15 C.F.R. § 734.9 – Foreign-Direct Product (FDP) Rules.

Foreign-produced items located outside the United States are subject to the EAR when they are a “direct product” of specified “technology” or “software,” produced by a complete plant or 'major component' of a plant that itself is a “direct product” of specified “technology” or “software,” or, for specified foreign-produced items in paragraph (e)(3)(i)(B)(2) of this section, contain an item produced by a complete plant or 'major component' of a plant that itself is a “direct product” of specified “technology” or “software.” If a foreign-produced item is subject to the EAR, then you should separately determine the license requirements that apply to that foreign-produced item (e.g., by assessing the item classification, destination, end-use, and end-user in the relevant transaction). Not all transactions involving foreign-produced items that are subject to the EAR require a license. Those transactions that do require a license may be eligible for a license exception.

(a) Definitions, model certification, and is-informed authority—(1) Definitions. The terms defined in this paragraph are specific to § 734.9 of the EAR. These terms are indicated by single quotation marks. Terms that are in double quotation marks are defined in part 772 of the EAR.
1. (i) Major component. A major component of a plant located outside the United States means “equipment” that is essential to the “production” of an item, including testing “equipment.”
2. (ii) [Reserved]
3. (2) Model certification. Exporters, reexporters, and transferors may obtain a written certification from a supplier that asserts an item being provided would be subject to the EAR if future transactions meet the destination or end user scope of one or more of the Foreign Direct Product (FDP) rules under § 734.9. The model certificate described by BIS in supplement no. 1 to part 734 is not required under the EAR, but through its provision, the certificate may assist exporters, reexporters, and transferors with the process of resolving potential red flags regarding whether an item is subject to the EAR based on § 734.9. The model certificate provided by BIS contemplates signature by an official or designated employee of the certifying company and inclusion of all the information described in paragraph (b) of supplement no. 1 to part 734. While this certificate is expected to be useful for a company to understand the application of the EAR to an item, BIS does not view this as the only step to be completed during a company's due diligence process. See supplement no. 1 to part 734 and supplement no. 3 to part 732 of the EAR.
4. (3) Jurisdiction and license requirements for persons informed by BIS. BIS may inform persons, either individually by specific notice or through amendment to the EAR, that foreign-produced items located outside the United States are subject to the EAR pursuant to § 734.9, and of any license requirements that apply to such items. Specific notice will be given only by, or at the direction of, the Principal Deputy Assistant Secretary for Strategic Trade and Technology Security or the Deputy Assistant Secretary for Strategic Trade. When such notice is provided orally, it will be followed by written notice within two working days signed by one of those officials or their designee. The absence of BIS notification does not excuse the exporter from compliance with other requirements of this section.
(b) National Security FDP rule. A foreign-produced item is subject to the EAR if it meets both the product scope in paragraph (b)(1) of this section and the country scope in paragraph (b)(2) of this section.
1. (1) Product scope of National Security FDP rule. The product scope applies if a foreign-produced item meets the conditions of either paragraph (b)(1)(i) or (ii) of this section.
  1. (i) “Direct product” of “technology” or “software.” A foreign-produced item meets the product scope of this paragraph if it meets both of the following conditions:
    1. (A) The foreign-produced item is the “direct product” of U.S.-origin “technology” or “software” that requires a written assurance as a supporting document for a license, as defined in paragraph (o)(3)(i) of supplement no. 2 to part 748 of the EAR, or as a precondition for the use of License Exception TSR at § 740.6 of the EAR; and
    2. (B) The foreign-produced item is subject to national security controls as designated in the applicable ECCN of the Commerce Control List in part 774 of the EAR.
  2. (ii) Product of a complete plant or 'major component' of a plant that is a “direct product.” A foreign-produced item meets the product scope of this paragraph if it meets both of the following conditions:
    1. (A) The foreign-produced item is a “direct product” of a complete plant or 'major component' of a plant that itself is the “direct product” of U.S.-origin “technology” that requires a written assurance as a supporting document for a license or as a precondition for the use of License Exception TSR in § 740.6 of the EAR; and
    2. (B) The foreign-produced item is subject to national security controls as designated on the applicable ECCN of the Commerce Control List at part 774 of the EAR.
2. (2) Country scope of National Security FDP rule. A foreign-produced item meets the country scope of this paragraph if its destination is listed in Country Group D:1, E:1, or E:2 (See supplement no.1 to part 740 of the EAR).
(c) 9x515 FDP rule. A foreign-produced item is subject to the EAR if it meets both the product scope in paragraph (c)(1) of this section and the country scope in paragraph (c)(2) of this section.
1. (1) Product scope of 9x515 FDP rule. The product scope applies if a foreign-produced item meets the conditions of either paragraph (c)(1)(i) or (ii) of this section.
