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Commerce Department Further Restricts Huawei Access to U.S. Technology Abroad and Expands Reach of Entity List

August 20, 2020, Covington Alert

On August 17, 2020, the Commerce Department’s Bureau of Industry and Security (“BIS”) released a Final Rule (the “August 17 Final Rule”) significantly expanding U.S. export controls restrictions on certain non-U.S. items reexported, exported from abroad, or transferred (in-country) in transactions involving Huawei or its affiliates designated on the BIS Entity List (collectively, “Huawei”). Many of the affected items are semiconductor-related. The August 17 Final Rule further modifies amendments to the Foreign-Produced Direct Product Rule released on May 15, 2020 (the “May 15 Interim Final Rule”) in response to public comments and, according to BIS, to “prevent Huawei’s attempts to circumvent U.S. export controls to obtain electronic components developed or produced using U.S. technology.”

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