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.

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Photo of Scott E. Diamond** Scott E. Diamond**

Scott is a senior policy advisor with more than 25 years’ experience with the legislative and regulatory processes involved in international trade policy, remedies and enforcement. This includes working with clients on matters involving export controls, economic sanctions, human rights and forced labor…

Scott is a senior policy advisor with more than 25 years’ experience with the legislative and regulatory processes involved in international trade policy, remedies and enforcement. This includes working with clients on matters involving export controls, economic sanctions, human rights and forced labor compliance, corporate anti-boycott and antibribery compliance, national security investigations, and foreign direct investment in the United States.

**Not licensed to practice law.

Photo of Francesca M.S. Guerrero Francesca M.S. Guerrero

Francesca counsels clients on compliance with export controls, sanctions, import regulations, human rights and forced labor, and the FCPA and antibribery laws. She works closely with companies to develop tailored compliance programs that fit their specific needs, and routinely advises clients on some…

Francesca counsels clients on compliance with export controls, sanctions, import regulations, human rights and forced labor, and the FCPA and antibribery laws. She works closely with companies to develop tailored compliance programs that fit their specific needs, and routinely advises clients on some of their most challenging international transactions, involving dealings in high-risk jurisdictions or with high-risk counterparties. Francesca also counsels companies through all phases of internal investigations of potential trade and antibribery violations and represents companies across industries before related government agencies.

Photo of Samir D. Varma Samir D. Varma

Samir advises multinational corporations on export controls, economic sanctions and customs, and counsels individuals and corporations on the Foreign Corrupt Practices Act (FCPA) and other anti-corruption laws. He represents clients in enforcement actions before U.S. regulatory agencies and conducts corporate internal investigations.

Photo of Kristina Shcheglazova* Kristina Shcheglazova*

Kristina focuses her practice on advising clients on issues related to the importation and exportation of goods, including customs issues such as the classification of goods, country of origin, customs procedures and prior disclosures. She also assists clients with sanctions and export control…

Kristina focuses her practice on advising clients on issues related to the importation and exportation of goods, including customs issues such as the classification of goods, country of origin, customs procedures and prior disclosures. She also assists clients with sanctions and export control matters, including compliance with various sanctions and export control requirements, due diligence and sanctions screenings, and advises clients on the application of U.S. sanctions and export control licensing requirements. Her experience extends to addressing issues of forced labor in supply chains, assisting clients with government contracting matters and advising on anti-corruption policies.

*Licensed in MO only, not IL; limited to federal practice only.