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U.S. Commerce Finalizes Rule to Protect Connected Vehicle Supply Chains

The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has issued a final rule prohibiting the sale and import of connected vehicles and components with links to China or Russia. The rule applies to hardware and software integrated into Vehicle Connectivity Systems and Automated Driving Systems, citing national security concerns. BIS determined that foreign technologies in these systems could allow adversaries to access sensitive data or remotely manipulate vehicles. The restrictions will take effect in stages, with software-related prohibitions beginning in Model Year 2027 and hardware prohibitions starting in Model Year 2030. The rule applies to passenger vehicles weighing under 10,001 pounds, with a separate regulation for commercial vehicles expected later.

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The regulation also bans manufacturers with ties to China or Russia from selling connected vehicles in the U.S., even if the vehicles are produced domestically. Companies must submit annual Declarations of Conformity to certify compliance. The rule permits certain low-risk transactions and allows businesses to request specific authorizations. The decision follows a regulatory process that began in March 2024, aiming to protect U.S. automotive supply chains and safeguard personal data from foreign interference. The restrictions are issued under Executive Order 13873, which addresses risks in information and communications technology and services.

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