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

Core Viewpoint - Arrow Electronics Inc. has successfully had its affiliates removed from a US Commerce Department sanctions list, allowing its subsidiaries to continue purchasing American technologies without restrictions [1][2]. Group 1: Sanctions and Compliance - The removal of Arrow's affiliates from the sanctions list occurred shortly after the Bureau of Industry and Security (BIS) had placed them on the entity list for allegedly assisting Iranian proxies in acquiring American technology [2][6]. - Arrow stated that its units were in full compliance with US regulations and were in discussions with the Commerce Department regarding the listings [2][3]. Group 2: Notification and Authorization - A BIS official informed Arrow that its affiliates would be removed from the sanctions list, clarifying that one of the units named was a "copycat" and not actually connected to Arrow [3]. - The BIS has granted Arrow temporary authorization to resume transactions with all its affiliates, allowing exports and transfers up to 110% of the quantities transferred in the 120 days prior to the entity listing, valid until February 14 or until the removal is published in the Federal Register [4]. Group 3: National Security and Historical Context - The BIS emphasized its commitment to ensuring that export restrictions are effectively targeted to protect national security [5]. - It is uncommon for US-based firms to be placed on the entity list, with previous considerations for Arrow dating back to 2020 when an Asian subsidiary was suspected of providing technology to foreign military forces, which Arrow contested as an error [6][7].