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FAR Council Releases Rulemaking on Prohibitions for Semiconductors

FAR Council Releases Rulemaking on Prohibitions for Semiconductors
FAR Council publishes an advanced notice of proposed rulemaking seeking to implement Section 5949 of the James M. Inohfe National Defense Authorization Act.

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The FAR Council has published an advanced notice of proposed rulemaking to implement a prohibition on certain semiconductor products and services as directed by the James M. Inohfe National Defense Authorization Act for Fiscal Year 2023. The prohibition, set to go into effect in December 2027, aims to reduce the U.S. Government’s reliance on foreign products and services, particularly from countries like China and Taiwan. Interested parties have until July 2, 2024 to submit written comments in response to the Advanced Notice for consideration in the forthcoming proposed rule. The Council is seeking input on various aspects of the prohibition, including its scope, impact on businesses, and compliance timelines. Contractors are encouraged to take advantage of this opportunity to provide feedback and prepare for the forthcoming rule’s publication.

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