  1. (i) “Direct product” of “technology” or “software.” A foreign-produced item meets the product scope of this paragraph if it meets both of the following conditions:
    1. (A) The foreign-produced item is the “direct product” of U.S.-origin “technology” or “software” that is specified in ECCN 9D515 or 9E515; and
    2. (B) The foreign-produced item is specified in a 9x515 ECCN.
  2. (ii) Product of a complete plant or 'major component' of a plant that is a “direct product.” A foreign-produced item meets the product scope of this paragraph if it meets both of the following conditions:
    1. (A) The foreign-produced item is a “direct product” of a complete plant or any 'major component' of a plant that itself is the “direct product” of U.S.-origin “technology” specified in ECCN 9E515; and
    2. (B) The foreign-produced item is specified in a 9x515 ECCN.
2. (2) Country scope of 9x515 FDP rule. A foreign produced item meets the country scope of this paragraph if its destination is listed in Country Group D:5, E:1, or E:2 (see supplement no. 1 to part 740 of the EAR).
(d) “600 series” FDP rule. A foreign-produced item is subject to the EAR if it meets both the product scope in paragraph (d)(1) of this section and the country scope in paragraph (d)(2) of this section.
1. (1) Product scope of “600 series” FDP rule. The product scope applies if a foreign-produced item meets the conditions of either paragraph (d)(1)(i) or (ii) of this section.
  1. (i) “Direct product” of “technology” or “software.” A foreign-produced item meets the product scope of this paragraph if it meets both of the following conditions:
    1. (A) The foreign-produced item is the “direct product” of U.S.-origin “technology” or “software” that is specified in a “600 series” ECCN; and
    2. (B) The foreign-produced item is specified in a “600 series” ECCN or ECCN 0A919.
  2. (ii) Product of a complete plant or 'major component' of a plant that is a “direct product.” Foreign-produced items meet the product scope of this paragraph if they meet both of the following conditions:
    1. (A) The foreign-produced item is the “direct product” of a complete plant or 'major component' of a plant that itself is the “direct product” of U.S.-origin “technology” that is specified in a “600 series” ECCN; and
    2. (B) The foreign produced item is specified in a “600 series” ECCN.
2. (2) Country scope of “600 series” FDP rule. A foreign-produced item meets the country scope of this paragraph if it is destined to a country listed in Country Group D:1, D:3, D:4, D:5, E:1, or E:2 (see supplement no.1 to part 740 of the EAR).
(e) Entity List FDP rules. A foreign-produced item is subject to the EAR if it meets the product scope and end-user scope in either Entity List FDP rule footnote 1 provision in paragraph (e)(1) of this section; the Entity List FDP rule footnote 4 provision in paragraph (e)(2) of this section; or the Entity List FDP rule Footnote 5 provision in paragraph (e)(3) of this section. Consistent with the introductory text to the Entity List in supplement no. 4 to part 744, the end-user scope of the Entity List FDP rules also includes any foreign entity that is owned, directly or indirectly, individually or in aggregate, 50 percent or more by one or more listed entities or unlisted entities that are subject to license requirements or other restrictions based upon their ownership, including at least one entity that meets the end-user scope under this provision. This end-user scope applies to all entities on the Entity List with a footnote referenced under this paragraph (e). If the foreign entity is owned 50 percent or more by one or more listed entities or unlisted entities that are subject to Entity List license requirements or other Entity List restrictions based upon their ownership, including at least one entity with a footnote referenced under this paragraph (e), these Entity List FDP requirements are applicable, even when only one of the owners meets the end-user criteria under this paragraph (e).
1. (1) Entity List FDP rule: Footnote 1. A foreign-produced item is subject to the EAR if it meets both the product scope in paragraph (e)(1)(i) of this section and the end-user scope in paragraph (e)(1)(ii) of this section. See § 744.11(a)(2)(i) of the EAR for license requirements, license review policy, and license exceptions applicable to foreign-produced items that are subject to the EAR pursuant to this paragraph (e)(1).
  1. (i) Product Scope Entity List FDP rule: Footnote 1. The product scope applies if a foreign-produced item meets the conditions of either paragraph (e)(1)(i)(A) or (B) of this section.
    1. (A) “Direct product” of “technology” or “software.” A foreign-produced item meets the product scope of this paragraph (e)(1)(i)(A) if the foreign-produced item is a “direct product” of “technology” or “software” subject to the EAR and specified in ECCN 3D001, 3D901, 3D991, 3D992, 3D993, 3D994, 3E001, 3E002, 3E003, 3E901, 3E991, 3E992, 3E993, 3E994, 4D001, 4D993, 4D994, 4E001, 4E992, 4E993, 5D001, 5D991, 5E001, or 5E991 of the Commerce Control List (CCL) in supplement no. 1 to part 774 of the EAR; or
    2. (B) Product of a complete plant or 'major component' of a plant that is a “direct product.” A foreign-produced item meets the product scope of this paragraph if the foreign-produced item is produced by any complete plant or 'major component' of a plant that is located outside the United States, when the complete plant or 'major component' of a plant, whether made in the U.S. or a foreign country, itself is a “direct product” of U.S.-origin “technology” or “software” that is specified in ECCN 3D001, 3D901, 3D991, 3D992, 3D993, 3D994, 3E001, 3E002, 3E003, 3E901, 3E991, 3E992, 3E993, 3E994, 4D001, 4D993, 4D994, 4E001, 4E992, 4E993, 5D001, 5D991, 5E001, or 5E991 of the CCL.
