U.S. Department of the Treasury

The U.S. Department of the Treasury (Treasury Department) leads the implementation and operation of the new program established under the Executive Order of August 9, 2023, "Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern" (Outbound Order).

On August 9, 2023, the President issued the Outbound Order declaring a national emergency to address the threat to the United States posed by certain countries of concern, which seek to develop and exploit sensitive or advanced technologies or products critical for military, intelligence, surveillance, or cyber-enabled capabilities. The Outbound Order directs the Secretary of the Treasury (Treasury Secretary) to establish a program to prohibit or require notification of certain types of outbound investments by United States persons into certain entities located in or subject to the jurisdiction of a country of concern, and certain other entities owned by persons of a country of concern, involved in specific categories of advanced technologies and products. The Outbound Order identifies three categories of national security technologies and products for the program: semiconductors and microelectronics, quantum information technologies, and artificial intelligence. In an Annex to the Outbound Order, the President identified the People’s Republic of China, along with the Special Administrative Regions of Hong Kong and Macau, as a country of concern. On October 28, 2024, the Treasury Department issued a final rule (the Outbound Rules) implementing the Outbound Order with an effective date of January 2, 2025.

Program Regulations

• Final Rule: Provisions Pertaining to U.S. Investments in Certain National Security Technologies and Products in Countries of Concern 
• Treasury Press Release - Final Rule 
• Additional Information – Final Rule
• White House Fact Sheet
• Notice - Inflation Adjustment to Maximum Civil Monetary Penalty – January 17, 2025
   

Program Regulations

National Interest Exemption Submission Instructions

Under 31 CFR § 850.502, the Treasury Secretary, in consultation with the Secretary of Commerce, the Secretary of State, and the heads of relevant agencies, as appropriate, may determine that a covered transaction is in the national interest of the United States and therefore is exempt from applicable provisions of the Outbound Rules. Such a determination may be made following a request by a U.S. person on its own behalf or on behalf of its controlled foreign entity.
 

NIE Submission Instructions

Country or Territory Designation Under 31 C.F.R. 850.501(g)

Pursuant to 31 CFR § 850.501(g), a transaction that would otherwise be a covered transaction under 31 CFR § 850.210(a) is an excepted transaction where it is with or involving a person of a country or territory outside the United States designated by the Treasury Secretary, after taking into account whether the country or territory is addressing national security risks substantially similar to those described in the Outbound Order and related to outbound investment, and the transaction is of a type for which the Treasury Secretary has determined that the related national security concerns are likely to be adequately addressed by measures taken or that may be taken by the government of the relevant country or territory.
 

Factors for Designation Under 850.501(g)

Enforcement

The International Emergency Economic Powers Act (50 U.S.C. §§ 1701 et seq.) and the Outbound Order authorize the Treasury Secretary to impose penalties and seek other remedies for violations of the regulations promulgated thereunder.
 

More Information on Enforcement

CONTACT INFORMATION