(a) Scope. License Exception LPP authorizes the export and reexport of up to 26,900,000 cumulative total processing performance (TPP) of advanced computing integrated circuits per-calendar year directly to a single ultimate consignee. If the ultimate consignee is headquartered in a destination specified in paragraph (a) of supplement no. 5 to part 740, then the ultimate consignee may apply the cumulative TPP of exports and reexports of eligible commodities under this license exception toward the cumulative TPP limit of a different entity that will operate the items in paragraph (b). This license exception does not authorize transfers (in-country).

(b) Eligible commodities. Eligible commodities are those under ECCNs 3A001.z.1.a, z.2.a, z.3.a, z.4.a; 3A090.a; 4A003.z.1.a, z.2.a; 4A004.z.1; 4A005.z.1; 4A090.a; 5A004.z.1.a, z.2.a; and 5A992.z.1.

(c) Eligible destinations. This License Exception is available except:

(1) To destinations specified in Country Group D:5 or Macau, or

(2) To any destination when the ultimate consignee is headquartered in or has an ultimate parent company headquartered in Macau or a destination specified in Country Group D:5.

(d) Restriction on annual processing power volume of LPP. The total TPP volume of all exports and reexports of eligible commodities under this license exception made by all exporters and reexporters to a single ultimate consignee per calendar year may not exceed 26,900,000 TPP; however, there is no restriction on the number of shipments or the number of exporters and reexporters, provided that TPP volume is not exceeded. This annual TPP limit applies to shipments by all exporters and reexporters to the same ultimate consignee even though the shipments are made through more than one intermediate consignee.

(e) Prohibited end use and end user. This license exception cannot be used to export or reexport items to any end use or end user prohibited under Part 744.

(f) Ultimate Consignee Statement. Prior to use of this license exception the exporter or reexporter must obtain a certification from the ultimate consignee that: [INSERT NAME(S) OF ULTIMATE CONSIGNEE(S)]:

(i) Is aware that [INSERT GENERAL DESCRIPTION AND APPLICABLE ECCN(S) OF ITEMS TO BE SHIPPED (e.g., Boards classified under ECCN 4A090.a)] will be shipped pursuant to License Exception Low Processing Performance;

(ii) Agrees not to export, reexport, or transfer these items to any use or user prohibited under Part 744 of the Export Administration Regulations;

(iii) Certifies that they have not received a 'cumulative TPP' of 26,900,000 of ECCNs 3A001.z.1.a, z.2.a, z.3.a, z.4.a; 3A090.a; 4A003.z.1.a, z.2.a; 4A004.z.1; 4A005.z.1; 4A090.a; 5A002.z.1.a, z.2.a, z.3.a, z.4.a, z.5.a; 5A004.z.1.a, z.2.a; 5A992.z.1, 5A004.z.1.a, z.2.a; and 5A992.z.1 items in the relevant calendar year under License Exception LPP.

(iv) Inserts [NAME(S), SIGNATURE(S), AND TITLE(S) OF PERSON(S) AUTHORIZED TO SIGN THIS DOCUMENT ON BEHALF OF THE ULTIMATE CONSIGNEE, AND DATE(S) DOCUMENT IS SIGNED].

(g) Reporting requirement. (1) Exporters and reexporters, having obtained the required certification in paragraph (f) prior to exporting or reexporting eligible items, must provide a copy of that certification to BIS by email to [email protected] with subject line “LPP Shipment” within 30 days of the date on which the export or reexport takes place.

(2) Ultimate consignees receiving eligible commodities under this License Exception TPP must notify BIS by email to [email protected] with subject line “LPP TPP Limit Reached” whenever they have received the maximum allowable 26,900,000 TPP under this license exception in a calendar year in all shipments from all exporters and reexporters. Notification to BIS should be made as soon as the ultimate consignee actually receives the final shipment of eligible commodities that exhausts the consignee's annual TPP volume limit.

(3) Exporters and reexporters, prior to exporting or reexporting the eligible items, must notify BIS by email to [email protected] with the subject line “LPP Shipment” of any shipment with an aggregate TPP of 3,200,000.

(h) Definitions—(1) Ultimate consignee. For purposes of this license exception, the ultimate consignee is the ultimate parent entity that has ultimate ownership over the items in paragraph (b).

(2) Cumulative TPP. The 'cumulative TPP' is the total amount of TPP, as defined in the Technical Notes to 3A090, of all eligible commodities in paragraph (b) that are received by a single ultimate consignee in all shipments from all exporters and reexporters in a calendar year. Cumulative TPP should be calculated by adding the individual TPP for any items specified in 3A090.a and 4A090.a and any items specified in 3A001.z, 4A003.z, 4A004.z, 4A005.z, 5A002.z, 5A004.z, or 5A992.z that meet or exceed the parameters of 3A090.a or 4A090.a.