  2. (ii) End-user scope of the Entity List FDP rule: Footnote 1. A foreign-produced item meets the end-user scope of this paragraph (e)(1)(ii) if there is “knowledge” that:
    1. (A) Activities involving Footnote 1 designated entities. The foreign-produced item will be incorporated into, or will be used in the “production” or “development” of any “part,” “component,” or “equipment” produced, purchased, or ordered by any entity with a footnote 1 designation in the license requirement column of the Entity List in supplement no. 4 to part 744 of the EAR; or
    2. (B) Footnote 1 designated entities as transaction parties. Any entity with a footnote 1 designation in the license requirement column of the Entity List in supplement no. 4 to part 744 of the EAR is a party to any transaction involving the foreign-produced item, e.g., as a “purchaser,” “intermediate consignee,” “ultimate consignee,” or “end-user.”
2. (2) Entity List FDP rule: Footnote 4. A foreign-produced item is subject to the EAR if it meets both the product scope in paragraph (e)(2)(i) of this section and the end-user scope in paragraph (e)(2)(ii) of this section. See § 744.11(a)(2)(ii) of the EAR for license requirements, license review policy, and license exceptions applicable to foreign-produced items that are subject to the EAR pursuant to this paragraph (e)(2).
  1. (i) Product Scope Entity List FDP rule: Footnote 4. The product scope applies if a foreign-produced item meets the conditions of either paragraph (e)(2)(i)(A) or (B) of this section.
    1. (A) “Direct product” of “technology” or “software.” The foreign-produced item is a “direct product” of “technology” or “software” subject to the EAR and specified in ECCN 3D001, 3D901 3D991, 3D992, 3D993, 3D994, 3E001, 3E002, 3E003, 3E901, 3E991, 3E992, 3E993, 3E994, 4D001, 4D993, 4D994, 4E001, 4E992, 4E993, 5D001, 5D002, 5D991, 5E001, 5E002, or 5E991 of the CCL; or
    2. (B) Product of a complete plant or 'major component' of a plant that is a “direct product.” A foreign-produced item meets the product scope of this paragraph if the foreign-produced item is produced by any complete plant or 'major component' of a plant that is located outside the United States, when the complete plant or 'major component' of a plant, whether made in the U.S. or a foreign country, itself is a “direct product” of U.S.-origin “technology” or “software” that is specified in ECCN 3D001, 3D901, 3D991, 3D992, 3D993, 3D994, 3E001, 3E002, 3E003, 3E901, 3E991, 3E992, 3E993, 3E994, 4D001, 4D993, 4D994, 4E001, 4E992, 4E993, 5D001, 5D002, 5D991, 5E001, 5E002, or 5E991 of the CCL.
  2. (ii) End user scope of the Entity List FDP rule: Footnote 4. A foreign-produced item meets the end-user scope of this paragraph (e)(2)(ii) if there is “knowledge” that:
    1. (A) Activities involving Footnote 4 designated entities. The foreign-produced item will be incorporated into, or will be used in the “production” or “development” of any “part,” “component,” or “equipment” produced, purchased, or ordered by any entity with a footnote 4 designation in the license requirement column of the Entity List in supplement no. 4 to part 744 of the EAR; or
    2. (B) Footnote 4 designated entities as transaction parties. Any entity with a footnote 4 designation in the license requirement column of the Entity List in supplement no. 4 to part 744 of the EAR is a party to any transaction involving the foreign-produced item, e.g., as a “purchaser,” “intermediate consignee,” “ultimate consignee,” or “end-user.”
3. (3) Entity List FDP rule: Footnote 5 and “advanced-node integrated circuit” “production.” A foreign-produced commodity is subject to the EAR if it meets both the product scope in paragraph (e)(3)(i) of this section and the end-user scope in paragraph (e)(3)(ii) of this section. See § 744.11(a)(2)(v) of the EAR for license requirements, exclusion from license requirements, and license review policy, applicable to foreign-produced commodities that are subject to the EAR pursuant to this paragraph (e)(3).
  1. (i) Product scope Entity List FDP rule: footnote 5 and “advanced-node integrated Circuit” “Production.” The product scope applies if a foreign-produced commodity is specified in ECCN 3B001 (except 3B001.a.4, c, d, f.1, f.5, f.6, g, h, k to n, p.2, p.4, r), 3B002 (except 3B002.c), 3B903, 3B991 (except 3B991.b.2.a through 3B991.b.2.b), 3B992, 3B993, or 3B994, and meets the conditions of either paragraph (e)(3)(i)(A) or (B) of this section.
