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Warner Norcross + Judd LLP is a corporate law firm with over 230 attorneys serving clients in nine offices throughout Michigan. Among the largest law firms in Michigan, Warner works in virtually all areas of business law.

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This month, the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce relaxed export control restrictions on certain semiconductors and Unmanned Aerial Vehicles (UAVs). BIS issued a new rule revising its license review policy for certain advance computing semiconductors destined to China and Macau, and it issued an Interim Final Rule (IFR) lifting some restrictions on exports of certain UAVs. This alert addresses these policy and regulatory changes.

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Export of Advanced Computing Semiconductors

Earlier this year the United States imposed tariffs on semiconductors imported into the U.S., while new opportunities to export certain advanced computing semiconductors to China and Macau from the United States became available on Jan. 15, 2026, following the issuance of a new <a href="https://www.federalregister.gov/documents/2026/01/15/2026-00789/revision-to-license-review-policy-for-advanced-computing-commodities" target="_blank" rel="noreferrer noopener">rule</a>. The new rule revised BIS’ export license review policy for the export of Nvidia H200 or AMD Mi325X, their equivalents, and less advanced computing semiconductors. Under the revised policy, BIS export license applications for semiconductors destined to China and to Macau will be reviewed on a case-by-case basis.

This marks an important shift in policy. Before 2026, BIS reviewed license export applications for advanced computing semiconductors under a presumption of denial, meaning the semiconductors were not permitted to be exported to China and Macau.

Despite this change in policy, BIS has set strict requirements that exporters must comply with before submitting their license application. In preparation for the application, exporters are required to certify and provide the following data:

The semiconductors are commercially available in the U.S. at the time the rule went into effect and operate below specified technical parameters.

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The exporter must certify there is sufficient supply of the product in the U.S. such that the export of the product will not delay fulfillment of existing or new U.S. orders.

Production of the product for export to China will not divert global foundry capacity for similar or more advanced products for end users in the United States.

The ultimate consignee has rigorous Know Your Customer (KYC) security procedures in place.

Before exporting from the U.S., each shipment must be verified by a third-party testing lab in the United States to confirm the technical capabilities and functions of the commodities described in the license application.

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The conditions and certification requirements are added in paragraph (dd) to Supplement No. 2 of EAR Part 748 (Unique Application and Submission Requirements).

Certain UAVs Become Eligible for Export to U.S. Partners and Allies

On Jan. 20, BIS published an interim final rule (IFR) easing export controls on certain civil unmanned aerial vehicles (UAVs) and related technologies. This IFR marks another significant change in export controls. The UAVs subject to the IFR were previously permitted to be exported mainly to Australia, U.K. and Canada. Under the IFR, these UAVs may be exported to most U.S. partners and allies either under a No License Required (NLR) exception, or a Strategic Trade Authorization (STA) license exception as provided herein.

Concretely, the new IFR revises the applicable reasons for control to National Security (NS) Colum 2 for UAVs classified under ECCN 9A012.a.1. Importantly, under the IFR, these UAVs are eligible to be exported without a license (NLR) to most countries’ participants of the Wassenaar Arrangement. These UAVs are less sensitive and commercial in nature, with a maximum endurance of less than one hour, and are available worldwide.

In addition, the rule implements License Exception Strategic Trade Authorization (STA) to permit the export, re-export or transfer (in-country) of more military capable UAVs when destined for U.S. partners and allies (Country Group A:5). These UAVs are classified under ECCNs 9A012 and 9A120 and controlled for Missile Technology (MT) reasons. These are UAVs used for long range cargo and agricultural spray drones not capable of delivering at least a 500 kg payload to a distance of at least 300km. Previously, UAVs controlled for MT reasons were not eligible for License Exception STA. <a href="https://tinyurl.com/5n7sh5ab" target="_blank" rel="noreferrer noopener">Click here to view</a> each of the countries listed under Country Group A:1 and A:5.

Practical Considerations

Given the narrow scope of these changes and the strict conditions imposed, companies become well-familiar with these new requirements and ensure the accuracy of supporting data. If exporting, re-exporting or transferring (in country), advanced computing semiconductor exporters must gather foundry and production capacity data, seek written confirmation from the ultimate consignee and end user about their security procedures, develop processes for license application, ensure all conditions for a license exception are met before deciding eligibility and begin to design, execute and implement internal controls and procedures to ensure compliance with these requirements.

Our Aerospace, Defense and Government Services industry group is here to address questions related to these changes and those related to the international trade of dual use and defense items. Please reach out to Aida Dismondy, Adam Bruski, Mike Stone, Bill Warners or your Warner attorney.<a id="_msocom_1"></a>

Aerospace and Defense

Senior Counsel

Aida Dismondy

Adam D. Bruski

Partner

Michael A. “Mike” Stone

Staff Attorney

Bill Warners

BIS Revises Export Controls for Semiconductors and UAVs

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BIS Revises Export Controls for Semiconductors and UAVs

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