ANNOUNCEMENT 30 Apr 2019

The Department of Defense issued an interim rule amending the Defense Federal Acquisition Regulation Supplement to prohibit the acquisition of certain magnets and tungsten from North Korea, China, Russia, and Iran; it published the final rule on the last day of 2019.

 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 30 Apr 2019 | Removal date: open ended

Public procurement, nes

On April 30, 2019 the Department of Defense (DoD) issued an interim rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to prohibit the acquisition of certain magnets and tungsten from North Korea, China, Russia, and Iran. The rule took effect on publication, but noted that it may be modified in a final rule based on comments on the interim rule received on or before July 1, 2019. The agency later puboushed the final rule on December 31, 2019, with the changes in that rule taking effect the same day; those changes did not significantly affect the substance of the rule.

The rule prohibits acquisition of samarium-cobalt magnets, neodymium-iron-boron magnets, tungsten metal powder, and tungsten heavy alloy or any finished or semi-finished component containing tungsten heavy alloy melted or produced in North Korea, China, Russia, and Iran, because these materials play an essential role in national defense. DoD observes that samarium-cobalt magnets and neodymium-iron-boron magnets are rare earth magnets with many military applications, particularly in aviation and navigation, such as sonar, radar, and guidance systems.

AFFECTED SECTORS