    1. (A) “Direct product” of “technology” or “software.” A foreign-produced item meets the product scope of this paragraph if the foreign-produced commodity is a “direct product” of “technology” or “software” subject to the EAR and specified in ECCN 3D001 (for 3B commodities), 3D901(for 3B903), 3D991 (for 3B991 and 3B992), 3D993, 3D994, 3E001 (for 3B commodities), 3E901 (for 3B903), 3E991 (for 3B991 and 3B992), 3E993, or 3E994 of the Commerce Control List (CCL) in supplement no. 1 to part 774 of the EAR; or
    2. (B) Product of a complete plant or 'major component' of a plant that is a “direct product,” or a commodity that contains a product of a complete plant or 'major component' of a plant that is a “direct product.” A foreign-produced commodity meets the product scope of this paragraph if the foreign-produced commodity meets at least one of the following conditions:
      (1) Is produced by any complete plant or 'major component' of a plant that is located outside the United States, when the complete plant or 'major component' of a plant, whether made in the United States or a foreign country, itself is a “direct product” of U.S.-origin “technology” or “software” that is specified in ECCN 3D001 (for 3B commodities), 3D901, 3D991 (for 3B991 and 3B992), 3D992, 3D993, 3D994, 3E001 (for 3B commodities), 3E901 (for 3B903), 3E991 (for 3B991 and 3B992), 3E992, 3E993, or 3E994 of the CCL; or
      (2) Contains a commodity produced by any complete plant or 'major component' of a plant that is located outside the United States, when the complete plant or 'major component' of a plant, whether made in the United States or a foreign country, itself is a “direct product” of U.S.-origin “technology” or “software” that is specified in ECCN 3D001 (for 3B commodities), 3D901, 3D991 (for 3B991 and 3B992), 3D992, 3D993, 3D994, 3E001 (for 3B commodities), 3E901 (for 3B903), 3E991 (for 3B991 and 3B992)), 3E992, 3E993, or 3E994 of the CCL.
  2. (ii) End-user scope of the Entity List FDP rule: Footnote 5 and for entities located at “facilities” where “advanced-node integrated circuit” “production” occurs. A foreign-produced commodity meets the end-user scope of this paragraph (e)(3)(ii) if there is “knowledge” that:
    1. (A) Activities involving Footnote 5 designated entities and for entities located at “facilities” where the “production” of “advanced-node integrated circuits” occurs. The foreign-produced commodity will be incorporated into any “part,” “component,” or “equipment” produced, purchased, or ordered by any entity with a Footnote 5 designation in the license requirement column of the Entity List in supplement no. 4 to part 744 of the EAR or by an entity located at a “facility” in Macau or a destination specified in Country Group D:5 where the “production” of logic or DRAM “advanced-node integrated circuits” occurs; or
    2. (B) Footnote 5 designated entities and for “advanced-node integrated circuits” “production” “facilities” as transaction parties. Any entity with a Footnote 5 designation in the license requirement column of the Entity List in supplement no. 4 to part 744 of the EAR or an entity located at a “facility” located in Macau or a destination specified in Country Group D:5 of supplement no. 1 to part 740 where the “production” of logic or DRAM “advanced-node integrated circuits” occurs is a party to any transaction involving the foreign-produced commodity (e.g., as a “purchaser,” “intermediate consignee,” “ultimate consignee,” or “end-user”).
(f) Russia/Belarus/Temporarily occupied Crimea region of Ukraine FDP rule. A foreign-produced item is subject to the EAR if it meets both the product scope in paragraph (f)(1) of this section and the destination scope in paragraph (f)(2) of this section. See § 746.8 of the EAR for license requirements, license review policy, and license exceptions applicable to foreign-produced items that are subject to the EAR pursuant to this paragraph (f).
1. (1) Product scope of Russia/Belarus/Temporarily occupied Crimea region of Ukraine FDP rule. The product scope applies if a foreign-produced item meets the conditions of either paragraph (f)(1)(i) or (ii) of this section.
  1. (i) “Direct product” of “technology” or “software.” A foreign-produced item meets the product scope of this paragraph (f)(1)(i) if the foreign-produced item meets both of the following conditions:
    1. (A) The foreign-produced item is the “direct product” of U.S.-origin “technology” or “software” subject to the EAR that is specified in any ECCN in product groups D or E of the CCL; and
    2. (B) The foreign-produced item is specified in any ECCN on the CCL or in supplement no. 6 or 7 to part 746 of the EAR; or
  2. (ii) Product of a complete plant or 'major component' of a plant that is a “direct product.” A foreign-produced item meets the product scope of this paragraph (f)(1)(ii) if it meets both of the following conditions:
    1. (A) A foreign-produced item meets the product scope of this paragraph if the foreign-produced item is produced by any complete plant or 'major component' of a plant that is located outside the United States, when the complete plant or 'major component' of a plant, whether made in the United States or a foreign country, itself is a “direct product” of U.S.-origin “technology” or “software” that is specified in any ECCN in product groups D or E of the CCL; and
    2. (B) The foreign-produced item is specified in any ECCN on the CCL or in supplement no. 6 or 7 to part 746 of the EAR.
