Validated end-users (VEU) are those who have been previously approved by BIS pursuant to the requirements of this section. To be eligible for authorization VEU, exporters, reexporters, and validated end-user applicants must adhere to the conditions and restrictions set forth in paragraphs (a) through (f) of this section. If a request for VEU Authorization for a particular end-user is not granted, no new license requirement is triggered. In addition, such a result does not render the end user ineligible for license approvals from BIS. There are two types of VEU authorization: General VEU Authorization and Data Center VEU Authorization. General VEU Authorizations permit the export, reexport, and transfer to validated end-users of any eligible items that will be used in a specific eligible destination. Data Center VEU Authorizations permit the export and reexport to validated end-users of any eligible items that will be used in specific data centers. A data center is a facility or “facilities” that house a multi-racked, networked computer system that include servers, storage devices, and networking equipment. Data Center VEU Authorizations may be either universal or national authorizations.

(a)(1) Eligible end-users for General VEU Authorizations and Data Center VEU Authorizations. The only end users to whom eligible items may be exported, reexported, or transferred under a General VEU Authorization or a Data Center VEU Authorization are those validated end-users identified in Supplement No. 7 to this part. Those entities were added as VEUs according to the provisions in this Section and Supplement Nos. 8 and 9 to this part.

(2) Requests for authorizations—(i) Advisory opinion. To apply for a General VEU Authorization or Data Center VEU Authorization, requests for authorization must be submitted in the form of an advisory opinion request, as described in § 748.3(c), and must include a list of items (except as excluded by paragraph (c) of this section), identified by ECCN, intended for export, reexport, or transfer (in-country) to an eligible end-user, once approved.

(ii) Applications for Universal VEU (UVEU) Authorization—(A) Application Overview. A UVEU authorization should be submitted by the owner of the advanced computing ICs. To qualify for UVEU authorization, the owner of the advanced computing ICs must certify that it will follow the guidelines in supplement no. 10 to this part. The owner of the advanced compute must certify that it will follow the guidelines in paragraphs 14, 15, and 18 of supplement no. 10 to this part on or before January 15, 2026. If the owner of the advanced computing ICs cannot certify to all of the guidelines in supplement no. 10 to this part, it must notify BIS in its application of the other entities involved in its operations. The applicant must also provide signed certifications from such entities as set forth in supplement no. 10 to this part. For UVEUs, if the operator of the advanced compute is different from the owner of the advanced compute, the operator must itself have an Authorization UVEU. As appropriate, BIS will adjudicate complete UVEU applications within 30 days of receipt. A UVEU will need to file a notification with BIS when building a datacenter in a new location 180 days before any exports, reexports, or transfers (in-country) to the new datacenter. The notification should include the physical address of the new data center location. BIS will use this information to update the eligible destination column in the validated end user list in supplement no. 7 to this part. The UVEU may choose whether to list a corporate address or a physical address of the new data center location. The UVEU may furnish its BIS authorization letter as proof of its authorization to receive exports, reexports, or transfers (in-country) prior to the publication of an amendment to Supplement No. 7 to this part that includes a physical address, or where supplement no. 7 includes a corporate address but not a physical address. No other requirements may be placed on the UVEU beyond those described in supplement no. 10 to this part as a condition for granting the original UVEU application.

(B) UVEU Compute Geographic Allocations. UVEUs will be subject to the geographic allocations identified in paragraph 6 or supplement no. 10 to this part.

(iii) Applications for National VEU (NVEU) Authorization—(A) Application Overview. The NVEU Authorization will allow an entity to receive exports and reexports in a specific country as specified in their NVEU authorization. For every additional country in which the NVEU wants to operate, the owner of the advanced compute must obtain a separate NVEU authorization. To qualify for NVEU authorization, the owner of the advanced computing ICs must adhere to guidelines provided in supplement no. 10 to this part but, depending on its location and the national security and foreign policy risks associated with that location, may be subject to other requirements. The owner of the advanced compute must certify that it will follow the guidelines in paragraphs 14, 15, and 18 of supplement no. 10 to this part on or before January 15, 2026. If the owner of the advanced computing ICs cannot certify to all of the guidelines in supplement no. 10 to this part, it must notify BIS in its application of the other entities involved in its operations. Applicants must provide written assurances from those other entities consistent with supplement no. 10 to this part during the application review process. Government-to-Government assurances between the United States and the government of the country in which the NVEU wishes to operate may be sought before a NVEU is granted. Where multiple entities will own and operate the NVEU they should submit a joint application. For NVEUs, if the operator of the advanced compute is different from the owner of the advanced compute, the operator must itself have its own Authorization NVEU. After receiving NVEU Authorization, the NVEU will be listed as such in supplement no. 7 to this part. The NVEU may inform BIS if it prefers that supplement no. 7 list a corporate address or a physical address of the new data center location. Once approved for Authorization NVEU by BIS, the NVEU may furnish its BIS authorization letter that includes physical addresses as proof of its authorization to receive exports, reexports, or transfers (in-country) prior to the publication of an amendment to supplement no. 7 that includes a physical address, or where supplement no. 7 includes a corporate address but not a physical address.

