Commerce to Issue Foundational Tech ANPRM Before Proposing Controls on Emerging Tech, Official Says

The Commerce Department is planning to release its upcoming advance notice of proposed rulemaking on foundational technologies before it issues its proposed rules on emerging technologies, said Hillary Hess, director of Commerce’s regulatory policy division in the Bureau of Industry and Security, at BIS's annual export controls conference on July 10.

The agency hopes to stagger the two notices so U.S. industries have enough time to assess each separately, Hess said. But she also said things may change. “There are so many factors that are beyond our control,” Hess said. “So with all those hedges, I think you will probably see a foundational notice relatively soon.” Commerce is aiming to issue the proposed emerging tech rules “within maybe a month” after the foundational tech notice, Hess said. Commerce officials have said the emerging tech rules will be issued in “weeks, not months” (see 1907100044).

During the conference, Commerce officials received a large number of questions from U.S. industry about when both notices would be released. The ANPRM for emerging tech was issued in November 2018.

The questions and critiques prompted a response from Acting Commerce Undersecretary for Industry and Security Nazak Nikakhtar, who acknowledged during the conference that the process is “taking a while” and said that Commerce understands “there’s a lot of eagerness” from U.S. companies (see 1907100044).

Responding to a question from an audience member during a conference panel, Hess said Commerce is “concerned” that the delay in issuing foundational and emerging tech notices may hurt U.S. companies, their markets and foreign research and development in the U.S. Hess said Commerce is trying to avoid any damage to U.S. exporters in foreign markets by working to issue controls on technologies that can be controlled multilaterally. “We’ve tried to be pretty clear about our desire to be very specific about arriving at the kind of control techs that we can propose to multilateral bodies,” Hess said.