The Bureau of Industry and Security announced Nov. 18 that it will extend for another 90 days, through Feb. 16, 2020, a temporary general license authorizing specific, limited engagements in transactions involving the export, reexport, 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, reexports, or in-country transfers of items subject to the EAR to these entities will continue to require a license and license 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. 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, reexporters, 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 U.S., 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 ongoing 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.
ST&R’s export controls and sanctions team is positioned to support companies in their screening efforts and help them mitigate the risks of doing business in this ever-evolving geopolitical climate. Please contact export attorney Kristine Pirnia for more information.