CHAPTER 363—PROHIBITION AND PENALTIES
Editorial Notes
Prior Provisions
A prior chapter 363 "PROHIBITIONS AND PENALTIES", consisting of reserved section 4651, was repealed by Pub. L. 116–283, div. A, title XVIII, §1862(a), Jan. 1, 2021, 134 Stat. 4277.
Another prior chapter 363, consisting of sections 3841 to 3855 relating to separation or transfer to the Retired Reserve, some of which had previously been repealed, was repealed in its entirety by Pub. L. 103–337, div. A, title XVI, §§1629(a)(3), 1691(b)(1), Oct. 5, 1994, 108 Stat. 2963, 3026, effective Oct. 1, 1996.
Amendments
2025—Pub. L. 119–60, div. A, title VIII, §841(b), Dec. 18, 2025, 139 Stat. 972, added item 4664. Amendment was made pursuant to operation of section 102 of this title.
2024—Pub. L. 118–159, div. A, title VIII, §851(a), Dec. 23, 2024, 138 Stat. 1995, added item 4663. Amendment was made pursuant to operation of section 102 of this title.
2023—Pub. L. 118–31, div. A, title VIII, §803, Dec. 22, 2023, 137 Stat. 312, added item 4662. Amendment was made pursuant to operation of section 102 of this title.
2022—Pub. L. 117–263, div. A, title VIII, §855(c), Dec. 23, 2022, 136 Stat. 2723, added item 4661.
Statutory Notes and Related Subsidiaries
Strategy To Eliminate Acquisition of Optical Glass From Certain Nations
Pub. L. 119–60, div. A, title VIII, §834, Dec. 18, 2025, 139 Stat. 964, provided that:
"(a)
"(b)
"(1) identify the current requirements of the Department of Defense for optical glass and optical systems and estimate the projected requirements of the Department for optical glass and optical systems through the year 2040;
"(2) identify the sources of optical glass or optical systems used to meet the requirements described in paragraph (1), including any sources of optical glass or optical systems produced in a covered nation; and
"(3) identify actions to be taken by the Secretary of Defense to ensure the defense industrial base is able to meet the needs of the Department for optical glass and optical systems.
"(c)
"(d)
"(1)
"(2)
"(e)
"(1) The term 'covered nation' means—
"(A) the Democratic People's Republic of North Korea;
"(B) the People's Republic of China;
"(C) the Russian Federation;
"(D) the Republic of Belarus; and
"(E) the Islamic Republic of Iran.
"(2) The term 'optical glass' means glass used in optical lenses, prisms, or mirrors.
"(3) The term 'optical system' means an arrangement of optical components, including optical glass, that manipulates light to produce a specific outcome."
Strategy To Eliminate Sourcing of Computer Displays From Certain Nations
Pub. L. 119–60, div. A, title VIII, §835, Dec. 18, 2025, 139 Stat. 965, provided that:
"(a)
"(b)
"(1) identify the current requirements of the Department of Defense for computer displays and estimate the projected requirements of the Department for computer displays through the year 2040;
"(2) identify the sources of computer displays used to meet the current requirements of the Department described in paragraph (1), including any sources of computer displays produced in a covered nation; and
"(3) identify actions to be taken by the Secretary of Defense to ensure the defense industrial base is able to meet the needs of the Department for computer displays without any reliance on a covered nation not later January 1, 2030.
"(c)
"(d)
"(1)
"(2)
"(e)
"(1) The term 'covered nation' has the meaning given such term in section 4872(f) of title 10, United States Code.
"(2) The term 'computer display' means a device—
"(A) that receives a digital output from a computer and visually displays that output as an electronic image; and
"(B) is an end item (as defined in section 4863(m) of title 10, United States Code)."
Prohibition on Procurement Related to Certain Additive Manufacturing Machines
Pub. L. 119–60, div. A, title VIII, §849, Dec. 18, 2025, 139 Stat. 979, provided that:
"(a)
"(b)
"(c)
"(1) The term 'additive manufacturing machine' means a system of integrated hardware and software used to carry out an additive manufacturing process, including the deposition of material and the associated post-processing steps as applicable.
