Source: https://www.jdsupra.com/legalnews/committee-on-foreign-investment-in-the-22313/
Timestamp: 2020-02-20 04:16:35
Document Index: 524046447

Matched Legal Cases: ['§ 4565', 'art 800', 'art 802', 'art 800', 'art 801', '§ 800']

Committee on Foreign Investment in the U.S. Issues Final Regulations Implementing 2018 Statutory Overhaul | Weil, Gotshal & Manges LLP - JDSupra
Glenda Bleiberg, Greg Chafuen, Nathan Cunningham, Ted Posner, Timothy Welch
On January 13, 2020, the Treasury Department-chaired inter-agency Committee on Foreign Investment in the United States (“CFIUS”) issued final regulations to implement the amendments to its governing statute (section 721 of the Defense Production Act of 1950, codified at 50 U.S.C. § 4565) made by the Foreign Investment Risk Review Modernization Act (“FIRRMA”) enacted in August 2018. The final regulations will take effect on February 13, 2020. At that point CFIUS will have almost completed the overhaul of the system for national security reviews of foreign investment in the United States that began with FIRRMA’s enactment. (One notable piece that has not yet been put into place is a set of rules establishing filing fees for CFIUS notices, as authorized by FIRRMA.)
The final regulations address comments on the notices of proposed rulemaking (“NPRMs”) that CFIUS issued on September 17, 2019, which we discussed in our International Trade Current... Like the NPRMs, the final regulations are set forth in two separate documents, one pertaining to foreign investment in U.S. businesses (31 C.F.R. part 800), and one pertaining to foreign investment in U.S. real estate (31 C.F.R. part 802). The document containing the part 800 regulations also includes a provision preserving for limited purposes 31 C.F.R. part 801, which contained an interim rule making mandatory (on a “pilot program” basis) the pre-closing notification to CFIUS of certain investments in U.S. businesses involved with “critical technology.” Although the pilot program will expire on February 13, the interim rule will remain applicable to transactions that would have been covered by the pilot program for which specified events (e.g., execution of a binding written agreement) occurred between November 10, 2018 and February 12, 2020. Meanwhile, the requirement that certain investments in critical technology businesses be notified to CFIUS going forward is preserved in the new 31 C.F.R. § 800.401(c).