Executive Order
On August 9, 2023, the President issued the Executive Order, “Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern,” (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 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.
- Executive Order 14105 (August 9, 2023)
- Notice on the Continuation of the National Emergency (August 6, 2024)
Final Rule Implementing the Outbound Order
On October 28, 2024, the U.S. Department of the Treasury (Treasury Department) issued a Final Rule that was published in the Federal Register on November 15, 2024, to implement the Outbound Order. The Final Rule reflects the Treasury Department’s consideration of the public comments received during the prior rulemakings (see sections below). The Final Rule is effective as of January 2, 2025.
- 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 and FAQs - Final Rule
- White House Fact Sheet
- Notice - Inflation Adjustment to Maximum Civil Monetary Penalty
Notice of Proposed Rulemaking (NPRM)
On June 21, 2024, the Treasury Department issued a Notice of Proposed Rulemaking (NPRM) that was published in the Federal Register on July 5, 2024, to offer full draft regulations and explanatory discussion regarding the intent of – and to solicit comment on – the proposed rule. The NPRM reflected the Treasury Department’s consideration of the comments received on the ANPRM and provided the public an additional opportunity to submit comments on the new program. Interested persons had the opportunity to submit comments on the NPRM with a submission deadline of August 4, 2024.
- NPRM: Provisions Pertaining to U.S. Investments in Certain National Security Technologies and Products in Countries of Concern
- Treasury Press Release - NPRM
- Fact Sheet and FAQs
Advance Notice of Proposed Rulemaking (ANPRM)
The Outbound Order directs the Treasury Secretary to issue regulations that detail the scope and requirements of the program.
As an initial step, concurrent with the issuance of the Outbound Order, the Treasury Department issued an Advance Notice of Proposed Rulemaking (ANPRM) that was published in the Federal Register on August 14, 2023 to provide transparency and clarity about the intended scope of the program, and to solicit comments on the development and implementation of the program.
Interested persons had the opportunity to submit comments on the ANPRM with a submission deadline of September 28, 2023.