Department of Commerce Adds Dozens of New Huawei Affiliates to the Entity List and Maintains Narrow Exemptions through the Temporary General License

The Bureau of Industry and Security (BIS) of the US Department of Commerce identified 46 additional Huawei affiliates that require inclusion on the Entity List, as part of a routine review of all Entity Listings. Since May, the Dept has added over one hundred persons or organizations to the Entity List in connection to Huawei. The new restrictions on these affiliates are effective Aug 19th. BIS has also announced that it will extend the Temporary General License (TGL) authorizing specific, limited engagements in transactions involving the export, reexport, and transfer of items – under the Export Administration Regulations (EAR) – to Huawei and its non-US affiliates which are subject to the Entity List. The continuation of the TGL is intended to afford consumers across America the necessary time to transition away from Huawei equipment, given the persistent national security and foreign policy threat. This license will be effective on Aug 19 and last an additional 90 days. Outside of the scope of the TGL, any exports, reexports, or in-country transfers of items subject to the EAR will continue to require a license granted after a review by BIS under a presumption of denial.