(a) Overview. VCS hardware importers and connected vehicle manufacturers may rely on a general authorization to engage in an otherwise prohibited transaction if they meet the stated requirements or conditions identified in the general authorization and are not subject to the restrictions identified in this section. Records demonstrating compliance with the terms of general authorizations must be retained for a period of 10 years, as specified in § 791.312, and be made available to BIS upon request.

(b) General course of procedure. BIS may issue general authorizations for certain types of transactions subject to the prohibitions contained in this subpart. In determining whether to issue a general authorization, BIS may consider any information or material BIS deems relevant and appropriate, classified or unclassified, from any Federal department or agency, or from any other source. BIS will publish general authorizations it issues under this subpart on its website (https://www.bis.gov/OICTS), and will also publish them in the Federal Register.

(c) Relationship with specific authorizations. BIS will not grant specific authorizations for transactions in which a general authorization is applicable.

(d) Instructions. Persons availing themselves of certain general authorizations may be required to file reports and statements in accordance with the instructions specified by BIS in each general authorization. Failure to fulfill instructions provided in a general authorization may nullify the authorization and result in a violation of the applicable prohibitions that may be subject to BIS enforcement action.

(e) Change in circumstance. Unless otherwise prescribed by BIS, within 30 days of discovering a change in circumstance, the VCS hardware importer or connected vehicle manufacturer must assess if it still qualifies for the general authorization.

(1) If the connected vehicle manufacturer or VCS hardware importer determines that articles subject to a general authorization have been used outside the conditions of the general authorization, it must, within 30 days of such a determination, cease any prohibited conduct, conduct an internal inquiry, and submit to BIS a report identifying any prohibited transactions, the number of connected vehicles or VCS hardware units implicated, and proposed remedial measures.

(2) [Reserved]

(f) Verification. BIS may, at its discretion, seek verification from VCS hardware importers and connected vehicle manufacturers as to whether they are relying on a general authorization, and if so, may request documentation to verify compliance with this subpart.

(g) Restrictions. VCS hardware importers and connected vehicle manufacturers may not avail themselves of any general authorization if any one or more of the following apply:

(1) BIS has notified, either directly or through an advisory opinion, the VCS hardware importer or connected vehicle manufacturer is not eligible for a general authorization; or

(2) The VCS hardware importer or connected vehicle manufacturer is owned by, controlled by, or subject to the jurisdiction or direction of the PRC or Russia.