15 CFR § 740.8 - Notified Advanced Computing (NAC).

§ 740.8 Notified Advanced Computing (NAC).

(a) Eligibility requirements. License Exception NAC permits the export, reexport, and transfer (in-country) of any item classified in ECCN 3A090, 4A090, 3A001.z, 4A003.z, 4A004.z, 4A005.z, 5A002.z, 5A004.z, 5A992.z, 5D002.z, or 5D992.z, except for items designed or marketed for use in a datacenter and meeting the parameters of 3A090.a. License Exception NAC authorizes exports, reexports, and transfers (in-country) to or within any destination specified in Country Groups D:1 or D:4, and transfers (in-country) within Macau or any destination specified in Country Group D:5, provided your export, reexport, or transfer (in-country) meets all of the applicable criteria identified under paragraph (b) of this section. The notification requirements do not apply for transfers (in-country). License Exception NAC also permits exports and reexports to Macau or a destination specified in Country Group D:5, or to an entity headquartered in, or with an ultimate parent headquartered in, Macau or a destination specified in Country Group D:5, of these items, provided your export or reexport meets all of the applicable criteria identified under paragraphs (b) and (c) of this section, as applicable:

(1) Written purchase order. The export or reexport is made pursuant to a written purchase order unless specifically excepted in this section. Exports or reexports of commercial samples are not subject to this purchase order requirement, but such transactions are obligated to comply with paragraph (a)(2) of this section.

(2) Notification to BIS. Prior to any exports or reexports to Macau or a destination specified in Country Group D:5, the exporter or reexporter must notify BIS in accordance with the procedures set forth in paragraph (c) of this section. For multiple exports or reexports, the exporter or reexporter need only notify BIS prior to the first export or reexport. A notification under this paragraph is not required for transfers (in-country) within Macau or a destination specified in Country Group D:5. BIS will provide further information on the notification process in policy guidance.

(b) Restrictions. License Exception NAC may not be used for restricted activities under paragraph (b)(1) or (2) of this section.

(1) Prohibited end uses and end users. No exports, reexports, or transfers (in-country) may be made under License Exception NAC that are subject to a license requirement under part 744 or 746 of the EAR, except for a license required under § 744.23(a)(3) for reexports or exports to any destination other than those specified in Country Groups D:1, D:4, or D:5 (excluding any destination also specified in Country Groups A:5 or A:6) for an entity that is headquartered in, or whose ultimate parent company is headquartered in, either Macau or a destination specified in Country Group D:5; and

(2) 'Military end use' or 'military end user.' No exports, reexports, or transfers (in-country) may be made under License Exception NAC to or for a 'military end use,' as defined in § 744.21(f), or 'military end user,' as defined in § 744.21(g).

(c) Prior notification procedures—(1) Procedures. At least twenty-five calendar days prior to exports or reexports to or within Macau or a destination specified in Country Group D:5, you must provide prior notification under License Exception NAC by submitting a completed application in SNAP–R in accordance with § 748.1 of the EAR. The following blocks must be completed, as appropriate: Blocks 1, 2, 3, 4, 5 (by marking box 5 “Other”), 9, 14, 16, 17, 18, 19, 21, 22 (a), (e), (f), (g), (h), (i), (j), 22(d), 23, 24, and 25 according to the instructions described in supplement no. 1 to part 748 of the EAR. Box 9 under special purpose must include NAC.

(2) Action by BIS. If the information provided is complete, BIS will inform you within twenty-five calendar days of notification if you may use License Exception NAC. Note that the fact that you have been advised by BIS that you can use License Exception NAC does not exempt you from other licensing requirements under the EAR, such as those based on “knowledge” of a prohibited end use or end user as referenced in general prohibition five (part 736 of the EAR) and set forth in part 744 of the EAR.

(3) Status of pending NAC notification requests. You must log into BIS's System for Tracking Export License Applications (STELA) (https://snapr.bis.doc.gov/stela) for status of your pending NAC notification or to verify the status in BIS's Simplified Network Applications Processing Redesign (SNAP–R) System. STELA will provide the date the NAC notification is registered. STELA will, on the twenty-fifth calendar day following the date of registration, provide a confirmation of the fact that you can use License Exception NAC and a NAC confirmation number to be submitted in AES or provide you with confirmation if you cannot use License Exception NAC. In addition, BIS may provide such confirmation by email, telephone, fax, courier service, or other means.

[88 FR 73491, Oct. 25, 2023]