items: Equipment, components and related technology and software designed to produce metal or metal alloy components.

While the new ECCNS will be subject to worldwide license requirements, a new License Exemption Implemented Export Controls (IEC) would mean that countries which meet the terms by implementing comparable national controls would no longer need license applications for these aforementioned technologies, allowing for more economic opportunities between nations aligned on this foreign policy issue.

Companies should review the new controls and confirm whether any of their products, technology, or software are subject to additional licensing requirements. We recommend contacting our sanctions and export controls compliance team if you have any questions regarding these latest developments.