Redesignation of Regulations for Securing the Information and Communications Technology and Services Supply Chain
| Published date | 18 July 2024 |
| Record Number | 2024-15258 |
| Citation | 89 FR 58263 |
| Court | Industry And Security Bureau |
| Section | Rules and Regulations |
Federal Register, Volume 89 Issue 138 (Thursday, July 18, 2024)
[Federal Register Volume 89, Number 138 (Thursday, July 18, 2024)]
[Rules and Regulations]
[Pages 58263-58265]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-15258]
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DEPARTMENT OF COMMERCE
Office of the Secretary
15 CFR Part 7
Bureau of Industry and Security
15 CFR Part 791
[Docket No. 240620-0169]
RIN 0694-AJ71
Redesignation of Regulations for Securing the Information and
Communications Technology and Services Supply Chain
AGENCY: Bureau of Industry and Security, Department of Commerce.
ACTION: Final rule.
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SUMMARY: This rule redesignates regulations governing the procedures
for the review of certain transactions involving information and
communications technology and services (ICTS) designed, developed,
manufactured, or supplied by persons owned by, controlled by, or
subject to the jurisdiction or direction of a foreign adversary and
which pose or may pose undue or unacceptable risks to the United States
or U.S. persons. This action reflects the transfer of responsibility
for implementing these regulations from the Secretary of Commerce to
the Bureau of Industry and Security (BIS), Office of Information and
Communications Technology and Services (OICTS).
DATES: This rule is effective July 18, 2024.
FOR FURTHER INFORMATION CONTACT: Rachel O'Meara, U.S. Department of
Commerce, telephone: (202) 482-4124, email: [email protected]. For
media inquiries: Jessica Stallone, Office of Congressional and Public
Affairs, Bureau of Industry and Security, U.S. Department of Commerce:
[email protected].
[[Page 58264]]
SUPPLEMENTARY INFORMATION:
I. Introduction
This final rule is a procedural action to redesignate U.S.
Department of Commerce (Department) regulations that govern the
procedures for the review of certain transactions involving ICTS
designed, developed, manufactured, or supplied by persons owned by,
controlled by, or subject to the jurisdiction or direction of a foreign
adversary and which pose or may pose undue or unacceptable risks to the
United States or U.S. persons. Responsibility for implementing these
regulations lies within the BIS's OICTS. This action moves regulations
from subtitle A in the Code of Federal Regulations (CFR), which is
generally reserved for Secretarial actions and Department-wide
activities and operations, to chapter VII in title 15 of the CFR, where
BIS regulations are located. Specifically, this action removes the
regulations in title 15, subtitle A, part 7 (under the ``Office of the
Secretary of Commerce''), reserving that part, and redesignates them as
title 15, subtitle B, chapter VII, part 791 (under the ``Bureau of
Industry and Security, Department of Commerce'').
The provisions being redesignated were originally administered by
the Office of the Secretary, but were formally transferred to BIS when
OICTS was established on March 15, 2022 (consistent with the
Consolidated Appropriations Act for Fiscal Year 2022). Therefore, the
Department is transferring the regulations to subtitle B, ``Regulations
Relating to Commerce and Foreign Trade,'' chapter VII, ``Bureau of
Industry and Security, Department of Commerce.'' title 15, subtitle B,
chapter VII regulations are specific to BIS authorities and processes.
This is a procedural change that does not impact any processes of the
Department or BIS, and will have no impact on any public or private
entity outside of BIS.
II. Background
The existing 15 CFR part 7 regulations, which are being
redesignated, implement Executive Orders (E.O.s), E.O. 13873,
``Securing the Information and Communications Technology and Services
Supply Chain'' (84 FR 22689, May 17, 2019) and E.O. 14034, ``Protecting
Americans' Sensitive Data From Foreign Adversaries'' (86 FR 31423, June
11, 2021).
E.O. 13873 declares a national emergency under the National
Emergencies Act (50 U.S.C. Ch. 34, section 1601 et seq.) and invokes
the International Emergency Economic Powers Act (IEEPA) (50 U.S.C. 1701
et seq.) to take certain actions regarding the unrestricted acquisition
and use in the United States of certain information and communication
technology and services (ICTS) and classes of ICTS designed, developed,
manufactured, or supplied by persons owned by, controlled by, or
subject to the jurisdiction or direction of foreign adversaries. E.O.
13873 authorizes the Secretary, pursuant to IEEPA, to prohibit certain
ICTS transactions or approve them subject to the establishment of
measures to mitigate identified risks. To implement E.O. 13873, on
January 19, 2021, the Department published an interim final rule (86 FR
4909) creating 15 CFR part 7, which sets forth definitions and
procedures for the Department to review and determine whether ICTS
transactions involving entities with a foreign adversary nexus and U.S.
entities present an undue risk of sabotage to or subversion of the ICTS
supply chain, or an unacceptable risk to U.S. persons or national
security.
