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A useful AI-hardware export-compliance checklist records the item, parties and ownership, destination, end use, and authorization basis before anyone commits to a purchase, shipment, reexport, or in-country transfer. It should end in a documented release decision—or a stop-and-escalate—not a guess based on the label “AI chip.” A checklist cannot determine the classification or licensing result for an unspecified product and transaction; those depend on the actual facts and current U.S. Export Administration Regulations (EAR).
Set the scope before reviewing a transaction
This workflow is centered on U.S. Bureau of Industry and Security (BIS) and EAR controls. It does not determine other countries’ export controls, sanctions, import rules, or contract requirements; those may also apply depending on the procurement and movement of the goods. Assign a qualified export-control reviewer to resolve classification and authorization questions under the rules in force when the transaction occurs.
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Do not limit the review to a physical shipment. Map the planned activity: domestic acquisition, export, reexport, transfer in-country, service or support, or access to hosted computing. The relevant facts can differ by activity. BIS’s licensing overview treats item scope, classification, destination, end use, and authorization as distinct parts of the review. See BIS About Licensing and EAR Part 744.
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Use one record for each materially different item, destination, end user, or intended use. The checklist should identify who supplied each fact, when it was verified, and what evidence supports it. At intake, capture:
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- People and organizations: requester, procurement owner, seller, manufacturer, exporter, purchaser, intermediate consignee, ultimate consignee, end user, and any reseller, integrator, freight forwarder, data-center operator, cloud or infrastructure provider, or other intermediary.
- Item and quantity: product description, manufacturer and model, configuration, quantity, value, included software or technology, country of origin, and supplier-provided export classification.
- Movement and location: ship-from and ship-to addresses, delivery date, installation address, and every known destination for a planned reexport or transfer in-country.
- Use and disposition: intended activity, whether the item will be used by the purchaser, placed in stock, resold, installed in a data center, or used to provide hosted compute, and any known downstream user.
- Ownership and changes: headquarters and ultimate-parent headquarters for the purchaser and end user, plus planned changes in ownership, location, configuration, use, or onward transfer.
Record unknowns as unknowns rather than filling gaps with assumptions. BIS guidance recommends capturing customer identity and role, known end user, delivery and installation addresses, intended activity, ownership headquarters, and item and ECCN details. BIS Industry Guidance to Prevent Diversion of Advanced Computing Integrated Circuits (May 13, 2025).
Step 1: Define and classify each item or activity
- Create a line-item inventory. Separate accelerators, servers, networking equipment, software, technology, and services when their classifications or treatment may differ. Preserve the exact model and configuration rather than using a broad description such as “AI system.”
- Establish whether the item or activity is subject to the EAR. Have the reviewer assess the relevant facts, including origin and the applicable rules. Do not infer EAR status from the supplier’s location alone.
- Verify the classification. Determine the applicable Export Control Classification Number (ECCN), if one applies, or whether the item is EAR99. EAR99 items are subject to the EAR even though they are not listed on the Commerce Control List; EAR99 is not a blanket exemption from restrictions or licensing requirements. See BIS About Licensing.
- Check the actual technical parameters and current rule text. BIS advanced-computing guidance includes examples such as ECCNs 3A090.a and 4A090.a and related .z entries, as well as servers such as those classified 5A992.z. These are examples, not a classification for every chip, server, or configuration marketed for AI. Preserve the technical data and classification rationale used in the review.
- Include software, technology, and support in the review. Do not assume the hardware classification alone resolves questions about associated software, technology, services, or access to hosted compute.
A supplier’s classification is evidence to evaluate, not a substitute for confirming that the classification fits the exact product and transaction. If specifications or classification support are missing, inconsistent, or not adequate to resolve the question, hold the release for review.
Step 2: Identify and screen every relevant party
Screen the purchaser and all known transaction parties, including intermediaries and the end user, against current government restricted-party lists. BIS’s licensing page links to screening resources, including the Consolidated Screening List. Resolve potential matches before proceeding; do not treat a similar name, alias, address, or ownership connection as cleared without documenting how the match was evaluated.
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For both the customer and end user, record the headquarters and ultimate-parent headquarters, not only the billing address or ship-to location. Investigate ownership where needed to establish who ultimately owns the entity. BIS identifies address similarity or co-location with a party on the Consolidated Screening List as a potential red flag. BIS’s 2025 advanced-computing diversion guidance.
Step 3: Map every destination and transfer
List each known physical destination and installation site, as well as anticipated reexport and in-country transfer locations. The ship-to address is not necessarily the final destination, the installation address, or the location of the end user. Ask whether the buyer expects to resell, relocate, integrate, or provide access to the equipment after delivery.
Apply current EAR destination rules and country guidance to the specific item, parties, and activity. BIS’s advanced-computing guidance states that covered items may require a license for entities headquartered in Country Group D:5 or Macau, or whose ultimate parent is headquartered there, even if the entity itself is located elsewhere. Therefore, an apparently unrestricted ship-to location does not by itself settle the license question. Check the current BIS guidance and updates when reviewing each transaction: country groups, product parameters, rules, and guidance can change.
