You may be unable to import certain items into the United States based on the supply chain risk they represent.
Our attorneys have closely followed emerging ICTS controls.
In 2022, the U.S. Commerce Department’s Bureau of Industry and Security (“BIS”) created a new agency called the Office of Information Communication and Technology Services (“OICTS”). OICTS restricts access to certain technology, software, or hardware from so-called “foreign adversary” nations.
OICTS has published rules restricting or otherwise regulating the supply of the following items and services:
In addition, OICTS’s technology prioritization plan contemplates regulating the supply of the following items:
While OICTS imposes direct supply chain restrictions, it is not the only trade regulator imposing such restrictions: Your organization should consider sourcing restrictions based on U.S. sanctions (which may limit dealings with certain parties or countries), export controls (which could prevent your organization from sending technology to or getting returns from certain vendors and manufacturers-to-spec), and forced labor legislation, like the U.S.
Uyghur Forced Labor Prevention Act (“UFLPA”). In addition, your organization should consider the possible implications of sourcing U.S. origin components for foreign production if that will create U.S. export control jurisdiction over foreign-produced items, especially when sourcing ITAR-controlled components, and restrictions on developing U.S. origin software or technology with collaboration from foreign partners.
Moreover, sourcing from certain parties or countries may render your organization ineligible to sell goods or services to the U.S. federal or state governments as a contractor or sub-contractor.
Let’s build a sustainable trade compliance framework aligned with your operations.
