Table of Contents
The FAR Council has issued an advanced notice of proposed rulemaking (ANPR) to implement Section 5949 of the FY 2023 National Defense Authorization Act. The proposed changes focus on banning agencies from purchasing certain products or services that contain semiconductors from specific Chinese entities and their affiliates. The ANPR also outlines contractor compliance requirements, including conducting a reasonable inquiry to detect and avoid the use of covered semiconductor products or services in their supply chains. Comments on the ANPR are due by July 2, 2024, and the prohibitions are not slated to take effect until December 23, 2027. Contractors are advised to pay careful attention to the inbound compliance burdens and supply chain surveillance requirements. Stay tuned for updates as events unfold.
