Huawei gets 90-day reprieve from US ban
21 May 2019
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The Bureau of Industry and Security (BIS) of the US Department of Commerce on Monday announced that it would issue a Temporary General Licence (TGL) amending the Export Administration Regulations (EAR) to authorise specific, limited transactions by Huawei Technologies Co Ltd and its 68 non-US affiliates, involving the export, reexport, and transfer of items that were added to the Bureau’s Entity List on 16 May 2019.
This will, however, be subject to the EAR and the temporary general licence will be effective for 90 days beginning 20 May 2019, the commerce department said.
“The Temporary General Licence grants operators time to make other arrangements and the commerce 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 licence 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. With the exception of the transactions explicitly authorised by the TGL, any exports, reexports, or in country transfers of items subject to the EAR will continue to require a special licence granted after a review by BIS under a presumption of denial.
The Commerce Department will evaluate whether to extend the TGL beyond 90 days.
Huawei was added to the Entity List after the Department concluded that the company is engaged in activities that are contrary to US 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 US sanctions, among other illicit activities.
The Bureau of Industry and Security’s mission is to advance US national security and foreign policy objectives by ensuring an effective export control and treaty compliance system and promoting continued US strategic technology leadership, the commerce department added.
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