April 4, 2025

Why Country of Origin and Supply Chain Transparency Matters for Secure USB Storage

In today’s cybersecurity landscape, ensuring end-to-end security is not just about encryption standards—it is about understanding where your secure USB storage devices come from, how they’re built, and whether they comply with the security standards your organization requires. Organizations prioritizing security and compliance must go beyond certifications and dig into the country of origin and supply chains of their encrypted USB drives.

A lack of transparency in the supply chain exposes organizations to backdoor vulnerabilities, Chinese encryption chips, and compliance violations. This blog explores why Country of Origin (COO) requirements and Bills of Materials (BOMs) should be a key part of your cybersecurity evaluation and why non-compliant secure USB devices pose a risk to government agencies, enterprises, and regulated industries.

How Country of Origin Affects Secure USB Storage Devices

For organizations that rely on secure USB storage or encrypted USB drives, TAA compliance (Trade Agreements Act) and country of origin markings aren’t just bureaucratic red tape—they’re critical to ensuring security and regulatory adherence.

  • Manufacturing Origin Matters: Are the encrypted USB devices assembled in non-TAA-compliant countries? Do they contain Chinese encryption chips?
  • Lack of Country of Origin Markings: U.S. law mandates that imported products must have clear country of origin labels, yet some vendors fail to comply, raising concerns about security risks and supply chain integrity.
  • Procurement and Compliance Risks: Secure USB devices without proper country of origin markings may be disqualified from government contracts, face customs holds, or trigger compliance violations in regulated industries like healthcare and finance.

Want to see if your current secure USB storage devices meet compliance standards?
Download the Whitepaper for an in-depth understanding of secure USB vendors and their supply chain transparency.

The Importance of a Bill of Materials (BOMs)

A Bill of Materials (BOM) provides a detailed list of all raw materials, components, and parts used in a device. Without a Bill of Materials, organizations cannot verify the sources of main components, encryption integrity, firmware security, or manufacturing compliance.

How a Bill of Materials Support Compliance & Security:

Security: Ensures all encryption chips meet strict security requirements and are not from Chinese manufacturers with compromised components.
Tracking: Establishes a clear record of materials used, reducing the risk of hidden vulnerabilities.
Transparency: Provides visibility into every stage of the product’s lifecycle, from design to deployment.
Incident Response: If a security flaw is detected in a component, a BOM allows for rapid identification of affected devices.
Regulatory Compliance: Supports CMMC, NIST 800-171, GDPR, and supply chain security audits, ensuring your organization remains compliant.

Without a Bill of Materials, you are essentially trusting a black box, with no way to verify whether your secure USB storage devices meet their vendor-advertised security claims.

How confident are you in the security of your current encrypted USB drive?
Download the White Paper to uncover key vulnerabilities in the supply chain.

What’s at Stake? Security, Compliance, and Trust

Without verifiable supply chain transparency of your secure USB solution, organizations face significant risks:

Cybersecurity Threats: Non-compliant secure USB drives may contain backdoors in their encryption chips, exposing organizations to espionage and cyberattacks from China.
Procurement Disqualification: Secure USB storage devices lacking country of origin markings may be banned from U.S. government contracts.
Regulatory Violations: Organizations in finance, healthcare, and defense must meet stringent security and compliance mandates—failing to do so can result in fines, reputational damage, or legal action.

When choosing secure USB storage solutions, transparent, verifiable security solutions is not just a best practice—it’s a necessity.

Ready to dive deeper?

Download the Full White paper to see how trusted vendors meet transparency standards and why others fall short.