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Build the checklist around the specific item, transaction, parties, destination and intended use—not the label “AI hardware.” For each line item, document the facts, verify whether it is subject to the U.S. Export Administration Regulations (EAR), establish its classification, assess applicable controls and licensing, and require a named reviewer to approve release. An intake checklist can organize that work; it cannot determine the classification or license result for an unspecified product and transaction.
This workflow is oriented to U.S. Bureau of Industry and Security (BIS) and EAR review. It does not resolve controls imposed by other countries, sanctions, import requirements or contract terms. Verify the applicable rules and official lists when each transaction is reviewed: product parameters, country guidance, lists and licensing guidance can change.
1. Map the transaction before ordering
Open a record for the transaction and identify the parties by role, not just by the name on the purchase order. A procurement may involve parties beyond the buyer and seller, especially when equipment will be resold, integrated, installed in a data center or used to provide hosted computing.
- Parties: requester, procurement owner, seller, manufacturer, exporter, purchaser, intermediate consignee, ultimate consignee, end user, reseller, integrator, freight forwarder, data-center operator, cloud or infrastructure provider, and other known intermediaries.
- Transaction: domestic acquisition, export, reexport, transfer within a country, service or support, or access to hosted compute. Record the quantity, value, expected dates, ship-from point and ship-to point.
- Locations: destination country, delivery address, actual installation site, and any known later locations. A ship-to address alone does not establish where hardware will be installed or used.
- Ownership and use: purchaser and end user, their headquarters and ultimate-parent headquarters, intended activity, and plans for resale, onward transfer or hosted access.
BIS identifies customer identity and role, known end user, delivery and installation addresses, intended activity, ownership headquarters and item/ECCN details as relevant diligence information in its Industry Guidance to Prevent Diversion of Advanced Computing Integrated Circuits.
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2. Identify and classify every item and activity
Create a line-item inventory rather than assigning one classification to a whole order of “AI servers.” Record manufacturer, model, configuration, technical specifications, included software or technology, country of origin and the supplier’s stated export classification, along with the supporting documentation.
Verify the item’s scope and classification
- Determine whether each item or activity is subject to the EAR.
- Establish 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.
- Have suitable technical and export-compliance reviewers assess the actual product and current rule text. Do not rely solely on a supplier’s label or a broad product category.
- For advanced-computing products, assess the current technical parameters and applicable ECCNs. BIS guidance gives examples including 3A090.a, 4A090.a and related .z entries, and servers such as those classified 5A992.z; those examples do not classify an unspecified product.
BIS’s About Licensing page links to classification and country resources and describes the distinction between ECCN and EAR99.
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3. Screen parties and establish ownership
Screen the purchaser and every known transaction party against current applicable government lists. BIS’s licensing resources link to screening tools, including the Consolidated Screening List. Record when and how screening was performed, the names and identifiers searched, results, and how potential matches were resolved.
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- Capture headquarters and ultimate-parent headquarters for both customer and end user; do not substitute the ship-to location for those facts.
- Investigate aliases, addresses, ownership and similar-name results sufficiently to resolve a potential match before proceeding.
- Escalate address overlap or co-location with a listed party for review. BIS identifies this as a potential diversion red flag.
4. Assess destination and authorization
Review the destination and each planned reexport or transfer within a country against the current EAR and country guidance. A transaction may require authorization based on more than the physical destination.
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Check advanced-computing controls
For covered advanced-computing items, assess the entity’s headquarters and its ultimate parent’s headquarters. BIS’s current guidance states that a license can be required for covered items involving entities headquartered in Country Group D:5 or Macau, or entities whose ultimate parent is headquartered there, even when the entity itself is located elsewhere. Consult the current BIS guidance and updates for the applicable rule and transaction facts.
Document the authorization path
Determine whether a license is required, whether an authorization or license exception could apply, and which conditions, notices, records or reporting obligations attach. Record the specific basis and verify that every condition is met; an exception is not a blanket permission. If a license application is appropriate, BIS directs applicants to SNAP-R through its licensing resources. Do not release the transaction while the authorization path remains unresolved.
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5. Test the stated end use and diversion risk
Obtain an end-use statement tied to the items and transaction. Establish whether the customer will use the equipment, hold it in stock, resell it, install it in a data center or use it to provide infrastructure-as-a-service access. Where hosted compute is involved, identify the end user and intended activity as far as reasonably possible, including whether access may support AI-model training.
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- Check whether the customer’s business, ordered quantity and technical capability are consistent with the stated use.
- For data-center deployment, obtain the site address, authorization to operate there and relevant infrastructure 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 threshold in BIS guidance, not a universal legal cutoff or definition of a data center.
- Request written end-user certification and consider independent confirmation where transaction risk warrants it.
- Assess end use and end user as well as destination. BIS’s May 13, 2025 policy statement discusses certain AI-model-training-related transactions and U.S.-person support when relevant knowledge exists regarding WMD or military-intelligence end uses or users. Apply the current rules to the actual facts rather than treating the statement as a general prohibition on AI training.
See BIS’s Policy Statement on Controls that May Apply to Advanced Computing Integrated Circuits and Other Commodities Used to Train AI Models and EAR Part 744.
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6. Stop and escalate when facts do not add up
Use a documented stop-and-escalate rule for missing, inconsistent or implausible information. BIS describes its red flags as non-exhaustive and states that “Exporters, reexporters, and transferors also may not self-blind to avoid license requirements.”
- Delivery or installation location is unknown, changes without explanation, or cannot be verified.
- Customer headquarters or ultimate-parent ownership is undisclosed or unclear.
- An intermediary’s role is unexplained, or a customer’s business does not fit the ordered equipment or quantity.
- Order quantities rise significantly without a credible explanation, or the stated customer profile is new or implausible.
- The facility appears unable to support the equipment or the customer will not provide requested information, end-user certifications or attestations.
- Screening identifies a possible match, address overlap or other concern that has not been resolved.
Record the concern, the person responsible for review, what evidence would resolve it and whether the transaction is paused. Escalate additional concerns even if they are not listed here.
7. Set a release gate and preserve the record
Before purchase commitment, shipment, reexport or transfer, require a named reviewer with appropriate authority to sign off on the transaction record. The record should show:
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- party identities, ownership, screening results and resolved potential matches;
- destination, installation location, transfer plan and end-use information;
- license or exception analysis, the documented authorization path and any applicable conditions;
- customer certifications, escalation outcomes and reviewer approval.
Preserve the underlying technical documents, supplier classification support, screening and ownership records, end-use statements, correspondence, license or exception documents, and approvals. Reopen the review if the configuration, destination, ownership, end user, intended use or applicable regulations change. Set retention periods and approval responsibilities to match applicable law and company policy.
Use the checklist to compare procurement options
When comparing suppliers or systems, compare documented evidence rather than a product label, lower price or alternate ship-to address. Useful comparison fields include verified ECCN and technical parameters; origin and classification support; purchaser, parent and end-user locations; destination and transfer plan; installation site and infrastructure; intended use, resale and hosted-training plans; completeness of customer information and attestations; authorization path; and auditability of the record.
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