In today’s Federal Register, the Department of Commerce, Bureau of Industry and Security (“BIS”) issued a final rule amending the Export Administration Regulations (“EAR”) to suspend two companies – one in China and one in India – from the Validated End-User (“VEU”) program (see 74 FR 68147, available at http://edocket.access.gpo.gov/2009/pdf/E9-30487.pdf). Shipments destined for the suspended companies will now require a license.

The current rule, effective immediately, amends Supplement No. 7 to Part 748 to remove Aviza Technology China and GE Fanuc Systems PVT Ltd. in India due to material changes at the companies. The removal of these companies from the VEU list is not the result of prohibited activities by the companies. A saving clause is available for certain shipments which are already destined for the two companies.

The VEU program allows the export, reexport, or transfer (in-country) of certain specified items (including commodities, software and technology, except for those controlled for missile technology or crime control reasons) to approved civil end-users located in eligible destinations under a general authorization instead of under multiple individual licenses. China was given VEU status in June 2007, and India was added to the list of VEU-eligible destinations in October 2007. Under the program, an applicant may file an advisory opinion request with the End-User Review Committee, identifying the items that will be exported or transferred to the VEU candidate. Supplement No. 7 to Part 748 of the EAR lists the companies with VEU status.