BIS Announces First 5 VEU Authorizations

BIS announced the approval for the first five companies in China for Validated End-User authorization. The VEU authorization will remove individual license requirements on exports of certain controlled items to the approved companies. BIS stated that, "The VEU program for China will make transactions easier, faster and more reliable with customers that meet rigorous security requirements established by an interagency review process, and will help U.S. exporters remain competitive in one of the fastest-growing markets for American companies. The VEU program is an innovative way to facilitate exports to civilian end-users in China."

The first companies approved for VEU authorization are:

    ·    Applied Materials China
    ·    Boeing Hexcel AVIC I Joint Venture
    ·    National Semiconductor Corporation
    ·    Semiconductor Manufacturing International Corporation (SMIC)
    ·    Shanghai Hua Hong NEC Corporation (HHNEC)

BIS also stated that, "These companies, which accounted for 150 licenses between 2002 and 2006, were approved for VEU status after a thorough review of such factors as the entity's record of exclusive engagement in civil end-use activities; the entity's compliance with U.S. export controls; the need for an on-site review prior to approval; the entity's capability of complying with the requirements of authorization VEU; the entity's agreement to on-site reviews to ensure adherence to the conditions of the VEU authorization by representatives of the U. S. Government; and the entity's relationships with U.S. and foreign companies."

With a VEU authorization, these companies may now export certain U.S.-controlled items to China without obtaining individual export licenses. If your company frequently exports items to a particular end user for which you need licenses, it may be at a competitive disadvantage without a VEU authorization. Global Trade Expertise can assist clients with applying for VEU authorization. Contact us at for more information.