2. (2) Destination scope of the Russia/Belarus/Temporarily occupied Crimea region of Ukraine FDP rule. A foreign-produced item meets the destination scope of this paragraph (f)(2) if there is “knowledge” that the foreign-produced item is destined to Russia, Belarus, or the temporarily occupied Crimea region of Ukraine or will be incorporated into or used in the “production” or” development” of any “part,” “component,” or “equipment” specified in any ECCN on the CCL or in supplement no. 6 or 7 to part 746 of the EAR and produced in or destined to Russia, Belarus, or the temporarily occupied Crimea region of Ukraine.
(g) Russia/Belarus-Military End User and Procurement FDP rule. A foreign-produced item is subject to the EAR if it meets both the product scope in paragraph (g)(1) of this section and the end-user scope in paragraph (g)(2) of this section. See § 746.8 of the EAR for license requirements, license review policy, and license exceptions applicable to foreign-produced items that are subject to the EAR pursuant to this paragraph (g). Consistent with the introductory text to the Entity List in supplement no. 4 to part 744, the end-user scope of the Russia/Belarus-Military End User and Procurement FDP rule also includes any foreign entity that is owned 50 percent or more, directly or indirectly, individually or in aggregate, by one or more listed entities or unlisted entities that are subject to Entity List license requirements or other Entity List restrictions based upon their ownership, including at least one entity that meets the end-user scope of this provision. If the foreign entity is owned 50 percent or more by one or more listed entities or unlisted entities that are subject to Entity List license requirements or other Entity List restrictions based upon their ownership, including at least one entity within the end-user scope defined by paragraph (g)(2) of this section, these Russia/Belarus-Military End User and Procurement FDP requirements are applicable, even when only one of the owners meets the end-user criteria under paragraph (g)(2) of this section.
1. (1) Product Scope of Russia/Belarus-Military End User and Procurement FDP rule. The product scope applies if a foreign-produced item meets the conditions of either paragraph (g)(1)(i) or (ii) of this section.
  1. (i) “Direct product” of “technology” or “software.” A foreign-produced item meets the product scope of this paragraph (g)(1)(i) if the foreign-produced item is a “direct product” of “technology” or “software” subject to the EAR and specified in any ECCN in product groups D or E in any categories of the CCL; or
  2. (ii) Product of a complete plant or 'major component' of a plant that is a “direct product.” A foreign-produced item meets the product scope of this paragraph if the foreign-produced item is produced by any complete plant or 'major component' of a plant that is located outside the United States, when the complete plant or 'major component' of a plant, whether made in the United States or a foreign country, itself is a “direct product” of U.S.-origin “technology” or “software” that is specified in any ECCN in product groups D or E in any categories of the CCL.
2. (2) End-user scope of the Russia/Belarus-Military End User and Procurement FDP rule. A foreign-produced item meets the end-user scope of this paragraph (g)(2) if there is “knowledge” that:
  1. (i) Activities involving footnote 3 designated entities. The foreign-produced item will be incorporated into, or used in the “production” or “development” of any “part,” “component,” or “equipment” produced, purchased, or ordered by any entity with a footnote 3 designation in the license requirement column of the Entity List in supplement no. 4 to part 744 of the EAR; or
  2. (ii) Footnote 3 designated entities as transaction parties. Any entity with a footnote 3 designation in the license requirement column of the Entity List in supplement no. 4 to part 744 of the EAR is a party to any transaction involving the foreign-produced item, e.g., as a “purchaser,” “intermediate consignee,” “ultimate consignee,” or “end-user.”
(h) Advanced computing FDP rule. A foreign-produced item is subject to the EAR if it meets both the product scope in paragraph (h)(1) of this section and the destination scope in paragraph (h)(2) of this section. See § 742.6(a)(6) of the EAR for license requirements and license exceptions and § 742.6(b)(10) for license review policy applicable to foreign-produced items that are subject to the EAR under this paragraph (h).
1. (1) Product scope of advanced computing FDP rule. The product scope applies if a foreign-produced item meets the conditions of either paragraph (h)(1)(i) or (ii) of this section.
(i) “Direct product” of “technology” or “software.” A foreign-produced item meets the product scope of this paragraph (h) if it meets both of the following conditions:
1. (A) The foreign-produced item is the “direct product” of “technology” or “software” subject to the EAR and specified in 3D001, 3D901, 3D991, 3D992, 3D993, 3D994, 3E001, 3E002, 3E003, 3E901, 3E991, 3E992, 3E993, 3E994, 4D001, 4D090, 4D993, 4D994, 4E001, 4E992, 4E993, 5D001, 5D002, 5D991, 5E001, 5E991, or 5E002 of the CCL; and
2. (B) The foreign-produced item is:
  (1) Specified in ECCN 3A090, 3E001 (for 3A090), 4A090, or 4E001 (for 4A090) of the CCL; or
  (2) An integrated circuit, computer, “electronic assembly,” or “component” specified in ECCN 3A001.z, 4A003.z, 4A004.z, 4A005.z, 5A002.z, 5A004.z, or 5A992.z.
