Department of Commerce Gives Huawei Products 90-Day Reprieve
Wednesday, May 22, 2019 | Comments

The Bureau of Industry and Security (BIS) of the U.S. Department of Commerce (DOC) issued a temporary general license (TGL) amending the export administration regulations (EAR) to Huawei Technologies and its 68 non-U.S. affiliates, which were added to the Entity List May 16.

The 90-day license is effective May 20. Last week, the DOC announced it will add Huawei Technologies and its affiliates to its Entity List. The sale or transfer of American technology to a company or person on the Entity List requires a license issued by the department. The Commerce announcement followed an executive order from President Trump that bars U.S. communications firms from acquiring technology from foreign companies.

“The temporary general license grants operators 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,” said Secretary of Commerce Wilbur Ross. “In short, this license will allow operations to continue for existing Huawei mobile phone users and rural broadband networks.”

The temporary general license 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. Exporters will be required to maintain certifications, to be made available when requested by BIS, regarding their use of the TGL. The department will evaluate whether to extend the TGL beyond 90 days.

The department concluded that Huawei is engaged in activities that are contrary to U.S. national security or foreign policy interests, including alleged violations of the International Emergency Economic Powers Act (IEEPA), conspiracy to violate IEEPA by providing prohibited financial services to Iran, and obstruction of justice in connection with the investigation of those alleged violations of U.S. sanctions, among other illicit activities.

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