(B) NVEU TPP Allocation. NVEUs will be subject to a per-NVEU per-country installed base allocation of total processing performance (TPP), as measured by the collective computing power of items subject to ECCNs 3A090.a, 4A090.a, or corresponding .z paragraphs, as provided below:

These TPP allocations represent permitted cumulative installed base during a given quarter, not newly available TPP in addition to previous-quarter installed bases, and do not count towards or impact country allocations. Advanced computing ICs that suffer attrition due to factors such as loss, damage, failure, relocation, and resale do not count toward allocations.

(iv) Information to include and address for submissions. To ensure a thorough review, applications for Authorization VEU must include the information described in supplement no. 8 to this part. Applications for UVEU and NVEU should also include information demonstrating that the applicant can adhere to the guidelines described in supplement no. 10 to this part. Requests for authorization will be accepted from exporters, reexporters, or end users. Submit the request to: The Office of Exporter Services, Bureau of Industry and Security, U.S. Department of Commerce, 14th Street and Pennsylvania Avenue NW, Room 2099B, Washington, DC 20230. Mark the package “Request for [insert “General,” “Data Center—Universal,” or “Data Center—National” as appropriate] Authorization Validated End-user.”

(3) Conditions and Restrictions. In evaluating an end user for eligibility under authorization VEU, the ERC will consider a range of information, including but not limited to such factors as: the end user's record of exclusive engagement in appropriate end-use activities; the end user's compliance with U.S. export controls; the need for an on-site review prior to approval; the end user's capability of complying with the requirements of authorization VEU, the ability of the end user to guard against both the misuse and diversion of computing resources; the end user's technology roadmap; the end user's technology control plan; the end user's agreement to on-site reviews by representatives of the U.S. Government to ensure adherence to the conditions of the VEU authorization; and the end user's relationships with U.S. and foreign companies. In addition, when evaluating the eligibility of an end user, the ERC will consider the status of the eligible destination country's export controls and the support and adherence to multilateral export control regimes of the government of the eligible destination.

(4) VEU Status. The VEU authorization is subject to revision, suspension, or revocation entirely or in part.

(5) Continuing Representations. Information submitted in a VEU request is deemed to constitute continuing representations of existing facts or circumstances. Any material or substantive change relating to the authorization must be promptly reported to BIS, whether VEU authorization has been granted or is still under consideration.

(b) Eligible destinations—(1) General VEU Authorizations. General VEU Authorizations may be used for the following destinations:

(i) The People's Republic of China.

(ii) India.

(2) Data Center VEU Authorizations. (i) UVEU must be headquartered in, or have their ultimate parent company headquartered in, destinations listed in paragraph (a) of Supplement No. 5 to Part 740, and UVEU data centers may be located anywhere, except in Macau or destinations specified in Country Group D:5.

(ii) NVEU may be headquartered, have an ultimate parent headquartered, or located in a destination specified in Country Groups A, B, or D:1-D:4, except Macau or destinations specified in Country Group D:5. NVEU data centers can be built around the world, except in Macau or destinations specified in Country Group D:5.

(c) Item restrictions. (1) Items controlled under the EAR for missile technology (MT) and crime control (CC) reasons may not be exported or reexported under General or Data Center VEU Authorizations.

(2) Eligible items for Data Center VEU Authorizations are all those items on the Commerce Control List, that require a license to the destination excluding “600 series” items, and are necessary for a data center.

(d) End-use restrictions—(1) General VEU Authorizations. Items obtained under General VEU Authorizations in China may be used only for civil end uses and may not be used for any activities described in part 744 of the EAR. The restrictions of §§ 744.6(c)(2)(i) through (iii) and 744.23(a)(1) and (a)(2) of the EAR do not apply to VEUs identified in supplement no. 7 to part 748 as excluded from §§ 744.6(c)(2)(i) through (iii) and 744.23(a)(1) and (a)(2) of the EAR. Items obtained under General VEU Authorizations in India may be used for either civil or military end uses and may not be used for any activities described in part 744 of the EAR. Exports, reexports, or transfers made under authorization VEU may be made to an end user listed in supplement No. 7 to this part only if the items will be consigned to and for use by the validated end user. Eligible end-users who obtain items under VEU may only:

(i) Use such items at the end-user's own facility located in an eligible destination or at a facility located in an eligible destination over which the end-user demonstrates effective control;

(ii) Consume such items during use; or

(iii) Transfer or reexport such items only as authorized by BIS.

