Today, the BIS has amended the Export Administration Regulations (EAR) to revise a temporary general license regarding the Huawei and its non-U.S. affiliates.
Background: Huawei Technologies Co., Ltd. (Huawei) and sixty-eight of its non-U.S. affiliates were added to the Entity List, this essentially brought a licensing requirement under the EAR regarding the export, reexport, or transfer (in-country) of any item subject to the EAR to any of these Huawei entities. This licensing requirement applied in addition to any other license requirement, if any, applicable under the EAR to the transaction in question.
Temporary General License: On May 22, 2019, BIS published a temporary general license, effective May 20, 2019, that modified the effect of the listing in order to temporarily authorize engagement in certain transactions, involving the export, reexport, or transfer (in-country) of items subject to the EAR to the 69 listed Huawei entities.
Extension of the Temporary License: The U.S. Government has decided to extend the temporary general license through November 18, 2019. In order to implement this decision, BIS’ final rule revises the temporary general license to remove the expiration date of August 19, 2019, and substitutes the date of November 18, 2019.
This final rule also makes certain clarifying changes to the authorized transactions under the temporary general license to improve public understanding.
In addition, this BIS final rule revised the temporary general license by changing which party to the transaction is required to create the certification statement by requiring that the exporter, reexporter, or transferor obtain a certification statement from the pertinent Huawei listed entity prior to using the temporary general license.
Also, with the this final rule, BIS has also published Addition of Certain Entities to the Entity List and Revision of Entries on the Entity List. This final rule, as a conforming change for the addition of these other non-U.S. affiliates of Huawei to the Entity List, revises the temporary general license to include those additional Huawei affiliates within the scope of the temporary general license.
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