Commerce Releases Interim Final Rule on Licensing Imports for Telecom, IT Industries
The Commerce Department released an interim final rule that would require government assent for inputs into certain products if those imports are from Iran, China, Russia, Cuba, Venezuela or North Korea. Several of those countries are already sanctioned; as a practical matter, this rule will target Chinese goods. Commerce proposed the rule in 2019 (see 2001130009).
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During a call with reporters, a senior official said that although it would be up to the next administration to promulgate regulations to put the rule into practice, he said “they didn't want any more time to elapse” so they are getting this out just before the change in presidents. The department has 120 days to set up a licensing process from the time the interim final rule is published.
He said it would affect imports of several categories of goods involved in information and communications technology and services. The government is asking companies to collaborate by asking if their goods are covered by the rule, and the Commerce Department secretary will have 180 days to decide whether the import would be prohibited, allowed or allowed with “mitigating measures.”
“We do not intend this to be a heavy-handed regulation, we intend this to be an opportunity for the United States government and private sector to work together to make sure that the United States information and communication supply chain is as secure as possible,” the official said.