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The Department of the Treasury has issued final regulations that revise the requirement for filing a mandatory declaration with the Committee on Foreign Investment in the United States (CFIUS) in connection with certain transactions involving U.S. businesses that produce, design, test, manufacture, fabricate, or develop one or more critical technologies. The final regulation is expected to be published in the Federal Register on September 15, 2020, and it will become effective 30 days after publication.
Under the new rule, parties will be required to file a declaration in connection with covered transactions where certain U.S. Government authorizations would be required to export, reexport, transfer (in country), or retransfer a U.S. business’s critical technology to certain transaction parties or others in the ownership chain. This is a shift from the current regulations, under which, parties are required to file a declaration with CFIUS for certain transactions involving U.S. businesses with a connection to one or more of 27 industries identified by reference to the North American Industry Classification System (NAICS) codes.
Specifically, parties to a transaction will soon be required to evaluate whether a U.S. regulatory authorization would be required to export the U.S. business’s critical technology …
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