Oct 18 (Reuters) - U.S.-based electronic components

distributor Arrow Electronics ( ARW ) said on Saturday the U.S.

government was reversing trade restrictions placed on Arrow's

China-based affiliates for facilitating the sale of U.S.

components found in weaponized drones used by Iran-backed groups

like the Houthis.

Arrow (China) Electronics Trading Co and another Arrow

entity with six aliases in Hong Kong were added to the Commerce

Department's Entity List on October 8 in a Federal Register

posting.

Licenses are required to export goods and technology to

companies on the list and are likely to be denied. Firms are

placed on the list over U.S. national security or foreign policy

interests.

On October 8, Commerce said that drones operated by

Iran-backed groups and their debris recovered in the Middle East

since 2017 had U.S. components traced to sales tied to these

Arrow-related entities.

Arrow said on Saturday the Commerce Department told it the

department would soon publish the reversal in the U.S. Federal

Register and sent a letter Friday removing the restrictions in

the meantime.

"We have received official communication from the U.S.

Commerce Department," Arrow spokesman John Hourigan said in an

email. "Arrow is authorized to resume shipping to and from these

entities under the same conditions that applied prior to October

8."

Asked about the matter, a spokesperson for the U.S.

Department of Commerce's Bureau of Industry and Security said in

an email: "BIS is committed to ensuring that export restrictions

are appropriately targeted to protect national security."

Hourigan said the company operates in compliance with all

laws and regulations. Centennial, Colorado-based Arrow

Electronics ( ARW ) had global 2024 sales of $28 billion.

Hourigan said that Arrow Electronics ( ARW ) (Hong Kong) Co. Ltd,

which he described as a subsidiary when it was added to the

Entity List, was not actually affiliated with Arrow

Electronics ( ARW ).

However, the six aliases tied to the Hong Kong company in

the Federal Register posting are affiliated with Arrow and, the

company said, would be removed from the Entity List.