H.R. 5885 — GAIN AI Act of 2025

This section requires the Under Secretary of Commerce for Industry and Security to impose a license requirement for the export, reexport, or in-country transfer of a covered advanced circuit or product to an entity located or headquartered in, or whose ultimate parent company is headquartered in, a country of concern. (Thus, such licenses must include a certification that the applicant provided a right of first refusal to U.S. persons, with denial required absent certification; regulations implementing certification procedures—including public notice, exercise timelines, recordkeeping, penalties, and backlog determinations—must be prescribed within 120 days after enactment following public consultation.) This section further exempts trusted U.S. persons from license requirements under specified Export Administration Regulations provisions if the item is destined for a non-country of concern and remains under such a person's ownership and control, with regulations within 120 days after enactment establishing designation standards (including physical/cybersecurity measures, limits on foreign processing performance and ownership from countries of concern not exceeding 10%, and annual audits). (A rule of construction clarifies that no federal official may prioritize one U.S. person over another exercising a right of first refusal.)