"(2) The term 'covered additive manufacturing company' means any of the following:
"(A) Any entity that produces or provides additive manufacturing machines and is included on—
"(i) the Consolidated Screening List maintained by the International Trade Administration of the Department of Commerce; or
"(ii) the civil-military fusion list maintained under section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116–283; 10 U.S.C. 113 note).
"(B) Any entity that produces or provides additive manufacturing machines and—
"(i) is domiciled in a covered nation; or
"(ii) is subject to unmitigated foreign ownership, control, or influence by a covered nation, as determined by the Secretary of Defense in accordance with the National Industrial Security Program (or any successor to such program).
"(3) The term 'covered additive manufacturing machine' means an additive manufacturing machine manufactured by a covered additive manufacturing company, and any related service or equipment provided or manufactured, respectively, by such covered additive manufacturing company.
"(4) The term 'covered nation' has the meaning given such term in section 4872 of title 10, United States Code."
Prohibition on Operation, Procurement, and Contracting Related to Foreign-Made Light Detection and Ranging Technology
Pub. L. 118–159, div. A, title I, §164, Dec. 23, 2024, 138 Stat. 1818, as amended by Pub. L. 119–60, div. A, title I, §162, Dec. 18, 2025, 139 Stat. 768, provided that:
"(a)
"(1) covered LiDAR technology; or
"(2) a system or systems that incorporates, interfaces with, or otherwise uses covered LiDAR technology as described in paragraph (1).
"(b)
"(c)
"(d)
"(e)
"(1)
"(2)
"(A) publish a list of covered LiDAR companies in the Federal Register;
"(B) conduct an assessment of the potential risks to the Department associated with the use of covered LiDAR technology by defense contractors, including an assessment of the severity and likelihood of occurrence of each such risk and a prioritization of such risks; and
"(C) solicit input from defense contractors and subcontractors (at any tier) to identify effective approaches to reducing or eliminating use of covered LiDAR technology by such contractors and subcontractors.
"(3)
"(f)
"(1) The term 'covered foreign country' means any of the following:
"(A) The People's Republic of China.
"(B) The Islamic Republic of Iran.
"(C) The Democratic People's Republic of North Korea.
"(D) The Russian Federation.
"(2) The term 'covered LiDAR company' means any of the following:
"(A) Hesai Technology (or any subsidiary or affiliate of Hesai Technology).
"(B) Any entity that produces or provides LiDAR and that is included on—
"(i) the Consolidated Screening List maintained by the International Trade Administration of the Department of Commerce; or
"(ii) the civil-military fusion list maintained under section 1260h [1260H] of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116–283; 10 U.S.C. 113 note).
"(C) Any entity that produces or provides LiDAR and that—
"(i) is domiciled in a covered foreign country; or
"(ii) is subject to unmitigated foreign ownership, control or influence by a covered foreign country, as determined by the Secretary of Defense in accordance with the National Industrial Security Program or any successor to such program.
"(3) The term 'covered LiDAR technology' means LiDAR technology and any related services and equipment—
"(A) manufactured by a covered LiDAR company;
"(B) uses operating software developed in a covered foreign country or by an entity domiciled in a covered foreign country; or
"(C) uses network connectivity or data storage located in a covered foreign country or administered by an entity domiciled in a covered foreign country.
"(4) The terms 'light detection and ranging' and 'LiDAR' mean a sensor that emits light, often in the form of a pulsed or modulated laser, and scans or flashes the environment to detect and measure the range of its surroundings."
Prohibition on Procurement of Covered Semiconductor Products and Services From Companies Providing Covered Semiconductor Products and Services to Huawei
Pub. L. 118–159, div. A, title VIII, §853, Dec. 23, 2024, 138 Stat. 1996, provided that:
"(a)
"(b)
"(c)
"(1) only available from an entity otherwise covered by such prohibition; and
"(2) are required for national security systems or priority missions of the Department of Defense.
"(d)
"(1) The term 'covered semiconductor products and services' means—
"(A) semiconductors;
"(B) equipment for manufacturing semiconductors; and
"(C) tools for designing semiconductors.
