Ban Proceeds But White House Requests Delay of Hikvision / Dahua Partner Blacklist

By: Charles Rollet, Published on Jun 10, 2019

While the August 2019 start of the US government ban on buying Dahua, Hikvision, Huawei, etc. proceeds, the White House's budget director is requesting an extension to the NDAA which would delay the implementation of its 'blacklist' clause by two years, i.e. in August 2022 instead of August 2020).

If the request is granted, the move would provide significant breathing room for many US integrators, distributors and OEMs, since the NDAA's blacklist provision bans any firm using Hikvision/Dahua/Huawei equipment in any capacity from doing business with the federal government. (Sell Dahua or Hikvision At All, Banned From Selling to US Federal Government, Says US HASC.)

However, the request provides no assurances that the blacklist provision, whose specific rules have not been finalized, will actually be watered down; whether it's in 2020 or 2022, it's still possible that an integrator who installs a Hikvision camera in a pizza parlor will eventually be banned from doing business with the federal government.

Inside this note, we examine the details of the letter and the proposed modifications.

***** *** ****** **** start ** ***** ********** *** ** buying *****, *********, ******, ***. ********, *** White *****'* ****** ******** is ********** ** ********* to *** **** ***** would ***** *** ************** of ***'*********' ******** *** *****, *.*. in ****** **** ******* of ****** ****).

** *** ******* ** granted, *** **** ***** provide *********** ********* **** for **** ** ***********, distributors *** ****, ***** the ****'* ********* ********* bans *** **** ***** Hikvision/Dahua/Huawei ********* ** *** capacity **** ***** ******** with *** ******* **********. (**** ***** ** ********* At ***, ****** **** Selling ** ** ******* Government, **** ** ****.)

*******, *** ******* ******** no ********** **** *** blacklist *********, ***** ******** rules **** *** **** finalized, **** ******** ** watered ****; ******* **'* in **** ** ****, it's ***** ******** **** an ********** *** ******** a ********* ****** ** a ***** ****** **** eventually ** ****** **** doing ******** **** *** federal **********.

****** **** ****, ** examine *** ******* ** the ****** *** *** proposed *************.

[***************]

News ******

*** **** ***** ****** ****** *** ********* on *** ***** *****'* website******* *** ****** ** Management *** ****** (***) director, ******* ******, ******** requesting *** ***** **** Congress.

Background: *** *****

*** ****'* ******* ********** ban *** ******** ***** into *** ******** ******* Acquisition *********** (***) ***** in *****:

  • *** **** ********* *******(*)(*)(*), *** ******* ******* sales ** ******* ********* to *** ******* ********** agency. **** **** ** scheduled ** **** ****** in ****** ****.
  • ******* **** ********** *******(a)(1)(B) - aka the blacklist clause - which bans federal government purchases from firms that use covered equipment in any way. This rule is scheduled to take effect in August 2020 but would be modified if this proposal is accepted.

(*** ****, ***** ******** ******** **** for **** *****/********* '*********'.)

What *** ****** ****

***'* ****** ************ ******** that *** ************** ** (a)(1)(B) **** ***** **** years ******* ** *** years ***** *** **** was ****** ** ****** 2018:

**** **, *** ********* clause ***** **** ****** in ****** **** ****** than ****** ****.

No ***** *** **** **** ****

*******, *** ********* ***** to **** ** **** is **** ***** *** no ***** ******* *** section (*)(*)(*), *.*. *** core **** **** ******* covered ********* ***** ** the ******* **********. **** will **** ****** ** August **** (** * months) ** *********.

Blacklist ****** ******** ** ******

*** *** ****** **** adds *** ******** ** the **** ********* *** rule ************ *** ********* clause, *********** ****:

  1. * ****** ******* ** held ***** *** **** in *** ****
  2. **** *** ******** **** is ********* ** ** months, ******** ** * second ******* ** ******* the ****

Strengthen *** ** ***** ******* *****

*** ******** **** ********* and ********** **** ******* loans ** ****** ****** be **** *** ********** banned ******** ** ******* the ******** ** *** recipients ** ***** *****:

Impact: ********* ****, *** ** **********

*** ******* **** *** OMB *** **** *** to ********. ******** *** to **** ** **, most ****** ** ** amendment ** ******** ***********, as *** ****** ********:

** **** ********* ** the ******** ** **** of *** ******** ******* Authorization *** *** ****** Year **** ** ** part ** ***** *********** Congressional *****.

** *******, ** ***** allow ************* **** **** for ********** ***** ******* equipment ** **** ***** business **** *** ******* government. ** ***** **** allow **** **** *** the ******* ******* ** the **** ************ *** blacklist ****** ** ** fleshed ***. ** ** possible **** ** ***** eventually ***** *** *********** the ********* *** ** may ****** ***** *** start *** * *** years.

Vote / ****

Comments (7)

***,

* ****’* ******* *** ban ******** ****** **** sells ***** ******** **. Can’t *** *** * couldn’t **** * *** camera ** * ***** place *** **** **** Axis ** *** **********.

** *** *** ***** in **** *, ***** probably *************** * **** *******, over ** *** **** of *****, ** ***** of ********* ******. ***** of *** *** ******** that *** **** ***** Systems ** *****. * don’t ***** **** *** just **** **&* ** Verizon ** * ***** time.

**** ***** ******* “ Huawei’s ** ******* *** services ********* ******** **** 200 **** ****** *** world, ******** ***** ******** to ***** **** *.* billion ********* ** **** than *** *********.“

* *****'* **** *** proposed **** ** *** entirety, *** *** ******** of *** ******** *'** read ********* ** **** would ****** ** ******* the ******** **** **** that ****** ** *** security ****** **** ******* pizzas ** *** **********.

* ***'* ***** **** will ******; **** *** not *** ****** ** the ****. **-**** *** blacklist ****** ** *********** ***********:

*** **** ** ** executive ****** *** ***...(B) ***** **** * ******** (or extend or renew a contract) with an entity that uses any equipment, system, or service that uses covered telecommunications equipment or servicesas * *********** ** ********* ********* ** *** ******, ** ** ******** ********** ** **** ** *** ******. [******** *****]

*** ******:

  1. *******, **** * ******** uses * ********* ******, that ****** ** *** a "* *********** ** essential *********" ** "******** technology" ******** ** ***** pizza.
  2. *** **** ***** ***** banning *** ** ********** from "*****[***] **** * contract" **** ******** ***** covered *********. * ***'* think ********** ********* **** a ******** **** ******'* every **** **** ***** a ********* *****. *******, government ******** **** ******* a *** ************ ****** definitely **** ********* ** do **.

**** *********** ***********. *** would ** **** **** the *** *** ******** alarms **** ******* ********. That’s ***** *** ******** in *** *****. ** it ***** ** **** down ***** *** **** monitors * ******* ******* because ** ******** *** circumstances *** *** **** monitor ********** ******** ** well ** *** ********** property. **** **** **** after *** *** ******* non ********** ******** **** covered ******** *** ********** property **** *** ******* products. ****’* *** ***’* and *** *** ********. Not ********** ** ** honest.

** ** ****, ********* who **** *** *** federal **********, ***'* ** anything *** **** *** the ******* **********. **'* very **** * **** in *** **** *** some ********* *** ** either **** *** ** one ******* **.

*******, **** ***’* ** anything *** ****? **’* not ***** ** ** what *** *** ********* to

******** *** **** *** the **********. * **-****** it *** *******.

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