On May 19, the US Commerce Department’s Bureau of Industry and Security (BIS) issued an interim final rule effective on May 15, 2020, amending the Export Administration Regulations’ (EAR) General Prohibition Three (the “foreign-produced direct product rule”) and Entity List to impose new controls on the reexport, export from abroad, and transfer (in-country) of certain foreign-produced semiconductor-related items when such items are the direct product of certain designated US technology or software and are destined to Huawei Technologies Co. Ltd. and 114 of its non-US affiliates designated on the BIS Entity List (collectively, “Huawei”). BIS is seeking comments on the interim final rule, which must be submitted on or before July 14, 2020.
Concurrently, effective May 15, BIS issued a final rule extending through August 13, 2020 the validity of the Temporary General License (“TGL”) authorizing certain transactions involving the export, reexport, and transfer of items subject to the EAR to Huawei. BIS noted in the final rule that it is in the process of reviewing submissions received in response to its request for comments on future extensions of the TGL, which may be submitted until April 22, 2020. Please see our prior blog posts on the initial designation of Huawei and sixty-eight of its non-US affiliates to the Entity List on May 16, 2019 here; on the issuance of the original TGL on May 20, 2019 here; on the designation of forty-six additional non-US affiliates of Huawei to the Entity List and on the TGL updates issued on August 19, 2019 here; on BIS’s publication of Huawei-related FAQs on September 9, 2019 here; on BIS’s previous extensions of the TGL here and here; and on BIS’s request for comments on future extensions here and here.
Please read the rest of this article by Nicholas F. Coward, Lise S. Test and Daniel Andreeff, on our Sanctions blog here.
