ZTE banned from purchasing US technology for 7 years.

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ZTE Corporate Campus in Shenzhen, China; Photo Credit: Brücke-Osteuropa from Wikipedia

On Monday, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) imposed a denial of export privileges against ZTE, composed of Zhongxing Telecommunications Equipment Corporation, of Shenzhen, China (“ZTE Corporation”) and ZTE Kangxun Telecommunications Ltd. of Hi-New Shenzhen, China (“ZTE Kangxun”).

Background

In March of 2017, ZTE agreed to pay civil and criminal penalty and forfeitures totaling $1.19 billion for shipping telecommunications equipment to Iran and North Korea, making false statements, and obstructing justice by preventing disclosure to and misleading the U.S. Government. In 2017, ZTE also agreed to a seven-year denial of export privileges if ZTE committed additional violations.

Commerce found ZTE made several violations such as making false statements to BIS in 2016 and making false statements about disciplinary actions against employees involved in the shipment of equipment to Iran and North Korea.

Result

By activating the seven-year denial of export privileges, ZTE is prohibited from participating in any way in any transaction subject to the EAR. The prohibition also makes it unlawful for businesses and individuals to participate in an export transaction subject to the EAR with a denied person (ZTE).

If you have any questions about how the recent ZTE order may effect your business, or have any other BIS, EAR or export compliance issues – contact experienced trade attorney David Hsu at 832.896.6288 or by email at dhsu@givensjohnston.com.

Section 232 Exclusion Requests.

 

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The Bureau of Industry and Security (BIS) has released the rules and procedures to apply for a Section 232 exclusion request for imports of steel or aluminum. Additionally, the BIS also released guidelines to object to any exclusion requests.

Contact David Hsu at 832.896.6288 or dhsu@givensjohnston.com to get started today on the exclusion request process.

2018 Houston BIS Export Compliance Event – Register Now.

hall-congress-architecture-building-159213.jpegSave the date if you are in Houston and want to learn more about BIS export compliance.

The first two-day program session will be led by BIS staff and provide in depth information regarding Export Administration Regulations (EAR). Covered topics include EAR, how to determine export control classification numbers (ECCN); when to reexport without applying for a license, Export Management Compliance Program (EMCP) and more!

Additionally, session 2 on day three covers technology controls, specifically how to comply with U.S. export and reexport controls related to technology and software. Topics include export or reexport of technology, kinds of tech and software subject to EAR, license exceptions and more!

The 3-day seminar will be held at the Norris Conference Center in City Centre Houston near Beltway 8 and I-10 West.

For more details, click the link below:

http://events.r20.constantcontact.com/register/event?llr=qg6pm6iab&oeidk=a07eeqlbbsq77507f3b