CFIUS Creates New Pilot Program for Mandatory Declarations
22 November 2018
On August 13, 2018, Congress expanded the authority of the U.S. Treasury Department’s Committee on Foreign Investment in the United States (CFIUS) to review certain transactions resulting in non-US control of US assets, businesses or technologies.
While the Foreign Investment Risk Review Modernization Act (FIRRMA) formally expands CFIUS’ review authority in a number of ways, one important change is that parties to certain transaction involving “critical technologies” will be required to submit mandatory short-form transaction declarations (previously, all CFIUS filings were strictly voluntary).
Following the passage of FIRRMA, CFIUS has now created a new pilot program, effective November 10, which implements the requirement for mandatory declarations for a number of specified technologies and industries.
This Alert summarizes the new program and its implications for international dealmakers.
The interim rule also designates 27 NAICS (i.e., industry codes) codes as “critical industries,” most of which involve high-tech manufacturing. A list of these codes is included at the end of this Alert.