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Limited Export Licence for Huawei Extended Again

The U.S. Department of Commerce’s Bureau of Industry and Security announced on 18 November that it will extend for another 90 days, through 16 February 2020, a temporary general licence authorising specific, limited engagements in transactions involving the export, re-export and transfer of items subject to the Export Administration to Huawei Technologies Co. Ltd. and 114 of its non-U.S. affiliates on the Entity List. BIS states that outside the scope of this TGL any exports, re-export or in-country transfers of items subject to the EAR to these entities will continue to require a licence and licence applications will continue to be reviewed under a presumption of denial.

This TGL covers certain activities necessary for the continued operations of existing networks and equipment as well as the support of existing mobile services, including cybersecurity research critical to maintaining the integrity and reliability of existing and fully operational networks and equipment. U.S. Commerce Secretary Wilbur Ross said the extension of the TGL “will allow carriers to continue to service customers in some of the most remote areas of the United States who would otherwise be left in the dark.” Exporters, re-exporters and transferors that qualify to use the TGL must maintain certifications and other records regarding their use of it that must be made available to BIS upon request.

Given the extent of Huawei’s supply chain in the United States, companies should be screening or re-screening their customer, vendor and other third-party data against the list of Huawei affiliates to identify any potential on-going or pending transactions with these parties and set up appropriate controls to ensure compliance with U.S. export control laws. Violations can result in significant financial penalties, denial of export privileges and reputational damage.

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