May 17, 2019: In a notice in the Federal Register, the United States Department of Commerce has released an amendment to the Export Administration Regulations (EAR), adding China's Huawei Technologies Co., Ltd. (Huawei) to the Entity List.
The amendment, which includes 26 locations for Huawei's 68 affiliates, bans the company from buying parts and components from American firms without licensed approval from the U.S. government. The move will make it extremely difficult for the telecom giant to do business with U.S. companies, and likewise, for U.S. companies to secure new license approvals.
The Federal Register notice is scheduled for May 21st publication, but the changes take effect immediately. All shipments aboard carriers as of May 16th may proceed to their destinations under previous license conditions.
If your firm has engaged with Huawei in the past and has any activity with this consignee and/or end user, we urge you to review all orders to ensure you have taken the required steps to meet all regulatory requirements to export to Huawei and its affiliates.
BDP International is actively working with stakeholders to ensure we are supporting our customers with this change in regulation. We will continue to monitor the situation and keep you apprised of any new developments.
As always, should you have any questions or concerns, please reach out to your local BDP representative.
Source: US Department of Commerce, Bureau of Industry and Security