On August 13, 2018, President Trump signed into law the National Defense Authorization Act for Fiscal Year 2019, which includes the Foreign Investment Risk Review Modernization Act (FIRRMA) and the Export Control Reform Act (ECRA).
Certain provisions of the law will take effect as soon as the bill is enacted, but the substantive provisions that are most significant (e.g., expansion of the categories of covered transactions and the mandatory filing requirements) will not. It will likely be several months before the relevant agencies finalize implementing regulations. However, the Administration has the authority to adopt a pilot program to implement some or all of the provisions of the law before regulations are issued.
The following discussion highlights some of the key provisions of the bill. The text of the proposed legislation is available here and a more detailed summary of the key aspects of the legislation, including the expected timeline of implementation, here.
Sidley Austin LLP provides this information as a service to clients and other friends for educational purposes only. It should not be construed or relied on as legal advice or to create a lawyer-client relationship. Readers should not act upon this information without seeking advice from professional advisers. In addition, this information was not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any U.S. federal, state or local tax penalties that may be imposed on such person.
Attorney Advertising—Sidley Austin LLP, One South Dearborn, Chicago, IL 60603. +1 312 853 7000. Sidley and Sidley Austin refer to Sidley Austin LLP and affiliated partnerships, as explained at www.sidley.com/disclaimer.
© Sidley Austin LLP