H.R. 6879 — RESTRICT Act

This section establishes new export controls under the Export Control Reform Act of 2018 (as new section 1758A) on advanced integrated circuits or products (i.e., those classified under Export Control Classification Number 3A090, 4A090, or a ".z" number on the Commerce Control List as of January 1, 2025, or functionally equivalent items designed or marketed for data centers). It requires the Under Secretary of Commerce for Industry and Security to mandate licenses for any export, reexport, or in-country transfer of such items to a covered country (i.e., any in Country Group D as of January 1, 2025) and to deny licenses for transfers to entities primarily located or headquartered in—or with an ultimate parent headquartered in—a country of concern (i.e., Country Group D:5 countries as of January 1, 2025, plus Macau and Hong Kong). The license requirement does not apply if the item is destined for a non-country of concern and remains under the ownership and control of an approved United States person (designated by the Under Secretary pursuant to forthcoming regulations). Not later than 90 days after enactment, the Under Secretary must issue regulations establishing approval standards for such persons, including (1) no more than 10% ultimate beneficial ownership by entities in countries of concern, (2) physical, cyber, and remote access security measures to prevent misuse or diversion, (3) robust know-your-customer standards, and (4) annual audits or attestations. Beginning 24 months after enactment, the Under Secretary may revise the definition of advanced integrated circuit via Federal Register notice after congressional consultation and national security review. The provision sunsets five years after enactment and includes conforming changes to the tables of contents of the John S. McCain National Defense Authorization Act for Fiscal Year 2019.