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ARTICLE · 01 FEBRUARY 2021

US Commerce Issues Rules For Review Of ICTS Transactions For National Security Threats

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On January 19, 2021, the US Department of Commerce ("Commerce") issued a long-awaited interim final rule ("Interim Final Rule"),1 which would enable Commerce to prohibit or otherwise restrict...

United StatesGovernment, Public Sector
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On January 19, 2021, the US Department of Commerce (“Commerce”) issued a long-awaited interim final rule (“Interim Final Rule”),1 which would enable Commerce to prohibit or otherwise restrict transactions involving the information and communication technology and services (“ICTS”) supply chain, including both hardware and software, that have a nexus to certain designated “foreign adversaries,” including China, for purposes of protecting national security. The Interim Final Rule is scheduled to go into effect on March 22, 2021.2 Covered ICTS transactions that are pending, initiated or completed on or after January 19 may be reviewed (and potentially blocked or subjected to restrictive mitigation requirements). Under this Interim Final Rule, the Secretary of Commerce (“Secretary”) may review whether any ICTS transaction “has been designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to the jurisdiction or direction of foreign

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