US expands Huawei affiliates list to 46, narrows exemptions

The Bureau of Industry and Security (BIS) of the US Department of Commerce has identified 46 additional Huawei Technologies Co, Ltd affiliates that require inclusion on the `entity list’, as part of a routine review of all entity listings. Since May, the department has added over one hundred persons or organisations to the entity list connected to Huawei. 

The commerce department said the new restrictions on these affiliates are effective today.
BIS has also announced that it will extend the Temporary General Licence (TGL) authorising specific, limited engagements in transactions involving the export, re-export, and transfer of items – under the Export Administration Regulations (EAR) – to Huawei and its non-US affiliates which are subject to the entity list. 
“The continuation of the TGL is intended to afford consumers across America the necessary time to transition away from Huawei equipment, given the persistent national security and foreign policy threat. This licence will be effective on 19 August 2019 and last an additional 90 days,” the commerce department said.
“As we continue to urge consumers to transition away from Huawei’s products, we recognize that more time is necessary to prevent any disruption,” said Secretary of Commerce Wilbur Ross. “Simultaneously, we are constantly working at the Department to ensure that any exports to Huawei and its affiliates do not violate the terms of the Entity Listing or Temporary General License.”
Outside of the scope of the TGL, any exports, re-exports, or in-country transfers of items subject to the EAR will continue to require a licence granted after a review by BIS under a presumption of denial.
Huawei was added to the entity list after the department concluded that the company is engaged in activities that are contrary to US national security or foreign policy interests, 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 US sanctions, among other illicit activities.
The Bureau of Industry and Security’s mission is to advance US national security and foreign policy objectives by ensuring an effective export control and treaty compliance system and promoting continued US strategic technology leadership. BIS is committed to preventing US-origin items from supporting Weapons of Mass Destruction (WMD) projects, terrorism, or destabilizing military modernization programmes.