"(2) The term 'Huawei' means—
"(A) Huawei Technologies Company;
"(B) any entity that is a subsidiary, owner, beneficial owner, affiliate, or successor of Huawei Technologies Company; and
"(C) any entity that is directly or indirectly controlled by Huawei Technologies Company."
Prohibition on Contracts for Online Tutoring Services
Pub. L. 118–159, div. A, title VIII, §854, Dec. 23, 2024, 138 Stat. 1997, provided that: "The Secretary of Defense may not enter into a contract for online tutoring services which could result in personal data of citizens of the United States being transferred to the control of the People's Republic of China."
Study and Report on Department of Defense Use of Unmanned Ground Vehicle Systems Manufactured by Certain Foreign Entities
Pub. L. 118–159, div. A, title X, §1078, Dec. 23, 2024, 138 Stat. 2075, provided that:
"(a)
"(1)
"(2)
"(A) An assessment of the extent to which covered unmanned ground vehicle systems manufactured by covered foreign entities are used by the Department, including a list of all such covered unmanned ground vehicle systems.
"(B) An assessment of the national security threats associated with using covered unmanned ground vehicle systems in applications of the Department, including with respect to—
"(i) cybersecurity;
"(ii) technological maturity of the systems; and
"(iii) technological vulnerabilities in the systems that may be exploited by foreign adversaries of the United States.
"(C) A description of any actions taken by the Department to identify covered foreign entities that—
"(i) develop or manufacture covered unmanned ground vehicle systems; and
"(ii) have a military-civil nexus on the list maintained by the Department under section 1260H(b) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116–283; 10 U.S.C. 113 note).
"(D) An assessment of the feasibility and advisability of directing the Defense Innovation Unit, or another entity in the Department of Defense, to develop a list of United States manufacturers of covered unmanned ground vehicle systems.
"(E) A recommendation on whether a prohibition on the procurement and operation of covered unmanned ground vehicle systems is in the best interest of the national security of the United States.
"(F) The findings and recommendations of the Secretary with respect to the matters covered by the study and report.
"(b)
"(1)
"(2)
"(3)
"(c)
"(1) The term 'covered foreign country' means any of the following:
"(A) The People's Republic of China.
"(B) The Russian Federation.
"(C) The Islamic Republic of Iran.
"(D) The Democratic People's Republic of Korea.
"(2) The term 'covered foreign entity' means an entity that is domiciled in a covered foreign country or subject to influence or control by the government of a covered foreign country, as determined by the Secretary of Defense.
"(3) The term 'covered unmanned ground vehicle system'—
"(A) means a mechanical device that—
"(i) is capable of locomotion, navigation, or movement on the ground; and
"(ii) operates at a distance from one or more operators or supervisors based on commands or in response to sensor data, or through any combination thereof; and
"(B) includes—
"(i) remote surveillance vehicles, autonomous patrol technologies, mobile robotics, and humanoid robots; and
"(ii) the vehicle, its payload, and any external device used to control the vehicle."
Prohibition on Availability of Funds for Procurement of Certain Batteries
Pub. L. 118–31, div. A, title I, §154, Dec. 22, 2023, 137 Stat. 180, provided that:
"(a)
"(b)
"(1) Contemporary Amperex Technology Company, Limited (also known as 'CATL').
"(2) BYD Company, Limited.
"(3) Envision Energy, Limited.
"(4) EVE Energy Company, Limited.
"(5) Gotion High tech Company, Limited.
"(6) Hithium Energy Storage Technology company, Limited.
"(7) Any successor to an entity specified in paragraphs (1) through (6).
"(c)
"(1) assembles or manufactures the final product; or
"(2) creates or otherwise provides a majority of the components used in the battery.
"(d)
Limitation on Sourcing Chemical Materials for Munitions From Certain Countries
Pub. L. 118–31, div. A, title II, §244, Dec. 22, 2023, 137 Stat. 209, provided that:
"(a)
"(b)
"(c)
"(1) The People's Republic of China.
"(2) The Russian Federation.
"(3) The Islamic Republic of Iran.