(2) Data Center VEU Authorizations. Items obtained under Data Center VEU Authorizations may not be used for any activities described in part 744 of the EAR. Eligible validated end users who obtain items under VEU may only:

(i) Use such items at the end user's own facility located in an authorized destination;

(ii) Consume such items during use; or

(iii) In-country transfers and reexports are not permitted under Data Center VEU Authorization unless the transfer (in-country) or reexport is to a VEU authorized location by the same VEU or a separate authorization is obtained.

(e) Certification and recordkeeping. Prior to an initial export or reexport to a validated end-user under General or Data Center VEU Authorization, exporters or reexporters must obtain certifications from the validated end-user regarding end-use and compliance with VEU requirements. Such certifications must include the contents set forth in supplement no. 8 to this part. Certifications and all records relating to VEU must be retained by exporters or reexporters in accordance with the recordkeeping requirements set forth in part 762 of the EAR.

(f) Reporting and review requirements—(1) Reports—(i) Reexport Information Required for both types of VEU authorizations. Reexporters who make use of General VEU Authorizations are required to submit annual reports to BIS. Reexporters who make use of Data Center VEU Authorizations are required to submit semi-annual reports to BIS. For either authorization, reexporters must include, for each validated end user to whom the exporter or reexporter exported or reexported eligible items:

(A) The name and address of each validated end-user to whom eligible items were reexported;

(B) The eligible destination to which the items were reexported;

(C) The quantity of such items;

(D) The value of such items; and

(E) The ECCN(s) of such items.

(ii) End user reports for Data Center VEU Authorizations. End users who make use of Data Center VEU Authorizations must submit reports to BIS semi-annually. End users must submit the following information, including, as appropriate:

(A) A record of current inventory of eligible items received;

(B) Dates of when eligible items were received; and

(C) For NVEUs, a list of current customers.

(iii) Deadlines. For reexporters making use of General VEU Authorization, reports are due by February 15 of each year, and must cover the period from January 1 through December 31 of the prior year. For reexporters and end users making use of Data Center VEU Authorization, reports are due semiannually:

(A) The first report is due July 15 of each year and must cover the period from January 1 through June 30;

(B) The second report is due January 15 of each year and must cover the period from July 1 to December 31 of the previous year.

(iv) Addresses. Reports must be sent to: Office of Exporter Services, Bureau of Industry and Security, U.S. Department of Commerce, 14th Street and Constitution Avenue NW, Room 2099B, Washington, DC 20230. Mark the package “General Authorization Validated End-User Report” or “Data Center Authorization Validated End-user Report.”

(2) Reviews. Records related to activities covered by General or Data Center VEU Authorizations that are maintained by exporters, reexporters, transferors, and VEU will be reviewed on a periodic basis. Upon request by BIS, exporters, reexporters, transferors, and validated end-users must allow review of records, including on-site reviews covering the information set forth in paragraphs (e) and (f)(1) of this section.

(g) Notification requirement. Exporters and reexporters shipping under General or Data Center VEU Authorizations and persons transferring (in-country) under General VEU Authorization are required to provide the VEUs to which they are shipping or transferring notice of the shipment or transfer. Such notification must be conveyed to the VEU in writing and must include a list of the VEU-authorized contents of the shipment or transfer and a list of the ECCNs under which the VEU-authorized items in the shipment or transfer are classified, as well as a statement that the items are being, will be, or were shipped or transferred pursuant to relevant VEU Authorization. Notification of the export, reexport or transfer (in-country) to the VEU must be made within a timeframe agreed to in writing by the VEU and the person exporting, reexporting or transferring (in-country). The VEU and the person exporting, reexporting or transferring (in-country) must agree to the notification timeframe prior to the initial shipment or transfer under the VEU Authorizations. Depending on the agreement between the VEU and the person exporting, reexporting or transferring (in-country), a notification may be for individual shipments or for multiple shipments. Exporters, reexporters and VEUs are required to maintain the notifications they send or receive in accordance with their recordkeeping requirements.

(h) Termination of Conditions on VEU Authorizations. VEUs that are subject to item-specific conditions and have received items subject to such conditions under General or Data Center VEU Authorizations are no longer bound by the conditions associated with the items if the items no longer require a license for export or reexport to the PRC, India, or data center location, as applicable, or become eligible for shipment under a license exception to the destination. Items that become eligible for a license exception are subject to the terms and conditions of the applicable license exception and the restrictions in § 740.2 of the EAR. Items that become eligible for export without a license and that remain subject to the EAR may only be exported, reexported, transferred (in-country) or disposed of in accordance with the requirements of the EAR. Termination of VEU conditions does not relieve a validated end-user of its responsibility for violations that occurred prior to the availability of a license exception or prior to the removal of license requirements.

(i) Records. Records of items that were shipped under General or Data Center VEU Authorizations prior to the removal of a license requirement or the availability of a license exception remain subject to the review requirements of paragraph (f)(2) of this section on and after the date that the license requirement was removed or the license exception became applicable.