Government Bans Chinese Spy Cars From American Roads
Published Date: 1/16/2025
Rule
Summary
Starting March 17, 2025, new rules will block certain connected vehicle tech from China and Russia to keep U.S. roads and data safe. Companies dealing with vehicle connectivity hardware or software from these countries will need to follow strict guidelines, helping protect national security without slowing down innovation. This means some businesses might need to change suppliers or update their tech, so plan ahead!
Analyzed Economic Effects
4 provisions identified: 2 benefits, 2 costs, 0 mixed.
Ban on Certain Connected-Vehicle Tech
Starting March 17, 2025, BIS prohibits transactions involving Vehicle Connectivity System (VCS) hardware and covered software for connected vehicles when those items are designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to the jurisdiction or direction of the People's Republic of China (PRC) or Russia. The rule applies to both VCS hardware and covered software integral to connected vehicles and blocks those transactions by regulated parties.
New Compliance Filings and Recordkeeping
Regulated parties (VCS hardware importers and connected vehicle manufacturers) must follow a Declaration of Conformity process that the final rule narrows and clarifies, and the rule adds recordkeeping requirements. BIS revised what must be certified and what information is submitted, and it added recordkeeping obligations for regulated entities.
Transition Exemptions and Time Limits
The rule includes limited exemptions and transition dates: VCS hardware imported before January 1, 2029 is permitted under the NPRM framework, VCS hardware tied to vehicle model years prior to 2030 is exempt, covered software in completed connected vehicles of model years prior to 2027 was permitted under the NPRM, and the final rule adds a new exemption for parts imported for warranty or repair of completed connected vehicles with model years prior to 2030. BIS will also issue general authorizations via its website and the Federal Register.
Faster Advisory Opinions and Appeal Rules
The final rule adds a 60-day timeline for BIS to respond to advisory opinion requests and clarifies procedural requirements for submitting appeals of BIS decisions. Regulated entities can request advisory opinions about whether a transaction needs authorization and can appeal certain BIS decisions to the Under Secretary for Industry and Security.
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Key Dates
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