U.S. Government Gives Huawei 90 Extra Days to Buy American Parts; Adds More Foreign Affiliates to Banned List

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The United States Bureau of Industry and Security (BIS) has released a notice announcing that, effective August 19, 2019, it has amended the Export Administration Regulations (EAR) to revise a Temporary General License. The rule change will be formally published in the Federal Register on August 21, 2019. On May 16, 2019, the federal government added Huawei Technologies Co., Ltd. (Huawei) and 68 of its non-U.S. affiliates to its “Entity List.” Several days later, Huawei and its affiliates were formally extended a Temporary General License, through August 19, 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.” The U.S. government has decided to extend this Temporary General License until November 18, 2019. Wilbur Ross, the U.S. Secretary of Commerce, told reporters that the 90 day extension was need to “prevent disruption” to rural telecommunications companies and that some U.S. carriers needed “a little more time to wean themselves off” Huawei equipment that requires U.S. components. In another notice also effective August 19, 2019 and to be published in the Federal Register on August 21, 2019, BIS has added 46 additional new companies to the Entity List which it believes have commercial ties to Huawei.

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