Commerce Department Extends Huawei Reprieve, Adds 46 Affiliates

Cooley Alert
August 21, 2019

On August 21, the Commerce Department's Bureau of Industry and Security (BIS) published an extension to the Huawei temporary general license from May, extending it through November 18 and adding 46 non-US affiliates of Huawei to the Entity List. See the updated temporary general license and new designations.

All items subject to the US Export Administration Regulations (EAR) will still require a license from BIS for export to the designated Huawei entities, including the newly designated entities. The new designations impact Huawei affiliates in 25 different locations: Argentina, Australia, Bahrain, Belarus, Belgium, Brazil, People's Republic of China, Costa Rica, Cuba, Denmark, France, India, Indonesia, Italy, Kazakhstan, Mexico, New Zealand, Panama, Portugal, Romania, Russia, South Africa, Sweden, Thailand and the United Kingdom. Note that the temporary general license does not authorize any activities or transactions with Country Group E countries or nationals (i.e., Cuba, Iran, North Korea, Sudan and Syria). Further, applications for licenses continue to be subject to a "presumption of denial." All entities are included in the Federal Register notices. Below is a table of the newly added entities for ease of reference.

The extended temporary general license also includes textual changes to clarify the scope of the license, which include the following:

  • Clarifying the scope for authorized transactions by defining certain terms in the temporary general license (e.g., "third party" and "fully operational network") and replacing other more general terminology with more specific language (e.g., replacing "handsets" with "personal consumer electronic devices")
  • Authorizing certain software for bug fixes, patches or other updates of software necessary to provide service and support to existing software versions and equipment, provided that the software does not enhance the functional capabilities of the original software or equipment
  • Removes the "Engagement as Necessary for the Development of 5G Standards as a Duly Recognized Standards Body" (paragraph (c)(4) from the May 2019 general license), determining that existing EAR provisions suffice to address Entity List-based license requirements
  • Adding requirements related to certification statements, including:
    • Changing which party is required to create the certification statement, now requiring that the exporter, re-exporter or transferor obtain a certification statement and any additional support documentation from the listed Huawei entity prior to exporting, re-exporting or transferring any item under the temporary general license
    • Adding a recordkeeping requirement for both the exporter, re-exporter or transferor and the listed Huawei entity that each must retain the certification statement and any additional support documentation
    • Enumerating general requirements for the certification statement, required information in the statement, and logs to be retained

BIS states in its notice that it will post new FAQs to clarify the scope of the temporary general license. The bureau also posted an advisory opinion related to standards development activities to address common questions, including examples of prohibited activities.

We continue to monitor developments regarding the temporary general license and will keep you updated. In the interim, please let us know if you would like to schedule a call to discuss the potential impact of the temporary general license and additional entity list designations on your business.

Newly designated non-US affiliates of Huawei added to the BIS entity list

27 new entries to the entity list (by country)
Argentina Huawei Tech Investment Co., Ltd. Argentina
Australia Huawei Technologies (Australia) Pty Ltd.
Bahrain Huawei Technologies Bahrain
Belarus Bel Huawei Technologies LLC, including one alias (BellHuawei Technologies LLC)
China Hui Tong Business Ltd.
Shanghai HiSilicon Technologies Co., Ltd.
Shenzhen HiSilicon Technologies Co., Electrical Research Center
Costa Rica Huawei Technologies Costa Rica SA, including one alias (Huawei Technologies Costa Rica Sociedad Anonima)
Cuba Huawei Cuba
Denmark Huawei Denmark
France Huawei France, including one alias (Huawei Technologies France SASU)
India Huawei Technologies India Private Limited, including one alias (Huawei Technologies India Pvt., Ltd.)
Indonesia Huawei Tech Investment, PT
Italy Huawei Italia; and Huawei Milan Research Institute
Kazakhstan Huawei Technologies LLC Kazakhstan
Mexico Huawei Technologies De Mexico S.A.
New Zealand Huawei Technologies (New Zealand) Company Limited
Panama Huawei Technologies Cr Panama S.A.
Portugal Huawei Technology Portugal
Romania Huawei Technologies Romania Co., Ltd.
Russia Huawei Russia
South Africa Huawei Technologies South Africa Pty Ltd.
Sweden Huawei Sweden
Thailand Huawei Technologies (Thailand) Co.
United Kingdom Centre for Integrated Photonics Ltd.; and Huawei Technologies (UK) Co., Ltd., including one alias (Huawei Software Technologies Co., Ltd.)
19 additional entities adding to the existing entry for Huawei Technologies Co., Ltd. (Huawei)
Beijing Huawei Longshine Information Technology Co., Ltd.
Hangzhou New Longshine Information Technology Co., Ltd.
Hangzhou Huawei Communication Technology Co., Ltd.
Hangzhou Huawei Enterprises
Huawei Marine Networks Co., Ltd.
Huawei Mobile Technology Ltd.
Huawei Tech. Investment Co.
Huawei Technology Co., Ltd. Chengdu Research Institute
Huawei Technology Co., Ltd. Hangzhou Research Institute
Huawei Technologies Co., Ltd. Beijing Research Institute
Huawei Technologies Co., Ltd. Material Characterization Lab
Huawei Technologies Co., Ltd. Xi'an Research Institute
Huawei Terminal (Shenzhen) Co., Ltd.
Nanchang Huawei Communication Technology
Ningbo Huawei Computer & Net Co., Ltd.
Shenzhen Huawei Anjiexin Electricity Co., Ltd.
Shenzhen Huawei New Technology Co., Ltd.
Shenzhen Huawei Technology Service
Shenzhen Huawei Technologies Software

This content is provided for general informational purposes only, and your access or use of the content does not create an attorney-client relationship between you or your organization and Cooley LLP, Cooley (UK) LLP, or any other affiliated practice or entity (collectively referred to as “Cooley”). By accessing this content, you agree that the information provided does not constitute legal or other professional advice. This content is not a substitute for obtaining legal advice from a qualified attorney licensed in your jurisdiction and you should not act or refrain from acting based on this content. This content may be changed without notice. It is not guaranteed to be complete, correct or up to date, and it may not reflect the most current legal developments. Prior results do not guarantee a similar outcome. Do not send any confidential information to Cooley, as we do not have any duty to keep any information you provide to us confidential. This content may be considered Attorney Advertising and is subject to our legal notices.