Rule2025-16735
Revocation of Validated End-User Authorizations in the People's Republic of China
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 2, 2025
Effective
December 31, 2025
Issuing agencies
Commerce DepartmentIndustry and Security Bureau
Abstract
In this final rule, the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) to revise the existing Validated End-User (VEU) Authorizations list for the People's Republic of China (PRC) by removing Intel Semiconductor (Dalian) Ltd; Samsung China Semiconductor Co. Ltd; and SK hynix Semiconductor (China) Ltd.
Full Text
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<title>Federal Register, Volume 90 Issue 167 (Tuesday, September 2, 2025)</title>
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[Federal Register Volume 90, Number 167 (Tuesday, September 2, 2025)]
[Rules and Regulations]
[Pages 42321-42322]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-16735]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 748
[Docket No. 250825-0144]
RIN 0694-AK32
Revocation of Validated End-User Authorizations in the People's
Republic of China
AGENCY: Bureau of Industry and Security, Department of Commerce.
ACTION: Final rule.
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SUMMARY: In this final rule, the Bureau of Industry and Security (BIS)
amends the Export Administration Regulations (EAR) to revise the
existing Validated End-User (VEU) Authorizations list for the People's
Republic of China (PRC) by removing Intel Semiconductor (Dalian) Ltd;
Samsung China Semiconductor Co. Ltd; and SK hynix Semiconductor (China)
Ltd.
DATES: This rule is effective December 31, 2025.
FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee,
Office of the Assistant Secretary, Export Administration, Bureau of
Industry and Security, U.S. Department of Commerce, Phone: 202-482-
5991; Email: <a href="/cdn-cgi/l/email-protection#490c1b0a092b203a672d262a672e263f"><span class="__cf_email__" data-cfemail="0e4b5c4d4e6c677d206a616d20696178">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Background
Validated End-Users (VEUs) are designated entities located in
eligible destinations to which eligible items subject to the Export
Administration Regulations (EAR) may be exported, reexported, or
transferred (in-country) under a general EAR authorization instead of a
license (see 15 CFR 748.15 (Authorization Validated End-User (VEU)).
The names of the VEUs, as well as the dates they were designated, and
the associated eligible destinations (i.e., facilities) and items are
identified in supplement no. 7 to part 748 of the EAR. Pursuant to
Sec. 748.15, VEU-eligible destinations may obtain eligible items
without the need for the VEU's supplier to obtain an export, reexport,
or transfer (in-country) license from the Bureau of Industry and
Security (BIS). VEU-eligible items vary among VEUs and may include
commodities, software, and/or technology, apart from items controlled
for missile technology or crime control reasons on the Commerce Control
List (CCL) (supplement no. 1 to part 774 of the EAR).
VEUs are reviewed and approved by the U.S. Government in accordance
with the provisions of Sec. 748.15 and supplement nos. 8 and 9 to part
748 of the EAR. The End-User Review Committee (ERC) is responsible for
administering the VEU program. The ERC is composed of representatives
from the Departments of State, Defense, Energy, Commerce, and other
agencies, as appropriate. BIS amended the EAR in a final rule published
on June 19, 2007 (72 FR 33646) to create Authorization VEU.
II. Removals From the VEU Program Under China
Pursuant to Sec. 748.15 and supplement no. 9 to part 748 of the
EAR, the ERC determined to remove Intel Semiconductor (Dalian) Ltd,
Samsung China Semiconductor Co. Ltd, and SK hynix Semiconductor (China)
Ltd from the Validated End User Program.
Export Control Reform Act of 2018
On August 13, 2018, the President signed into law the John S.
