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March 15, 2023
New BIS License Types C65 – (TGL) Temporary General License and C66 – (SCAL) Supply Chain Authorization Letter
On Friday, October 13, 2022, the Department of Commerce, Bureau of Industry and Security (BIS) published an interim final rule (https://www.govinfo.gov/content/pkg/FR-2022-10-13/pdf/2022-21658.pdf) that became effective October 7, 2022. Among other actions, this interim final rule established a new Temporary General License to avoid disruption of supply chains for certain items that are ultimately destined to customers outside of People’s Republic of China (China) or Macau. In a separate series of actions, the BIS Deputy Assistant Secretary for Export Administration issued a number of Supply Chain Authorization Letters which describe specific authorizations granted pursuant to requests based on exigent circumstances of actual or potential supply chain disruptions. As a result of these actions, the following change will be made to the Automated Export System (AES) in order for exporters and authorized agents to successfully report electronic export information in the AES.
New License Code C65 (TGL)
An update has been made to AES to create new License Codes C65 “Temporary General License” (TGL), which authorizes certain exports, reexports, in-country transfers, and exports from abroad destined to or within China or Macau by companies not headquartered in Country Groups D:1 or D:5 or E (see supplement no. 1 to part 740 of the EAR) to continue or engage in integration, assembly (mounting), inspection, testing, quality assurance, and distribution of items covered by ECCN 3A090, 4A090, and associated software and technology in ECCN 3D001, 3E001, 4D090, or 4E001; or any item that is a computer, integrated circuit, “electronic assembly” or “component” and associated software and technology, specified elsewhere on Commerce Control List (supplement no. 1 to part 774), which meets or exceeds the performance parameters of ECCN 3A090 or 4A090. The full terms of this Temporary General License are described in General Order No. 4 of in paragraph (d) in supplement no. 1 to part 736 of the EAR.
AES filers must adhere to the following new reporting when using C65 (TGL) to prevent the return of fatal errors from AES.
- Report License Code: C65 Temporary General License (TGL)
- Allowable ECCNs: 3A090, 4A090, 3D001, 3E001, 4D090, 4E001, or any item that is a computer, integrated circuit, “electronic assembly” or “component” and associated software and technology, specified elsewhere on Commerce Control List (supplement no. 1 to part 774), which meets or exceeds the performance parameters of ECCN 3A090 or 4A090.
- Allowable Export Information Codes: All except UG
- Allowable Modes of Transportation: All except ‘70’ (Fixed Transport)
Please refer to “General Order No. 4” in paragraph (d) in supplement no. 1 to part 736 of the EAR for additional requirements for this Temporary General License. This does not authorize the export, reexport, in-country transfer, or export from abroad to “end-users” or “ultimate consignees” in China or Macau. This Temporary General License does not overcome the license requirements of §§ 744.11 or 744.21 when an entity listed in supplements no. 4 or 7 to part 744 is a party to the transaction as described in § 748.5(c) through (f) of the EAR, or when there is knowledge of any other prohibited end use or end user. This Temporary General License is only for companies that engage in the specific activities authorized under this Temporary General License. This Temporary General License and its associated License Code (TGL) are valid for use through April 7, 2023.
New License Code C66 (SCAL)
An update has been made to AES to create License Type Code C66 “Supply Chain Authorization Letter” (SCAL). The BIS Deputy Assistant Secretary for Export Administration issued a number of such letters in response to specific requests based on exigent circumstances of actual or potential supply chain disruptions. Recipients of Supply Chain Authorization Letters must comply with the specific terms issued by BIS in such letters. A Supply Chain Authorization Letter is only valid for use by the original recipient of the letter or by parties authorized therein.
AES filers must adhere to the following new reporting when using C66 (SCAL) to prevent the return of fatal errors from AES. Supply Chain Authorization Letter
- Report License Code: C66 Supply Chain Authorization Letter (SCAL)
- Allowable ECCNs: All, including EAR99.
- Allowable Export Information Codes: All except UG
- Allowable Modes of Transportation: All except ‘70’ (Fixed Transport)
A complete list of all of the AES License Codes and reporting instructions for these types can be found at https://www.cbp.gov/document/guidance/aestir-appendix-f-license-and-license-exemption-type-codes
For questions regarding these upcoming AES changes, please contact the Bureau of Industry and Security at one of the phone numbers below.
Outreach and Educational Services Division (located in Washington, DC) (202) 482-4811
Office of Technology Evaluation (located in Washington, DC): (202) 482-4933
Western Regional Office (located in Irvine, CA) (949) 660–0144
Northern California branch (located in San Jose, CA) (408) 998-8806
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