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Alerts and Updates

U.S. Department of Commerce Extends General License for Certain Huawei Transactions and Additions to the Entity List

August 22, 2019

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It is clear that the actions pertaining to Huawei are implicated in the overall negotiations between the United States and China.

The U.S. Bureau of Industry and Security (BIS) has announced that, effective August 19, 2019, the general license previously issued by BIS to cover certain transactions with Huawei Technologies Co. Ltd and 68 of its non-U.S. affiliates that were added to the BIS Entity List on May 16, 2019, will be extended through November 18, 2019. Negotiations with China over complex trade issues are ongoing, and although the Huawei matter is separate from the various duties on imports imposed by the U.S. and the retaliation taken against U.S. exports by the Chinese government, it is clear that the actions pertaining to Huawei are implicated in the overall negotiations between the United States and China. Please see the previous Alerts listed below.[1]

In addition to the foregoing, on August 21, 2019, in Federal Register Vol. 84, No. 162, pages 43493 through 43501, BIS added 46 additional non-U.S. affiliates to the Entity List. Nineteen of these entities have been placed under the existing listing for Huawei. The other 27 are being added under new separate entries.

In addition, certain other modifications have been made to the Huawei-related designations.

It is also to be noted that the scope of the Entity List is subject to 15 CFR 744.11 of the Export Administration Regulations (EAR), which in the absence of the general license would require a license to the extent specified in the Entity List to export, reexport or transfer (in country) any item subject to the EAR to an entity identified on the Entity List. For purposes of “subject to the EAR,” please refer to the scope of 15 CFR 734.3. By the terms of that provision, in addition of U.S.-made commodities, certain foreign-made commodities may be implicated in the actions taken against Huawei.  

For More Information

If you have any questions about this Alert, please contact Brian S. Goldstein, any member of the International Practice Group or the attorney in the firm with whom you are regularly in contact.

[1] Related Alerts

 

Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.