U.S. Commerce Department Loosens Restrictions on Huawei

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Less than a week after the U.S. Department of Commerce added Huawei Technologies Co. Ltd. and its affiliates to the department’s Bureau of Industry and Security (BIS) Entity List, essentially “blacklisting” the China-based conglomerate and restricting its ability to import U.S.-made technology and products, the Commerce Department announced that it would issue a Temporary General License (TGL) amending the Export Administration Regulations (EAR). This temporary 90-day license, which became effective on May 20, 2019, will authorize specific, limited engagement in transactions involving the export, re-export, and transfer of items (subject to EAR) to Huawei and its sixty-eight non-U.S. affiliates. According to the Commerce Department announcement, the TGL “authorizes 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.” However, with “the exception of the transactions explicitly authorized by the TGL, any exports, reexports, or in country transfers of items subject to the EAR will continue to require a special license granted after a review by BIS under a presumption of denial.” The Commerce Department left the door open as to whether it will extend the TGL beyond 90 days.

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