What the New BIS Semiconductor Export Rule Means and How to Stay Compliant

The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has revised its export license policy for advanced semiconductor exports to China. While this change creates new opportunities for U.S. companies to access approved Chinese markets, it also underscores the increasing complexity of semiconductor export controls—a regulatory environment that continues to shift rapidly in response to geopolitical, technological, and national security developments. 

As BIS moves from broad restrictions to more nuanced, condition‑based review policies, exporters must show deeper transparency, stronger documentation, and tighter oversight than ever before. This reality makes robust export compliance processes not just recommended, but essential for any organization working with advanced computing technologies. 

The January 15 final rule formally revises BIS’s license review posture for specific advanced computing chips, allowing case-by-case review for exports of: 

• Nvidia H200 chips 

• AMD MI325X chips 

• Equivalent or slightly less advanced semiconductor technologies.  

Under previous BIS policy, these advanced chips were generally subject to a presumption of denial, effectively blocking their export to China. 

The Federal Register rule summary clarifies that the relaxed posture applies only if exporters certify conditions related to supply assurance, end‑user security practices, and independent testing. BIS makes it clear that eligibility for case-by-case review is limited to chips that are “commercially available” in the United States at the time of the rule’s publication. In practice, that means BIS is prioritizing standardized models already sold in the U.S. market—rather than bespoke or export-only variants designed specifically for overseas shipment. 

This updated policy presents both opportunity and risk for companies manufacturing or distributing advanced artificial intelligence (AI) chips. 

Exporters will face heightened scrutiny to document: 

• Production capacity impacts 

• Chinese customer compliance readiness 

• Independent U.S.-based chip testing 

• End‑user screening and security assurances. 

BIS has explicitly expanded the information required in export license applications for these chips. 

New Opportunities Opened by the Revised BIS Semiconductor Export Rule 

• Re‑entry into a Previously Blocked Market: Exporters may now access approved Chinese markets that were previously restricted. 

• U.S.‑Centered Revenue Pathways Linked to the 25% Tariff: A Presidential Proclamation imposed a 25% tariff on covered advanced chips, which—paired with U.S. testing requirements—practically routes transactions through U.S. supply chains. While the tariff adds cost, it also: 

• Makes approved exports formally permissible 

• Encourages exporters to route products through U.S. supply chains and services driving demand for testing, logistics, and customs‑optimization providers. 

• Growth in AI Integration and Managed Services: Businesses can expand sales pipelines for high-performance AI chips, provided they meet strict conditions. U.S. OEMs and service providers gain the opportunity to supply approved Chinese customers with AI servers, tuned software stacks, and ongoing support. 

Key Export Compliance Requirements Under the New BIS Export Rule 

To qualify for case‑by‑case license review, exporters must demonstrate all the following: 

Global Production Capacity Assurance 

Exporters must show that shipping these chips to China will not reduce semiconductor production capacity accessible to U.S. customers.  

This requirement includes demonstrating that: 

• There is sufficient supply of the product in the U.S. 

• There is no diversion of foundry capacity away from U.S.-needed advanced chips. 

• Shipments to China/Macau are less than or equal to 50% of total U.S. end use shipments. 

At the license application time, exporters must also report the total number of AI chips they have already shipped in the U.S. 

Chinese end users must have formal export compliance procedures in place. In practical terms, this means the purchaser must maintain documented internal controls, such as employee training, recordkeeping systems, and classification processes aligned with U.S. export control expectations. Crucially, these procedures must include customer screening capabilities. The Chinese purchaser must screen their own customers and partners against U.S. restricted party lists to identify any risk in their distribution chain. 

For U.S. exporters, this means collecting and reviewing documentation that proves the Chinese recipient has a functioning trade compliance program, not merely a stated policy. 

The chips must undergo certified third‑party testing in the U.S. to confirm performance characteristics and security properties. This requirement ensures that the chips being exported match the specifications declared in the export license application (such as total processing performance, interconnect bandwidth, and other technical metrics) and do not contain unauthorized modifications or vulnerabilities. 

This means each shipment or each batch tied to a license must be sent to an approved testing lab capable of validating high-performance AI hardware. 

Restricted Party Screening and End Use Certification 

Exporters are required to ensure that no aspect of the transaction involves forbidden usage or user access under U.S. export control regulations. Prior to shipment, exporters must perform comprehensive restricted party screening—covering, at minimum, the BIS Entity List, Military End User (MEU) List, and other applicable U.S. government watchlists—to verify that all parties to the transaction are authorized recipients. 

Exporters must also obtain sufficient end-user certifications to confirm that the chips will not be used for military activities. This requirement extends beyond the initial shipment: exporters must ensure that no prohibited end user gains access to the chips through resale, diversion, transfer, or remote access after delivery. 

How Export Compliance Software Helps Companies Meet Licensing Requirements 

The new BIS framework raises the bar for accuracy, transparency, and control. Exporters need to meet stricter demands for documentation, testing, and screening. A trade compliance solution with robust export license tools can simplify the applications, centralize evidence, and reduce errors. 

Licensing automation and compliance platforms can help businesses: 

1. Streamline Export License Application Workflows: Automated workflows ensure every required certification, document, and justification is included before submission of the export license application—reducing delays and rejection risk. 

2. Automate Customer Screening & End‑User Controls: Integrated restricted party screening, end‑user classification, and customer compliance verification support BIS’ heightened expectations. 

3. Centralize Third‑Party Testing Documentation: Exporters can store, manage, and provide auditable evidence of independent test results directly within the platform. 

4. Maintain a Complete, Audit‑Ready Compliance Trail: Comprehensive logs, data integrity controls, and traceability enable businesses to demonstrate due diligence at any time. 

5. Stay Ahead of Regulatory Change: Software platforms with real‑time regulatory updates help exporters adapt as BIS policies continue to evolve to maintain compliance. 

Together, these capabilities allow exporters to move quickly while maintaining the strongest possible compliance posture. 

Strengthen and Future-Proof Export Control Readiness for Next‑Gen AI Chips with Descartes 

Export controls will keep evolving with fast‑moving chip technology—and this export rule will likely be refined as real‑world licensing and testing mature. Though it relaxes a prior near‑ban, opening a controlled path for U.S. businesses to serve approved Chinese customers, eligibility is narrow and conditions are stringent. Companies that fully automate their export license and compliance operations are best positioned to benefit from this policy shift while minimizing risk. 

Descartes partners with businesses for long‑term trade compliance strategy, aligning policy, process, and technology. We give you the automation and control needed to win export license approvals faster and convert compliance into a competitive advantage. 

Our solutions deliver: 

• Automated export license application assembly with required certifications, performance data, and U.S.‑supply evidence 

• Real‑time restricted party screening with automatic risk escalation and decision records 

• Built‑in restricted destination guardrails to prevent prohibited transactions 

• Audit‑ready documentation for every shipment, test, certification, and compliance check 

• Automated policy monitoring to keep teams aligned as BIS requirements evolve 

• Import compliance solutions that provide tariff and entry Support (Section 232) for U.S. use cases, as well as coordination artifacts to align export licensing with import/tariff steps. 

Are you preparing to export advanced computing chips or want to ensure readiness under the new BIS rule? Request a Demo to see how our export license and trade compliance platform supports the new BIS requirements.