,i #aai? ,,congress #a/ ,session ,h4 ,r4 #ehhe ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,octob] #ca1 #bjbe,mr4 ,mool5a> 7= himself & ,mr4 ,kri%namoor?i7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,=eign ,affairs ,a ,,bill ,to require entities seek+ a lic5se to export advanc$ artificial intellig5ce *ips to c\ntries ( conc]n to c]tify t ,unit$ ,/ates p]sons h priority 9 acquir+ ^? *ips4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,gu>antee+ ,access & ,innovation = ,national ,artificial ,intellig5ce ,act ( #bjbe or ! ,,ga9 ,,ai ,act ( #bjbe4 #b4 ,prohibition on prioritiz+ c\ntries ( conc]n ov] unit$ /ates p]sons = exports ( advanc$ integrat$ circuits ,"p ,i ( ! ,export ,control ,re=m ,act ( #bjah 7#ej ,u4,s4,c4 #dhaa et seq47 is am5d$ by ins]t+ aft] section #ageh ! foll[+ new section3 #ageh;,a4 ,control ( exports ( c]ta9 advanc$ integrat$ circuits 7a7 ,lic5se requirem5t ,! ,"u ,secret>y ( ,comm]ce = ,indu/ry & ,security %all require a lic5se = ! export1 reexport1 or 9-c\ntry transf] ( a cov]$ advanc$ circuit or product to an entity locat$ or headqu>t]$ 91 or ^: ultimate p>5t company is headqu>t]$ 91 a c\ntry ( conc]n4 7b7 ,c]tification ( priority = ,unit$ ,/ates cu/om]s = c]ta9 advanc$ integrat$ circuits 7#a7 ,c]tification requirem5t ,! ,"u ,secret>y ( ,comm]ce = ,indu/ry & ,security %all require a p]son submitt+ an application = a lic5se "u subsection 7a7 to c]tify 9 ! application t su* p]son provid$ a "r ( fir/ refusal to ,unit$ ,/ates p]sons4 7#b7 ,d5ial ( applications )\t c]tification ,su* ,"u ,secret>y %all d5y ea* application = a lic5se "u subsection 7a7 t does n include a c]tification describ$ 9 p>agraph 7#a74 7#c7 ,implem5tation ,n lat] ?an #abj days aft] ! date ( ! enactm5t ( ?is section1 su* ,"u ,secret>y %all consult ) ! public & prescribe regulations provid+ guidance1 bas$ on su* consultation1 = comply+ ) ! c]tification requirem5t "u p>agraph 7#a71 :i* %all include-- 7,a7 in=mation t ! p]son submitt+ an application = a lic5se "u subsection 7a7 is requir$ to make available ab\t transactions ) entities describ$ 9 subsection 7a71 & ! =m ! public notice ( su* in=mation mu/ take1 to ensure t ,unit$ ,/ates p]sons c ex]cise a "r ( fir/ refusal "u p>agraph 7#a72 7,b7 proc$ures = ,unit$ ,/ates p]sons to ex]cise a "r ( fir/ refusal "u p>agraph 7#a71 includ+-- 7i7 h[ public notice ( ! "r ( fir/ refusal %all be provid$2 & 7ii7 guidance on :5 a ,unit$ ,/ates p]son %\ld in=m su* ,"u ,secret>y t !y are seek+ to ex]cise a "r ( fir/ refusal2 7,c7 conditions ^u :i* a p]son submitt+ an application = a lic5se "u subsection 7a7 may proce$ ) ! transaction t su* lic5se is requir$ = if a reque/ to ex]cise a "r ( fir/ refusal is n made 9 good fai? or complet$ 9 ! requir$ timeframe2 7,d7 recordkeep+ requirem5ts2 7,e7 p5alties = misrepres5tation & concealm5t ( mat]ial facts2 & 7,f7 guidance ) respect to det]m9+ :e!r-- 7i7 a ,unit$ ,/ates p]son ex]cis+ a "r ( fir/ refusal has tak5 a mat]ial /ep to complete a transaction )9 ! requir$ timeframe2 & 7ii7 ! export1 reexport1 or 9-c\ntry transf] ( a cov]$ advanc$ circuit or product w\ld create-- 7,i7 backlog ( reque/s f ,unit$ ,/ates p]sons = ! cov]$ advanc$ circuit or product ) respect to :i* an application = a lic5se is submitt$ "u subsection 7a7 or a comp>able cov]$ advanc$ circuit or product2 or 7,,ii7 a r$uction 9 ! capacity ( production l9es = ! production1 = ,unit$ ,/ates p]sons1 ( ! cov]$ advanc$ circuit or product ) respect to :i* an application = a lic5se is submitt$ "u subsection 7a7 or a comp>able cov]$ advanc$ circuit or product2 & 7iii7 a p]son submitt+ an application = a lic5se "u subsection 7a7 provides advantage\s pric+ or t]ms = ! cov]$ advanc$ circuit or product ) respect to :i* su* application is submitt$ = to =eign p]sons t are n provid$ to ,unit$ ,/ates p]sons4 7#d7 ,rule ( con/ruction ,9 ! case ( m ?an "o ,unit$ ,/ates p]son reque/+ to ex]cise a "r ( fir/ refusal1 no?