An Overview Of The Department of Commerce’s Connected Vehicles Rule

Overview

On January 14, 2025, the U.S. Department of Commerce’s Bureau of Industry and Security released a rule prohibiting the sale of connected vehicles and certain vehicle hardware and software with a sufficient nexus to the People’s Republic of China or Russian Federation (Russia) as a threat to U.S. national security.

In addition to restricting the import and sale of certain finished vehicles, the rule also places restrictions on two systems: Vehicle Connectivity Systems and Automated Driving Systems. For this rule, Vehicle Connectivity Systems are all hardware components and software in a vehicle that allows it to communicate offboard. Automated Driving Systems is the software that allows an autonomous vehicle to operate without a driver’s input.

This rule applies to companies that are selling or importing completed connected vehicles for sale in the United States that weigh 10,000 pounds or less. It does not apply to vehicles that weigh more than 10,000 pounds and those that are already on the road. The following are three categories of vehicles and systems that are covered by the rule:

• Sale of completed Model Year 2027 connected vehicles by People’s Republic of China or Russian companies,
• Import or sale of completed Model Year 2027 connected vehicles that incorporate People’s Republic of China or Russian-covered software,
• Import of People’s Republic of China or Russian Vehicle Connectivity Systems hardware beginning in Model Year 2030, or January 1, 2029, for components that don’t have a model year.

Compliance Requirements

The final rule requires importers of Vehicle Connectivity Systems hardware and importers and manufacturers of completed connected vehicles to submit to the Bureau of Industry and Security annual Declarations of Conformity to attest they are complying. These Declarations provide basic information about the company, the transactions it is engaging in, and its suppliers.

The final rule also contains several compliance mechanisms relevant for regulated entities: 

• General Authorizations that allow importers and manufacturers to engage in certain low-risk transactions without the need to notify the Bureau of Industry and Security. 
• Specific Authorizations that enable importers and manufacturers to apply to the Bureau of Industry and Security for permission to engage in a transaction that is otherwise prohibited by the rule. 
• Advisory Opinions that allow importers and manufacturers to ask the Bureau of Industry and Security for formal determination if a specific transaction would be subject to the rule’s prohibitions.

Specifically, the Bureau of Industry and Security has issued a General Authorization that exempts vehicles that are driven less than 30 days per year. If you fall under a General Authorization, you do not need to submit a Declaration of Conformity. However, the Bureau of Industry and Security may, at its discretion, seek verification from importers and manufacturers as to whether they are relying on a General Authorization, and if so, may request records to verify compliance.

The RV Industry Association submitted comments urging the Bureau of Industry and Security to exempt RVs from the final rule. Though they declined to exempt RVs, the Bureau of Industry and Security "believes RVs will largely be excluded from the regulation" and that "[i]n the future, the Bureau of Industry and Security may consider whether a general authorization that specifically addresses RVs would be appropriate." 

The full language is here:

Specifically, the Bureau of Industry and Security has amended the definition of “connected vehicle,” for the purposes of this rule, to exclude vehicles with a gross vehicle weight rating of over 10,000 pounds, which generally aligns with the weight delineation included in definitions used by other government agencies (including the Federal Motor Carrier Safety Administration) and by industry to delineate between passenger and commercial vehicles. 

One commenter also requested that the Bureau of Industry and Security clarify that RVs are not included in the definition of a “connected vehicle.” The Bureau of Industry and Security declines to amend the definition as it believes RVs will largely be excluded from the regulation. 

First, as amended, RVs weighing over 10,000 pounds will not be captured by this rule and will instead be subject to an intended future rule covering commercial vehicles. 

Second, as the commenter noted, the Bureau of Industry and Security intends to issue a general authorization pertaining to vehicles used on public roads for fewer than 30 days a year, which could capture additional RVs that weigh under 10,001 pounds, if manufacturers are able to verify their RVs are eligible. 

Manufacturers availing themselves of any future general authorization need not notify the Bureau of Industry and Security of its use nor apply for the authorization, contrary to the comment’s suggestion. In the future, the Bureau of Industry and Security may consider whether a general authorization that specifically addresses RVs would be appropriate.

While the RV Industry Association estimates that all type As and Cs, nearly all 5th wheels, and the majority of type Bs will be excluded by the weight threshold, many travel trailers could be included.  The RV Industry Association also expects the General Authorization exemption that applies to vehicles on the road for fewer than 30 days a year to capture RVs.

For more information about the Connected Vehicle Final Rule, including a list of FAQs, you can visit their website. Please contact Bill Erny, Senior Manager of Regulatory Affairs, berny@rvia.org, if you have additional questions.