3. (ii) Product of a complete plant or 'major component' of a plant that is a “direct product.” A foreign-produced item meets the product scope of this paragraph (h) if it meets both of the following conditions:
  1. (A) The foreign-produced item is produced by any complete plant or 'major component' of a plant that is located outside the United States, when the plant or 'major component' of a plant, whether made in the United States or a foreign country, itself is a “direct product” of U.S.-origin “technology” or “software” that is specified in ECCN 3D001, 3D901, 3D991, 3D992, 3D993, 3D994, 3E001, 3E002, 3E003, 3E901, 3E991, 3E992, 3E993, 3E994, 4D001, 4D090, 4D993, 4D994, 4E001, 4E992, 4E993, 5D001, 5D991, 5E001, 5E991, 5D002, or 5E002 of the CCL; and
  2. (B) The foreign-produced item is:
    (1) Specified in ECCN 3A090, 3E001 (for 3A090), 4A090, or 4E001 (for 4A090) of the CCL; or
    (2) An integrated circuit, computer, “electronic assembly,” or “component” specified in ECCN 3A001.z, 4A003.z, 4A004.z, 4A005.z, 5A002.z, 5A004.z, or 5A992.z.
  3. (2) Destination or end use scope of the advanced computing FDP rule. A foreign-produced item meets the destination scope of this paragraph (h)(2) if there is “knowledge” that the foreign-produced item is:
    1. (i) Destined to any location worldwide or will be incorporated into any “part,” “component,” “computer,” or “equipment” not designated EAR99 destined to any location worldwide; or
    2. (ii) “Technology” “developed” by an entity headquartered in, or whose ultimate parent company is headquartered in, either Macau or a destination specified in Country Group D:5, for the “production” of a mask or an integrated circuit wafer or die.
    3. (i) “Supercomputer” FDP rule. A foreign-produced item is subject to the EAR if it meets both the product scope in paragraph (i)(1) of this section and the country and end-use scope in paragraph (i)(2) of this section. See § 744.23 of the EAR for license requirement, license review policy, and license exceptions applicable to foreign-produced items that are subject to the EAR pursuant to this paragraph (i).
    4. (1) Product scope. The product scope applies if a foreign-produced item meets the conditions of either paragraph (i)(1)(i) or (ii) of this section.
      1. (i) “Direct product” of “technology” or “software.” The foreign-produced item meets the product scope of this paragraph (i)(1)(i) if the foreign-produced item is a “direct product” of “technology” or “software” subject to the EAR and specified in ECCN 3D001, 3D901, 3D991, 3D992, 3D993, 3D994, 3E001, 3E002, 3E003, 3E901, 3E991, 3E992, 3E993, 3E994, 4D001, 4D993, 4D994, 4E001, 4E992, 4E993, 5D001, 5D002, 5D991, 5E001, 5E002, or 5E991 of the CCL; or
      2. (ii) Product of a complete plant or 'major component' of a plant that is a “direct product.” A foreign-produced item meets the product scope of this paragraph if the foreign-produced item is produced by any complete plant or 'major component' of a plant that is located outside the United States, when the complete plant or 'major component' of a plant, whether made in the United States or a foreign country, itself is a “direct product” of U.S.-origin “technology” or “software” that is specified in ECCN 3D001, 3D901, 3D991, 3D992, 3D993, 3D994, 3E001, 3E002, 3E003, 3E901, 3E991, 3E992, 3E993, 3E994, 4D001, 4D994, 4E001, 4E992, 4E993, 5D001, 5D002, 5D991, 5E001, 5E002, or 5E991 of the CCL.
    5. (2) Country and end-use scope. A foreign-produced item meets the country and end-use scope of this paragraph (i)(2) if there is “knowledge” that the foreign produced item will be:
      1. (i) Used in the design, “development,” “production,” operation, installation (including on-site installation), maintenance (checking), repair, overhaul, or refurbishing of, a “supercomputer” located in or destined to the PRC or Macau; or
      2. (ii) Incorporated into, or used in the “development,” or “production,” of any “part,” “component,” or “equipment” that will be used in a “supercomputer” located in or destined to the PRC or Macau.
(j) Iran FDP rule. A foreign-produced item is subject to the EAR if it meets both the product scope in paragraph (j)(1) of this section and the destination and end-use scope in paragraph (j)(2) of this section or meets both the product scope in paragraph (j)(1) of this section and the end-user scope in paragraph (j)(3) of this section. See § 746.7 of the EAR for license requirements and license application review policy applicable to foreign-produced items that are subject to the EAR pursuant to this paragraph, as well as certain exclusions from those license requirements.
