BIS Designates Grace Semiconductor as the 6th Validated End-User in the PRC

January 22, 2010

Recently, the Bureau of Industry and Security (BIS) amended the Export Administration Regulations (EAR) to add Grace Semiconductor Manufacturing Corporation to the list of validated end-users(VEU) for the People’s Republic of China (PRC). VEU authorization is a mechanism to facilitate increased high-technology trade to companies in eligible destinations that have a record of using controlled items responsibly. Currently, there are only two eligible destinations, the PRC and India.

Validated End-Users may obtain items that are on the Commerce Controls List (certain commodities, software and technology, except those controlled for missile technology or crime control reasons) without having to wait for their supplier to obtain export licenses from BIS. Since items may be exported, reexported or transferred to the entity under a general authorization instead of a license, VEU authorization represents a significant savings of time for both suppliers and end users.  

Grace Semiconductor’s approval as VEU, brings the total number of validated end-users in the PRC to six, and the total number of eligible facilities in the PRC to sixteen. To date, BIS has only designated one Indian validated end user. For more information on the VEU program, click here.