This TGL can be used for trade with Huawei (and/or listed, affiliated companies) by businesses in Europe and … 14 Amendments to General Prohibition Three (Foreign-Produced Direct Product Rule) and the Entity List, 85 Fed. 744. 13 The EAR defines "Knowledge of a circumstance "as including "not only positive knowledge that the circumstance exists or is substantially certain to occur, but also an awareness of a high probability of its existence or future occurrence. BIS added another 46 non-U.S. affiliates of Huawei in 25 countries to the Entity List. If the detailed scenarios apply, exports to Huawei by companies in Europe and Asia are subject to license requirements. (a) The foreign-produced item is a direct product of "technology" or "software" subject to the EAR that is specified in Export Control Classification Number (ECCN) 3D001, 3D991, 3E001, 3E002, 3E003, 3E991, 4D001, 4D993, 4D994, 4E001, 4E992, 4E993, 5D001, 5D991, 5E001, or 5E991; or, (b) The foreign-produced item is produced by any plant or major component, (1) The foreign-produced item will be incorporated into, any "part," "component," or "equipment" produced, purchased, or ordered by a Footnote 1 entity; or, (2) The foreign-produced item will be used in the "production" or "development" of any "part," "component," or "equipment" produced, purchased, or ordered by a Footnote 1 entity; or, (3) A Footnote 1 entity is a party to any transaction involving the foreign-produced item, e.g., as a "purchaser," "intermediate consignee," "ultimate consignee," or "end-user. Both rules are effective immediately. This publication is protected by copyright. Amendments to the Direct Product Rule. Any such items not exported from abroad, reexported, or transferred (in-country) before midnight (local time) on September 14, 2020, will be subject to § 736.2(b)(3)(vi) of the EAR and require a license in accordance with [the August 17 Huawei Rule] and other provisions of the EAR."16. BIS designated Huawei and its affiliates on the Entity List in May 2019. Huawei was added to the US Bureau of Industry and Security (BIS) Entity List on 15 May 2019; that list restricts the transfer of technology US technology to Huawei, with the BIS … Such awareness is inferred from evidence of the conscious disregard of facts known to a person and is also inferred from a person's willful avoidance of facts." An official website of the United States government. ... (the “Huawei FPDP Rule”). Photo by Alex Fu on Pexels.com On May 21, 2019, the Federal Register published the Bureau of Industry and Security (BIS) “Addition of Entities to the Entity List”. The Bureau of Industry and Security (BIS) of the U.S. Commerce Department today issued for publication in the Federal Register two final rules (1) identifying 46 additional Huawei Technologies Co., Ltd. affiliates that require inclusion on the “Entity List” and (2) extending a “temporary general license” authorizing specific, limited engagements in transactions involving … Both rules apply to Huawei and its affiliates. Since 2019 when BIS added Huawei Technologies and 114 of its overseas-related affiliates to the Entity List, companies wishing to export U.S. items were required to obtain a license. 8 See Footnote 2 to Supplement 4 of 15 C.F.R. ", Produced or developed by a Footnote 1 entity and was the direct product of technology or software subject to the EAR and classified under the ECCNs listed above; or was. On the same day, BIS also published FAQs … This is a list of certain foreign persons (including companies and individuals) that are subject to license requirements for export, re-export or transfer of specific items. Soon after the executive order - "Securing the Information and Communications Technology and Services Supply Chain" - was signed, the Bureau of Industry and Security (BIS) of the Department of Commerce announced that it will be adding Huawei Technologies Co. Ltd and its affiliates to its Entity List. Bolivia (1) Huawei Technologies (Bolivia) S.R.L., La Paz, Bolivia. On August 17, BIS added 38 non-US affiliates of Huawei to the Entity List, stating that the affiliates have been determined to "present a significant risk of acting on Huawei's behalf to engage in activities determined to be contrary to the national security or foreign policy interests of the United States." [1] In May 2019, BIS added Huawei Technologies Co., Ltd. (Huawei) and certain non-U.S. affiliates to the Entity List (with additional affiliates added in August 2019) on the basis of information that provided a reasonable basis to conclude that Huawei is engaged in activities that are contrary to U.S. national security or foreign policy interests. Update, 9:45AM ET: Huawei has since issued a statement, denouncing the move to add the company to the Commerce Department’s Entity list. 51596 (August 17, 2020), available here. As a result of these Entity List designations, no