August 20, 2019

Huawei Temporary General License Modified, Extended 90 Days, and 46 Additional Huawei Entities Designated

On May 20, 2019, the Commerce Department’s Bureau of Industry and Security (BIS) placed Huawei Technologies Co. Ltd. and 68 non-U.S. Huawei affiliates (collectively, “Huawei”) on the Entity List, which barred the export, re-export, or transfer to Huawei of items that are subject to the Export Administration Regulations. Two days later, BIS partially suspended that designation by issuing a Temporary General License (TGL) authorizing, through August 19, 2019, certain transactions otherwise barred by the Entity List designation.

On August 19, 2019, BIS announced a 90-day extension of the TGL, through November 18, 2019. At the same time, BIS expanded the Entity List designation to include another 46 Huawei non-U.S. affiliates (the list is available here) while narrowing the TGL’s scope and imposing new requirements.

For example, equipment exported to Huawei under the TGL must now be “directly related to the support and maintenance” of an existing and currently fully operational network, while transactions authorized under the TGL cannot “enhance the functional capacities” of original software or equipment. As another example, the exporter must obtain a certification statement from the relevant Huawei entity prior to relying on the TGL. Parties intending to rely on the TGL should carefully review these and other substantive changes, available here.

If you would like additional information about the issues addressed in this client alert, please contact Rich Matheny or Jacob Osborn, or the Goodwin attorney with whom you typically consult.