CRS Reports – Week of 6-17-23 - ICTS Rule and Review Process

This week the Congressional Research Service (CRS) published a report on “The Information and Communications Technology and Services (ICTS) Rule and Review Process”. This article provides an overview of the ‘Supply Chain Rule’ which implements  Executive Order 13873, Securing the Information and Communications Technology and Services Supply Chain.

The report looks at the following topics:

• What Is ICTS?

• Executive Order 13873,

• What Is a Foreign Adversary?

• Determining Foreign Adversary Involvement,

• What Transactions Will Be Reviewed?

• Connected Software Applications,

• Exclusions,

• The ICTS Review Process,

• Comparisons to CFIUS, and

• Licensing and Pre-Approval

The report concludes with the typical ‘congressional interest’ section:

“Members of Congress may have an interest in the Supply Chain Rule’s impact on U.S. national security and economic interests. Because the ICTS sector is integrated into many aspects of the economy, the Supply Chain Rule could have a wide-ranging effect on U.S. industry. Some business and trade groups contend the rule is overbroad, lacks transparency, and results in costly compliance. Others view the rule as essential to protect U.S. national security and supply chains.”

While control systems are not covered under ICTS, the communications technologies that allow control systems to work could be considered ICTS. Thus, operational control systems could be affected by the Supply Chain Rule rulings.