BIS Issues Long-Awaited FAQs on the Connected Vehicles Rule — But Questions About the Scope of the Rule Still Remain

View FAQs here and the Rule here.

But do not get too excited! Perhaps unsurprisingly, many of the FAQs restate large portions of the Rule, rather than providing answers to the Rule’s many unknowns. This means that parties will need to continue to seek Advisory Opinions (for specific transactions) or send an e-mail to cv-intake@bis.doc.gov for more informal guidance on scenarios not addressed in the Rule or the FAQs.

BIS provides FAQs with respect to:

1. General Authorizations.
2. Declarations of Conformity.
3. Advisory Opinions.
4. Specific Authorizations.
5. Covered Software and Vehicle Connectivity System (VCS) Hardware.

We covered the Rule in greater depth in our alert, Taking Stock – Summary of BIS Actions From Fall 2024, and Peek at What Is Next Under the Trump Administration.

Definition of “Directly Enabled”

The Rule prohibits, in part, the import of VCS hardware that “directly enables” the function of and are directly connected to VCS or are part of an item that directly enables the function of VCS, but the Rule itself does not clearly define “directly enables.” The FAQs provide slightly more clarity:

““Directly enabled” in the context of VCS hardware means that an item or component is software-enabled or programmable, indicating that it has an active processor, or data processing capability, and requires power to function. These items or components must enable the functions of transmission, receipt, conversion, or processing of radio frequency communications over 450 megahertz, including, but not limited to, cellular and satellite communications. These functions do not include the transmission, receipt, conversion, or processing of automotive sensing, physical vehicle access, or unidirectional radio frequency bands; or the function of supplying or managing power for the VCS.”

The keen observer will note that this definition closely mirrors the definition of VCS provided in the Rule, with the addition that whether the item “has an active processor or data processing capability, and requires power to function,” is relevant to determining whether the item “directly enables” the function of VCS. This definition will still leave many wondering exactly how broadly to interpret “directly enables.”

Of further note, BIS specifically states that firmware is considered a covered VCS hardware item, which the Rule had not specified. The Rule itself states that covered software does not include firmware but observes that “firmware is often shipped with and designed in coordination with the provision of automotive hardware subcomponents.”

Legacy Software

BIS also provides some clarifications as to the legacy software exclusion. Under the Rule, the prohibitions do not apply to legacy software that is designed, developed, manufactured, or supplied prior to March 17, 2026. However, BIS’s FAQs note that if “legacy software” is supplied by a foreign person after March 17, 2026, it would be considered “covered software” under the Rule, regardless of when the software was developed.

Who Is Responsible for Obtaining Specific Authorizations?

BIS clarifies that, with regard to VCS hardware, only VCS hardware importers are responsible for obtaining Specific Authorization for importing VCS Hardware otherwise prohibited under the Rule. The connected vehicle manufacturer is only responsible for obtaining a specific authorization or submitting a Declaration of Conformity (as applicable) if it is importing the VCS hardware itself.

With respect to “covered software,” BIS explains that even if a VCS importer receives a specific authorization for the import of VCS hardware, the connected vehicle manufacturer may still be required to submit a Declaration of Conformity or Specific Authorization application for any covered software included in the specifically authorized VCS hardware prior to the sale of the completed connected vehicle.

We understand that BIS will continue to update these FAQs as it receives more questions from regulated industry.

We will continue to monitor any updates to the Rule and FAQs. In the meantime, if you have any questions, please contact Sylvia Costelloe or Maya S. Cohen.