While not published until the 21st, the entity list had an effective date of 5/16/2019. Prior results do not guarantee a similar outcome. On December 22, 2020, the US Commerce Department’s Bureau of Industry and Security (“BIS”) published a final rule (“Final Rule”) in the Federal Register adding 77 entities and individuals to the Entity List, including several prominent Chinese multinationals (together, the “Designees”). 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 … BIS also issued another final rule clarifying that prohibitions on Entity List entities apply regardless of the role the entity plays in the transaction.. 1. On August 17, BIS added 38 non-US affiliates of Huawei to the Entity List, stating that the affiliates have been … 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”. BIS previously added Huawei and 114 of its non-US affiliates to the Entity List.7 The August 17 Huawei Rule also makes minor revisions to existing entries on the Entity List for three Huawei entities in China and one in Brazil. In the final rule issued yesterday, BIS explained that it was designating to the Entity List an additional 46 Huawei entities that it views as posing a significant risk of acting on Huawei’s behalf to engage in activities contrary to U.S. national security or foreign policy interests. The Federal Register notice filed by the Department of Commerce’s Bureau of Industry and Security (BIS) to be published on Tuesday, May 21, 2019, indicates that the U.S. government has added Huawei and 68 of its non-U.S. affiliates to the Entity List because BIS has found that “there is reasonable cause to believe that Huawei Technologies Co., Ltd. (Huawei) … Addition of Entities to the Entity List. Federal Register notice of the interim final rule is available here. Shipments of items removed from eligibility for a license exception or from export, reexport, or transfer (in-country) without a license as a result of the Entity List additions that were en route aboard a carrier to a port of export, reexport, or transfer (in-country) on August 17, 2020 pursuant to actual orders for export or reexport to a foreign destination, may proceed to that destination under the previous eligibility for a license exception or export, reexport, or transfer without a license. As with the Huawei entities added to the Entity List effective May 16, 2019, BIS imposes for each of the entities added in this final rule a license requirement for all items subject to the EAR, unless the transaction is authorized by the Savings Clause in this final rule, and a license review policy of a presumption of denial. BIS took three actions in the August 17 Huawei Rule: (1) adding 38 Huawei entities to the Entity List; (2) replacing the Huawei TGL with a narrow, permanent authorization; and (3) expanding the Huawei-specific DPR. 14 Amendments to General Prohibition Three (Foreign-Produced Direct Product Rule) and the Entity List, 85 Fed. 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. As per the sources, the US government is aiming to add around 80 additional companies and affiliates to the ‘Entity List,’ which mostly comprises of China based firms. ", 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. Official websites use .gov This "limited permanent authorization" applies the same criteria as paragraph (c)(3) (Cybersecurity research and vulnerability disclosure) of the expired TGL. BIS added another 46 non-U.S. affiliates of Huawei in 25 countries to the Entity List. Amendments to the Direct Product Rule. The Bureau of Industry and Security (BIS) of the U.S. Department of Commerce has added Huawei Technologies Co. Ltd. and its affiliates to the Bureau’s Entity List, a move Washington warned was coming on Wednesday. In the August 17 action, BIS revised the Entity List's Footnote 1, significantly expanding the scope of non-US made items (foreign-produced items) subject to General Prohibition 3 (the Direct Product Rule, at EAR section 736.2(b)(3)(vi)) for certain Entity List parties marked with a Footnote 1 designation in the Entity List's license requirement column (a Footnote 1 entity). BIS designated Huawei and 68 of its non-U.S. affiliates on the Entity List in May 2019. This TGL can be used for trade with Huawei (and/or listed, affiliated companies) by businesses in Europe and … For all listed Huawei entities, a license is not required for technology subject to the EAR that is designated as EAR99, or controlled on the Commerce Control List (CCL) for anti-terrorism reasons only, when released to members of a "standards organization" for the purpose of contributing to the revision or development of a "standard.". Reg. Entity List ... New FAQs about the Huawei FPDP Rule. According to Chinese media reports, a total of 260 Chinese entities are on the Entity List. The clarification of what transactions are covered by Entity List licensing requirements in the August 17 Entity List Rule affects export, reexport, and transfer transactions to which any entity listed on the Entity List is a party. On the same day, BIS also published FAQs … BIS added 38 additional non-US affiliates of Huawei to the Entity List. ... (the “Huawei FPDP Rule”). 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. "3 The State Department also commented that the amendments to the DPR are intended to "prevent Huawei from circumventing US law through alternative chip production and provision of off-the-shelf (OTS) chips produced with tools acquired from the United States. 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." 10 Huawei Temporary General License Extension Frequently Asked Questions (FAQs) (May 18, 2020), available here. “Despite the Entity List actions the Department took last year, Huawei and its foreign affiliates have stepped-up efforts to undermine these national security-based restrictions through an indigenization effort. BIS Publishes Final "Direct Product" Rule for Huawei and Entity List Compliance Obligation Clarifications. Background and Purpose of the Entity List. As stated in Section 744.11(a), license exceptions may not be used unless authorized in an entry on the Entity List. Some aspects of the rule are subject to a “savings clause” or delay in application of the new restrictions. Effective May 16, 2019, the Bureau of Industry and Security (BIS) amended the Export Administration Regulations (EAR) by adding Huawei Technologies Co., Ltd. (Huawei) to the Entity List. 9 Temporary General License Final Rule, 84 Fed. Secure .gov websites use HTTPS "A 'fully operational network' refers to a 'third party' network providing services to the 'third party's' customers. Addition of 38 Non-US Huawei Affiliates to Entity List. 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 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. Burma 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. BIS first published the Entity List in February 1997 as part of its efforts to inform the public of entities who have engaged in activities that could result in an increased risk of the diversion of exported, reexported and transferred (in … BIS also extended the temporary general license (TGL) that authorizes certain activities subject to the EAR involving Huawei and its affiliates through August 13, 2020. Two savings clauses apply to items caught by the new Huawei-specific DPR. BIS took three actions in the August 17 Huawei Rule: (1) adding 38 Huawei entities to the Entity List; (2) replacing the Huawei TGL with a narrow, permanent authorization; and (3) expanding the Huawei-specific DPR. (See our previous post here).). In doing so, BIS decided to preserve the TGL’s cybersecurity research and vulnerability disclosure authorization, and implemented that decision by adding a new footnote 2 to the Entity List, and revising the Huawei-related Entity List entries to refer to that new footnote. Reg. Entity List … “Huawei is … Huawei was added to the BIS Entity List in May 2019. At present, the only Footnote 1 entities are Huawei and its listed affiliates. 11 Release of "Technology" to Certain Entities on the Entity List in the Context of Standards Organizations, 85 Fed. 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