The U.S. Department of Commerce’s Bureau of Industry & Security (BIS) yesterday granted an extension of the existing Temporary General License (TGL) for China’s Huawei Technologies Co. and 115 other affiliates around the world from those parties’ current placement on the BIS Entity List.
A previous TGL (modifying the respective Entity List entries) was issued on May 20, 2019 for the original 69 entities placed on the list, and a subsequent extension incorporating the additional 46 entities was issued on August 21, 2019 (effective August 19).
The extension of the TGL provides these entities with some significant reprieve, however it does not remove their entries from the Entity List. As this reprieve is not permanent and is subject to repeal, and as it does not cause a removal from the Entity List for that period of time, there are still lingering effects that likely cause hesitation for many companies considering business with Huawei, including those whose products and technologies are not of U.S. origin or otherwise subject to the U.S. Export Administration Regulations (EAR).
The timely nature of these TGLs reflects in some part the urgency given the widespread use of Huawei’s technologies and products. Other companies named to the Entity List may experience a tougher challenge in demonstrating the need for such relief, and the presumption is likely that the named party is actively seeking permanent removal from the list, not just a series of short-term lifelines. This requires a good-faith effort to take all steps required to seek a proper delisting of the company.