Rule2022-03029
Addition of Certain Entities to the Entity List
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 14, 2022
Effective
February 14, 2022
Issuing agencies
Commerce DepartmentIndustry and Security Bureau
Abstract
This final rule amends the Export Administration Regulations (EAR) by adding seven entities under seven entries to the Entity List. These seven entities have been determined by the U.S. Government to be acting contrary to the foreign policy or national security interests of the United States and will be listed on the Entity List under the destinations of the People's Republic of China (China), Pakistan, and the United Arab Emirates (UAE). This final rule also modifies four existing entries on the Entity List under the destination of China.
Full Text
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<title>Federal Register, Volume 87 Issue 30 (Monday, February 14, 2022)</title>
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[Federal Register Volume 87, Number 30 (Monday, February 14, 2022)]
[Rules and Regulations]
[Pages 8180-8186]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-03029]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 220203-0039]
RIN 0694-AI70
Addition of Certain Entities to the Entity List
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule.
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SUMMARY: This final rule amends the Export Administration Regulations
(EAR) by adding seven entities under seven entries to the Entity List.
These seven entities have been determined by the U.S. Government to be
acting contrary to the foreign policy or national security interests of
the United States and will be listed on the Entity List under the
destinations of the People's Republic of China (China), Pakistan, and
the United Arab Emirates (UAE). This final rule also modifies four
existing entries on the Entity List under the destination of China.
DATES: This rule is effective February 14, 2022.
FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee,
Office of the Assistant Secretary for Export Administration, Bureau of
Industry and Security, Department of Commerce, Phone: (202) 482-5991,
Email: <a href="/cdn-cgi/l/email-protection#1451465754767d673a707b773a737b62"><span class="__cf_email__" data-cfemail="eeabbcadae8c879dc08a818dc0898198">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background
Entity List
The Entity List (supplement no. 4 to part 744 of the EAR)
identifies entities for which there is reasonable cause to believe,
based on specific and articulable facts, that the entities have been
involved, are involved, or pose a significant risk of being or becoming
involved in activities contrary to the national security or foreign
policy interests of the United States. The EAR (15 CFR parts 730-774)
impose additional license requirements on, and
[[Page 8181]]
limit the availability of most license exceptions for, exports,
reexports, and transfers (in-country) to listed entities. The license
review policy for each listed entity is identified in the ``License
Review Policy'' column on the Entity List, and the impact on the
availability of license exceptions is described in the relevant Federal
Register document adding entities to the Entity List. BIS places
entities on the Entity List pursuant to part 744 (Control Policy: End-
User and End-Use Based) and part 746 (Embargoes and Other Special
Controls) of the EAR.
The End-User Review Committee (ERC), composed of representatives of
the Departments of Commerce (Chair), State, Defense, Energy and, where
appropriate, the Treasury, makes all decisions regarding additions to,
removals from, or other modifications to the Entity List. The ERC makes
all decisions to add an entry to the Entity List by majority vote and
makes all decisions to remove or modify an entry by unanimous vote.
ERC Entity List Decisions
Additions to the Entity List
This rule implements the decision of the ERC to add seven entities
under seven entries to the Entity List. The entities are located in the
People's Republic of China (China), Pakistan, and the UAE. Of the seven
entries, one is located in China, five are located in Pakistan, and one
is located in the UAE.
The ERC determined to add Chemtech International (Private) Limited,
Engineering Materials and Equipment Co., Inspectech, Value Additions
(Pvt) Ltd., and X-Cilent Engineering, all under the destination of
Pakistan, and Odyssey General Trading FZC, under the destination of the
UAE, to the Entity List under Sec. Sec. 744.2, which describes
restrictions on certain nuclear end-users, and 744.11(b) of the EAR.
