Arrow Electronics Inc. said its affiliates will be dropped from a US Commerce Department sanctions list, sparing the Colorado-based chip distributor’s subsidiaries from a possible ban on purchases of American technologies.
The removals came less than two weeks after the Bureau of Industry and Security put a handful of companies it said were tied to Arrow on its so-called entity list for allegedly helping Iranian proxies buy American technology. At the time, Arrow said its units were in full compliance with US regulations and that it was discussing the listings with the Commerce Department.
Arrow spokesperson John Hourigan said a Bureau of Industry and Security official notified the company Friday that its affiliates would be removed from the list. One of the units named in the original notice, Arrow Electronics Co., Ltd., is actually not connected to the company and appears to be a “copycat using a similar name,” Hourigan said.
The bureau has authorized Arrow to resume transactions with all of its affiliates ahead of the publication of the removal in the Federal Register, Hourigan said.
In a letter, seen by Bloomberg News, the BIS said Arrow has permission to export, reexport or transfer quantities no greater than 110% of the items transferred during the 120-period prior to the entity listing. That temporary authorization is valid until Feb. 14 or a publication of the entity removal in the the Federal Register, the letter says.
The BIS remains “committed to ensuring that export restrictions are appropriately targeted to protect national security,” a spokesperson for the agency said in a statement. The company declined to comment on the details of the letter.
Several of this month’s entity list additions — including the now-removed Arrow affiliates — were tied to the discovery of US-origin electronic components in scraps of unmanned aircraft systems operated by Iranian proxies since 2017. The components were found after scrutiny of drone wreckage recovered by nations in the Gulf and Middle East regions, according to the initial blacklisting notice.
It’s rare to see US-based firms on the entity list. The US weighed restrictions on Arrow as early as 2020 when an Asian subsidiary was suspected of providing technology to foreign military forces. Arrow said back then that description was an error and the subsidiary was not engaged in military activities.
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