Chip Firm Arrow Says Its Units To Be Removed from US Blacklist

Arrow Electronics Inc. said its subsidiaries will be removed from the U.S. Commerce Department’s sanctions list, protecting the Colorado-based chip distributor’s subsidiaries from a possible ban on purchasing American technologies.

The removals come less than two weeks after the Bureau of Industry and Security placed a handful of companies it said were affiliated with Arrow on its list of alleged entities for allegedly helping Iranian proxies buy American technology. At the time, Arrow said its units were in full compliance with U.S. regulations and that it was discussing the listings with the Commerce Department.

Arrow spokesman John Hourigan said an Industry and Security Bureau official notified the company on Friday that its subsidiaries would be removed from the list. Hourigan said Arrow Electronics Co., Ltd., one of the units named in the original notice, is not actually affiliated with the company and appears to be “an imitator using a similar name.”

Hourigan said the bureau authorized Arrow to pursue transactions with all of its subsidiaries before the removal was published in the Federal Register.

In a letter seen by Bloomberg News, BIS said Arrow was authorized to export, re-export or transfer quantities not exceeding 110% of the items transferred during the 120 periods prior to its founding listing. This temporary authorization is valid until February 14 or until the disincorporation is published in the Federal Register, the letter states.

BIS “remains committed to ensuring that export restrictions are appropriately targeted to protect national security,” a spokesman for the agency said in a statement. The company declined to comment on the details of the letter.

Many of those added to this month’s asset list – including now-removed Arrow subsidiaries – were linked to the discovery of US-origin electronic components in scraps of drone systems operated by Iran’s proxies since 2017. According to the initial blacklisting notice, the components were found after examining drone wreckage recovered by countries in the Gulf and Middle East regions.

It is rare to see US-based companies on the entity list. The US had weighed restrictions on Arrow as early as 2020, when an Asian subsidiary was suspected of providing technology to foreign military forces. Arrow said at the time that the statement was a mistake and that the subsidiary did not engage in military activities.

This article was generated from an automated news agency feed without modifications to the text.