BIS Expected to Bypass Proposed Rule Stage for New Regs, Sources Say
The Bureau of Industry and Security is looking to continue moving away from proposed rulemakings and instead issue most new rules as interim final or final, said two people with knowledge of the agency’s plans.
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BIS wants to avoid proposed rules both for upcoming export controls rules and new regulations issued by the Office of Information and Communication Technology Services, the two people said May 19. Undersecretary Jeffrey Kessler has told agency officials that he doesn’t want long rulemaking processes, one BIS official said, and prefers to move more quickly to restrict sensitive technologies from being sent to China.
Fewer notices of proposed rulemaking -- which typically solicit industry feedback on possible new regulations months before they would take effect -- could mean fewer opportunities for companies and other industry members to provide feedback on new export licensing requirements or ICTS-related import restrictions. Companies also would have potentially less time to prepare to comply with those new rules.
A BIS spokesperson didn't respond to a request for comment.
The shift away from notices of proposed rulemaking would continue a trend from the Biden administration, which bypassed the proposed rule stage to issue multiple complex national security-related interim final rules, including in Biden’s final weeks in office. Some members of industry criticized the administration for failing to adequately consult with U.S. companies before issuing the restrictions, including its AI diffusion rule (see 2501160061 and 2502030030).