US Department of Commerce: Huawei tightens export controls: restrictions on third-party procurement

US Department of Commerce: Huawei tightens export controls: restrictions on third-party procurement

New York

August 18, 2020

US Department of Commerce Bureau of Industry and Security (BIS):

On August 17, it announced to China Huawei and its affiliated companies that “restrict access to US-made technology and software.”

The measures are effective from the same day and are officially announced in the Official Gazette on August 20.

Huawei related companies:

Since May 2019, it has been posted on the BIS EL and the export/re-export of US products (articles, software, technology) to these companies is prohibited in principle.

BIS also

In May 2020, regarding “direct products designed by Huawei and manufactured overseas using American technology and software,” “re-export to Huawei, export from outside the United States, domestic transfer, “Prohibition measures” have also been announced (see article on May 19, 2020).

This rule change:

US Prohibition of Export Administration (EAR) General Prohibition 3:

Part 15 of the Code of Federal Regulations, Part 736.2(b):

Direct products manufactured outside the United States based on American technology and software,

The following transactions join the regulation.

When Huawei is used to develop and manufacture parts/equipment to be manufactured/purchased/ordered.
Huawei is the buyer/intermediate consignee/final consignee/end-user party.

Ministry of Commerce:

In addition to the above changes, 38 Huawei related companies have been added to EL.

Additional companies include overseas subsidiaries in 21 countries, including Huawei Cloud and Huawei OpenLab.

The Ministry of Commerce points out that Huawei is evading current regulations through these companies.

– JETRO

https://www.jetro.go.jp/biznews/2020/08/db11f70ed90e7875.html