WASHINGTON – The Bureau of Industry and Security (BIS) of the U.S. Department of Commerce announced it was extending a Temporary General License (TGL) for Huawei Technologies Co. Ltd. and its non-U.S. affiliates on the Entity List for an additional 45 days. The TGL was implemented as a measure to prevent interruption of existing network communication systems in rural U.S. regions and permit global network security measures. The TGL is intended to allow time for companies and persons to shift to alternative sources of equipment, software and technology (i.e., those not produced by Huawei or one of its listed affiliates).
The 45-day extension is necessary to allow existing telecommunication providers—particularly those in rural U.S. communities—the ability to continue to temporarily and securely operate existing networks while they identify alternatives to Huawei for future operation. American technology should not be acquired by Huawei and its foreign affiliates and used in a manner that undermines U.S. national security or foreign policy interests. During the next 45 days, the Department intends to determine the need for any future extensions of the TGL.
The TGL amends the Export Administration Regulations (EAR) to authorize specific, limited engagement in transactions involving the export, reexport, and transfer of items subject to the EAR to Huawei Technologies Co. Ltd. and non-U.S. affiliates on the Entity List until April 1, 2020.
Huawei was added to the Entity List after the U.S. government concluded the company poses a significant risk of involvement in activities contrary to the national security or foreign policy interests of the United States, including, by engaging, among other things, in 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, among other illicit activities, including charges of conspiracy to commit racketeering activities announced by the Department of Justice today.