Our International Trade team comments on far-reaching proposed U.S. rule concerning the Information and Communications Technology Supply Chain

In November 2019 the Commerce Department issued proposed regulations to implement the May 2019 executive order on telecommunications supply chain security.

The proposed regulations would establish a new regulatory process in which certain transactions would be subject to review, mitigation, and even the prohibition or unwinding of completed transactions, and would provide for significant penalties for failure to meet regulatory obligations. These broad regulations could have significant implications for the telecommunications and high technology sectors, as well as other industries, such as automotive, medical device, and other companies.

Comments on the proposed rule must be submitted by 27 December 2019 unless extended by the Commerce Department.

In this installment of the Trade Demystified video series, Ajay Kuntamukkala discusses the implications of the proposed rule as well as the opportunity to provide input to potentially shape the final rule.


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