The Bureau of Industry and Security on Aug. 17 added 38 Huawei affiliates to the Entity List and refined a May amendment to its foreign direct product rule, further restricting Huawei’s access to U.S. technology, the agency said in an Aug. 17 final rule. BIS also modified four existing Huawei entries on the Entity List, amended language in the Export Administration Regulations and said it will continue one cybersecurity-related authorization under its temporary general license for Huawei. The remainder of the license expired Aug. 13.
The Bureau of Industry and Security added 38 Huawei affiliates to the Entity List and refined a May amendment to its foreign direct product rule, further restricting Huawei’s access to U.S. technology. BIS said the direct product rule will now also apply to transactions where U.S. software or technology is “the basis” for a foreign-made item produced or purchased by Huawei, or when a Huawei entity is “a party to such a transaction.” Secretary of State Michael Pompeo said Huawei "has continuously tried to evade" the previous changes to the foreign direct product rule.
Export Compliance Daily is providing readers with some of the top stories for Aug. 3-7 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.
The State Department’s Directorate of Defense Trade Controls’ Defense Export Control and Compliance System will be unavailable 6-8 a.m. EDT Aug. 10 for maintenance, DDTC said. In addition, DDTC’s advisory opinion, commodity jurisdiction and user management applications will be unavailable 11 p.m. EDT Aug. 7 to 1 a.m. EDT Aug. 8. DDTC is encouraging users to make sure their work in progress is saved before the scheduled maintenance.
The Office of Information and Regulatory Affairs began an interagency review of a Bureau of Industry and Security pre-rule to pinpoint potential controls for foundational technologies. OIRA received the rule Aug. 3. A BIS official said in May the agency was finalizing an internal review of the rule (see 2005190052), which has been expected since Congress passed the Export Control Reform Act of 2018 mandating BIS reviews of controls for both emerging and foundational technologies.
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The Bureau of Industry and Security will hold a virtual export control policy conference Sept. 2, covering updates on export control regulations, license exceptions, semiconductor controls and the Entity List. The conference will include a question-and-answer session with BIS officials and “other agency experts,” and will feature updates from the State Department’s Directorate of Defense Trade Controls, sanctions policy and the Committee on Foreign Investment in the U.S. BIS canceled its in-person annual conference earlier this year due to the COVID-19 pandemic (see 2005210051).
The Bureau of Industry and Security on June 30 formally issued a notice with details (see 2007130018) of its June decision to suspend Hong Kong export licenses (see 2006300050 and 2006290063), outlining which licenses are impacted and reiterating the agency’s savings clauses for affected exports. BIS also said it is reviewing the Export Administration Regulations along with other agencies to “assess whether additional amendments are warranted.”
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The State Department’s Directorate of Defense Trade Controls is seeking comments on an information collection related to advisory opinion requests, a notice released July 27 said. The revision of the collection is meant to “conform the current [Office of Management and Budget]-approved data collection to DDTC’s new case management system,” the notice said. Comments are due Aug. 27.