Bill
HR 6879
The RESTRICT Act would require licenses to export or transfer advanced integrated circuits to countries of concern, and create a pathway to transfers only to approved U.S. persons
RESTRICT Act (H.R. 6879) — Summary
Overview
- Full name: Restoring Export and Security Trade Restrictions for Integrated Circuit Technologies Act (RESTRICT Act)
- Purpose: Prohibits sales of the most advanced integrated circuits (ICs) or related products to “countries of concern,” and creates a framework to facilitate safe transfers of such chips to approved United States persons abroad.
- Introduced: December 18, 2025, in the 119th Congress. Referred to the House Committee on Foreign Affairs.
- Key sponsors: Representative Gregory Meeks (lead), with a broad group of bipartisan co-sponsors.
Main objective
- Strengthen U.S. controls on export of “advanced integrated circuits” (AICs) to countries of concern.
- Create a process to allow transfer of AICs to approved U.S. persons abroad, under strict controls and oversight.
What the bill would change (substantive provisions)
1) Creation of AIC export controls (new section 1758A under the Export Control Reform Act of 2018)
- Definitions:
- Advanced Integrated Circuit or Product: An IC, computer, or related product meeting criteria (based on ECCN 3A090/4A090 or a .z ECCN as of Jan 1, 2025), or functionally equivalent to such items, and designed/marketed for data centers. The Under Secretary of Commerce for Industry and Security (BIS) may update the definition after 24 months, with safeguards:
- Updates must not adversely affect U.S. national security.
- BIS must consult with the House Committee on Foreign Affairs and Senate Committee on Banking, Housing, and Urban Affairs at least 30 days prior to changes.
- Covered Country: A country in Country Group D as listed in Supplement No. 1 to part 740 of the EAR as of Jan 1, 2025; Macau; or Hong Kong SAR.
- Country of Concern: Countries in Country Group D as of Jan 1, 2025, plus Macau and Hong Kong.
- Approved United States Person: A U.S. person designated as approved under subsection (d)(2) (see below).
- Licensing requirement (b): BIS would require licenses for export, reexport, or in-country transfer of an AIC/product to a covered country.
- License policy for countries of concern (c): BIS shall deny licenses for exports to entities primarily located in, or ultimate parent company headquartered in, a country of concern.
- Exemption for approved U.S. persons (d):
- Exemption from the license requirement for transfers to an approved U.S. person, if:
- The destination country is not a country of concern; and
- The AIC/product remains under ownership/control of an approved U.S. person.
- Implementation deadline: Within 90 days of enactment, BIS must issue regulations establishing standards for designation as an approved U.S. person, including:
- No more than 10% of the ultimate beneficial ownership of the U.S. person may be held by an entity primarily residing/domiciled in a country of concern.
- Security measures (physical, cybersecurity, remote access, etc.) to prevent misuse/diversion.
- Robust Know Your Customer (KYC) standards.
- Annual audits/attestations to ensure compliance with ownership, security, and KYC requirements.
- Process for designation: BIS would establish the process by which a designation as an approved U.S. person is granted.
- Sunset provision (e): The new section would terminate five years after enactment.
2) Technical/clerical amendments
- The bill adds a cross-reference to Sec. 1758A in the National Defense Authorization Act for Fiscal Year 2019 (NDAA 2019) to update the table of contents accordingly.
Implications and impact
- Scope of controls: Targets the most advanced ICs used in data-center-scale applications, potentially limiting access by entities in countries of concern.
- Global supply chain effect: Could slow or block exports/reexports of high-performance chips to certain jurisdictions, unless routed to approved U.S. persons abroad under strict conditions.
- Compliance burden: Entities exporting or transferring AICs to covered countries would need BIS licenses; U.S. companies and foreign affiliates would face enhanced screening and compliance requirements.
- Enforcement and oversight: Establishes a framework with defined definitions, licensing denial on country-of-concern risk, and annual audits for approved U.S. persons.
- Time-limited: Five-year sunset, unless renewed or extended by Congress.
- National security focus: Aims to mitigate risks associated with advanced semiconductors potentially enabling surveillance, military, or dual-use applications in countries of concern.
Who is affected
- Exporters and re exporters of advanced ICs and related products.
- Entities headquartered in or with ultimate parent ownership in countries of concern.
- U.S. persons designated as approved U.S. persons, and their business partners abroad.
- BIS and other U.S. government agencies administering export controls and licensing.
Timeline and process highlights
- 90-day regulatory deadline post-enactment to establish designation standards for approved U.S. persons.
- Ongoing process to define and update “advanced integrated circuits” as technology evolves (with 24-month lookahead for revision).
- Five-year sunset from enactment date, unless extended by future legislation.
Compiled from official sources — confirm details with the bill’s official record.
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