The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) announced the issuance of yet another extension of the temporary general license (TGL) allowing companies to continue business with Huawei Technologies Co., Ltd. and its 114 subsidiary and affiliate companies that are currently named on BIS’s Entity List.  The TGL was scheduled to expire on April 1, 2020, but has been extended to May 15, 2020, according to a Federal Register notice published by BIS on March 12, 2020.  Anyone who is seeking to rely on the TGL should be aware that it features certain eligibility limitations and also imposes recordkeeping obligations and requires the collection of certain end-user certifications.

Huawei, a Chinese telecommunications firm, was added to BIS’s Entity List in May 2019 along with 68 of its subsidiary and affiliate companies.  Then, on August 19, 2019, BIS added 46 additional Huawei subsidiary and affiliate companies to its Entity List.  The designations prohibit the export, re-export, or transfer of items subject to the Export Administration Regulations (EAR) to Huawei or its designated affiliates identified on the Entity List.

BIS is also seeking comments on the necessity and scope of possible future extensions of the TGL.  BIS will accept those comments through March 25, 2020.  The TGL was originally scheduled to expire on August 19, 2019 but BIS has since approved several extensions (including the most recent extension described above).  However, BIS’s comment solicitation suggests that this most recent extension may be the last or that any future extensions might be subject to additional limitations.

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.