US Export Controls on AI Chips & Semiconductors

US export controls on AI chips and semiconductor technology determine what you can ship, sell, or share with foreign entities. This guide explains the rules, licensing requirements, and practical steps for compliance, whether you are a manufacturer, distributor, or researcher.

What You’ll Need

Product technical specifications (performance metrics, transistor count, etc.)
End-user and end-use information for your customers
Access to the U.S. Bureau of Industry and Security (BIS) website for classifications
Legal counsel or export compliance officer (recommended)

Step-by-Step

Determine if your product is subject to EAR. The Export Administration Regulations (EAR) govern most commercial items. Check if your product is on the Commerce Control List (CCL) under Category 3 (Electronics) or Category 4 (Computers).
Identify your product’s Export Control Classification Number (ECCN). Find the ECCN by matching your product’s specifications to the CCL. For AI chips, common ECCNs include 3A001, 4A003, and 4A004. If your product is not listed, it may be EAR99.
Check the reason for control. Each ECCN lists reasons (e.g., National Security, Anti-Terrorism). These determine licensing requirements for different destinations.
Review the destination country. Check the Country Chart (Supplement No. 1 to Part 738) to see if a license is required for your ECCN and destination. Also, check for embargoes and sanctions (e.g., Cuba, Iran, North Korea, Syria, and Russia).
Assess the end user and end use. If the end user is a military entity or the end use is for weapons of mass destruction, a license is likely required. Use the BIS Entity List to screen parties.
Determine if a license exception applies. For AI chips, most license exceptions are unavailable, especially for advanced chips (e.g., those with high performance). Check exceptions like GOV (government) or TSU (technology and software unrestricted) but verify eligibility.
Submit a license application if needed. Use the Simplified Network Application Processing (SNAP-R) system. Provide full technical specs, end-user information, and a detailed explanation of the end use.
Wait for approval. Processing can take 30-90 days. Expedited review is possible for some cases, but not guaranteed.
Implement compliance procedures. Even if no license is required, keep records of your export decisions. Maintain a compliance program with due diligence on customers.
Stay updated. Export controls change frequently, especially for AI and semiconductors. Subscribe to BIS Federal Register notices and industry alerts.

Common Mistakes

Assuming all chips are EAR99 because they are not listed. Many AI chips are specifically controlled.
Ignoring the entity list and shipping to a denied party.
Misclassifying the product because you do not know the exact performance parameters (e.g., TOPS, FLOPS).
Forgetting that software and technology related to AI chips are also controlled.
Relying on a license exception without verifying the destination and end user.
Not keeping records for at least 5 years (required by EAR).

Tips

Use the BIS online classification tool or request a formal classification from BIS if unsure.
Document every export decision, including classification rationale.
Train your sales and engineering teams on export control basics.
For high-performance AI chips, assume a license is needed unless you can prove otherwise.
Work with a freight forwarder or customs broker experienced in semiconductor exports.
Consider using a restricted-party screening software to automate checks.

Troubleshooting

License application denied: Review the denial letter for reasons. You can request reconsideration with additional information, or adjust the end user or end use.
Product is being held by customs: Provide the ECCN and license (if any) to the customs broker. If you do not have a license, you may need to return the product or apply for one retroactively (rarely granted).
Customer is on the Entity List: Stop the shipment immediately. Do not proceed without a license, even if the customer claims they have one. Verify the license number with BIS.
Unsure about classification: Submit a request for an advisory opinion to BIS. This is a formal process that provides a binding classification.
Changes to regulations: If new rules are issued that affect your product, you may need to re-classify and obtain new licenses. Check the Federal Register for updates.

Frequently Asked Questions

Q: Do all AI chips require an export license?
No. Only chips that meet certain performance thresholds (e.g., total processing performance) are controlled. Less advanced chips may be EAR99.

Q: What is the difference between ECCN and EAR99?
ECCN is a specific classification on the Commerce Control List that indicates controls. EAR99 means the item is not on the CCL and is generally shipped without a license, except to embargoed destinations or for certain end uses.

Q: Can I ship AI chips to a subsidiary abroad?
Yes, but the same rules apply. You must still classify and obtain a license if required, even if the recipient is your own company.

Q: How long does a license application take?
Typically 30-90 days, but it can take longer for complex cases. You can check the status via SNAP-R.

Q: What are the penalties for violating export controls?
Penalties can include fines up to $1 million per violation, imprisonment, and denial of export privileges. Civil penalties can also be imposed.

Q: Do I need a license for technology transfers (e.g., sharing blueprints)?
Yes, technology and software related to AI chips are controlled. Sharing technical data with foreign nationals may require a license, even if the data is sent electronically.

Method: the standard formula for this calculation, rounded as each result states. See how the calculators work or report an error.

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