* Author: James E. Bartlett III, Director U.S. Operations, Full Circle Compliance, JEBartlett@fullcirclecompliance.eu, +1 202-802-0646.
Companies that were trading with Zhongxing Telecommunications Equipment Corporation, of Shenzhen, China and ZTE Kangxun Telecommunications Ltd. of Hi-New Shenzhen, China (“ZTE”) before The Commerce Department’s Bureau of Industry & Security (“BIS”) imposed a Denial Order on April 15, 2018, were pleased to see today’s announcement that BIS and ZTE have agreed to a revised denial order relaxing the prohibitions of the April order, and permitting ZTE to resume trading with U.S. products and services subject to U.S. export regulations.
But don’t ship yet! The press release is not the official revision of the denial order, so the prohibitions of the April 15, 2018, denial order remain in effect until the new revised order is posted on the BIS website, which will be followed by posting in the Federal Register. Trade with ZTE can’t lawfully resume until a signed and dated revised order has been posted by BIS. And another monkey wrench may be thrown in the works by the Senate, as several senators have said the BIS settlement with ZTE was too lenient. They could propose legislation that would retroactively reimpose the sanctions originally levied against ZTE, reversing the administrative consent agreement signed today.