1. (1) Product scope of the Iran FDP rule. The product scope applies if a foreign-produced item meets the conditions of either paragraph (j)(1)(i) or (ii) of this section.
  1. (i) “Direct product” of “technology” or “software.” A foreign-produced item meets the product scope of this paragraph (j)(1)(i) if the foreign-produced item meets both of the following conditions:
    1. (A) The foreign-produced item is the “direct product” of U.S.-origin “technology” or “software” subject to the EAR that is specified in any ECCN in product groups D or E in Categories 3 through 9 of the CCL; and
    2. (B) The foreign-produced item is identified in supplement no. 7 to part 746 of the EAR or is specified in any ECCN on the CCL in Categories 3 through 9 of the CCL; or
  2. (ii) Product of a complete plant or `major component' of a plant that is a “direct product.” A foreign-produced item meets the product scope of this paragraph (j)(1)(ii) if it meets both of the following conditions:
    1. (A) The foreign-produced item is produced by any plant or `major component' of a plant that is located outside the United States, when the plant or 'major component' of a plant, whether made in the United States or a foreign country, itself is a “direct product” of U.S.-origin “technology” or “software” subject to the EAR that is specified in any ECCN in product groups D or E in Categories 3 through 9 of the CCL; and
    2. (B) The foreign-produced item is identified in supplement no. 7 to part 746 of the EAR or is specified in any ECCN on the CCL in Categories 3 through 9 of the CCL.
2. (2) Destination and end-use scope of the Iran FDP rule. A foreign-produced item meets the scope of this paragraph (j)(2) if there is “knowledge” that the foreign-produced item:
  1. (i) Is destined to Iran; or
  2. (ii) Will be incorporated into or used in the “production” or “development” of any “part,” “component,” or “equipment,” including any modified or designed “components,” “parts,” “accessories,” and “attachments” therefor, identified in supplement no. 7 to part 746 of the EAR or specified in any ECCN in Categories 3 through 9 of the CCL, and located in or destined to Iran.
3. (3) End-user scope of the Iran FDP rule. A transaction meets the end-user scope of this paragraph (j)(3) if the reexporter or transferor has “knowledge” that the Government of Iran is a party to any transaction involving the foreign-produced item, e.g., as a “purchaser,” “intermediate consignee,” “ultimate consignee,” or “end-user.”
(k) Semiconductor Manufacturing Equipment (SME) FDP rule. A foreign-produced commodity is subject to the EAR if it meets both the product scope in paragraph (k)(1) of this section and the destination scope in paragraph (k)(2) of this section. See §§ 742.4(a)(4) and 742.6(a)(6)(i)(A) of the EAR for license requirements and exclusions to the license requirements and §§ 742.4(b)(2) and 742.6(b)(10) for license review policy applicable to foreign-produced commodities that are subject to the EAR under this paragraph (k).
1. (1) Product scope. The product scope applies to a foreign-produced commodity specified in ECCN 3B001.a.4, c, d, f.1, f.5, f.6, k to n, p.2, p.4, r, or 3B002.c that meets the conditions of either paragraph (k)(1)(i) or (ii) of this section.
  1. (i) “Direct product” of “technology” or “software.” A foreign-produced commodity meets the product scope of this paragraph (k) if the foreign-produced commodity is the “direct product” of “technology” or “software” subject to the EAR and specified in 3D992 or 3E992 of the CCL; or
  2. (ii) Product of a complete plant or 'major component' of a plant that is a “direct product.” A foreign-produced commodity meets the product scope of this paragraph if it meets either of the following conditions:
    1. (A) Is produced by any complete plant or 'major component' of a plant that is located outside the United States, when the plant or 'major component' of a plant, whether made in the United States or a foreign country, itself is a “direct product” of U.S.-origin “technology” or “software” that is specified in ECCN 3D001 (for 3B commodities), 3D901, 3D991 (for 3B991 and 3B992), 3D992, 3D993, 3D994, 3E001 (for 3B commodities), 3E901 (for 3B903), 3E991 (for 3B991 or 3B992), 3E992, 3E993, or 3E994 of the CCL; or
    2. (B) Contains a commodity produced by any complete plant or 'major component' of a plant that is located outside the United States, when the complete plant or 'major component' of a plant, whether made in the U.S. or a foreign country, itself is a “direct product” of U.S.-origin “technology” or “software” that is specified in ECCN 3D001 (for 3B commodities), 3D901, 3D991 (for 3B991 and 3B992), 3D992, 3D993, 3D994, 3E001 (for 3B commodities), 3E901 (for 3B903), 3E991 (for 3B991 or 3B992), 3E992, 3E993, or 3E994 of the CCL.
