NEW BIS LICENSE TYPE C75 – (LPP) License Exception Low Processing Performance (LPP)
January 29, 2025
On Monday, January 13, 2025, the Department of Commerce, Bureau of Industry and Security (BIS) put on public inspection at the Office of the Federal Register an interim final rule with an effective date of Monday, January 13, 2025 and a compliance date of May 15 for most provisions. The IFR was published in the Federal Register on Thursday, January 16, 2024 (https://www.federalregister.gov/documents/2025/01/15/2025-00636/framework-for-artificial-intelligence-diffusion). Among other actions, this interim final rule established new License Exception Low Processing Performance (LPP).
New License Code C75 (LPP)
An update has been made to AES to create new License Codes C75 “Low Processing Performance” (LPP), which authorizes certain export and reexport (no transfer (in-country) of specified items in § 740.29(b) of the EAR. Allows limited quantities of advanced ICs (i.e., quantities well below the amount necessary to train the most advanced AI models) to flow globally to ultimate consignees in destinations other than those of Country Group D:5 or Macau. The threshold for LLP exception has been set at 26,900,000 Total Processing Performance (TPPs) of ECCN 3A090.a, 4A090.a, and corresponding .z items per end user, per calendar year. This license exception is not available for exports or reexports made through distributors or for in country transfers. Ultimate consignees must notify BIS when they have reached the annual TPP allocation limit.
The full terms of License Exception LPP are described in § 740.29.
AES filers must adhere to the following new reporting when using C75 (LPP) to prevent the return of fatal errors from AES:
- Report License Code: C75 Low Processing Performance (LPP)
- Allowable ECCNs: 3A001.z.1.a, z.2.a, z.3.a, z.4.a; 3A090.a; 4A003.z.1.a, z.2.a; 4A004.z.1; 4A005.z.1; 4A090.a; 5A004.z.1.a, z.2.a; and 5A992.z.1
- Allowable countries: All Countries except Macau and destinations listed in Country Group D:5 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
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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