2021-02-17

The ICTS Rules define an “ICTS transaction” as “any acquisition, importation, transfer, installation, dealing in, or use of any information and communications technology or service, including ongoing activities, such as managed services, data transmission, software updates, repairs, or the platforming or data hosting of applications for consumer download.”

These rules apply to the entire AHK community: students, personnel, hands-on trainees and temporary staff recruited for holiday periods or from a temp agency. The following rules are an abbreviated and simplified version of the rules included in the official Regulations on the use of ICT facilities. Parties to ICTS transactions must now give consideration to whether and to what extent the equipment, software and technology involved in their transactions may come under the expansive scope of the rule. The secretary of commerce is seeking public comment on the rule in its entirety.

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On January 19, 2021, the US Department of Commerce (“Commerce”) issued a long-awaited interim final rule (“Interim Final Rule”), 1 which would enable Commerce to prohibit or otherwise restrict transactions involving the information and communication technology and services (“ICTS”) supply chain, including both hardware and software, that have a nexus to certain designated the ICTS Rule on U.S. national security and economic interests. Because the ICTS sector is integrated into many aspects of the economy, the ICTS Rule could have a wide-ranging effect on U.S. industry. Some business and trade groups contend the rule is overbroad, lacks transparency, and that compliance will be costly for U.S. companies.

2019-12-04

technology providers from “foreign adversary” jurisdictions in the U.S. ICTS supply chain. C 2021-03-22 · Interim Rule Clarifications and Departures from the Proposed Rules.

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Comments on the proposed rule are due to the Department of … 2021-03-29 The US Department of Commerce is seeking input into proposed licensing for Information and Communications Technology and Services (‘ICTS’) transactions. In an interim final rule published 29 March, it said: ‘On January 19, 2021, the Department of Commerce (the Department) published an As Husch Blackwell discussed in a recent client alert, the U.S. Department of Commerce recently issued a proposed rule (the “Proposed Rule”) which intends to give the U.S. Secretary of Commerce the authority to block, unwind or modify information and communications technology or services (“ICTS”) transactions involving “foreign adversaries” if the Commerce Secretary determines that Pursuant to Executive Order (E.O.) 13873, “Securing the Information and Communications Technology and Services (ICTS) Supply Chain,” today U.S. Department of Commerce Secretary Wilbur Ross issued an interim final rule to address the national security, economic security, and public health and safety concerns related to ICTS Transactions. This rule will be effective March 22 but will apply to ICTS transactions that are initiated, pending, or completed on or after Jan. 19.

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It also excludes transactions that the Committee on Foreign Investment in the United States (CFIUS) is actively reviewing or has reviewed. Insights on the Information and Communications Technology and Services (“ICTS”) Rule. On January 19, 2021, the Department of Commerce published an Interim Final Rule (the “Rule”) setting out a more detailed regulatory structure to implement Executive Order 13873, which authorizes Commerce to prohibit or otherwise regulate transactions involving information and communications technology or services (“ICTS”) with a nexus to “foreign adversaries” that pose an “undue or The Interim Final Rule defines "ICTS Transactions" to include "any acquisition, importation, transfer, installation, dealing in, or use of any [ICTS], including ongoing activities, such as managed services, data transmission, software updates, repairs, or the platforming or data hosting of applications for consumer download." On January 19, 2021, the US Department of Commerce (“Commerce”) issued a long-awaited interim final rule (“Interim Final Rule”), 1 which would enable Commerce to prohibit or otherwise restrict transactions involving the information and communication technology and services (“ICTS”) supply chain, including both hardware and software, that have a nexus to certain designated “foreign adversaries,” including China, for purposes of protecting national security.
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2021-03-30

What types of ICTS Transactions are covered by the Rule? Potentially a wide range, and not just those directly involving a “foreign adversary.” An ICTS Transaction initiated, pending, or completed after March 22 is covered if it involves: (1) a U.S. person, (2) a foreign interest, and (3) one of several enumerated categories of ICTS (ranging from critical infrastructure to cloud storage to 2021-01-15 · This rule establishes the processes and procedures that the Secretary of Commerce (Secretary) will use to identify, assess, and address certain transactions between U.S. persons and foreign persons that involve information and communications technology or services (ICTS) designed, developed, manufactured, or supplied, by persons owned by, controlled by, or subject to the jurisdiction or The interim rule fails to strengthen ICTS supply chains because it remains so overly broad and vague that it is impracticable for U.S. companies to implement it uniformly. Without more clarity about proscribed behavior, companies are left to guess what constitutes a security threat across the millions of ICTS transactions that remain in scope.

The proposed rule provides the Secretary of Commerce, in consultation with other regulatory agencies, the power to prohibit or impose conditions on “the acquisition, importation, transfer, installation, dealing in, or use by persons subject to U.S. jurisdiction” of ICTS provided by a “foreign adversary” that the Secretary believes poses: (1) an undue risk of sabotage or subversion of

2021-03-22 · Interim Rule Clarifications and Departures from the Proposed Rules.

. activities, such as managed services, data transmission, software updates, repairs, or the platforming or data hosting of applications for consumer download.” 2021-03-24 · The Interim Final Rule defines "ICTS Transactions" to include "any acquisition, importation, transfer, installation, dealing in, or use of any [ICTS], including ongoing activities, such as managed services, data transmission, software updates, repairs, or the platforming or data hosting of applications for consumer download." The Interim Final Rule defines “ICTS Transactions” to include “any acquisition, importation, transfer, installation, dealing in, or use of any [ICTS], including ongoing activities, such as managed 2021-03-23 · The Interim Final Rule defines “ICTS Transactions” to include “any acquisition, importation, transfer, installation, dealing in, or use of any [ICTS], including ongoing activities, such as managed services, data transmission, software updates, repairs, or the platforming or data hosting of applications for consumer download.” On January 19, 2021, the US Department of Commerce (“Commerce”) issued a long-awaited interim final rule (“Interim Final Rule”), 1 which would enable Commerce to prohibit or otherwise restrict transactions involving the information and communication technology and services (“ICTS”) supply chain, including both hardware and software, that have a nexus to certain designated 2021-01-19 · The proposed rule set forth processes for (1) how the Secretary would evaluate and assess transactions involving ICTS to determine whether they pose an undue risk of sabotage to or subversion of the ICTS supply chain, or an unacceptable risk to the national security of the United States or the security and safety of U.S. persons; (2) how the Secretary would notify parties to transactions under review of the Secretary's decision regarding the ICTS Transaction, including whether the Given the continued push by the Biden Administration to implement the ICTS Rule and the issuance of subpoenas that indicate an intent to use and enforce authority under EO 13873 and the ICTS Rule, companies active in the ICTS industry should assess their potential risk with respect to any existing or pending business involving parties from “foreign adversary” countries. 2021-01-21 · Rule to implement provisions of Executive Order 13873, “ Executive Order on Securing the Information and Communications Technology and Services Supply Chain” (May 15, 2019) (the “ICTS Order”). Unless suspended by the Biden A dministration, the Rule wil l go into effect 60 days from the publication, on March 20, 2021. Today, the Department of Commerce served subpoenas on multiple Chinese companies that provide information and communications technology and services (ICTS) in the United States. The subpoenas were issued to support requirements for the review of transactions pursuant to Executive Order 13873. On January 19, 2021, the Commerce Department issued an interim final rule to implement the Executive Order on Securing the Information and Communications Technology and Services Supply Chain (E.O.