BIS removes restrictions on chip design and energy companies in informed letter

On July 2, the Bureau of Industry and Security (BIS) made a significant decision to lift export restrictions imposed on several electronic design automation companies and an energy firm that were previously targeted in relation to China. The BIS had issued is-informed letters in May outlining new licensing requirements for companies like Synopsys, Cadence, Siemens, and Enterprise Products Partners, but these restrictions have now been rescinded.

Cadence received notification from BIS that the license requirements mentioned in the May 23 letter have been lifted, allowing them to resume providing EDA software and technology to affected customers without the need for additional licenses. Similarly, Synopsys and Siemens were also informed by BIS that the export restrictions relating to China, as outlined in previous letters, have been immediately removed. Both companies are now taking steps to restore access to restricted products in China.

Siemens confirmed that they received communication from BIS indicating that the restrictions on certain electronic design automation software and technology for Chinese customers have been revoked. They have since resumed sales and support for these products, emphasizing the importance of adhering to export control laws and regulations in the process. Enterprise Products Partners, which had faced similar restrictions from BIS regarding shipments to China or Chinese military end users, also had these limitations lifted following the latest communication from the agency.

While these companies have been relieved of specific export restrictions, BIS clarified that they must continue to comply with other provisions of the Export Administration Regulations (EAR) and maintain proper documentation of their shipments. This includes abiding by list-based and end-use/end-user-based license requirements, embargoes, and special controls outlined in various parts of the EAR.

The decision to rescind these export restrictions came in the wake of an agreement between the United States and China to address export curbs on critical minerals. While the specific details of the agreement have not been disclosed, the removal of restrictions by BIS on certain companies indicates progress in the trade relationship between the two countries. However, it remains unclear whether similar restrictions on aircraft equipment destined for China are still in effect.

The move by BIS to rescind these export restrictions signifies a positive step towards promoting trade and collaboration between the United States and China. By allowing companies like Cadence, Synopsys, Siemens, and Enterprise Products Partners to resume normal operations without additional licensing requirements, BIS is facilitating smoother business operations and contributing to a more conducive trade environment.