"(4) The Democratic People's Republic of North Korea.
"(d)
Prohibition on Required Disclosure by Department of Defense Contractors of Information Relating to Greenhouse Gas Emissions
Pub. L. 118–31, div. A, title III, §318, Dec. 22, 2023, 137 Stat. 218, as amended by Pub. L. 118–159, div. A, title III, §316, Dec. 23, 2024, 138 Stat. 1852, provided that:
"(a)
"(1)
"(2)
"(b)
"(c)
"(1) The term 'greenhouse gas' means—
"(A) carbon dioxide;
"(B) methane;
"(C) nitrous oxide;
"(D) nitrogen trifluoride;
"(E) hydrofluorocarbons;
"(F) perfluorocarbons; or
"(G) sulfur hexafluoride.
"(2) The term 'greenhouse gas inventory' means, with respect to a person, a quantified list of the annual greenhouse gas emissions of the person.
"(3) The term 'nontraditional defense contractor' has the meaning given the term in section 3014 of title 10, United States Code."
Prohibition on Contracting With Entities or Individuals That Have Fossil Fuel Operations With the Government of the Russian Federation or the Russian Energy Sector
Pub. L. 118–31, div. A, title VIII, §804, Dec. 22, 2023, 137 Stat. 313, as amended by Pub. L. 119–60, div. A, title VIII, §846, Dec. 18, 2025, 139 Stat. 977, provided that:
"(a)
"(1)
"(A) an authority of the Government of the Russian Federation; or
"(B) a fossil fuel company that has fossil fuel business operations in the Russian Federation, except if the fossil fuel company transports oil or gas—
"(i) through the Russian Federation for sale outside of the Russian Federation; and
"(ii) that was extracted from a country other than the Russian Federation with respect to the energy sector of which the President has not imposed sanctions as of the date on which the contract is awarded.
"(2)
"(b)
"(1)
"(A) is necessary—
"(i) for purposes of providing humanitarian assistance to the people of Russia; or
"(ii) for purposes of providing disaster relief and other urgent life-saving measures;
"(B) is vital to the military readiness, basing, or operations of the United States or the North Atlantic Treaty Organization;
"(C) is vital to the national security interests of the United States; or
"(D) was a business operation with a fossil fuel company in a country other than the Russian Federation that was entered into prior to the date of the enactment of this section [Dec. 22, 2023].
"(2)
"(3)
"(4)
"(c)
"(d)
"(e)
"(1)
"(A) the Committee on Oversight and Accountability, the Committee on Armed Services, and the Committee on Foreign Affairs of the House of Representatives; and
"(B) the Committee on Homeland Security and Governmental Affairs, the Committee on Armed Services, and the Committee on Foreign Relations of the Senate.
"(2)
"(A)
"(B)
"(i) any shipment subject to price caps as specified in the 'Statement of the G7 and Australia on a Price Cap for Seaborne Russian-Origin Crude Oil', issued on December 2, 2022, between member countries of that coalition, or the price caps as specified in the 'Statement of the G7 and Australia on price caps for seaborne Russian-origin petroleum products Berlin, Brussels, Canberra, London, Ottawa, Paris, Rome, Tokyo, Washington', issued on February 4, 2023, between such members, if such shipment complies with the applicable price caps;
"(ii) activities related to fulfilling contracts with a fossil fuel company that has fossil fuel business operations in the Russian Federation that were entered into prior to the date of the enactment of this section, provided that such contracts are not—
"(I) extended beyond the established period of performance for such contract, including through the execution of any available option, task order, or modification; or
"(II) renewed;
"(iii) actions taken for the benefit of the country of Ukraine, as determined by the Secretary of Defense; or
"(iv) actions taken to support the suspension or termination of business operations for commercial activities during the period beginning on the date of the enactment of this Act and ending on the date described in subsection (d), including—
"(I) any action to secure or divest from facilities, property, or equipment;
"(II) the provision of products or services provided to reduce or eliminate operations in territory internationally recognized as the Russian Federation or to comply with sanctions relating to the Russian Federation; and
"(III) activities that are incident to liquidating, dissolving, or winding down a subsidiary or legal entity in Russia.
