NEW BIS LICENSE TYPES C76 – Universal Validated End User (UVEU) and C77 National Validated End User (NVEU)
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 16 for most provisions. The IFR is expected to publish 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 Exceptions C76 Universal Validated End User (UVEU) and C77 National Validated End User (NVEU).
New License Code C76 (UVEU)
An update has been made to AES to create new License Codes C76 Universal Validated End User (UVEU)which provides the data centers that own their advanced computing capacity with a single authorization that will allow a UVEU to build DCs around the world, except in Macau or destinations specified in Country Group D:5, provided that the UVEU maintains its status by following the guidelines in supplement no. 10 to part 748. The UVEU is responsible for ensuring it complies with the applicable AI TPP geographic allocations. To receive UVEU status, a DC that owns its advanced computing capacity must certify that it will follow the guidelines outlined in supplement no. 10 to part 748 and go through an intensive application process. As previously noted, if the owner of the advanced compute cannot directly certify to all of the application information requested in § 748.15, it must include in its VEU application to BIS the identities of other entities involved in the DC operations.
The full terms of License Exception UVEU are described in § 748.15.
AES filers must adhere to the following new reporting when using C76 (UVEU) to prevent the return of fatal errors from AES:
- Report License Code: C76 Universal Validated End User (UVEU)
- Allowable ECCNs: See Supplement 7 to part 748 for specific end users and ECCNs.
- Allowable countries: All Countries except D:5 and Macau
- Allowable Export Information Codes: All except UG
- Allowable Modes of Transportation: All except ‘70’ (Fixed Transport)
New License Code C77 (NVEU)
An update has been made to AES to create new License Codes C77 National Validated End User (NVEU) which is available to all entities headquartered in or located in a destination in Country Groups A, B, or D:1-D:4, except Macau or destinations specified in Country Group D:5, as described in revised § 748.15(b)(2). New paragraph (a)(2)(iii) of § 748.15 describes the requirements to obtain an NVEU. In order to receive NVEU Authorization, a data center operator that owns its advanced computing capacity must apply to BIS and go through an intensive application process that will be subject to interagency review. Information required to be submitted to become a VEU is described in supplement no. 8 to part 748, some provisions of which are revised by this rule, including an update to paragraph (B)(2) of the supplement to require information about business activities and corporate relationships with government or military organizations in Macau and destinations specified Country Group D:5, e.g., direct sales to or contracts with such entities.
Approved applicants for the NVEU Authorization will be listed in the EAR as NVEUs in supplement no. 7 to part 748. This listing will serve to notify exporters and reexporters that the NVEU location can receive exports and reexports under this authorization. The NVEU may choose whether to list a corporate address or a physical address of the new data center location. NVEUs will be subject to the cumulative TPP allocations identified above.
The full terms of License Exception UVEU are described in § 748.15.
AES filers must adhere to the following new reporting when using C77 (NVEU) to prevent the return of fatal errors from AES:
- Report License Code: C77 National Validated End User (NVEU)
- Allowable ECCNs: All EXCEPT 600 series and ECCNs with a reason for control: Missile Technology and/or Crime Control
- Allowable countries: All Countries except D:5 and Macau
- 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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