McCain National Defense Authorization Act for Fiscal Year 2019, which
included the Export Control Reform Act of 2018 (ECRA) (codified, as
amended, at 50
[[Page 42322]]
U.S.C. 4801-4852). ECRA provides the legal basis for BIS's principal
authorities and serves as the authority under which BIS issues this
rule. In particular, and as noted elsewhere, Section 1753 of ECRA (50
U.S.C. 4812) authorizes the regulation of exports, reexports, and
transfers (in-country) of items subject to U.S. jurisdiction. Further,
Section 1754(a)(1)-(16) of ECRA (50 U.S.C. 4813(a)(1)-(16)) authorizes,
inter alia, the establishment of a list of controlled items; the
prohibition of unauthorized exports, reexports, and transfers (in-
country); the requirement of licenses or other authorizations for
exports, reexports, and transfers (in-country) of controlled items;
apprising the public of changes in policy, regulations, and procedures;
and any other action necessary to carry out ECRA that is not otherwise
prohibited by law. Pursuant to Section 1762(a) of ECRA (50 U.S.C.
4821(a)), these changes can be imposed in a final rule without prior
notice and comment.
Rulemaking Requirements
1. This final rule has been determined to be not significant for
purposes of Executive Order 12866. This final rule is not a regulatory
action pursuant to E.O. 14192 because it is not a significant rule
under E.O. 12866.
2. Notwithstanding any other provision of law, no person is
required to respond to, nor shall any person be subject to a penalty
for failure to comply with, a collection of information subject to the
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et
seq.) (PRA), unless that collection of information displays a currently
valid Office of Management and Budget (OMB) Control Number. This rule
involves the following OMB-approved collections of information subject
to the PRA:
<bullet> 0694-0088, ``Simple Network Application Process and
Multipurpose Application Form,'' which carries a burden hour estimate
of 29.7 minutes for a manual or electronic submission;
<bullet> 0694-0096 ``Five Year Records Retention Period,'' which
carries a burden hour estimate of less than 1 minute; and
<bullet> 0607-0152 ``Automated Export System (AES) Program,'' which
carries a burden hour estimate of 3 minutes per electronic submission.
BIS estimates that these new removal of these entities from the VEU
program under the EAR will result in the submission of an additional
1,000 license applications annually, which would be an increase of 495
burden hours. This burden hour increase is within existing estimates
for these collections. Additional information regarding these
collections of information--including all background materials--can be
found at: <a href="https://www.reginfo.gov/public/do/PRAMain">https://www.reginfo.gov/public/do/PRAMain</a> by using the search
function to enter either the title of the collection or the OMB Control
Number.
3. This rule does not contain policies with federalism implications
as that term is defined in Executive Order 13132.
4. Pursuant to section 1762 of the Export Control Reform Act of
2018, this action is exempt from the Administrative Procedure Act (5
U.S.C. 553) requirements for notice of proposed rulemaking, opportunity
for public participation, and delay in effective date.
5. Because a notice of proposed rulemaking and an opportunity for
public comment are not required to be given for this rule by 5 U.S.C.
553, or by any other law, the analytical requirements of the Regulatory
Flexibility Act, 5 U.S.C. 601 et seq., are not applicable. Accordingly,
no regulatory flexibility analysis is required, and none has been
prepared.
List of Subjects in 15 CFR Part 748
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
For the reasons stated in the preamble, part 748 of the EAR (15 CFR
parts 730 through 774) is amended as follows:
PART 748--APPLICATIONS (CLASSICATION, ADVISORY, AND LICENSE) AND
DOCUMENTATION
0
1. The authority citation for part 748 is revised to read as follows:
Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50
U.S.C. 1701 et seq.; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
228.
Supplement No. 7 to Part 748--[Amended]
0
2. Amend supplement no. 7 to part 748 by removing the entries for
``Intel Semiconductor (Dalian) Ltd'', ``Samsung China Semiconductor Co.
Ltd'', and ``SK hynix Semiconductor (China) Ltd'' under ``China
(People's Republic of)''.
Julia A. Khersonsky,
Deputy Assistant Secretary for Strategic Trade.
[FR Doc. 2025-16735 Filed 8-29-25; 8:45 am]
BILLING CODE 3510-33-P
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