In addition, the ERC determined to add Jiangsu Tianyuan Metal
Powder Co. Ltd. to the Entity List under Sec. Sec. 744.11(b), 744.20
(license requirements that apply to certain sanctioned entities), and
746.4 (North Korea) of the EAR. The entity is added to the Entity List
under the destination of China based on a determination that was made
by the U.S. Department of State (84 FR 23627) that it engaged in
activities that warranted the imposition of measures pursuant to
Section 3 of the Iran, North Korea, and Syria Nonproliferation Act
(Pub. L. 106-178).
Pursuant to Sec. Sec. 744.2, 744.11(b), 744.20, and 746.4 of the
EAR, the ERC determined that the conduct of the above-described
entities raises sufficient concerns that prior review, via the
imposition of a license requirement for exports, reexports, or
transfers (in-country) of all items subject to the EAR involving these
seven entities and the possible issuance of license denials or the
possible imposition of license conditions on shipments to these
entities, will enhance BIS's ability to prevent violations of the EAR
or otherwise protect U.S. national security or foreign policy
interests.
For the entities added to the Entity List in this final rule, BIS
imposes a license requirement that applies to all items subject to the
EAR. In addition, no license exceptions are available for exports,
reexports, or transfers (in-country) to the persons being added to the
Entity List in this rule. For the one entity being added to the Entity
List under China, BIS imposes a license review policy of a presumption
of denial. For the five entities being added under Pakistan and one
entity being added under the UAE, BIS imposes the license review policy
set forth in Sec. 744.2(d) of the EAR. The acronym ``a.k.a.,'' which
is an abbreviation of `also known as,' is used in entries on the Entity
List to identify aliases, thereby assisting exporters, reexporters and
transferors in identifying entities on the Entity List.
For the reasons described above, this final rule adds the following
seven entities under seven entries to the Entity List and includes,
where appropriate, aliases:
China
<bullet> Jiangsu Tianyuan Metal Powder Co. Ltd.
Pakistan
<bullet> Chemtech International (Private) Limited;
<bullet> Engineering Materials and Equipment Co.;
<bullet> Inspectech;
<bullet> Value Additions (Pvt) Ltd.; and
<bullet> X-Cilent Engineering
United Arab Emirates
<bullet> Odyssey General Trading FZC
Revisions to the Entity List
This rule revises the Entity List entries of Huawei Cloud Brazil,
under the destination of Brazil, and Huawei Technologies Co. Ltd. and
Wavelet, under the destination of China. This final rule corrects a
typographical error in the city name for the address listed for the
existing entity for Huawei Cloud Brazil. This final rule also revises
the entry for Wavelet by adding the punctuation necessary to delineate
between the addresses that are already listed. This corrects an error
made in the original publication of the rule adding Wavelet to the
Entity List, which failed to separate the entry's address in Shenzhen,
China, from its address in Hong Kong, with the appropriate punctuation.
Additionally, BIS is revising the Entity List to mitigate
confusion, by combining the two existing entries entitled ``Huawei
Technologies Co. Ltd.'' This change does not alter BIS policy regarding
the entries. Currently, the Entity List includes one entry for ``Huawei
Technologies Co., Ltd.'' at a Hong Kong address, and a second entry for
the same entity with addresses of multiple other locations in China.
This rule combines the two entries into one. As the confusion created
by the two entries kept the Federal Register from implementing changes
to a previous rule (86 FR 71557), this rule also adds three aliases
(HMN Technologies, Huahai Zhihui Technology Co., Ltd., and HMN Tech)
under one of Huawei Technologies Co., Ltd.'s affiliated entities,
Huawei Marine Networks, to the newly combined entry.
Savings Clause
Shipments of items removed from eligibility for a License Exception
or export, reexport, or transfer (in-country) without a license (NLR)
as a result of this regulatory action that were enroute aboard a
carrier to a port of export, reexport, or transfer (in-country), on
February 14, 2022, pursuant to actual orders for export, reexport, or
transfer (in-country) to or within a foreign destination, may proceed
to that destination under the previous eligibility for a License
Exception or export, reexport, or transfer (in-country) without a
license (NLR).
