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1260H goods and services ban starts June 30, 2027

Section 805(a)(1) of Pub. L. 118-31 says the Secretary of Defense may not "(A) enter into, renew, or extend a contract for the procurement of goods, services, or technology with an entity described in paragraph (2); or (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)." Paragraph (2) describes an entity on the Department's annual Federal Register list of Chinese military companies under section 1260H, or any entity subject to such an entity's control. Subsection (b), Effective Dates: "The prohibition under subsection (a)(1)(A) shall take effect on June 30, 2026, and the prohibition under subsection (a)(1)(B) shall take effect on June 30, 2027." Subsection (a)(4)(B) directs the Secretary, "not later than 545 days after the date of the enactment," to amend the DFARS to implement paragraph (1)(B), including best practices and technical support for affected businesses. The Open DFARS Cases list dated 2026-10-16 shows case 2024-D012, "Prohibition on Procurement Related to Chinese Military Companies," implementing section 805(a)(1)(B), with the status "01/24/2024 DARC Director tasked" and "Report due 03/27/2024. Report due date extended to 11/18/2026."

Key dateJune 30, 2027effective
StatusFinal
ConfidenceConfirmed

What changed

Section 805(a)(1) of Pub. L. 118-31 says the Secretary of Defense may not "(A) enter into, renew, or extend a contract for the procurement of goods, services, or technology with an entity described in paragraph (2); or (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)." Paragraph (2) describes an entity on the Department's annual Federal Register list of Chinese military companies under section 1260H, or any entity subject to such an entity's control. Subsection (b), Effective Dates: "The prohibition under subsection (a)(1)(A) shall take effect on June 30, 2026, and the prohibition under subsection (a)(1)(B) shall take effect on June 30, 2027." Subsection (a)(4)(B) directs the Secretary, "not later than 545 days after the date of the enactment," to amend the DFARS to implement paragraph (1)(B), including best practices and technical support for affected businesses. The Open DFARS Cases list dated 2026-10-16 shows case 2024-D012, "Prohibition on Procurement Related to Chinese Military Companies," implementing section 805(a)(1)(B), with the status "01/24/2024 DARC Director tasked" and "Report due 03/27/2024. Report due date extended to 11/18/2026."

What it means for a DIBBS supplier

DIBBSFlow's reading

DIBBSFlow's reading, from the source above, checked 2026-10-21.

the goods-and-services prohibition reaches what is inside a delivered item, and the statute's date for it is 2027-06-30. The DFARS case that would write it into contract text shows a report due 2026-11-18, which is a report date, not a proposed-rule publication date. If you deliver items that include goods or services from a listed entity or one it controls, 2027-06-30 is the date to plan against, and the case list is where the rule's progress will show.

Source:Pub. L. 118-31, section 805 (govinfo.gov, opened 2026-10-21); DFARS Case 2024-D012 on the Open DFARS Cases list dated 2026-10-16· Confirmed onOctober 21, 2026

Change log

  • 2026-10-21: added to the watch; source opened 2026-10-21.
  • 2026-10-21: held, Codex returned FIX; gate run 2026-10-21.
  • 2026-10-21: capture extended to every passage the item rests on and body rewritten to the capture; status restored from Held.
  • 2026-10-21: title shortened to a plain headline (Tony's review of the live cards); facts that left the title stay in What changed.

A public log of rule and deadline changes. DIBBSFlow alerts on your NSNs and CAGEs are a separate product.

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