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Step 4: Document the end use and diversion assessment
Obtain a specific end-use statement tied to the products, quantity, location, and transaction. Ask what the equipment will do and who will use it. A general statement such as “for business use” may not answer whether the actual activity and end user raise a control concern.
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- Will the purchaser use the equipment, hold it in inventory, resell it, or transfer it to another entity?
- Will it be installed in a data center or used to provide infrastructure-as-a-service (IaaS) access? If hosted compute is involved, identify the operator and the end user of the compute where known, including whether the service may support AI-model training.
- Are the customer’s business, the ordered quantity and capability, and the stated use consistent with one another?
- For a data-center deployment, are the installation address, authorization to deploy, and facility infrastructure adequately supported by information or attestations?
BIS says data centers with infrastructure to operate servers containing advanced integrated circuits greater than 10 megawatts merit additional scrutiny because they may provide access to a large quantity of advanced-computing ICs. This is a diligence signal in BIS guidance—not a universal legal cutoff or a general definition of a data center. Request written end-user certification and, for data-center deployment, appropriate address authorization and infrastructure attestations; consider independent confirmation where the risk warrants it. See BIS Industry Guidance to Prevent Diversion of Advanced Computing Integrated Circuits.
End-use review is not limited to the destination. BIS’s May 13, 2025 policy statement discusses controls that may apply to certain transactions involving advanced-computing integrated circuits and other commodities used to train AI models, including U.S.-person support where the relevant knowledge concerning WMD or military-intelligence end uses or users exists. Have the reviewer assess the specific activity and knowledge against the current policy and rules rather than treating all AI training or all support as automatically prohibited. BIS Policy Statement on Controls that May Apply to Advanced Computing Integrated Circuits and Other Commodities Used to Train AI Models (May 13, 2025).
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Step 5: Analyze the license or authorization path
Once item scope, classification, parties, destination, and end use are established, determine whether the transaction requires a BIS license or other authorization. If an exception may be available, document the exact basis and verify every applicable condition, notice, recordkeeping, or reporting requirement. A license exception authorizes only activity that satisfies its stated conditions; it is not a general waiver.
If a license application is appropriate, BIS directs applicants to its Simplified Network Application Process (SNAP-R). Do not release an order or shipment on the assumption that an application will be approved, an exception will apply, or a supplier’s prior authorization covers this transaction. Record the reviewer’s conclusion and supporting authority in the transaction file. BIS About Licensing.
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Pause the transaction and refer it to the designated export-control reviewer when material information is missing, contradictory, implausible, or refused. BIS’s examples include:
- Unknown or unexplained delivery or installation locations.
- Unclear customer or end-user headquarters, ultimate-parent ownership, or ownership structure.
- An intermediary whose role is unexplained or unsuitable for the transaction.
- A mismatch between the customer’s line of business and the ordered item or quantity.
- Data-center infrastructure that appears inadequate for the proposed equipment or use.
- A new or implausible customer profile, or a significant and unexplained increase in order quantities.
- Reluctance or refusal to provide requested information, end-user certifications, or other attestations.
- Potential links, aliases, or address relationships to restricted parties that have not been resolved.
BIS describes its red flags as non-exhaustive. The checklist should therefore provide a route to escalate other concerns, not a closed list that implies anything unlisted is safe. BIS states: “Exporters, reexporters, and transferors also may not self-blind to avoid license requirements.” BIS guidance, May 13, 2025.
Step 7: Make release contingent on documented approval
Before purchase commitment, shipment, reexport, or transfer, require a named reviewer to record whether the transaction can proceed and on what basis. The approval record should show that the reviewer addressed:
- Item scope, technical details, classification, and supporting evidence.
- All relevant parties, ownership, screening results, and resolution of possible matches.
- Destination, installation site, intended use, end user, intermediaries, and planned onward transfers.
- The license, exception, or other authorization analysis and any associated conditions.
- Customer and end-user certifications, infrastructure information, and other diligence obtained.
- Any unresolved issue, escalation decision, or restriction that must be satisfied before release.
Retain the underlying technical information, supplier classification evidence, screening records, ownership research, end-use statements, correspondence, authorization documents, and approvals under the applicable legal requirements and company policy. Reopen the review when the product configuration, destination, ownership, end user, intended use, or applicable regulations change. This release gate is a practical way to operationalize BIS’s stated diligence and licensing process; retention periods and internal approval requirements must be set for the organization’s circumstances.
Keep the checklist current
Export-control rules, country groups, restricted-party lists, advanced-computing parameters, and licensing guidance are time-sensitive. Check BIS materials at the point of decision rather than relying on an old approval or saved copy of a rule. The BIS homepage, accessed October 11, 2026, included May 2026 advanced-computing guidance and reported a timeline extension through December 31, 2026; confirm the current text and applicability for the actual transaction date. BIS.
A reusable checklist is most effective when it produces an evidence-backed decision with an owner, date, and clear outcome. If the classification, party, destination, end use, or authorization path cannot be established, the correct checklist result is “hold and escalate,” not an assumed approval.
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