Export Control Reform Act of 2018
On August 13, 2018, the President signed into law the John S.
McCain National Defense Authorization Act for Fiscal Year 2019, which
included the Export Control Reform Act of 2018 (ECRA) (50 U.S.C. 4801-
4852). ECRA provides the legal basis for BIS's principal authorities
and serves as the authority under which BIS issues this rule.
Rulemaking Requirements
1. Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of
[[Page 8182]]
reducing costs, of harmonizing rules, and of promoting flexibility.
This rule has been determined to be not significant for purposes of
Executive Order 12866.
2. Notwithstanding any other provision of law, no person is
required to respond to or be subject to a penalty for failure to comply
with a collection of information, subject to the requirements of the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), unless
that collection of information displays a currently valid Office of
Management and Budget (OMB) Control Number. This regulation involves
collections previously approved by OMB under control number 0694-0088,
Simplified Network Application Processing System, which includes, among
other things, license applications and commodity classification, and
carries a burden estimate of 29.6 minutes for a manual or electronic
submission for a total burden estimate of 31,835 hours. Total burden
hours associated with the PRA and OMB control number 0694-0088 are not
expected to increase as a result of this rule.
3. This rule does not contain policies with Federalism implications
as that term is defined in Executive Order 13132.
4. Pursuant to section 1762 of the Export Control Reform Act of
2018, this action is exempt from the Administrative Procedure Act (5
U.S.C. 553) requirements for notice of proposed rulemaking, opportunity
for public participation, and delay in effective date.
5. Because a notice of proposed rulemaking and an opportunity for
public comment are not required to be given for this rule by 5 U.S.C.
553, or by any other law, the analytical requirements of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq., are not applicable.
Accordingly, no regulatory flexibility analysis is required and none
has been prepared.
List of Subjects in 15 CFR Part 744
Exports, Reporting and recordkeeping requirements, Terrorism.
Accordingly, part 744 of the Export Administration Regulations (15
CFR parts 730-774) is amended as follows:
PART 744--[AMENDED]
0
1. The authority citation for 15 CFR part 744 continues to read as
follows:
Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50
U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22
U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR,
1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p.
608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026,
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3
CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp.,
p. 783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; Notice
of September 15, 2021, 86 FR 52069 (September 17, 2021); Notice of
November 10, 2021, 86 FR 62891 (November 12, 2021).
0
2. Supplement No. 4 to part 744 is amended:
0
a. Under BRAZIL by revising the entry for ``Huawei Cloud Brazil'';
0
b. Under CHINA, PEOPLE'S REPUBLIC OF:
0
i. By removing the entries for ``Huawei Technologies Co. Ltd.'' and
``Huawei Technologies Co., Ltd.'';
0
ii. By adding in alphabetical order entries for ``Huawei Technologies
Co., Ltd.'' and ``Jiangsu Tianyuan Metal Powder Co. Ltd.''; and
0
iii. By revising the entry for ``Wavelet Electronics'';
0
c. Under PAKISTAN, by adding in alphabetical order entries for
``Chemtech International (Private) Limited,'' ``Engineering Materials
and Equipment Co.,'' ``Inspectech,'' ``Value Additions (Pvt) Ltd.,''
and ``X-Cilent Engineering''; and
0
d. Under UNITED ARAB EMIRATES by adding in alphabetical order an entry
for ``Odyssey General Trading FZC''.
The additions and revision read as follows:
Supplement No. 4 to Part 744--Entity List
* * * * *
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License review Federal Register
Country Entity License requirement policy citation
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* * * * * * *
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BRAZIL................. Huawei Cloud Brazil, Sao For all items Presumption of 85 FR 51603, 8/20/
Paulo, Brazil. subject to the denial. 20; 87 FR
EAR, see Sec. [INSERT FR PAGE
736.2(b)(3)(vi),\1 NUMBERNUMBER];
\ and 744.11 of February 14,
the EAR, EXCEPT 2022.
