22 May 2019
Limited Exports to Huawei and Affiliates Allowed for 90 Days
The U.S. Department of Commerce’s Bureau of Industry and Security has announced a temporary general licence authorising specific, limited engagement in transactions involving the export, re-export and transfer of items subject to the Export Administration Regulations to Huawei Technologies Co. Ltd. and 68 of its non-U.S. affiliates. This licence will be effective 20 May through 19 August and BIS will evaluate whether an extension beyond this period is needed.
Huawei and its affiliates were recently added to BIS’ Entity List. This action imposed a licence requirement for exports of all items subject to the EAR to these entities and a licence review policy of presumption of denial. In addition, no licence exceptions were available for exports, re-exports or transfers (in-country) to these entities.
However, the new temporary general licence restores for 90 days the licencing and other requirements in the EAR pertaining to limited types of exports, re-exports and transfers (in-country) of items subject to the EAR to these entities. According to a DOC press release, this includes certain activities necessary to the continued operations of existing networks and to support 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 added that the temporary general licence “grants operators [using Huawei equipment] time to make other arrangements and the Department space to determine the appropriate long term measures for Americans and foreign telecommunications providers that currently rely on Huawei equipment for critical services.”
Exporters that qualify to use the temporary general licence will be required to maintain certifications, which will have to be made available when requested by BIS, regarding their use of the licence.