(a) Scope. This License Exception High Bandwidth Memory (HBM) authorizes the export, reexport, or transfer (in-country) of items specified in ECCN 3A090.c on the Commerce Control List (CCL) in supplement no. 1 to part 774 if all terms and conditions within this section are met.

(b) Exporter, reexporter, transferor. The exporter, reexporter, or transferor must be headquartered in the United States or a destination specified in Country Group A:5 of supplement no. 1 to this part, without an ultimate parent headquartered in Macau or a destination specified in Country Group D:5 of supplement no. 1 to this part.

(c) Conditions. The following exports, reexports, or transfers (in-country) are only authorized under this License Exception HBM if the 3A090.c item has a memory bandwidth density less than 3.3 GB/s/mm^2 and both of the following conditions apply:

(1) The 3A090.c items exported, reexported, or transferred to or within Macau or a destination specified in Country Group D:5 must be directly purchased by the designer of the co-packaged commodity not otherwise prohibited from receipt of the item; and

(2) The 3A090.c items must be exported, reexported, or transferred (in-country) directly to the packaging site.

(i) For 3A090.c items exported, reexported, or transferred (in-country) to a U.S., or Country Group A:5 or A:6-headquartered packaging site without an ultimate parent headquartered in Macau or a destination specified in Country Group D:5 of supplement no. 1 to part 740:

(A) The packaging site must confirm in writing to the producer of the chips that the 3A090.c item was packaged and exported, reexported, or transferred (in-country) to the specified designer of the co-packaged commodity. This confirmation is considered an “export control document” and is subject to recordkeeping requirements in part 762. A copy of this record must be provided to BIS upon request; and

(B) The finished, co-packaged commodities must not exceed the technical thresholds in ECCN 3A090, unless packaging the item is permitted under the Temporary General License (TGL) specified in paragraph (d) of General Order No. 4 in of supplement no. 1 to part 736.

(ii) For 3A090.c items exported, reexported, or transferred (in-country) to any other packaging site, the finished, co-packaged commodities must be sent back to the exporter, reexporter, or transferor for export, reexport, or transfer (in-country) to the purchaser:

(A) Upon receipt of the finished, co-packaged commodities, the exporter, reexporter, transferor must confirm the number of 3A090.c units contained within the finished, co-packaged chips received from the packaging site matches the number of 3A090.c items exported, reexported, or transferred (in-country) to the packaging site. This confirmation is considered an “export control document” and is subject to recordkeeping requirements in part 762. A copy of this record must be provided to BIS upon request; and

(B) The finished, co-packaged commodities must not exceed the technical thresholds in ECCN 3A090.a or 3A090.b.

(d) Restrictions. The following exports, reexports, or transfers (in-country) of 3A090.c items are not authorized under this License Exception HBM:

(1) To distributors.

(2) To intermediate consignees, unless hired by the packaging site for freight forwarding or customs clearance.

(3) To co-packaging at a “facility” located in Macau or a destination specified in Country Group D:5 where “production” of “advanced-node ICs” occurs.

(e) Reporting requirement. In the event that the exporter, reexporter, or transferor identifies a discrepancy of greater than 1 percent between the number of 3A090.c units exported, reexported, or transferred (in-country) to the packaging site and the number of 3A090.c units contained within the finished, co-packaged commodities received from the packaging site under paragraph (c)(2)(ii) of this section, this generates a 'Red Flag' that must be resolved before exporting, reexporting, or transferring (in-country) the finished, co-packaged commodities to the designer of the co-packaged commodity or engaging in any further exports, reexports, or transfers (in-country) of 3A090.c items to the designer of the co-packaged commodity or packaging site involved in the transaction that raised the Red Flag. If the Red Flag cannot be resolved, then within 60 days of identifying the discrepancy, the exporter, reexporter, or transferor must report the information in paragraph (e)(1) to BIS consistent with the requirements under paragraph (e)(2).

(1) Information required. (i) Date of shipment;

(ii) Quantity exported and quantity returned;

(iii) Name of Consignee or designer of the co-packaged commodity;

(iv) Name and address of the packaging site;

(v) End use; and

(vi) Explanation of measures already taken or planned to resolve the Red Flag.

(2) Submission requirements. Reports must be provided in electronic form. Recommended file formats for electronic submission include spreadsheets, tabular text or structured text. Submitters may request other reporting arrangements with BIS to better reflect their business models. Reports are to be sent electronically to BIS at the email address: [email protected] with the email subject line Attn: LE HBM Discrepancy Reports.

[89 FR 96814, Dec. 5, 2024]