2. (2) Destination scope of the SME FDP rule. A foreign-produced item meets the destination scope of this paragraph (k)(2) if there is “knowledge” that the foreign-produced item is destined to Macau or a destination in Country Group D:5 of supplement no. 1 to part 740 of the EAR.
(l) AI Model weights FDP rule. A foreign-produced item is subject to the EAR if it meets both the product scope in paragraph (l)(1) of this section and the destination scope in paragraph (l)(2) of this section. See § 742.6(a)(13) of the EAR for license requirements and § 742.6(b)(10) for license review policy applicable to foreign-produced items that are subject to the EAR under this paragraph (l).
1. (1) Product scope. The product scope applies if a foreign-produced item is specified in ECCN 4E091 and is produced by a complete plant or 'major component' of a plant that is located outside the United States, when the complete plant or 'major component' of a plant, whether made in the United States or a foreign country, is subject to the EAR and specified in ECCN 3A001.z, 3A090, 4A003.z, 4A004.z, 4A005.z, 4A090, 5A002.z, 5A004.z, or 5A992.z.
2. (2) Destination scope. A foreign-produced 4E091 item meets the destination scope of this paragraph (l)(2) if the foreign-produced item is destined to any location worldwide.
  Effective Date Note:At 90 FR 50857, Nov. 12, 2025, in § 734.9, the three sentences at the end of paragraph (e) introductory text, and the two sentences at the end of paragraph (g) introductory text were stayed, effective until Nov. 9, 2026.

Note 1 to paragraph (d) introductory text: As described in the CCL, ECCN 0A919 is included in this paragraph because it includes the “direct product” of “600 series” “technology” or “software”.

Note 2 to paragraph (e)(1)(i): A foreign-produced item includes any foreign-produced wafer whether finished or unfinished.

Note 3 to paragraph (e)(3)(i)(B)(2): The product scope of paragraph (e)(3)(i) is met if a foreign-produced commodity contains an integrated circuit that is produced by a complete plant or 'major component' of a plant that itself is a “direct product” of U.S.-origin “technology” or “software” specified in the ECCNs described in paragraph (e)(3)(i)(B)(2). See Red Flag 26 in supplement no. 3 to part 732 for additional guidance on the scope of paragraph (e)(3)(i). Production of an integrated circuit includes fabrication of the integrated circuit in a wafer, as well as assembly, testing, and packaging of the integrated circuit.

Note 4 to paragraph (g): Footnote 3 may be added to an entity that the End User Review Committee has determined to be either a Russian or Belarusian 'military end user' as defined in § 744.21 of the EAR, or a Russian or Belarusian Procurement Entity that poses a significant risk of involvement in the supply or diversion of items subject to the EAR to procurement networks for Russia's or Belarus's defense industry or intelligence services.

Note 5 to paragraph (h)(1): See Note 1 to ECCN 3A090, because when a “front-end fabricator” or “OSAT” company is seeking to export, reexport, or transfer (in-country) an “applicable advanced logic integrated circuit,” there is a presumption that the commodity is 3A090.a and designed or marketed for datacenters.

Note to 6 paragraph (h)(2)(ii): These end-use requirements under paragraph (h) apply when any entity headquartered in, or whose ultimate parent company is headquartered in, either Macau or a destination specified in Country Group D:5, is a party to any transaction involving the foreign-produced item, e.g., as a “purchaser,” “intermediate consignee,” “ultimate consignee,” or “end-user.”

Note 7 to paragraph (k)(1)(ii)(B): The product scope of paragraph (k)(1) is met if a foreign-produced commodity contains an integrated circuit that is produced by a complete plant or 'major component' of a plant that itself is a “direct product” of U.S.-origin “technology” or “software” specified in the ECCNs described in paragraph (k)(1)(ii)(B). See Red Flag 26 in supplement no. 3 to part 732 for additional guidance on the scope of paragraph (k)(1). Production of an integrated circuit includes fabrication of the integrated circuit in a wafer, as well as assembly, testing, and packaging of the integrated circuit.

Note 8 to paragraph (l)(1): A foreign-produced item specified in ECCN 4E091 includes any foreign produced item that is further trained or modified via post-training techniques such as fine-tuning, quantization, or other techniques.

[87 FR 6024, Feb. 3, 2022, as amended at 87 FR 12236, Mar. 3, 2022; 87 FR 13055, Mar. 8, 2022; 87 FR 22131, Apr. 14, 2022; 87 FR 57078, Sept. 16, 2022; 87 FR 62195, Oct. 13, 2022; 88 FR 2824, Jan. 18, 2023; 88 FR 12153, Feb. 27, 2023; 88 FR 33428, May 23, 2023; 88 FR 73488, Oct. 25, 2023; 89 FR 60564, July 26, 2024; 89 FR 68542, Aug. 27, 2024; 89 FR 96810, Dec. 5, 2024; 90 FR 4557, Jan. 15, 2025; 90 FR 5308, Jan. 16, 2025; 90 FR 47211, Sept. 30, 2025]