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BIS Amends VEU Authorization List to Change Names for Hynix, ECCNs for BTC

The Bureau of Industry and Security issued a final rule, effective July 9 that amends the Export Administration Regulations to (1) change the names of existing Validated End-Users1 Hynix Semiconductor China Ltd. and Hynix Semiconductor (Wuxi) Ltd. and their respective “Eligible destinations” in China; and (2) change the list of “Eligible items (by ECCN)” that may be exported, reexported and transferred (in-country) to the approved facility of VEU Boeing Tianjin Composites Co. Ltd. (BTC) in China. These changes are prompted by factors arising from the companies’ normal course of business, and are not the result of any activities of concern by the companies, BIS said.

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Names of Hynix & Hynix (Wuxi) Amended to SK hynix

BIS is amended Supplement No. 7 to 15 CFR 748 to change the name of “Hynix Semiconductor China Ltd.” to “SK hynix Semiconductor (China) Ltd.,” and changed the name of the company’s existing approved eligible destination from “Hynix Semiconductor China Ltd.” to “SK hynix Semiconductor (China) Ltd.”

BIS also changed the name “Hynix Semiconductor (Wuxi) Ltd.” to “SK hynix Semiconductor (Wuxi) Ltd.,” and changed the name of the company’s existing approved Eligible destination from “Hynix Semiconductor (Wuxi) Ltd.” to “SK hynix Semiconductor (Wuxi) Ltd.” The addresses of the companies’ respective eligible destinations remain the same, BIS said.

Eligible ECCNs for Boeing Tianjin Composites Removed

The final rule removes certain ECCNs from the list of “Eligible items (by ECCN)” that may be exported, reexported and transferred (in-country) to the approved facility of VEU Boeing Tianjin Composites Co. Ltd. in China. Specifically, BIS made the following changes to BTC’s eligible ECCNs (removed ECCNs are struck).

  • 1B001.f
  • 1D001 (limited to “software” specially designed or modified for the “development”, “production” or “use” of equipment controlled by 1B001.f)
  • 1E001 (limited to “technology” according to the General Technology Note for the “development” or “production” of items controlled by 1A002.a, 1B001.f, and 1C010.b & .e)
  • 1A002.a
  • 1C010.b
  • 1C010.e
  • 2B001.b.2 (limited to machine tools with accuracies no better than (i.e., less than) 13 microns)
  • 2B001.e
  • 2D001 (limited to “software,” other than that controlled by 2D002, specially designed or modified for the “development”, “production” or “use” of equipment controlled by 2B001.b.2 and 2B001.e)
  • 2D002 (limited to “software” for electronic devices, even when residing in an electronic device or system, enabling such devices or systems to function as a “numerical control” unit, capable of coordinating simultaneously more than 4 axes for “contouring control” controlled by 2B001.b.2 and 2B001.e)

Therefore, the list of ECCNs that may be exported, reexported and transferred (in-country) to the approved facility of VEU Boeing Tianjin Composites Co. Ltd. in China now reads as follows:

“1B001.f, 1D001 (limited to “software” specially designed or modified for the “use” of equipment controlled by 1B001.f), 2B001.b.2 (limited to machine tools with accuracies no better than (i.e., not less than) 13 microns), 2D001 (limited to “software,” other than that controlled by 2D002, specially designed or modified for the “use” of equipment controlled by 2B001.b.2), and 2D002 (limited to “software” for electronic devices, even when residing in an electronic device or system, enabling such devices or systems to function as a “numerical control” unit, capable of coordinating simultaneously more than 4 axes for “contouring control” controlled by 2B001.b.2)."

1Authorization VEU is a mechanism to facilitate increased high-technology exports to companies in eligible destinations that have a verifiable record of civilian uses for such items. VEUs may obtain certain eligible commodities, software and technology on the Commerce Control List (except those controlled for missile technology or crime control reasons) without having to wait for their suppliers to obtain export licenses from BIS.

In addition to U.S. exporters, Authorization VEU may be used by foreign reexporters as well as by persons transferring in-country, and does not have an expiration date. Currently, VEUs are located in China and India.

BIS contact- Karen Nies-Vogel (202) 482-5991