---
kind: "section"
citation: "50 U.S.C. § 4582"
title: "50"
title_heading: "War and National Defense"
number: "4582"
heading: "Notification on investments"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/50/4582"
units:
  - "Chapter 55 — Defense Production"
  - "Subchapter IV — Prohibition and Notification on Investments Relating to Covered National Security Transactions"
---

# §4582. Notification on investments

- (a) **Mandatory notification—** Not later than 450 days after December 18, 2025, the [Secretary](/usc/50/4589.md?p=11) shall issue regulations prescribed in accordance with [subsection (b)](#b), to require a [United States person](/usc/50/4589.md?p=12) that itself or whose controlled foreign entity knowingly engages in a [covered national security transaction](/usc/50/4589.md?p=4-A) in a [prohibited technology](/usc/50/4589.md?p=10-A) (unless the [Secretary](/usc/50/4589.md?p=11) has exercised the authority provided by [section 4581(a) of this title](/usc/50/4581.md?p=a) to prohibit knowingly engaging in such [covered national security transaction](/usc/50/4589.md?p=4-A)) or a [notifiable technology](/usc/50/4589.md?p=7-A) to submit to the [Secretary](/usc/50/4589.md?p=11) a written notification of the transaction not later than 30 days after the completion date of the transaction.
- (b) **Regulations—**
  - (1) **In general—** Not later than 450 days after December 18, 2025, the [Secretary](/usc/50/4589.md?p=11), in consultation with the [Secretary](/usc/50/4589.md?p=11) of Commerce, the Secretary of State, and, as appropriate, the heads of other relevant Federal departments and agencies, shall issue regulations to carry out this section subject to public notice and comment in accordance with subchapter II of [chapter 5](/usc/50/chch5.md) and [chapter 7](/usc/5/chptI/ch7.md) of title 5, and not subject to the requirements of [section 4559 of this title](/usc/50/4559.md). The regulations issued pursuant to this paragraph shall as necessary, amend, terminate, supersede, revoke, or streamline existing requirements in part 850 of title 31, Code of Federal Regulations (the Outbound Investment Rule) and shall provide a reasonable timeframe for compliance.
  - (2) **Low-burden regulations—** In issuing regulations under [paragraph (1)](#b-1), the [Secretary](/usc/50/4589.md?p=11) should balance the priority of protecting the national security interest of the United States while, to the extent practicable—
    - (A) minimizing the cost and complexity of compliance for affected [parties](/usc/50/4589.md?p=8), including the duplication of reporting requirements under current regulation;
    - (B) adopting the least burdensome alternative that achieves regulatory objectives; and
    - (C) prioritizing transparency and stakeholder involvement in the process of issuing the rules.
  - (3) **Burden of proof—** In accordance with [section 556(d) of title 5](/usc/5/556.md?p=d), in an enforcement action for a violation of the prohibition set forth in [subsection (a)](#a), the burden of proof shall be upon the [Secretary](/usc/50/4589.md?p=11).
  - (4) **Completeness of notification—**
    - (A) **In general—** The [Secretary](/usc/50/4589.md?p=11) shall, upon receipt of a notification under [subsection (a)](#a), promptly inspect the notification for completeness.
    - (B) **Incomplete notifications—** If a notification submitted under [subsection (a)](#a) is incomplete, the [Secretary](/usc/50/4589.md?p=11) shall promptly inform the [United States person](/usc/50/4589.md?p=12) that submits the notification that the notification is not complete and provide an explanation of relevant material respects in which the notification is not complete.
  - (5) **Identification of non-notified activity—** The [Secretary](/usc/50/4589.md?p=11) shall establish a process to identify [covered national security transactions](/usc/50/4589.md?p=4-A) in a [prohibited technology](/usc/50/4589.md?p=10-A) or a [notifiable technology](/usc/50/4589.md?p=7-A) for which—
    - (A) a notification is not submitted to the [Secretary](/usc/50/4589.md?p=11) under [subsection (a)](#a); and
    - (B) information is reasonably available.
- (c) **Inapplicability—** If the [Secretary](/usc/50/4589.md?p=11) prohibits a [covered national security transaction](/usc/50/4589.md?p=4-A) in a [prohibited technology](/usc/50/4589.md?p=10-A) under [section 4581 of this title](/usc/50/4581.md), the requirements of this section shall not apply with respect to the [covered national security transaction](/usc/50/4589.md?p=4-A).

## Source credit

(Sept. 8, 1950, ch. 932, title VIII, § 802, as added Pub. L. 119–60, div. H, title LXXXV, § 8521, Dec. 18, 2025, 139 Stat. 1925.)