On May 19, the US Department of Commerce’s Bureau of Industry and Security (BIS) published a new interim final rule, retroactively effective on May 15, amending the Foreign-Produced Direct Product Rule (FPDP) under the US Export Administration Regulations (EAR). The new rule expands the jurisdictional scope of the EAR and restricts the non-US supply of semiconductor chips to Huawei Technologies and its affiliates on the Commerce Department Entity List (Supplement No. 4 to 15 C.F.R. Part 744).

Some aspects of the rule are subject to a “savings clause” or delay in application of the new restrictions. BIS will be accepting comments regarding the interim final rule until July 14.

For more on this issue, read our Client Advisory.