\2\ for technology
subject to the EAR
that is designated
as EAR99, or
controlled on the
Commerce Control
List for anti-
terrorism reasons
only, when
released to
members of a
``standards
organization''
(see Sec. 772.1)
for the purpose of
contributing to
the revision or
development of a
``standard'' (see
Sec. 772.1).
* * * * * *
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CHINA, PEOPLE'S * * * * * *
REPUBLIC OF.
[[Page 8183]]
Huawei Technologies Co., For all items Presumption of 84 FR 22963, 5/21/
Ltd., a.k.a., the following subject to the denial. 19.
two aliases: EAR, see Sec. 84 FR 43495, 8/21/
--Shenzhen Huawei Sec. 19.
Technologies; and 736.2(b)(3)(vi),\1 85 FR 29853, 5/19/
--Huawei Technology, and to \ and 744.11 of 20.
include the following the EAR, except 85 FR 36720, 6/18/
addresses and the following for technology 20.
22 affiliated entities: subject to the EAR 85 FR 51603, 8/20/
Addresses for Huawei that is designated 20.
Technologies Co., Ltd.: as EAR99, or 87 FR [INSERT FR
Bantian Huawei Base, controlled on the PAGE NUMBER
Longgang District, Commerce Control NUMBER];
Shenzhen, 518129, China; List for anti- February 14,
and No. 1899 Xi Yuan Road, terrorism reasons 2022.
High-Tech West District, only, when
Chengdu, 611731; and C1, released to
Wuhan Future City, No. 999 members of a
Gaoxin Ave., Wuhan, Hebei ``standards
Province; and Banxuegang organization''
Industrial Park, Buji (see Sec. 772.1)
Longgang, Shenzhen, for the purpose of
Guangdong, 518129, China; contributing to
and R&D Center, No. 2222, the revision or
Golden Bridge Road, Pu Dong development of a
District, Shanghai, China; ``standard'' (see
and Zone G, Huawei Base, Sec. 772.1).
Bantian, Longgang District,
Shenzhen, China; and Tsim
Sha Tsui, Kowloon, Hong
Kong.
Affiliated entities:
Beijing Huawei Longshine
Information Technology Co.,
Ltd., a.k.a., the following
one alias:
--Beijing Huawei Longshine,
to include the following
subordinate.
Q80-3-25R, 3rd Floor, No. 3,
Shangdi Information Road,
Haidian District, Beijing,
China.
Hangzhou New Longshine
Information Technology Co.,
Ltd., Room 605, No. 21,
Xinba, Xiachang District,
Hangzhou, China.
Hangzhou Huawei
Communication Technology
Co., Ltd., Building 1, No.
410, Jianghong Road,
Changhe Street, Binjiang
District, Hangzhou,
Zhejiang, China.
Hangzhou Huawei Enterprises,
No. 410 Jianghong Road,
Building 1, Hangzhou,
China.
Huawei Digital Technologies
(Suzhou) Co., Ltd., No. 328
XINHU STREET, Building A3,
Suzhou (Huawei R&D Center,
Building A3, Creative
Industrial Park, No. 328,
Xinghu Street, Suzhou),
Suzhou, Jiangsu, China.
Huawei Marine Networks Co.,
Ltd., a.k.a., the following
four aliases:
--Huawei Marine;
--HMN Technologies;
--Huahai Zhihui Technology
Co., Ltd.,; and
--HMN Tech.
Building R4, No. 2 City
Avenue, Songshan Lake
Science & Tech Industry
Park, Dongguan, 523808, and
No. 62, Second Ave., 5/F-6/
F, TEDA, MSD-B2 Area,
Tianjin Economic and
Technological Development
Zone, Tianjin, 300457,
China.
Huawei Mobile Technology
Ltd., Huawei Base, Building
2, District B, Shenzhen,
China.
