Commerce Seeking Comments on Rule to Improve Ease of US Participation in Standards Setting Bodies
The Commerce Department will officially amend the Export Administration Regulations June 18 to allow U.S. companies to more easily participate in standards setting bodies in which Huawei is a member, the agency said in a notice. Commerce, which previously announced details of the measure (see 2006150062), is seeking comments on the revision, which will allow the release of certain technology to Huawei and its affiliates on the Entity List if that release is in the context of a standards-setting body and not for commercial purposes. Comments are due Aug. 17.
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The Bureau of Industry and Security said it has “continued to receive questions” about the applicability of the EAR at standards setting bodies in which Huawei is a member, which is why it issued the revision. A Commerce official said the agency drafted the rule in April (see 2004290047), adding that it would go a “long way” toward addressing concerns from lawmakers and industry, who have grown concerned that the U.S.’s lack of participation in standards bodies is ceding 5G technology leadership to China and Huawei (see 2005080040 and 2004150077). BIS said it made the change “because of the importance of U.S. participation and leadership in standards organizations, and in view of the consistent concerns expressed with Huawei’s participation therein.”
Under the rule, technology subject to the EAR that is designated as EAR99 or controlled on the Commerce Control List for only anti-terrorism purposes may be released to Huawei and other participants at standards bodies for standards setting purposes. To implement the change, Commerce will revise the licensing requirement columns for all Huawei entries on the Entity List to specify that certain technology may be released to Huawei in the context of standards setting. BIS stressed that “even when this license requirement does not apply, items that are ‘subject to the EAR’ are still subject to recordkeeping or other applicable EAR requirements.”
Along with the rule, BIS will rescind a guidance issued to industry in August 2019 about restricted activities with Huawei at standard setting bodies (see 1908210038). The agency said it removed the guidance from its website.
(Federal Register 06/18/20)