Thousands of export license applications from US companies are currently facing significant delays, including those relating to Nvidia H20 chips.

Despite Nvidia stating on July 14 that the US government would start approving export licenses of its H20 chips to China, none have been issued so far, with billions of dollars of chip orders at stake as a result.

Per a report from Reuters, “turmoil” at the US Department of Commerce has led to the lengthiest license application backlog in 30 years, with problems relating to delays in issuing new rules, lack of communication, and a loss of experts and staff at the department all contributing to the chaos.

The report claimed that the Bureau of Industry and Security (BIS) undersecretary, Jeffrey Kessler, has also been widely criticised within the Department of Commerce.

Kessler, who joined the department in March, has allegedly told BIS staff to limit communications with company representatives and industry officials and has required all meetings to be entered onto a central spreadsheet, despite regularly failing to agree to meeting requests from other government agencies.

Vacancies within the department, including positions within the China-based export control offices, have also been blamed for the backlog, with many experienced officials leaving as a result of DOGE-sanctioned cuts. The report said this has resulted in remaining staff unable to complete certain tasks or provide timelines for when issues will be resolved.

However, it’s not just the export of goods destined for China that have been caught up in the backlog, with Reuters citing a Florida-based company - Compliance Assurance - that has seen delays in license approvals for sensors, radars, and sonar to Latin America.

“There's nothing official about what the policy is and when the backlog would be cleared,” Jim Anzalone, president ofCompliance Assurance, told the news outlet.

The report noted that sources familiar with the situation stressed that some licenses were getting approved, although these largely relate to countries allied with the US. Despite this, Meghan Harris, who served on the National Security Council in the first Trump administration and has worked at the Department of Commerce, was quoted as saying: “Licensing is how the US does business and competes globally. Delays and unpredictability put us at an unnecessary disadvantage."