Commerce Department Issues Proposed Rule To Secure The Information And Communications Technology And Services Supply Chain

On November 27, 2019, the U.S. Department of Commerce ("Commerce") published a proposed rule, "Securing the Information and Communication Technology and Services Supply Chain," that would implement Executive Order 13873 of May 15, 2019 that we discussed in our prior client alert. Specifically, the proposed rule details the process that Commerce intends to deploy to identify, assess and address certain information and communication technology and service ("ICTS") transactions that pose an undue risk to critical infrastructure or the digital economy in the United States, or an unacceptable risk to U.S. national security or the safety of United States persons, and therefore are to be prohibited. Commerce proposes to review transactions on a case-by-case basis for undue or unacceptable risk rather than designate particular technologies, participants or transactions as being categorically exempt or prohibited. At the same time, it is understood that the U.S. government's