[co-author: Andrea Fraser-Reid]

The long-anticipated foreign investment review regulations were released for public inspection on 13 January, 2020. The regulations, scheduled to appear in the Federal Register on 17 January, 2020, are in two Federal Register notices:

In connection with 31 CFR Parts 800 and 801, the Office of Investment Security at the Department of the Treasury issued a final rule and an interim rule with a request for comments on the interim rule. The final rule revises regulations that implement certain provisions of section 721 of the Defense Production Act of 1950, as amended by the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA). The interim rule adds to Part 800 a new definition for the term “principal place of business.” The final rule and interim rule are effective on 13 February, 2020. Comments concerning the definition of “principal place of business” are due 30 days from publication.

The Office of Investment Security also released a final rule, designated 31 CFR Part 802, that addresses the CFIUS review of certain transactions involving the purchase or lease by, or concession to, a foreign person of certain real estate in the United States. An interim rule adds to Part 802 a new definition for the term “principal place of business.” The final rule and interim rule are effective on 13 February, 2020. Comments concerning “principal place of business” are due 30 days from publication.

We are preparing an alert.