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Licensing Procedures for Information and Communications Technology and Services Supply Chain

On January 19, 2021, the U.S. Department of Commerce (Commerce) published an interim final rule, “Securing the Information and Communications Technology and Services Supply Chain,” which became effective on March 22, 2021. In short, it allows the Secretary of Commerce, in accordance with Executive Order 13873, to prohibit certain information and communications technology and services transactions (ICTS Transactions) to address national security threats. For additional information on the interim final rule, effective as of March 22, please see our previous article.

In the January 19 interim final rule, Commerce stated it would implement a licensing process by May 19, 2021, for entities seeking pre-approval before engaging in or continuing to engage in ICTS Transactions. On March 29, 2021, Commerce published the advanced notice of proposed rulemaking (ANPRM), in which Commerce notes that such licensing or other pre-clearance is not expected to be in place by May 19. In the ANPRM, Commerce seeks public input on such a licensing or other pre-clearance process for ICTS Transactions. Specifically, Commerce is interested in obtaining information on ten questions involving the form, scope, substance, etc. of the licensing or pre-clearance for ICTS Transactions. Public comments must be received by April 28, 2021.

If your company is interested in submitting public comments or has any questions about the interim final rule, effective as of March 22, please contact the attorneys at Torres Law, PLLC.