Sec. 1812 — Federal Acquisition Security Council exclusion orders for Chinese military company designees
TL;DR
In this section:(1)CMC ListThe term CMC List means the list of Chinese military companies operating in the United States under section 1260H of the William M.
Statutory text
(a) Definitions. In this section:
(1) CMC ListThe term CMC List means the list of Chinese military companies operating in the United States under section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (10 U.S.C. 113 note).
(2) Covered article. The term covered article has the meaning given such term in section 1321 of title 41, United States Code.
(3) Exclusion order. The term exclusion order means an order referred to in section 1323
(c)
(1) (A) of title 41, United States Code.
(4) Council. The term Council means the Federal Acquisition Security Council established under section 1322(a) of title 41, United States Code.
(b) Mandatory referral by the Secretary of Defense
(1) In general. Not later than 90 days after determining to add an entity to the CMC List, the Secretary of Defense shall transmit to the Council a written referral recommending that the Council recommend an exclusion order for covered articles produced or provided by such entity.
(2) Contents. Each referral shall include—(A)identification of the entity, including known subsidiaries and affiliates;(B)the basis for the determination under such section 1260H, consistent with protection of intelligence sources and methods; and(C)any additional information relevant to the Council’s assessment of whether to recommend an exclusion order for covered articles produced or provided by such entity.
(c) Required Council action
(1) Review required. Upon receipt of a referral under subsection (b), the Council shall use the information provided in the referral and any other information the Council determines appropriate under section 1323(c) of title 41, United States Code, to review whether to issue a recommendation to the President for an exclusion order prohibiting executive agencies from procuring covered articles produced or provided by the designated entity. The Council shall complete such review not later than 270 days after the date on which the Council receives the referral.
(2) Recommendation to the President. If, as a result of the review, the Council determines to issue such a recommendation, the Council shall transmit the recommendation to the President not later than 90 days after the date on which the Council completes the review.
(3) Scope. The recommendation shall apply Government-wide and include subsidiaries and affiliates identified in the referral.
(d) Removal from CMC List
(1) Notice. Not later than 90 days after determining to remove an entity from the CMC List, the Secretary of Defense shall notify the Council of the determination and provide the basis for the determination.
(2) Review. Upon receipt of such a notice, the Council shall review whether to transmit to the President a recommendation to rescind or modify the exclusion order.
(3) No automatic rescission. Removal from the CMC List shall not automatically rescind an exclusion order.
(e) Existing designees. Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall transmit to the Council a written referral under subsection
(b) (1) for each entity already appearing on the CMC List for which no exclusion order is in effect.