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Base rate computed from analyst-asserted responds_to: edges in the reverse direction (target-country → issuer-country) for prior issuer-actions on the same target. Modal type + lag percentiles only — not a model output. Treat as a historical anchor for sizing counter-response scenarios, not a forecast in itself.
This rule is the substantive revision of the October 7 2022 IFR, not merely a technical clean-up. It incorporates responses to 43 sets of public comments and makes ten major change areas:
1. ECCN 3A090 restructured with TPP metric The prior ambiguous TOPS-based performance thresholds (paragraphs a.1–a.4) are replaced with a cleaner dual-threshold framework using "Total Processing Performance" (TPP) — an objective, chip-architecture-neutral calculation metric developed with the BIS Information Systems Technical Advisory Committee (ISTAC):
or TPP ≥ 1600 and performance density ≥ 5.92. Covers H100-class and above datacenter AI chips; licence policy is presumption of denial for China/Macau.
and < 4800 and density ≥ 1.6, or TPP ≥ 1600 and density ≥ 3.2 and < 5.92.
2. New License Exception NAC (§740.8) A new licence exception for 3A090.b (intermediate-tier datacenter ICs). For Country Groups D:1, D:4, D:5 destinations, available but shipments to Macau or Country Group D:5 require prior notification to BIS via SNAP-R (25-calendar-day review window). The exception is prohibited for military end use/end users.
3. ".z" paragraphs added to nine ECCNs Nine ECCNs (3A001.z, 4A003.z, 4A004.z, 4A005.z, 5A002.z, 5A004.z, 5A992.z, 5D002.z, 5D992.z) receive new ".z items" paragraphs that positively identify items meeting advanced-computing thresholds. Replaces the prior broad "any CCL item containing an advanced-node IC" sweep language, reducing over-compliance burden while maintaining control coverage.
4. §744.23 supercomputer/advanced-node IC provisions expanded Country scope extended from "China and Macau" to "Macau and all of Country Group D:5." US-person support restrictions for Chinese semiconductor fabrication are also clarified and tightened.
5. RS licensing policy revised (§742.6) Adopts case-by-case review: presumption of approval for destinations other than Macau/D:5 (unless entity is headquartered in or ultimately parent-controlled from Macau/D:5); presumption of denial for Macau and Country Group D:5.
6. Advanced Computing FDP rule expanded (§734.9) The Foreign Direct Product rule's geographic scope for advanced computing items is expanded from China-and-Macau to Country Groups D:1, D:4, and D:5 (excluding allied A:5/A:6 countries). Specifically addresses PRC companies using foreign subsidiaries and offshore datacenters to circumvent controls.
7. FDP model certificate broadened The October 2022 IFR model certificate for tracking EAR FDP-rule coverage is made reusable across all FDP rules, not just the advanced-computing-specific ones.
8. Compliance red flags enhanced Five new "red flags" added under the Advanced Computing FDP rule (§734.9) and a new red flag specifically for semiconductor fabrication facilities.
9. License Exception TMP replaces Temporary General License §740.9(a) adds License Exception TMP for advanced compute items, replacing the TGL included in the October 2022 IFR. Expands §740.2(a) to list TMP as available.
10. Miscellaneous technical corrections Corrects ECCN 4E001 (unintended NS1 control application), clarifies telecommunications equipment exclusions, clarifies reseller definitions under §744.23 (mere resale is not a prohibited end use), and makes conforming changes to ECCN 3A991.p.
"hard stop / notification window" architecture that subsequent BIS rules (2024 ACS corrections, 2025 AI Diffusion Framework) built upon. The TPP metric is now the authoritative standard for all subsequent advanced-computing classifications.
directly addressed the UAE/Saudi/Singapore transshipment routes that Chinese AI firms had begun using after October 2022. This set the template for the 2024 Middle East datacenter debates.
datacenter AI chips in this performance tier; this rule tightened the China revenue ceiling further. MCHI/KWEB — Chinese AI cloud providers (Alibaba Cloud, Baidu, ByteDance) face ongoing tightened access to H100-class hardware.
"know your customer" requirements for cloud/IaaS providers. This became the cloud-access controls thread in the 2025 AI Diffusion Framework.
resolved in this rule. Watch the AI Diffusion Framework (2025-01-13) for the follow-through.
split the NAC exception introduced here into NAC + ACA — monitor whether the ACA path creates renewed diversion risk.