RESTRICT Act
Officially: “RESTRICT Act” Read the full text
What it does
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1Short title
This section would state that the Act may be cited as the Restoring Export and Security Trade Restrictions for Integrated Circuit Technologies Act, or the RESTRICT Act.
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1. Short title This Act may be cited as the Restoring Export and Security Trade Restrictions for Integrated Circuit Technologies Act or the RESTRICT Act .
2Prohibition on exports of advanced integrated circuits to countries of concern
This section would add a new section 1758A to the Export Control Reform Act of 2018. It would define an advanced integrated circuit as a computer chip, computer, or other product containing such a chip that either was classified under Export Control Classification Number 3A090, 4A090, or a .z classification on January 1, 2025, or is functionally equivalent or substantially similar to such a chip, and that is designed or marketed for data centers. Starting 24 months after enactment, the Under Secretary of Commerce for Industry and Security could revise this definition by notice in the Federal Register, but only if the revision would pose no adverse impact on US national security and only after consulting the House Committee on Foreign Affairs and the Senate Committee on Banking, Housing, and Urban Affairs on the proposed change at least 30 days beforehand. The section would define a country of concern as a country listed in Country Group D:5 of the Export Administration Regulations on January 1, 2025, plus the Macau Special Administrative Region and the Hong Kong Special Administrative Region of the People's Republic of China. It would define a separate, broader term, covered country, as a country listed in Country Group D of the Export Administration Regulations on January 1, 2025. It would define an approved United States person as a United States person designated as such under the regulations described below. The section would require the Under Secretary of Commerce for Industry and Security to require a license before an advanced integrated circuit or product could be exported, reexported, or transferred within a country to any covered country. It would require the Under Secretary to deny such a license if the recipient entity is primarily located or headquartered in a country of concern, or if that entity's ultimate parent company is headquartered in a country of concern. The section would exempt the export, reexport, or in-country transfer of an advanced integrated circuit or product from this license requirement if the chip is destined for a country that is not a country of concern and remains under the ownership and control of an approved United States person. Not later than 90 days after enactment, the Under Secretary would have to issue regulations that set clear standards a United States person must meet to be designated an approved United States person and that describe the process for approving that designation. Those standards would have to include a limit so that no more than 10 percent of the person's ultimate beneficial ownership is held, directly or indirectly, by any entity that primarily resides or is domiciled in a country of concern; physical security, cybersecurity, remote access security, and other measures designed to prevent misuse, illicit access, illicit transfer, or diversion of advanced integrated circuits and products; robust know-your-customer standards; and annual audit or attestation requirements to confirm compliance with the ownership limit, the security measures, and the know-your-customer standards. The new section 1758A would automatically terminate five years after the date of enactment. This section would also add matching table-of-contents entries for new section 1758A in two places in the John S. McCain National Defense Authorization Act for Fiscal Year 2019, so the table of contents reflects the new section.
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2. Prohibition on exports of advanced integrated circuits to countries of concern (a) In general Part I of the Export Control Reform Act of 2018 ( 50 U.S.C. 4811 et seq. ) is amended by inserting after section 1758 the following: 1758A. Control of exports of advanced integrated circuits (a) Definitions In this section: (1) Advanced integrated circuit or product (A) In general Subject to subparagraph (B), the term advanced integrated circuit means an integrated circuit, computer, or other product containing such a circuit— (i) classified under Export Control Classification Number 3A090 or 4A090 or a .z Export Control Classification Number on January 1, 2025; or (ii) that is functionally equivalent or substantially similar to a circuit, computer, or product described in clause (i); and (iii) that is designed or marketed for data centers. (B) Authority to update definition Beginning 24 months after the date of the enactment of this section, to keep pace with technological advancements in computing, the Under Secretary of Commerce for Industry and Security may revise the definition of advanced integrated circuit through notice in the Federal Register, so long as— (i) the revision poses no adverse impact on the national security of the United States; and (ii) the Under Secretary has consulted with the Committee on Foreign Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate on the proposed change to the definition at least 30 days prior to making the change. (2) Commerce control list The term Commerce Control List means the list set forth in Supplement No. 1 to part 774 of the Export Administration Regulations. (3) Country of concern The term country of concern means— (A) a country listed in Country Group D:5 in Supplement No. 1 to part 740 of the Export Administration Regulations on January 1, 2025; (B) the Macau Special Administrative Region of the People’s Republic of China; or (C) the Hong Kong Special Administrative Region of the People’s Republic of China. (4) Covered country The term covered country means a country listed in Country Group D in Supplement No. 1 to part 740 of the Export Administration Regulations on January 1, 2025. (5) Approved United States person The term approved United States person means any United States person designated as an approved United States person pursuant to the regulations outlined in subsection (d)(2). (b) License requirement The Under Secretary of Commerce for Industry and Security shall require a license for the export, reexport, or in-country transfer of an advanced integrated circuit or product to a covered country. (c) License policy for countries of concern The Under Secretary of Commerce for Industry and Security shall deny a license for the export, reexport, or in-country transfer of an advanced integrated circuit or product to an entity that is primarily located or headquartered in, or the ultimate parent company of which is headquartered in, a country of concern. (d) Exemption from certain license requirement for approved United States persons (1) In general The license requirement under subsection (b) shall not apply to the export, reexport, or in-country transfer of an advanced integrated circuit or product if the advanced integrated circuit or product— (A) is destined for a country that is not a country of concern; and (B) remains under the ownership and control of an approved United States person. (2) Implementation Not later than 90 days after the date of the enactment of this section, the Under Secretary of Commerce for Industry and Security shall prescribe regulations— (A) establishing clear standards and requirements a United States person is mandated to meet to obtain a designation as an approved United States person, which shall include— (i) a requirement that not more than 10 percent of the ultimate beneficial ownership of the United States person may be held, directly or indirectly, by any entity that primarily resides or is domiciled in a country of concern; (ii) physical security, cybersecurity, remote access security, and other measures designed to prevent the misuse, illicit access, illicit transfer, or diversion of advanced integrated circuits and products; (iii) robust know your customer standards; and (iv) annual audit or attestation requirements to ensure compliance with clauses (i), (ii), and (iii); and (B) describing the process by which the Under Secretary shall approve such a designation. (e) Sunset This section shall terminate on the date that is five years after the date of the enactment of this section. . (b) Clerical amendments The John S. McCain National Defense Authorization Act for Fiscal Year 2019 is amended— (1) in the table of contents in section 2(b), by inserting after the item relating to section 1758 the following: Sec. 1758A. Control of exports of advanced integrated circuits. ; and (2) in the table of contents for title XVII of division A, by inserting after the item relating to section 1758 the following: Sec. 1758A. Control of exports of advanced integrated circuits. .
Where it is
In the House.