E.O. 14034 (86 FR 31423), elaborates on measures to address the
national emergency declared in E.O. 13873 with respect to the ICTS
supply chain and authorizes the Secretary to evaluate connected
software application transactions that may pose an unacceptable risk to
the national security of the United States or the security and safety
of U.S. persons. To implement E.O. 14034, the Department published a
Final Rule (88 FR 39353) that amended 15 CFR 7.1, 7.2, and 7.3.
In June 2023, consistent with the Consolidated Appropriations Act
for Fiscal Year 2022, responsibility for implementing the authorities
in E.O.s 13873 and 14034, as described above, was transferred by the
Secretary to the Deputy Under Secretary of Commerce for Industry and
Security, and OICTS was established, with responsibilities managed by
an Executive Director who reports to the Under Secretary of Commerce
for Industry and Security.
III. Establishment of Subchapter E in Chapter VII and Realignment
Consistent with this transfer, this final rule redesignates the
regulations that were promulgated as 15 CFR part 7 of Subtitle A--
``Office of the Secretary of Commerce''--to Subtitle B--``Regulations
Relating to Commerce and Foreign Trade.'' Within subtitle B, chapter
VII includes other regulations that implement BIS authorities. This
final rule also establishes Subchapter E, following Subchapter D, and
creates a new part 791 for OICTS's regulations. Subchapter E is titled
``Information and Communications Technology and Services Regulations.''
The redesignation in this final rule clarifies to the public that
BIS, not the Office of the Secretary, is responsible for implementation
of the ICTS regulations. This shift in no way impacts the content or
text of current and proposed regulations. Because of this, publication
of this final rule is merely procedural and therefore advance notice
and opportunity for comment and delay in effective date are unnecessary
under the Administrative Procedures Act (4 U.S.C. 553), because OICTS
is making a technical change in merely updating the designation of
existing regulations.
IV. Redesignation
This final rule redesignates all sections of 15 CFR part 7 as 15
CFR part 791, which will be in the newly created subchapter E of
chapter VII. All sections in 15 CFR part 7 will be designated under 15
CFR part 791. Future rulemakings by BIS OICTS will be finalized in
title 15, subtitle B, chapter VII.
Redesignations
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Old section in 15 CFR, subtitle A, part 7 New section in 15 CFR,
------------------------------------------- subtitle B, chapter VII,
newly established subchapter
E, part 791
Part 7 -----------------------------
Part 791
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Subpart A--General Subpart A--General
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7.1....................................... 791.1
7.2....................................... 791.2
7.3....................................... 791.3
7.4....................................... 791.4
7.5....................................... 791.5
7.6....................................... 791.6
7.7....................................... 791.7
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Subpart B--Review of Subpart B--Review of
ICTS Transaction ICTS Transaction
------------------------------------------------------------------------
7.100..................................... 791.100
7.101..................................... 791.101
7.102..................................... 791.102
7.103..................................... 791.103
7.104..................................... 791.104
7.105..................................... 791.105
7.106..................................... 791.106
7.107..................................... 791.107
7.108..................................... 791.108
7.109..................................... 791.109
7.110..................................... 791.110
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Subpart C--Enforcement Subpart C--Enforcement
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7.200..................................... 791.200
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Rulemaking Requirements
1. This action has not been determined to be significant under
Executive Order 12866, as it is a technical redesignation that does not
materially affect the substance of the underlying rule.
2. Notwithstanding any other provision of law, no person is
required to respond to, nor shall any person be
[[Page 58265]]
subject to a penalty for failure to comply with, a collection of
information subject to the requirements of the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501 et seq.) (PRA), unless that collection of
information displays a currently valid Office of Management and Budget
(OMB) Control Number. This action does not impact any information
collection or recordkeeping requirements under the PRA.
3. This rule does not contain policies with federalism implications
as that term is defined in Executive Order 13132.
4. BIS finds good cause under 5 U.S.C. 553(b)(B) to waive prior
notice and an opportunity for public comment on this action because
this action merely re-designates existing regulatory text in the Code
of Federal Regulations and therefore notice and comment are
unnecessary. Furthermore, because this action makes no substantive
changes, it does not constitute a substantive rule, and it is not
subject to the requirement for a 30-day delay in effective date under 5
U.S.C. 553(d).
5. Because a notice of proposed rulemaking and an opportunity for
public comment are not required to be given for this rule by 5 U.S.C.
553, or by any other law, the analytical requirements of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq., are not applicable.
Accordingly, no regulatory flexibility analysis is required, and none
has been prepared.
List of Subjects in 15 CFR Parts 7 and 791
Administrative practice and procedure, Business and industry,
Communications, Computer technology, Critical infrastructure, Executive
orders, Foreign persons, Investigations, National security, Penalties,
Technology, Telecommunications.
