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.