NEW BIS LICENSE TYPE C79 - Fab License
January 5, 2026
On September 2, 2025, the Department of Commerce, Bureau of Industry and Security (BIS) published a final rule “Revocation of Validated End-User Authorizations in the People's Republic of China” (https://www.federalregister.gov/documents/2025/09/02/2025-16735/revocation-of-validated-end-user-authorizations-in-the-peoples-republic-of-china). This rule removed Intel Semiconductor (Dalian) Ltd, Samsung China Semiconductor Co. Ltd, and SK Hynix Semiconductor (China) Ltd from the Validated End User (VEU) Program (see 15 CFR 748.15) effective December 31, 2025. As a result of this rule and other BIS actions, there are no “production” “facilities” of “advanced-node ICs" (as defined in part 772 of the EAR) which can receive items subject to the EAR.
Therefore, you also may no longer use AES code C57, VEU, for these exports. Other “VEU” codes including C76 and C77 continue to be unavailable for these exports.
Instead, authorizations for such exports must now be made under a validated license for routed transaction issued by BIS to the Fab. If authorization is granted, the fabs will present to any company exporting, reexporting, or transferring (in-country) items subject to the EAR with the appropriate license number that begins with the letter H for use in AES filing. Any terms and conditions of the license relevant to the exporter, reexporter, or transferor (in-country) will also be relayed to them by the fabs prior to the export, reexport, or transfer (in-country). When using one of these H licenses, the exporter must use new AES code C79.
Creation of License Code C79 (Fab License)
An update has been made to AES to create License Code C79. The full terms of the license, which authorizes routed transactions, will be provided to the exporter, reexporter, or transferor (in-country) by the ultimate consignee holding a license with letter H. The U.S. agent of the respective fabs has obtained the export license from BIS on behalf of the ultimate consignee and provided notification to the respective exporters, reexporters, or transferors (in-country) that these transactions will be done as routed transactions under the EAR and authorized these other parties to export, reexport, or transfer (in-country) these items on their behalf, pursuant to the terms of the respective licenses.
AES filers must adhere to the following new reporting when using C79 to prevent the return of fatal errors from AES:
- Report License Code: C79 (Fab license).
- Report License Number: Provided by the ultimate consignee holding a license with letter H.
- Allowable ECCNs: All except 3B001.f.1.a, and ECCNs controlled for missile technology and crime control reasons.
- Allowable countries: China.
- “.z” must be entered as the first characters to appear in the Commodity Description block for 3A001.z, 4A003.z, 4A004.z, 4A005.z, 5A002.z, 5A004.z, 5A992.z, 5D002.z, or 5D992.z.
- 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.
The use of C79 does not determine what is reported as the “Is this a Routed Transaction” (routed) indicator in the AES. This indicator should be reported in accordance with the Foreign Trade Regulations. Therefore, the routed indicator should only reflect “Yes” when the Foreign Principal Party in Interest authorizes a U.S. agent to facilitate export of items from the United States on its behalf and prepare and file the Electronic Export Information.
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