"(3)
"(A) carries out oil, gas, or coal exploration, development, or production activities;
"(B) processes or refines oil, gas, or coal; or
"(C) transports, or constructs facilities for the transportation of, Russian oil, gas, or coal.
"(4)
"(A) a natural person, corporation, company, business association, partnership, society, trust, or any other nongovernmental entity, organization, or group;
"(B) any governmental entity or instrumentality of a government, including a multilateral development institution (as defined in section 1701(c)(3) of the International Financial Institutions Act (22 U.S.C. 262r(c)(3))); and
"(C) any successor, subunit, parent entity, or subsidiary of, or any entity under common ownership or control with, any entity described in subparagraph (A) or (B)."
Prohibition of the Department of Defense Procurement Related to Entities Identified as Chinese Military Companies Operating in the United States
Pub. L. 118–31, div. A, title VIII, §805, Dec. 22, 2023, 137 Stat. 315, as amended by Pub. L. 119–60, div. A, title VIII, §845, Dec. 18, 2025, 139 Stat. 977, provided that:
"(a)
"(1)
"(A) enter into, renew, or extend a contract for the procurement of goods, services, or technology with an entity described in paragraph (2);
"(B) enter into, renew, or extend a contract for the procurement of goods or services that include goods or services produced or developed by an entity described in paragraph (2); or
"(C) provide a grant, loan, or loan guarantee to an entity described in paragraph (2).
"(2)
"(A) an entity that is identified in the annual list published in the Federal Register by the Department of Defense of Chinese military companies operating in the United States pursuant to section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 [Pub. L. 116–283] (10 U.S.C. 113 note); or
"(B) any entity subject to the control of an entity described in subparagraph (A).
"(3)
"(A)
"(B)
"(C)
"(4)
"(A)
"(B)
"(i) best practices to avoid being subject to the prohibitions described in paragraph (1)(B); and
"(ii) technical support to assist affected businesses, institutions, and organizations as is reasonably necessary for those affected entities to comply with this section.
"(b)
"(c)
"(1)
"(A) provides to the Secretary a compelling justification for the additional time to implement the requirements under such subsection, as determined by the Secretary of Defense; and
"(B) provides to the Secretary a phase-out plan to eliminate goods, services, or technology produced or developed by an entity described in subsection (a)(2) from the systems of the entity.
"(2)
"(3)
"(A) the service acquisition executive of the military department (as such terms are defined in section 101(a) of title 10, United States Code) concerned; or
"(B) the official responsible for all acquisition functions of such other element or organization of the Department of Defense concerned.
"(d)
"(e)
"(1)
"(2)
Prohibition on Certain Procurements From the Xinjiang Uyghur Autonomous Region
Pub. L. 117–81, div. A, title VIII, §848, Dec. 27, 2021, 135 Stat. 1843, which related to procurement of products mined, produced, or manufactured wholly or in part by forced labor from Xinjiang Uyghur Autonomous Region of the People's Republic of China, was repealed by Pub. L. 117–263, div. A, title VIII, §855(a), Dec. 23, 2022, 136 Stat. 2723. See section 4661 of this title.
Employment Transparency Regarding Individuals Who Perform Work in the People's Republic of China
Pub. L. 117–81, div. A, title VIII, §855, Dec. 27, 2021, 135 Stat. 1850, as amended by Pub. L. 118–159, div. A, title VIII, §839, Dec. 23, 2024, 138 Stat. 1988, provided that:
"(a)
"(1)
"(2)
"(3)
"(A)
"(i) the total number of such individuals who will perform such work on the covered contracts funded by the Department of Defense; and
"(ii) a description of the physical presence in the People's Republic of China and each other location where work on the covered contract will be performed; and
"(iii) whether an agency or instrumentality of the People's Republic of China or any other covered entity has requested access to data or otherwise acquired data from the covered entity required to make a disclosure under paragraph (1) or (2) pursuant to any law or regulation of the People's Republic of China.
