BIS Renews Temporary Export Control Classification on AI Software

The Bureau of Industry and Security renewed its temporary export control on certain artificial intelligence software as it prepares to propose the control at multilateral control groups. The control, first issued in January 2020 (see 2001030024), placed unilateral restrictions on geospatial imagery software, adding it to the 0Y521 Temporary Export Control Classification Numbers Series. BIS extended the control for one year, effective Jan. 6, a notice said.

BIS originally added the software to temporary controls under the Export Administration Regulations because it intended to propose it for multilateral control at the 2020 Wassenaar Arrangement. But Wassenaar’s annual plenary was not held last year due to the COVID-19 pandemic, forcing BIS to delay some of its emerging technology proposals to 2021 (see 2011250054).

BIS said it can extend the software’s temporary classification under ECCN 0Y521 for two one-year periods if the U.S. “has submitted a proposal to the relevant multilateral regime.” The agency can extend the classification beyond three years only with the approval of the head of BIS, who must certify that the move is in the interest of U.S. national security or foreign policy. BIS said the extension will help the U.S. “continue its effort at the Wassenaar Arrangement in 2021.”

The control was met with backlash from industry last year, reflecting fears that the restrictions could lead to broad, unintended impacts on exports of certain AI products (see 2004230034). The rule was especially expected to affect companies operating in the geospatial field.