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Temporary General Licence for Exports to Huawei and Affiliates Extended

The U.S. Department of Commerce’s Bureau of Industry and Security has issued a final rule extending for an additional 90 days, from 20 August through 18 November, the 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 its non-U.S. affiliates. BIS states that the continuation of the TGL “is intended to afford consumers across America the necessary time to transition away from Huawei equipment, given the persistent national security and foreign policy threat.”

The final rule also makes certain clarifying changes to the authorised transactions under the TGL and revises it by changing which party to the transaction is required to create the certification statement. Specifically, the exporter, re-exporter or transferor must obtain such a statement from the pertinent Huawei listed entity prior to using the TGL.

Concurrently, BIS has issued a separate final rule adding 46 Huawei affiliates to the Entity List effective from 19 August. As a result of that action, a total of 114 non-U.S. affiliates of Huawei are currently on the Entity List – up from 68 previously – and all of those affiliates will benefit from the TGL.

Permitted transactions under the TGL include the following.

Continued Operation of Existing Networks and Equipment. Engagement in transactions necessary to maintain and support existing and currently “fully operational network” and equipment, including software for bug fixes, security vulnerability patches and other changes to existing versions of the software, subject to legally binding contracts and agreements executed between Huawei, or one of its listed non-U.S. affiliates, and third parties on or before 16 May 2019. Such transactions may not enhance the functional capacities of the original software or equipment. This authorisation extends only to activities such as patching networks and network infrastructure equipment, not end-devices such as general-purpose computing devices that would not be considered to be part of an existing and “fully operational network.

Specifically excluded from the scope of the TGL is support for equipment that is not directly related to the support and maintenance of the network as well as transfers of equipment for general business purposes or for activities that are not in direct support of an existing and “fully operational network” (e.g., semiconductor production equipment).

Support to Existing Personal Consumer Electronic Devices and CPE. Engagement in transactions necessary to provide service and support, including software for bug fixes, security vulnerability patches and other changes to existing versions of the software, to existing Huawei “personal consumer electronic devices”, provided such transactions do not enhance the functional capacities of the original software or equipment. The term “personal consumer electronic devices” is defined as including phones and other personally-owned equipment such as a tablets, smart watches and mobile hotspots such as MiFi devices.

The authorised transactions include support for personal use of telecommunications hardware known as “customer premises equipment,” such as network switches, residential Internet gateways, set-top boxes, home networking adapters, and other personally-owned equipment that enables consumers to access network communications services and distribute them within their residence or small business. The authorisation is limited to models of Huawei personal consumer electronic devices and CPE that were available to the public on or before 16 May 2019.

Cybersecurity Research and Vulnerability Disclosure. Disclosure to Huawei and/or to its listed non-U.S. affiliates of information regarding security vulnerabilities in items owned, possessed or controlled by Huawei or any of its non-U.S. affiliates when related to the process of providing on-going security research critical to maintaining the integrity and reliability of existing and currently “fully operational network” and equipment.

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