What is AI export control policy?

At a glance

• Run by Commerce’s Bureau of Industry and Security (BIS) under the Export Administration Regulations (EAR); targets advanced chips, the equipment to make them, and powerful AI models.
• A license depends on four things: the item, destination country, end-user, and end-use. A hit on any one can require approval.
• The rules change fast: a January 2025 “AI Diffusion” tier system was rescinded in May 2025, then replaced by case-by-case licensing.
• For businesses, the work is screening every customer and partner, classifying products, and keeping records five-plus years.

How it works

BIS acts like a customs gate on top US computing tech, deciding which chips, chip-making machines, and AI models can leave the country and who may receive them^[2]. Note: an “export” isn’t only shipping a box. Handing controlled tech to a foreign national inside the US (a “deemed export”) and re-exporting from a third country both count^[4].

Why it keeps changing

The goal stays fixed: keep cutting-edge compute from rivals, mainly China. The tactics don’t. The sweeping January 2025 tier framework^[2] was scrapped days before taking effect after industry warned it would choke US innovation^[1]. Then rules loosened: by August 2025 Nvidia and AMD could resume some China sales by paying the US 15% of that revenue^[3], and January 2026 brought case-by-case review instead of near-automatic denial^[5].

What it means for your business

Even resellers of hardware containing controlled US tech are covered. Classify your products, screen every buyer and freight forwarder against US restricted-party lists (Entity List, Denied Persons List), watch for diversion red flags, and keep records for five years. Penalties are serious, so recheck current rules before any cross-border AI deal.

Bottom line

It is a national-security gate on computing power: classify your products, screen your customers, keep records, and verify the current rules before each cross-border deal.