On March 15, 2023, U.S. Customs and Border Protection (CBP) announced that it has activated two new license codes for use in the Automated Export System (AES). These new codes are related to an Interim Final Rule published by the Department of Commerce’s Bureau of Industry and Security (BIS) on October 13, 2022, that established a new Temporary General License (TGL) to avoid disruption of supply chains for the export of advanced computing integrated circuits (ICs), computer commodities that contain such ICs, and certain semiconductor manufacturing items. This TGL is intended to allow limited manufacturing activities to items destined to customers outside of China or Macau. See Update of October 13, 2022.
Separately, BIS has issued several Supply Chain Authorization Letters describing specific authorizations it has granted in response to specific requests based on actual or potential supply chain disruptions. Given this development CBP has established a new Supply Chain Authorization Letter (SCAL) code. Recipients of such letters from BIS must comply with the specific terms issued in such letters. A SCAL code is only valid for use in AES by the original recipient of the letter or by parties authorized therein.
With these updates, when applicable, exporters and authorized agents are to report electronic export information using the following new license codes:
- License Code C65, or the Temporary General License (TGL), allows for certain exports, reexports, in-country transfers, and exports from abroad destined to or within China or Macau by certain group of companies. The TGL covers specific items of 3A090, 4A090, 3D001, 3E001, 4D090, 4E001, or any item that is a computer, integrated circuit, “electronic assembly” or “component” and associated software and technology, specified elsewhere on Commerce Control List (Supplement no. 1 to part 774), which meets or exceeds the performance parameters of ECCN 3A090 or 4A090. This license does not authorize the export to “end-users” or “ultimate consignees” in China or Macau. TGL and License Code C65 is only valid for use through April 7, 2023.
- License Code C66, or the Supply Chain Authorization Letter (SCAL), is issued in response to specific requests based on exigent circumstances of actual or potential supply chain disruptions. Recipients of SCAL must comply with the specific terms issued by BIS in the letter, and the letter is only valid for use by the original recipient of the letter or by parties authorized therein. SCAL covers all ECCN, including EAR99.
CPB instructs that all AES filers must adhere to the new reporting requirements for both license types to avoid errors in the AES, including: (i) report relevant license code (C65 or C66), (ii) indicate allowable ECCN, (iii) indicate allowable export information codes, (iv) indicate allowable modes of transportation.