Effective May 16, 2019, the Bureau of Industry and Security (BIS) amended the Export Administration Regulations (EAR) by adding Huawei Technologies Co., Ltd. (Huawei) to the Entity List. The U.S. Government has determined that there is reasonable cause to believe that Huawei has been involved in activities contrary to the national security or foreign policy interests of the United States. BIS is also adding non-U.S. affiliates of Huawei to the Entity List because those affiliates pose a significant risk of involvement in activities contrary to the national security or foreign policy interests of the United States. Huawei will be listed on the Entity List under the destination of China. This final rule also adds to the Entity List sixty-eight non-U.S. affiliates of Huawei located in twenty-six destinations: Belgium, Bolivia, Brazil, Burma, Canada, Chile, China, Egypt, Germany, Hong Kong, Jamaica, Japan, Jordan, Lebanon, Madagascar, Netherlands, Oman, Pakistan, Paraguay, Qatar, Singapore, Sri Lanka, Switzerland, Taiwan, United Kingdom, and Vietnam.

 

Huawei and Affiliates Entity List Rule

Effective Date of Huawei and Affiliates Entity List Rule

 

 

Temporary General License final rule, effective May 20, 2019.

Effective May 20, 2019, BIS amended the EAR to create a 90-day temporary general license that partially restores the licensing requirements and policies under the Export Administration Regulations (EAR) for exports, reexports, and transfers (in-country) to sixty-nine entities added to the Entity List on May 16, 2019.

Temporary General License Rule

 

BIS has reached a superseding settlement agreement with Zhongxing Telecommunications Equipment and ZTE Kangxun Telecommunications Ltd. (collectively, “ZTE”), which may lift the April 15, 2018 Denial Order that BIS issued against ZTE. A copy of the superseding agreement is here and on BIS’s E-FOIA page. A copy of the related superseding order is here and on BIS’s E-FOIA page. FAQs on the superseding agreement are here. Additional information is available on the Department of Commerce website.

 

83 FR 12475

15 South Sudanese Entities Added to the Entity List

The Bureau of Industry and Security (BIS) of the U.S. Department of Commerce has amended the Export Administration Regulations (EAR) by adding 15 South Sudanese entities to the Entity List (Supplement No. 4 to part 744 of the EAR). The Entity List identifies entities, including corporations, private or government organizations, and natural persons, and other persons reasonably believed to be involved, or to pose a significant risk of being or becoming involved, in activities contrary to the national security or foreign policy interests of the United States. BIS has taken this action as part of the U.S. effort to end the ongoing conflict and resolve the humanitarian crisis in South Sudan.

The U.S. Government assesses the 15 entities BIS has added to the Entity List as contributing to the ongoing crisis in South Sudan because they are a source of substantial revenue that, through public corruption, is used to fund the purchase of weapons and other material that undermine the peace, security, and stability of South Sudan rather than support the welfare of the South Sudanese people. Adding these entities to the Entity List is intended to ensure that items subject to the EAR are not used to generate revenue to finance the continuing violence in South Sudan.

The following 15 entities are the first South Sudanese entities added to the Entity List: Ascom Sudd Operating Company; Dar Petroleum Operating Company; DietsmannNile; Greater Pioneer Operating Co. Ltd; Juba Petrotech Technical Services Ltd; Nile Delta Petroleum Company; Nile Drilling and Services Company; Nile Petroleum Corporation; Nyakek and Sons; Oranto Petroleum; Safinat Group; SIPET Engineering and Consultancy Services; South Sudan Ministry of Mining; South Sudan Ministry of Petroleum; and Sudd Petroleum Operating Co.

These 15 entities are subject to a license requirement for all exports and reexports destined for any of the entities and transfers (in-country) to them of all items subject to the EAR with a licensing review policy of a presumption of denial. This license requirement also applies to any transaction involving any of these entities in which such entities act as a purchaser, intermediate consignee, ultimate consignee or end-user. Additionally, no license exceptions are available to these entities.

If any person participates in a transaction described above involving any of these 15 entities without first obtaining the required license from BIS, that person would be in violation of the EAR and could be subject to civil or criminal enforcement proceedings. Civil enforcement could result in the imposition of monetary penalties or the denial of the person’s export privileges. Additionally, a person’s supplying or procuring items subject to the EAR or engaging in other activity involving an entity on the Entity List could result in a determination to add that person to the Entity List consistent with the procedures set forth in the EAR.

The regulation can be viewed on the Federal Register at https://www.gpo.gov/fdsys/pkg/FR-2018-03-22/pdf/2018-05789.pdf.

 

On July 13, 2018, the Acting Assistant Secretary of Commerce for Export Enforcement issued an Order terminating the Denial Order issued on April 15, 2018 against Zhongxing Telecommunications Equipment Corporation and ZTE Kangxun Telecommunications Ltd.  The Order is posted here.  For additional information, please call BIS's Exporter Counseling Desks at one of the following numbers:

(202) 482-4811 - Outreach and Educational Services Division (located in Washington, DC)

(949) 660-0144 - Western Regional Office (located in Irvine, CA)

(408) 998-8806 - Northern California branch (located in San Jose, CA)

or e-mail your inquiry to the Export Counseling Division of the Office of Exporter Services at: This email address is being protected from spambots. You need JavaScript enabled to view it. ."

Additional information is available here.

As of December 15, 2016, BIS is implementing a change to the standard language on validated licenses to align with the change in requirements specific to destination control statements that was published in a rule on August 17, 2016 (81 FR 54721 ) and went into effect on November 17, 2016.  BIS is also implementing one other minor change to the standard license text.  Before December 15, the language read as follows:
“The Export Administration Regulations require you to take the following actions when exporting under the authority of this license.
A.    Record the Export Commodity Control Number in the block provided in the Automated Export System (AES).
B.    Record your validated license number in the block provided in AES.
C.    Place a Destination Control Statement on all bills of lading, airway bills and commercial invoices.”
As of December 15, this language has been changed to read (new text in italics):
“The Export Administration Regulations require you to take the following actions when exporting under the authority of this license.
A.    Record the Export Control Classification Number in the block provided in the Automated Export System (AES).
B.    Record your validated license number in the block provided in AES.
C.    Place a Destination Control Statement on all commercial invoices for shipments of items on the Commerce Control List.”
 
This new language will appear on all current validated licenses that are available for review or printing in BIS’ SNAP-R system.
If you have any questions about these changes, please call BIS’ export counselors at either 202-482-4811 (Washington, DC), 949-660-0144 (Irvine, CA) or 408-998-8806 (San Jose, CA).

   
© BIS 2019