"(B)
"(i)
"(I) describe the process for disclosing a cybersecurity vulnerability, if such covered entity is also required to disclose any cybersecurity vulnerability to the Ministry of Industry and Information Technology or any other agency or instrumentality of the People's Republic of China; and
"(II) provide any information related to how a United States affiliate is notified of a vulnerability described in subclause (I).
"(ii)
"(I) a covered entity to require that an individual or entity performing work on a covered contract in the People's Republic of China on behalf of the covered entity to notify the covered entity within 48 hours of such individual or entity reporting any software vulnerability related to such covered contract to the Ministry of Industry and Information Technology or any other agency or instrumentality of the People's Republic of China; and
"(II) the covered entity to retain and furnish to the Department of Defense information regarding any cybersecurity vulnerability reported to the Ministry of Industry and Information Technology or any other agency or instrumentality of the People's Republic of China with respect to which the covered entity received a notice pursuant to subclause (I).
"(b)
"(c)
"(d)
"(1)
"(2)
"(e)
Prohibition on Procurements From Chinese Military Companies
Pub. L. 109–163, div. A, title XII, §1211, Jan. 6, 2006, 119 Stat. 3461, as amended by Pub. L. 112–81, div. A, title XII, §1243(a), (b), Dec. 31, 2011, 125 Stat. 1645; Pub. L. 114–328, div. A, title XII, §1296, Dec. 23, 2016, 130 Stat. 2562; Pub. L. 117–263, div. A, title VIII, §857(b), Dec. 23, 2022, 136 Stat. 2729, provided that:
"(a)
"(b)
"(1)
"(A) on the munitions list of the International Traffic in Arms Regulations; or
"(B) on the Commerce Control List that—
"(i) are classified in the 600 series; or
"(ii) contain strategic and critical materials, rare earth elements, or energetic materials used to manufacture missiles or munitions.
"(2)
"(A) in connection with a visit by a vessel or an aircraft of the United States Armed Forces to the People's Republic of China;
"(B) for testing purposes; or
"(C) for purposes of gathering intelligence.
"(c)
"(d)
"(e)
"(1) The term 'Chinese military company' has the meaning given that term by section 1260H(d)(1) [now 1260H(g)(1)] of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116–283; 10 U.S.C. 113 note).
"(2) The term 'Commerce Control List' means the list maintained by the Bureau of Industry and Security and set forth in Supplement No. 1 to part 774 of the Export Administration Regulations.
"(3) The term 'Communist Chinese military company' has the meaning provided that term by section 1237(b)(4) of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 [Pub. L. 105–261] (50 U.S.C. 1701 note).
"(4) The term 'Export Administration Regulations' has the meaning given that term in section 1742 of the Export Control Reform Act of 2018 (50 U.S.C. 4801).
"(5) The term 'munitions list of the International Traffic in Arms Regulations' means the United States Munitions List contained in part 121 of subchapter M of title 22 of the Code of Federal Regulations.
"(6) The term 'Non-SDN Chinese military-industrial complex company' means any entity on the Non-SDN Chinese Military-Industrial Complex Companies List—
"(A) established pursuant to Executive Order 13959 (50 U.S.C. 1701 note; relating to addressing the threat from securities investments that finance Communist Chinese military companies), as amended before, on, or after the date of the enactment of the [James M. Inhofe] National Defense Authorization Act for Fiscal Year 2023 [Dec. 23, 2022]; and
"(B) maintained by the Office of Foreign Assets Control of the Department of the Treasury.
"(7) The term 'other covered company' means a company that—
"(A) is owned or controlled by the government of the People's Republic of China; and
"(B) is certified by the Secretary of Defense to the congressional defense committees to be a company that must be covered by this section for national security reasons.
"(8) The term 'strategic and critical materials' means materials designated as strategic and critical under section 3(a) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98b(a)).
"(f)
[Pub. L. 112–81, div. A, title XII, §1243(c), Dec. 31, 2011, 125 Stat. 1646, provided that: "The amendments made by this section [amending section 1211 of Pub. L. 109–163, set out above] take effect on the date of the enactment of this Act [Dec. 31, 2011] and apply with respect to contracts and subcontracts of the Department of Defense entered into on or after the date of the enactment of this Act."]