Again U.S hits hard at Huawei, targets 46 affiliates

WASHINGTON, U.S – The Bureau of Industry(BIS) and Department of Commerce today went for the jugular of Huwei, adding dozens of its affiliates, at least 46 as part of a routine review of all Entity Listings with effect from today.

Since May, the Department has added over 100 persons or organizations to the Entity List in connection to Huawei.

BIS has also announced that it will extend the Temporary General License (TGL) authorizing specific, limited engagements in transactions involving the export, reexport, and transfer of items – under the Export Administration Regulations (EAR) – to Huawei and its non-U.S. affiliates which are subject to the Entity List.

The continuation of the TGL is intended to afford consumers across America the necessary time to move away from Huawei equipment, given the persistent national security and foreign policy threat, the BIS said.

“This license will be effective on August 19, 2019 and last an additional 90 days. As we continue to urge consumers to transition away from Huawei’s products, we recognize that more time is necessary to prevent any disruption,” said Secretary of Commerce Wilbur Ross.

“Simultaneously, we are constantly working at the Department to ensure that any exports to Huawei and its affiliates do not violate the terms of the Entity Listing or Temporary General License.”

Outside of the scope of the TGL, any exports, reexports, or in-country transfers of items subject to the EAR will continue to require a license granted after a review by BIS under a presumption of denial.

Huawei was added to the Entity List after the Department concluded that the company 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.

The Bureau of Industry and Security’s mission is to advance U.S. national security and foreign policy objectives by ensuring an effective export control and treaty compliance system and promoting continued U.S. strategic technology leadership. BIS is committed to preventing U.S.-origin items from supporting Weapons of Mass Destruction (WMD) projects, terrorism, or destabilizing military modernization programs.