On November 27, 2019, the Department of Commerce issued a proposed rule to implement the May 15, 2019 Executive Order entitled “Securing the Information and Communications Technology and Services Supply Chain.” Once finalized and effective, the regulations will govern the process and procedures that the Secretary of Commerce will use to determine whether certain transactions involving information and communications technology or services (“ICTS”) should be prohibited or otherwise restricted. As currently drafted, the proposed rule goes further than many other legal authorities, in that it allows the government to prohibit or otherwise restrict a broad range of wholly commercial transactions that the Secretary determines present national security risks.
Details on key aspects of the proposed rule are in a Client Alert that we published on November 27, available here. The public comment period remains open until December 27. Given the breadth of the proposed rule and the significant number of open questions, thoughtful comments will be critically important in scoping a final rule. Continue Reading