Bloomberg: U.S. Department of Commerce withdraws Arrow Electronics affiliates from U.S. blacklist

Arrow Electronics, a U.S. electronic components distributor, said that its affiliates will be removed from the U.S. Department of Commerce’s sanctions list to prevent subsidiaries from facing a ban on purchasing U.S. technology.

Less than two weeks ago, the U.S. Bureau of Industry and Security (BIS) added a handful of Arrow-related companies to the "Entity List" on the grounds that these companies assist Iranian proxies in purchasing U.S. technology. Arrow said at the time that its units were in full compliance with U.S. regulations and were in discussions with the Commerce Department about the list.

Arrow spokesman John Hourigan said that BIS officials informed the company on Friday (17th) that the associated units would be removed from the list. The subsidiary mentioned in the original notice is "Arrow Electronics (Hong Kong) Co., Ltd." which actually has nothing to do with the company and is suspected to be a counterfeit company using a similar name.

Hourigan said BIS has authorized Arrow to resume trading with all associated units pending a formal announcement.

According to Bloomberg, BIS has authorized Arrow to export, re-export or transfer quantities not exceeding 110% of the quantities transferred within the preceding 120 days on the Entity List. The temporary authorization is in effect until February 14, or until the Entity List removal is officially published in the Federal Register.

A BIS spokesperson said that the Bureau is committed to ensuring that export restrictions accurately target national security.

According to reports, a number of companies added to the Entity List this month (including Arrow affiliates that have been removed) are mainly related to the presence of US-made electronic components in the wreckage of drones used by Iranian proxies. It is reported that since 2017, these components have been found in the wreckage of drones recovered in the Middle East and Persian Gulf countries.

It is relatively rare for domestic companies in the United States to be included in the Entity List. As early as 2020, the United States considered imposing restrictions on Arrow over the Asian subsidiary's alleged involvement in providing technology to foreign military forces. Arrow disputed this at the time, arguing that the subsidiary was not engaged in military activities.

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