End-Use and End-User Catch-Alls

In a timely episode discussing end-use and end-user controls and how the full definition of “knowledge”--to include “an awareness of a high probability”--runs through those controls, Mike starts by summarizing key developments on May 13, 2025, right before publication, specifically issuance that day of three key guidance documents by the U.S. Bureau of Industry & Security (BIS) on exactly these topics in the context of advanced computing integrated circuits, Huawei, Infrastructure as a Service (IaaS), and data centers (00:00). Mike and Brent then discuss the end-use and end-user catch-all provisions and why they are often overlooked (02:31), how those catch-all provisions apply to real-world scenarios (05:02), why the Entity List is best thought of as a “backstop” to the end-use and end-user provisions (08:21), what to do if a customer or counterparty ends up on the Entity List (10:34), the collective knowledge doctrine and its implications (15:12), how and where to draw the line in risk-based due diligence of distributors and resellers (16:45), the pros and cons of raising an advice of counsel defense (18:49), how boards of directors can best fulfill their duty of oversight (21:11), and the importance of periodic risk assessments that include the potential risks under the “high probability” standard (23:43). Mike and Brent then conclude with Brent’s recurring segment, “Managing-Up” (26:48).

The Three May 13, 2025 BIS Guidance Documents related to Advanced Computing Integrated Circuits:

BIS Policy Statement: https://www.bis.gov/media/documents/ai-policy-statement-training-ai-models-may-13-2025

Industry Guidance: https://www.bis.gov/media/documents/ai-counter-diversion-industry-guidance-may-13-2025.pdf

Guidance on General Prohibition 10: https://www.bis.gov/media/documents/general-prohibition-10-guidance-may-13-2025.pdf

"The Blind Men and the Elephant": https://www.linkedin.com/posts/mhuneke_huneke-worldecr-april-2024-blind-men-activity-7218965733731373056-oKHG?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAE_zFwB6ELW6Yitzba7Kt-wYyoqEFq6I6s

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