BIS Issues Final Rule To Address Connected Vehicle National Security Concerns

The U.S. Department of Commerce's Bureau of Industry and Security (BIS) published a final rule to address the national security risks associated with connected vehicles. The final rule maintains the prohibitions established in its proposed rulemaking relating to the sale or import of connected vehicles that incorporate certain information and communication technology and services (ICTS) that are designed, developed, manufactured, or supplied, by persons owned by, controlled by, or subject to the jurisdiction or direction of China or Russia. Although these general prohibitions (which we analyzed in a previous Insight) are unchanged, the final rule incorporates several notable revisions and clarifications in response to public comments. We address these key changes below. The final rule goes into effect on March 17, 2025.