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Limited Exports to Huawei and Affiliates Allowed for 90 Days

Wednesday, May 22, 2019
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has announced a temporary general license authorizing specific, limited engagement in transactions involving the export, reexport, and transfer of items subject to the Export Administration Regulations to Huawei Technologies Co. Ltd. and 68 of its non-U.S. affiliates. This license will be effective May 20 through Aug. 19 and BIS will evaluate whether an extension beyond this period is needed.

Huawei and its affiliates were added to BIS’ Entity List as of May 16. This action imposed a license requirement for exports of all items subject to the EAR to these entities and a license review policy of presumption of denial. In addition, no license exceptions were available for exports, reexports, or transfers (in-country) to these entities.

However, the new TGL restores for 90 days the licensing and other requirements in the EAR as of May 15 pertaining to limited types of exports, reexports, and transfers (in-country) of items subject to the EAR to these entities. According to Department of Commerce 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. Commerce Secretary Wilbur Ross added that the TGL “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 TGL will be required to maintain certifications, which will have to be made available when requested by BIS, regarding their use of the license.

For more information on these and other export restrictions, please contact export compliance attorney Kristine Pirnia.

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