889 (B) To Go into Effect, TIA Members Are Impacted
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On July 15, 2020, TIA's Government Affairs team released a one-pager on the interim rule which will serve as guidance for implementing the FY19 NDAA section 889 (B). This is the prohibition on government contracts from companies who utilize covered technology companies. The implementation date is August 13, 2020.
Covered technology companies are defined as:
Telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities). Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities). Equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence, or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of the People's Republic of China.
TIA members who enter into contracts with the government, starting August 13, will have to certify that it does not use covered equipment or services if its “reasonable inquiry” does not identify such use.
A “reasonable inquiry” is one “designed to uncover any information in the entity’s possession about the identity of the producer or provider” of covered equipment or services used by the entity. It does not require an internal or third-party audit.
The certification is to be made by the “entity” contracting with the government and does not include affiliates, parents or subsidiaries. There are no threshold exceptions with this rule and is applicable to any entity contracting with the government to move freight. Additionally, the government is looking for broad feedback to fine tune the final rule.
The TIA Government Affairs team will continue to monitor this interim rule process and keep our members abreast of the latest updates. If you have any question, please contact Advocacy@tianet.org.
