In a first of its kind action, the US Department of Commerce has begun a rulemaking process to prohibit or impose conditions on certain transactions involving foreign technology used in so-called “connected vehicles” or “CVs,” as defined below for automotive applications.
The measure, announced by Commerce on February 29, 2024 in a press release and an advanced notice of proposed rulemaking (ANPRM), is Commerce’s first attempt to cover a class of transactions under the Department’s Information and Communications Technology and Services (ICTS) rules.
The ICTS rules, contained at 15 CFR Part 7, were first issued in 2021, but Commerce has not yet implemented or used the rules to cover a particular class of transactions. However, Commerce recently created a new Office of Information and Communications Technology and Services (OICTS) within the Bureau of Industry and Security (BIS) and appointed the first ever director of that office (see additional detail here). Those measures, coupled with the ANPRM on CVs, suggest that Commerce has ramped up its efforts in this area and is becoming increasingly active in its use of the ICTS rules. It is all but certain that the ANPRM on CVs is just the first example of industries to be targeted, and we expect to see similar efforts in relation to other high-priority industries going forward.
Comments on the ANPRM are due by April 30, 2024. Commerce will likely publish a proposed rule after reviewing public comments on the ANPRM and provide an additional opportunity to comment on the proposed rule at that time.Continue Reading In First of Its Kind Action, Commerce Moves to Regulate Foreign Tech in Vehicles