Info Tech Import Review and Restriction Procedures Updated

The Bureau of Industry and Security is improving its procedures for reviewing and potentially restricting imports and other transactions in information and communications technology and services under a final rule that will be effective as of Feb. 4. 

A May 2019 executive order authorized BIS to prohibit imports and other transactions in ICTS that have been designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to the jurisdiction or direction of foreign adversaries and that pose an undue or unacceptable risk to U.S. national security. In January 2021 BIS issued an interim final rule creating the processes and procedures BIS will use to identify, assess, and address such transactions.

According to BIS, the final rule addresses public feedback on the interim rule on a number of issues, including the scope of the rule, the timeline for completing investigations, the procedures BIS will follow in making determinations, and the role of BIS’ interagency partners. Changes from the interim rule include the following.

– adding Macau to the list of foreign adversaries, which also includes China (including Hong Kong), Russia, Iran, North Korea, Cuba, and Venezuelan politician Nicolás Maduro

– clarifying the software, hardware, and other products that may be considered for review

– clarifying who are considered parties to an ICTS transaction and will be notified of an initial determination

– adding or revising definitions of key terms

– listing prohibited activities

– outlining the sources of information BIS may consider when formulating initial and final determinations

– refining the recordkeeping requirements for transaction parties