In October, the Government Accountability Office (GAO) issued a report recommending that the Department of Commerce (DOC) suspend the Validated End User (VEU) program for China until an agreement is reached regarding onsite inspections of Chinese facilities. As part of the report, GAO officials visited Chinese companies authorized under the VEU program to receive semiconductor equipment and materials without an export license. Under the program, Commerce may conduct post-export verifications to ensure items are being used in the correct location and for the approved purposes. In addition, DOC may also authorize discretionary on-site reviews. The GAO found that DOC has not reached an agreement with the Chinese government for conducting such reviews, nor has it developed specific procedures for selecting and conducting the reviews. Until such an agreement and procedures are in place, the GAO recommends suspension of the program.