Huawei Tech. Investment Co.,
U1 Building, No. 1899
Xiyuan Avenue, West Gaoxin
District, Chengdu City,
611731, China.
[[Page 8184]]
Huawei Technology Co., Ltd.
Chengdu Research Institute,
No. 1899, Xiyuan Ave., Hi-
Tech Western District,
Chengdu, Sichuan Province,
610041, China.
Huawei Technology Co., Ltd.
Hangzhou Research
Institute, No. 410,
Jianghong Rd., Building 4,
Changhe St., Binjiang
District, Hangzhou,
Zhejiang Province, 310007,
China.
Huawei Technologies Co.,
Ltd. Beijing Research
Institute, No. 3, Xinxi
Rd., Huawei Building,
ShangDi Information
Industrial Base, Haidian
District, Beijing, 100095,
China; and No. 18, Muhe
Rd., Building 1-4, Haidian
District, Beijing, China.
Huawei Technologies Co.,
Ltd. Material
Characterization Lab,
Huawei Base, Bantian,
Shenzhen 518129, China.
Huawei Technologies Co.,
Ltd. Xi'an Research
Institute, National
Development Bank Building
(Zhicheng Building), No. 2,
Gaoxin 1st Road, Xi'an High-
tech Zone, Xi'an, China.
Huawei Terminal (Shenzhen)
Co., Ltd., Huawei Base, B1,
Shenzhen, China.
Nanchang Huawei
Communication Technology,
No. 188 Huoju Street, F10-
11, Nanchang, China.
Ningbo Huawei Computer & Net
Co., Ltd., No. 48 Daliang
Street, Ningbo, China.
Shanghai Huawei Technologies
Co., Ltd., R&D center, No.
2222, Golden Bridge Road,
Pu Dong District, Shanghai,
286305 Shanghai, China,
China.
Shenzhen Huawei Anjiexin
Electricity Co., Ltd.,
a.k.a., the following one
alias:
--Shenzhen Huawei Agisson
Electric Co., Ltd.
Building 2, Area B, Putian
Huawei Base, Longgang
District, Shenzhen, China;
and Huawei Base, Building
2, District B, Shenzhen,
China.
Shenzhen Huawei New
Technology Co., Ltd.,
Huawei Production Center,
Gangtou Village, Buji Town,
Longgang District,
Shenzhen, China.
Shenzhen Huawei Technology
Service, Huawei Base,
Building 2, District B,
Shenzhen, China.
Shenzhen Huawei Technologies
Software, Huawei Base,
Building 2, District B,
Shenzhen, China.
Zhejiang Huawei
Communications Technology
Co., Ltd., No. 360 Jiangshu
Road, Building 5, Hangzhou,
Zhejiang, China.
* * * * * *
[[Page 8185]]
Jiangsu Tianyuan Metal All items subject Presumption of 87 FR [INSERT FR
Powder Co. Ltd., No. 50, to the EAR. (See denial. PAGE NUMBER DATE
Jummin East Road, Yunhe, Sec. 744.11 of NUMBER];
Lvcheng Town, Danyang City, the EAR) February 14,
Jiangsu Province, China 2022.
212352; and Canal military
and civilians in Lucheng
Town, Danyang City, Jiangsu
Province 50 East Road,
China, 212352; and No. 1,
Airport East Road, Lucheng
Town Danyang City, China;
and Zhenjiang City, Jiangsu
Zhenjiang, Danyang Lu Town
Canal Army East, China.
* * * * * *
Wavelet Electronics, Room All items subject Presumption of 86 FR 71560, 12/
605, 6/F, Corporation Park, to the EAR. (See denial. 17/21. 87 FR
No. 11 on Lai Street, Sec. 744.11 of [INSERT FR PAGE
Shatin, New Territories, the EAR) NUMBER NUMBER];
Hong Kong; and Building A2- February 14,
3, Haufeng Industrial Park, 2022.
