Bureau of Industry and Security June 2020 – Federal Register Recent Federal Regulation Documents

Huawei Technologies Co., Ltd. (Huawei) and 114 of its foreign affiliates were added to the Entity List by the Bureau of Industry and Security (BIS) in 2019, but continue to participate in many important international standards organizations in which U.S. companies also participate. As international standards serve as the building blocks for product development and help ensure functionality, interoperability, and safety of the products, it is important to U.S. technological leadership that U.S. companies be able to work in these bodies in order to ensure that U.S. standards proposals are fully considered. Since Huawei's addition to the Entity List, organizations have consequently sought clarity about U.S. industry participation in standards development. BIS is amending the Export Administration Regulations (EAR) to authorize the release of certain technology to Huawei and its affiliates on the Entity List without a license if such release is made for the purpose of contributing to the revision or development of a ``standard'' in a ``standards organization.'' For the purpose of this interim final rule, a ``standard'' is as defined in Office of Management and Budget (OMB) Circular A-119: Federal Participation in the Development and Use of Voluntary Consensus Standards and in Conformity Assessment Activities, and a ``standards organization,'' is the equivalent of a ``voluntary consensus standards body'' as defined in Office of Management and Budget (OMB) Circular A- 119: Federal Participation in the Development and Use of Voluntary Consensus Standards and in Conformity Assessment Activities. This interim final rule does not change the assessment of whether ``technology'' is subject to the EAR. BIS is requesting comments on the impact of these revisions.

In this rule, the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) by adding twenty-four entities, under twenty-five entries, to the Entity List. These twenty- four entities have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests of the United States. The entities are located under the destination of the People's Republic of China (China), Hong Kong and the United Kingdom (U.K.). This rule also modifies three existing entries on the Entity List under the destination of China.

The Bureau of Industry and Security (BIS) is correcting the formatting of a final rule that appeared in the Federal Register of April 28, 2020 (here and after referred to as the April 28 rule), which becomes effective on June 29, 2020. The April 28 rule amends the Export Administration Regulations (EAR) to expand license requirements on exports, reexports, and transfers (in-country) of items intended for military end use or military end users in the People's Republic of China (China), Russia, or Venezuela. Specifically, this rule expands the licensing requirements for China to include ``military end users,'' in addition to ``military end use.'' It broadens the list of items for which the licensing requirements and review policy apply and expands the definition of ``military end use.'' Next, it creates a new reason for control and the associated review policy for regional stability for certain items exported to China, Russia, or Venezuela, moving existing text related to this policy. Finally, it adds Electronic Export Information filing requirements in the Automated Export System for exports to China, Russia, and Venezuela. This rule supports the objectives discussed in the National Security Strategy of the United States. This correction publishes the full text of each revised Export Control Classification Number on the Commerce Control List.