Alert May 22, 2019

Temporary General License Authorizes Limited Transactions with Huawei Otherwise Prohibited by Entity List Designation

As we reported on May 20, 2019, the Commerce Department placed Huawei Technologies Co. Ltd. and 68 non-U.S. Huawei affiliates (collectively, Huawei) on the Entity List, barring as of May 21, 2019 the export, re-export, or transfer to Huawei of items that are subject to the Export Administration Regulations (EAR). On May 22, 2019, the Commerce Department partially suspended the effect of the Entity List designation for Huawei by issuing a Temporary General License authorizing, through August 19, 2019, transactions that would be barred by the Entity List designation (but are otherwise consistent with the EAR) that are:

(1) necessary to maintain and support existing and currently fully operational networks and equipment, including software updates and patches, subject to legally binding contracts and agreements executed between Huawei and third parties or the 68 non-U.S. Huawei affiliates and third parties on or before May 16, 2019; or

(2) necessary to provide service and support, including software updates or patches to existing Huawei handsets.

The Temporary General License also authorizes disclosure to Huawei of information regarding security vulnerabilities in devices held by Huawei, when related to ongoing security research critical to the integrity and reliability of existing and fully operational networks and equipment, and certain engagement with Huawei necessary for the development of 5G standards as part of a duly recognized international standards body.

Reliance upon this Temporary General License is subject to conditions and requirements, including a written certification from the exporter stating how the proposed export, re-export, or transfer qualifies.

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.