Shiyan, Baoan District,
Shenzhen, China; and RM511
5/F, Corporation Park, 11
ON LAI Street, Siu Lek
Yuen, Shatin, N.T. Hong
Kong.
* * * * * *
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* * * * * * *
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PAKISTAN............... * * * * * *
Chemtech International All items subject See Sec. 87 FR [INSERT FR
(Private) Limited, B-35, to the EAR. (See 744.2(d) of the PAGE
Block-15, Gulsha-e-Iqbal, Sec. 744.11 of EAR. NUMBERNUMBER];
Karachi, Pakistan. the EAR) February 14,
2022.
* * * * * *
Engineering Materials and All items subject See Sec. 87 FR [INSERT FR
Equipment Co., a.k.a., the to the EAR. (See 744.2(d) of the PAGE
following one alias: Sec. 744.11 of EAR.. NUMBERNUMBER];
the EAR) February 14,
2022.
--EMEC, Suite 7, Floor 6,
Shaheen Complex, Egerton
Road, Lahore 54010,
Pakistan.
* * * * * *
Inspectech, Office Number All items subject See Sec. 87 FR [INSERT FR
947, Block C, Faisal Town, to the EAR. (See 744.2(d) of the PAGE NUMBER
Lahore, 54000, Pakistan. Sec. 744.11 of EAR. NUMBER];
the EAR) February 14,
2022.
* * * * * *
Value Additions (Pvt) Ltd., All items subject See Sec. 87 FR [INSERT FR
392-C, Qadeer Road, to the EAR. (See 744.2(d) of the PAGE NUMBER
Rawalpindi, Pakistan. Sec. 744.11 of EAR. NUMBER];
the EAR) February 14,
2022.
* * * * * *
X-Cilent Engineering, 642, All items subject See Sec. 87 FR [INSERT FR
Afshan Colony, Rawalpindi to the EAR. (See 744.2(d) of the PAGE NUMBER
Cantt. 46,000, Pakistan. Sec. 744.11 of EAR. NUMBER];
the EAR) February 14,
2022.
* * * * * *
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* * * * * * *
----------------------------------------------------------------------------------------------------------------
UNITED ARAB EMIRATES... * * * * * *
Odyssey General Trading FZC, All items subject See Sec. 87 FR [INSERT FR
Sharjah Airport to the EAR. (See 744.2(d) of the PAGE NUMBER
International Free Zone Sec. 744.11 of EAR. NUMBER];
(SAIF), Executive Building, the EAR) February 14,
Office No P8-07-04 Sharjah, 2022.
U.A.E.; and PO Box No.
121214, Sharjah, U.A.E.
* * * * * *
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
\1\ For this entity, see Sec. 734.9(e) of the EAR for foreign-produced items that are subject to the EAR and
Sec. 744.11 of the EAR for related license requirements, license review policy, and applicable license
exceptions.
[[Page 8186]]
\2\ Cybersecurity research and vulnerability disclosure. The following exports, reexports, and transfers (in-
country) to Huawei Technologies Co., Ltd. (Huawei) and its non-U.S. affiliates on the Entity List for
cybersecurity research and vulnerability disclosure subject to other provisions of the EAR are excluded from
the Entity List license requirements: When the disclosure to Huawei and/or to its listed non-U.S. affiliates
is limited to information regarding security vulnerabilities in items owned, possessed, or controlled by
Huawei or any of its non-U.S. affiliates when related to the process of providing ongoing security research
critical to maintaining the integrity and reliability of existing and currently `fully operational network'
and equipment. A `fully operational network' refers to a `third party' network providing services to the
`third party's' customers. The term `third party' refers to a party that is not Huawei, one of its listed non-
U.S. affiliates, or the exporter, reexporter, or transferor, but rather an organization such as a
telecommunications service provider.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2022-03029 Filed 2-11-22; 8:45 am]
BILLING CODE 3510-33-P
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