supplier – US or non-US, wherever located – may export, reexport, or transfer (in country) any commodity, software, or technology (“items”) subject to the Export Administration Regulations (“EAR”) to a Designee or where a Designee is a purchaser, intermediate consignee, ultimate consignee or end-user, unless licensed by BIS. This publication is provided for your convenience and does not constitute legal advice. (ii)       Items, such as chipsets, when produced from the design specifications of Huawei or an affiliate on the Entity List (e.g., HiSilicon), that are the direct product of certain CCL semiconductor manufacturing equipment located outside the United States. This information included the activities alleged in the Department of Justice’s public Superseding Indictment of Huawei, 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 U.S. sanctions. The rule, issued by the U.S. Department of Commerce, Bureau of Industry and Security (BIS) adds Huawei Technologies Co., Ltd. (Huawei) and 68 of its affiliates to the Entity List. US - BIS adds Chinese multinationals to the Entity List and publishes FAQs about the Huawei FPDP rule Blog Global Compliance News. 11 Release of "Technology" to Certain Entities on the Entity List in the Context of Standards Organizations, 85 Fed. This rule by BIS amends the Export Administration Regulations (EAR) by adding Huawei Technologies Co., LTD and its affiliates to the “Entity List”. That designation effectively prohibits the export, reexport, and retransfer of all U.S.-origin “items subject to the Export Administration Regulations (EAR)” to those entities. 7 On May 16, 2019, BIS added Huawei and 68 of its non-US affiliates to the Entity List. The key impact of the August 17 Entity List Rule is to remove any ambiguity about the scope of transactions covered by the Entity List licensing requirement. 744.11(a); "Purchaser," "intermediate consignee," "ultimate consignee," and "end-user" are defined terms in section 748.5(c)-(f) and part 772 of the EAR. Official websites use .gov Entities on the Entity List. BIS added another 46 non-U.S. affiliates of Huawei in 25 countries to the Entity List. Background and Purpose of the Entity List. Effective 16 May 2019, the United States (US) Department of Commerce, Bureau of Industry and Security (BIS) issued a Final Rule announcing the addition of Huawei Technologies Co Ltd. (Huawei) and 68 of its non-US affiliates to the Entity List for activities contrary to the security interests of the US.1 Export or re-export transactions subject to the jurisdiction of the US with Huawei … Please see our prior blog post on that development here. Part 744). The Entity List is maintained by BIS and identifies individuals and entities believed to be involved, or to pose a significant risk of being or becoming involved, in activities contrary to the national security or foreign policy interests of the United States. The Bureau of Industry and Security (BIS) today announced plans to protect U.S. national security by restricting Huawei’s ability to use U.S. technology and software to design and manufacture its semiconductors abroad. 3 Commerce Department Further Restricts Huawei Access to US Technology and Adds Another 38 Affiliates to the Entity List (August 17, 2020), available here. The U.S. Government has determined that there is reasonable cause to believe that Huawei has been involved in activities contrary to the national security or foreign policy interests of the … 15 Addition of Huawei Non-US Affiliates to the Entity List, the Removal of Temporary General License, and Amendments to General Prohibition Three (Foreign-Produced Direct Product Rule), at page 29851, available here. Office of Public Affairs. The U.S. Commerce Department has added 46 additional overseas affiliates of Chinese telecommunications technology manufacturer Huawei Technologies Co. Ltd. to the restrictive Entity List. 1 Clarification of Entity List Requirements for Listed Entities When Acting as a Party to the Transaction under the Export Administration Regulations (EAR), Final Rule, 85 Fed. ) or https:// means you’ve safely connected to the .gov website. Currently, only Huawei and its named affiliates are included in FN1 (FN1 Entity) and are subject to the restrictions based upon the expanded jurisdictional scope of the EAR set out in this new rule. The Entity List (Supplement No. On August 17, BIS added 38 non-US affiliates of Huawei to the Entity List, stating that the affiliates have been … What is the “Entity List”? BIS states that the August 17 Entity List Rule aligns the treatment of transactions involving entities on the Entity List with the treatment of transactions involving persons on a separate BIS list, the Unverified List.6. `` a 'fully operational network ' refers to a “ savings clause ” or delay in application of the are! 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