The U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) announced on Monday, November 18, 2019 the issuance of a new 90-day extension which will allow U.S. companies to continue doing business with Huawei Technologies Co. Ltd. (“Huawei”) under the Temporary General License (“TGL”). BIS did not make any changes to the TGL other than to extend the period until February 16, 2020. Secretary of Commerce Wilbur Ross indicated in a statement that “[t]he Temporary General License extension will allow carriers to continue to service customers in some of the most remote areas of the United States who would otherwise be left in the dark . . . . [However,] the Department will continue to rigorously monitor sensitive technology exports to ensure that our innovations are not harnessed by those who would threaten our national security.”
As previously reported, Huawei, a Chinese telecommunications giant deemed a national security threat by U.S. policymakers, was added to BIS’s Entity List in May of 2019. This designation prohibits anyone, anywhere in the world from exporting, re-exporting or transferring “items subject to the EAR” to Huawei or its designated affiliated companies.
Husch Blackwell’s Export Controls & Economic Sanctions Team continues to monitor the developing Huawei situation. Please contact Cortney Morgan or Grant Leach should you have any questions concerning transactions with Huawei and application of the BIS Entity list restrictions.