Huawei filed a lawsuit against the US Department of Commerce to challenge whether its telecom equipment sent from China to the United States, and then back to China, is covered by Export Administration regulations.
According to the lawsuit filed by Huawei, the company said that it shipped telecom equipment from China including a computer server and ethernet switch to a testing lab in California. After the testing was done, the equipment was shipped back to China.
Therefore, no application for a license was made because none was needed but the equipment was seized in Alaska by the US government and no decision has been made about whether a license required to ship it, reported Reuters.
This is a new matter that opened after the US Commerce Department added Huawei into the trade blacklist, citing that the company can use its equipment for espionage and imposed restrictions to bar the company from doing business with American firms.
“The equipment, to the best of HT USA’s knowledge, remains in bureaucratic limbo in an Alaskan warehouse,” Huawei said in its lawsuit.
Huawei demands that the network gear did not require a license because it did not fall into a controlled category and because it was made outside the U.S. and was being returned to the same country from which it came.
In final words, the company asked for the equipment to be either released for shipment or for the Commerce Department to decide that it was shipped illegally.