Global Trade Advisory Alert
US issues interim final rule on licensing imports of information and communications technology products
29 January, 2021
On 19 January 2019, the US Department of Commerce (“Commerce”) published an interim final rule and provisional regulations to enact the requirements of Executive Order 13873, “Executive Order on Securing the Information and Communications Technology and Services (“ICTS”) Supply Chain,” dated 15 May 2019.
The interim final rule will regulate certain ICTS transactions, as follows:
• Broadly regulates transactions or activities “by any person, or with respect to any property, subject to the jurisdiction of the US,” concerning information and communications-based items, technology, hardware, software, and services with foreign adversaries;
• Broadly defines “foreign adversaries” as covering “any foreign government” or “foreign non-government person” determined by the Secretary of Commerce to be engaged in activities contrary to the “national security of the United States or security and safety of United States persons”;
• Identifies China, Cuba, Iran, North Korea, Russia, and Nicolas Maduro of Venezuela as foreign adversaries; and
• Covered transactions will be subject to approval by Commerce.
Although the interim final rule is scheduled to go into effect on 22 March 2021, and Commerce is accepting comments until 22 March 2021, it is also covered by President Biden’s 60-day regulatory freeze requiring the new Secretary of Commerce to complete a further review of the interim final rule. This may lead to a delay, modification, or rescission.
How we can help
Deloitte’s Global Trade Advisory specialists are part of a global network of professionals who can provide specialized assistance to companies in global trade matters. Our professionals can help companies seeking to manage the impacts and potential impacts of the developments described above by:
- Reviewing export compliance management strategies to adapt to the change;
- Helping companies understand the potential impact on their current operations and update trade processes and automation solutions in accordance with the change; and
- Providing targeted end-user and third-party due diligence to help companies maintain compliance with end-user and end-use export controls, sanctions, and other regulatory requirements.
For more information, contact:
Meng Yew Wong