+ 9 ?is subsection %all be con/ru$ to au?orize ! ,"u ,secret>y ( ,comm]ce = ,indu/ry & ,security1 or any o!r ,f$]al (ficial1 to allocate1 prioritize1 or o!rwise select "o ,unit$ ,/ates p]son ov] any o!r ,unit$ ,/ates p]son submitt+ su* a reque/4 7c7 ,exemption f c]ta9 lic5se requirem5t = tru/$ unit$ /ates p]sons 7#a7 ,9 g5]al ,! requirem5t = a lic5se "u sections #gdb4f & #gdd4bc ( title #ae1 ,code ( ,f$]al ,regulations %all n apply to ! export1 reexport1 or 9-c\ntry transf] ( a cov]$ advanc$ circuit or product if ! cov]$ advanc$ circuit or product-- 7,a7 is de/9$ = a c\ntry t is n a c\ntry ( conc]n2 & 7,b7 once 9 op]ation1 rema9s "u ! own]%ip & control ( a tru/$ ,unit$ ,/ates p]son4 7#b7 ,implem5tation ,n lat] ?an #abj days aft] ! date ( ! enactm5t ( ?is section1 ! ,"u ,secret>y ( ,comm]ce = ,indu/ry & ,security %all consult ) ! public &1 bas$ on su* consultation1 prescribe regulations-- 7,a7 e/abli%+ ! /&>ds & requirem5ts a ,unit$ ,/ates p]son is requir$ to meet to obta9 a designation z a tru/$ ,unit$ ,/ates p]son1 :i* %all include-- 7i7 e/abli%m5t by ! ,unit$ ,/ates p]son ( physical security1 cyb]security1 & o!r measures design$ to prev5t ! illicit transf] or div]sion ( cov]$ circuits & products1 or o!r violations ( ,unit$ ,/ates export control regulations2 7ii7 a requirem5t t ! ,unit$ ,/ates p]son may n transf] or in/all a majority ( its aggregate total process+ p]=mance ( cov]$ circuits or products outside ! ,unit$ ,/ates2 7iii7 a requirem5t t n m ?an #aj p]c5t ( ! ultimate b5eficial own]%ip ( ! ,unit$ ,/ates p]son may be held1 directly or indirectly1 by any entity t prim>ily resides1 is domicil$1 or conducts ! majority ( its bus9ess 9 a c\ntry ( conc]n2 & 7iv7 annual audit or atte/ation requirem5t to ensure compliance ) ?is subp>agraph2 & 7,b7 describ+ ! process by :i* su* ,"u ,secret>y %all approve su* a designation "u subp>agraph 7,a74 7d7 ,def9itions ,9 ?is section3 7#a7 ,advanc$ integrat$ circuit 7,a7 ,9 g5]al ,subject to subp>agraph 7,b71 ! t]m advanc$ integrat$ circuit means-- 7i7 an integrat$ circuit1 comput]1 or o!r product-- 7,i7 classifi$ "u ,export ,control ,classification ,numb] #c;,a#jij or #d;,a#jij or relat$ ,export ,control ,classification ,numb]s2 or 7,,ii7 t is functionally equival5t or sub/antially simil> to a circuit1 comput]1 or product describ$ 9 subclause 7,i72 or 7ii7 an integrat$ circuit t has "o or m digital process+ units )-- 7,i7 a total process+ p]=mance ( #d1hjj or m2 7,,ii7 a total process+ p]=mance ( #b1djj or m & a p]=mance d5sity ( #a4f or m2 7,,iii7 a total process+ p]=mance ( #a1fjj or m & a p]=mance d5sity ( #c4b or m2 or 7,,iv7 a total ,,dram b&wid? ( #a1djj gigabytes p] second or m1 int]connect b&wid? ( #a1ajj gigabytes p] second or m1 or a sum ( ,,dram b&wid? & int]connect b&wid? ( #a1gjj gigabytes p] second or m4 7,b7 ,au?ority to update te*nical p>amet]s ,beg9n+ #bd mon?s aft] ! date ( ! enactm5t ( ?is section1 ! ,"u ,secret>y ( ,comm]ce = ,indu/ry & ,security may add new te*nical p>amet]s = ! def9ition ( advanc$ integrat$ circuit foll[+ publication ( su* p>amet]s & a notice & comm5t p]iod 9 ! ,f$]al ,regi/]4 7#b7 ,comm]ce control li/ ,! t]m ,comm]ce ,control ,li/ means ! li/ set =? 