United States of America: Bureau of Industry and Security prohibition on sales under the connected vehicles and vehicle communication system hardware rule enters into force

From model year 2027, the prohibition established by the final rule of the United States Department of Commerce (DOC), through the Bureau of Industry and Security (BIS), enters into force under the Information and Communications Technology and Services (ICTS) regulations. The measure applies to the sale of connected vehicles (CVs) manufactured by entities owned by, controlled by, or subject to the jurisdiction or direction of the People’s Republic of China (PRC) or the Russian Federation (Russia), as well as to CVs that incorporate covered software from such entities. This represents the first stage of a phased regulatory framework, preceding the prohibition applicable to non-model-year components from 1 January 2029 and the import prohibition applicable from model year 2030. The framework also introduces annual Declarations of Conformity, with compliance mechanisms supported through General Authorisations, Specific Authorisations, and Advisory Opinions administered via the Compliance Application and Reporting System (CARS).