Subtitle A--Office of the Secretary of Commerce
PART 7--SECURING THE INFORMATION AND COMMUNICATIONS TECHNOLOGY AND
SERVICES SUPPLY CHAIN
0
1. The authority citation for part 7 continues to read as follows:
Authority: 50 U.S.C. 1701 et seq.; 50 U.S.C. 1601 et seq.; E.O.
13873, 84 FR 22689; E.O. 14034, 86 FR 31423.
PART 7--[REDESIGNATED AS PART 791]
0
2. Redesignate part 7 as part 791, according to the following table:
------------------------------------------------------------------------
Part 7 Part 791
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Subpart A Subpart A
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Sec. Sec. 7.1 through 7.7.............. Sec. Sec. 791.1 through
791.7.
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Subpart B Subpart B
------------------------------------------------------------------------
Sec. Sec. 7.100 through 7.110.......... Sec. Sec. 791.100 through
791.110
------------------------------------------------------------------------
Subpart C Subpart C
------------------------------------------------------------------------
Sec. 7.200.............................. Sec. 791.200.
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Sec. 791.102 Confidentiality of information.
0
3. In newly redesignated Sec. 791.102 amend paragraph (c) by removing
``Sec. 7.109 of this part'' and adding ``Sec. 791.109'' in its place.
Sec. 791.103 Initial review of ICTS Transactions.
0
4. In newly redesignated Sec. 791.103:
0
a. Amend paragraph (a) by removing ``Sec. 7.100(a)'' and adding
``Sec. 791.100(a)'' in its place;
0
b. Amend paragraph (b) introductory text by removing ``Sec. 7.3(a) of
this part'' and adding ``Sec. 791.3(a)'' in its place; and
0
c. Amend paragraph (b)(2) by removing ``Sec. 7.100(a)'' and adding
``Sec. 791.100(a)'' in its place.
Sec. 791.104 First interagency consultation.
0
5. In newly redesignated Sec. 791.104, remove ``Sec. 7.103'' and add
``Sec. 791.103'' in its place and remove the two instances of ``Sec.
7.103(c)'' and add ``Sec. 791.103(c)'' in their place.
Sec. 791.105 Initial determination.
0
6. In newly redesignated Sec. 791.105:
0
a. Amend paragraph (a) introductory text by removing ``Sec. 7.104''
and adding ``Sec. 791.104'' in its place and removing ``Sec.
7.103(c)'' and adding ``Sec. 791.103(c)'' in its place;
0
b. Amend paragraph (b) introductory text by removing ``Sec. 7.104''
and adding ``Sec. 791.104'' in its place and removing the two
instances of ``Sec. 7.103(c)'' and adding ``Sec. 791.103(c)'' in
their place.
Sec. 791.107 Procedures governing response and mitigation.
0
7. In newly redesignated Sec. 791.107:
0
a. Amend the introductory text by removing ``Sec. 7.105'' and adding
``Sec. 791.105'' in its place;
0
b. Amend paragraph (d) by removing ``Sec. 7.109'' and adding ``Sec.
791.109'' in its place; and
0
c. Amend paragraph (f) by removing ``section 7.108 of this rule'' and
adding ``Sec. 791.108'' in its place.
Sec. 791.108 Second interagency consultation.
0
8. In newly redesignated Sec. 791.108:
0
a. Amend paragraph (a) by removing ``Sec. 7.107'' and adding ``Sec.
791.107'' in its place and removing ``Sec. 7.103(c)'' and adding
``Sec. 791.103(c)'' in its place;
0
b. Amend paragraph (b) by removing ``Sec. 7.107'' and adding ``Sec.
791.107'' in its place and by adding ``of this section'' after ``with
paragraph (a)''; and
0
c. Amend paragraph (d) by removing ``Sec. 7.109'' and adding ``Sec.
791.109'' in its place.
Sec. 791.109 Final determination.
0
9. In newly redesignated Sec. 791.109, amend paragraph (b) by removing
``Sec. 7.103'' and adding ``Sec. 791.103'' in its place.
0
10. Under the authority of section 301 of Title 5, United States Code,
(5 U.S.C. 301) and Chapter 40 of Title 15 of the United States Code (15
U.S.C. 1501 et seq.), add subchapter E, consisting of parts 790 through
799, to read as follows:
Subchapter E--Information and Communications Technology and Services
Regulations
PART 790 [RESERVED]
PART 791--SECURING THE INFORMATION AND COMMUNICATIONS TECHNOLOGY
AND SERVICES SUPPLY CHAIN.
PARTS 792-799 [RESERVED]
0
11. Transfer part 791 to subchapter E.
Elizabeth Cannon,
Executive Director for the Office of Information and Communications
Technology and Services.
[FR Doc. 2024-15258 Filed 7-17-24; 8:45 am]
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