9 ,supplem5t ,no4 #a to "p #ggd ( title #ae1 ,code ( ,f$]al ,regulations4 7#c7 ,c\ntry ( conc]n ,! t]m c\ntry ( conc]n means-- 7,a7 a c\ntry li/$ 9 ,c\ntry ,gr\p ,d3#e or ,e 9 ,supplem5t ,no4 #a to "p #gdj ( title #ae1 ,code ( ,f$]al ,regulations2 7,b7 ! ,macau ,special ,adm9i/rative ,region ( ! ,p's ,republic ( ,*9a2 or 7,c7 ! ,hong ,kong ,special ,adm9i/rative ,region ( ! ,p's ,republic ( ,*9a4 7#d7 ,cov]$ advanc$ circuit or product 7,a7 ,9 g5]al ,except z provid$ by subp>agraph 7,b71 ! t]m cov]$ advanc$ circuit or product means-- 7i7 an advanc$ integrat$ circuit2 or 7ii7 a product conta9+ su* a circuit4 7,b7 ,exclusion ,! t]m cov]$ advanc$ circuit or product does n include an advanc$ integrat$ circuit or a product conta9+ su* a circuit t is n design$ or m>ket$ = data c5t]s4 7#e7 ,p]=mance d5sity2 total process+ p]=mance ,! t]ms p]=mance d5sity & total process+ p]=mance h ! mean+s giv5 ^? t]ms 91 & are calculat$ z provid$ = "u1 ,export ,control ,classification ,numb] #c;,a#jij 9 ! ,comm]ce ,control ,li/ set =? 9 ,supplem5t ,no4 #a to "p #ggd ( title #ae1 ,code ( ,f$]al ,regulations4 7#f7 ,"r ( fir/ refusal 7,a7 ,9 g5]al ,! t]m "r ( fir/ refusal means ! p]son apply+ = a lic5se "u subsection 7a7-- 7i7 provides1 ?r\gh public notice1 n less ?an a #ae-;day p]iod = ,unit$ ,/ates p]sons to inquire ab\t pur*as+ a cov]$ advanc$ circuit or product t w\ld o!rwise be sold to an entity locat$ or headqu>t]$ 91 or ^: ultimate p>5t company is headqu>t]$ 91 a c\ntry ( conc]n2 7ii7 provides pref]5ce to a ,unit$ ,/ates p]son submitt+ an inquiry "u clause 7i71 if su* ,unit$ ,/ates p]son-- 7,i7 reque/s to pur*ase any quantity ( ! cov]$ advanc$ circuit or product ) respect to :i* su* application is submitt$ = on ! t]ms su* cov]$ advanc$ circuit or product is (f]$ =2 & 7,,ii7 takes mat]ial /eps to complete su* pur*ase )9 #ae bus9ess days ( reque/+ to make su* pur*ase2 7iii7 has no curr5t backlog ( reque/s f ,unit$ ,/ates p]sons = ! cov]$ advanc$ circuit or product ) respect to :i* su* application is submitt$ = or a comp>able cov]$ advanc$ circuit or product2 7iv7 _c reasonably =esee1 bas$ on mat]ial in=mation kn[n to su* p]son1 t ! production & export1 reexport1 or 9-c\ntry transf] ( ! cov]$ advanc$ circuit or product ) respect to :i* su* application is submitt$ = w result1 dur+ ! #ab-mon? p]iod foll[+ su* export1 reexport1 or 9-c\ntry transf]1 9-- 7,i7 a backlog ( reque/s describ$ "u clause 7iii72 or 7,,ii7 a r$uction 9 production l9e capacity = ! production ( a cov]$ advanc$ circuit or product or a sub/antially simil> cov]$ advanc$ circuit or product1 = ,unit$ ,/ates p]sons2 & 7v7 is n provid+ advantage\s pric+ or t]ms = ! cov]$ advanc$ circuit or product ) respect to :i* su* application is submitt$ = to =eign p]sons t are n provid$ to ,unit$ ,/ates p]sons4 7,b7 ,def9itions ,9 ?is p>agraph3 7i7 ,backlog ( reque/s ,! t]m backlog ( reque/s means a reque/ f any ,unit$ ,/ates p]son = a cov]$ advanc$ circuit or product t-- 7,i7 is =mally docum5t$ ?r\gh-- 7aa7 a pur*ase ord] or en=ceable contract2 or 7bb7 a =mal reque/ = supply consi/5t ) ord9>y comm]cial practice t specifies quantity1 price1 & timeframe ( deliv]y2 & 7,,ii7 is n fulfill$ or w n be able to fulfill )9 a timeframe consi/5t ) comm]cially /&>d production & deliv]y lead times4 7ii7 ,mat]ial in=mation ,9 ?is p>agraph1 ! t]m mat]ial in=mation includes in=mation disclos$ to inve/ors1 %>ehold]s1 or 9 public fil+s4 7#g7 ,tru/$ ,unit$ ,/ates p]son ,! t]m tru/$ ,unit$ ,/ates p]son means any ,unit$ ,/ates p]son designat$ z a tru/$ ,unit$ ,/ates p]son pursuant to subsection 7c77#b74 4