Section 740.8 - Notified Advanced Computing (NAC) and Advanced Computing Authorized (ACA)(a)Eligibility requirements. License Exception NAC authorizes the export and reexport of any item classified in ECCN 3A090, 4A090, 3A001.z, 4A003.z, 4A004.z, 4A005.z, 5A002.z, 5A004.z, 5A992.z, 5D002.z, or 5D992.z, except for items designed or marketed for use in a datacenter and meeting the parameters of 3A090.a, to Macau and Country Group D:5 or an entity headquartered in, or with an ultimate parent headquartered in, Macau or a destination specified in Country Group D:5, wherever located. License Exception ACA authorizes the export, reexport, and transfer (in-country) of any item classified in ECCN 3A090, 4A090, 3A001.z, 4A003.z, 4A004.z, 4A005.z, 5A002.z, 5A004.z, 5A992.z, 5D002.z, or 5D992.z, except for items designed or marketed for use in a datacenter and meeting the parameters of 3A090.a, to or within any destination specified in Country Groups D:1 and D:4 (except Macau, a destination in Country Group D:5, or an entity headquartered in, or with an ultimate parent headquartered in, Macau or a destination specified in Country Group D:5, wherever located), as well as transfers (in-country) within Macau and destinations in Country Group D:5. These license exceptions may be used provided the export, reexport, or transfer (in-country) meets all of the applicable criteria identified under this paragraph (a) and none of the restrictions in paragraph (b) of this section. (1)Written purchase order. Prior to any exports, reexports, and transfers (in-country) made pursuant to License Exceptions NAC or ACA you must obtain a written purchase order unless specifically exempted in this paragraph. Commercial samples are not subject to this purchase order requirement, but such transactions may be obligated to comply with paragraph (a)(2) of this section.(2)NAC Notification to BIS -(i)Notification requirement. Prior to any exports or reexports to Macau or a destination specified in Country Group D:5 or to an entity headquartered in, or with an ultimate parent headquartered in, Macau or a destination specified in Country Group D:5, wherever located, the exporter or reexporter must notify BIS in accordance with the procedures set forth in paragraph (c) of this section.(ii)Multiple exports and reexports. For multiple exports or reexports under License Exception NAC to the same end user and for the same item(s), the exporter or reexporter need only notify BIS prior to the first export or reexport, as long as the total dollar value and quantity of the shipments do not exceed the amounts stated on the notification. The dollar value and quantity on the notification do not need to match the dollar value and quantity on the purchase order; the notification's quantity and dollar value amounts may be based on estimates of future sales. However, prior to export or reexport you must have a purchase order for every shipment made against the NAC notification. BIS will provide further information on the notification process in the policy guidance tab on the BIS website.(3)In relation to License Exception ENC and ECCNs 5A002.z, 5A004.z, or 5D002.z. For exports, reexports, or transfer (in-country) of ECCNs 5A002.z, 5A004.z, or 5D002.z, all License Exception Encryption commodities, software, and technology (ENC) requirements under § 740.17 of this part must also be met for eligibility under License Exceptions NAC or ACA.(b)Restrictions. No exports, reexports, or transfers (in-country) may be made under License Exception NAC or ACA that are subject to a license requirement under part 744 or 746 of the EAR, except for a license required under § 744.23(a)(3) for reexports or exports to any destination other than those specified in Country Groups D:1, D:4, or D:5 (excluding any destination also specified in Country Groups A:5 or A:6) for an entity that is headquartered in, or whose ultimate parent company is headquartered in, either Macau or a destination specified in Country Group D:5.(c)NAC Prior notification procedures -(1)Procedures. At least twenty-five calendar days prior to exports or reexports using License Exception NAC, you must provide prior notification under License Exception NAC by submitting a completed application in SNAP-R in accordance with § 748.1 of the EAR. The following blocks must be completed, as appropriate: Blocks 1, 2, 3, 4, 5 (by marking box 5export license or reexport license), 9, 14, 16, 17, 18, 19, 21, 22(a), (d), (e), (f), (g), (h), (i), (j), 23, 24, and 25 according to the instructions described in supplement no. 1 to part 748 of the EAR. Box 9 under special purpose must include NAC. The application must include certain information to allow for BIS to determine if the item in question otherwise meets the criteria for an item eligible for License Exception NAC. Required information to include in the NAC submission is as follows:(i) Total Processing Performance of the item, as defined in ECCN 3A090;(ii) Performance density of the item, as defined in ECCN 3A090; and(iii) Data sheet or other documentation showing how the item is designed and marketed (in particular, whether it is designed or marketed for datacenter use).(2)Action by BIS for NAC notifications. After the notification has been registered in SNAP-R and within twenty-five calendar days after registration, BIS will inform you if a license is required. If BIS has not contacted you, then System for Tracking Export License Applications (STELA) (https://snapr.bis.doc.gov/stela) will, on the twenty-fifth calendar day following the date of registration, provide either confirmation that you can use License Exception NAC and a NAC confirmation number to be submitted in AES or confirmation that you cannot use License Exception NAC and you must apply for a license to continue with the transaction.(3)Status of pending NAC notification requests. Log into BIS's STELA for information about the status of your pending NAC notification or to verify the status in BIS's Simplified Network Applications Processing Redesign (SNAP-R) System. STELA will provide the date the NAC notification is registered. BIS may alternatively provide such confirmation of NAC status by email, telephone, fax, courier service, or other means.(4)Actions that delay processing of NAC notifications. Below are circumstances that will delay the processing of your NAC notification, i.e., temporarily stop the twenty-five day processing clock for NAC notification:(i) Lapse in appropriations.(ii) Catastrophic event (e.g., an extreme weather event that impacts government services).(iii) Multi-day processing system failure.89 FR 23884, Apr. 4, 2024 88 FR 73491, 11/17/2023; 89 FR 23884, 4/4/2024