J.E. Bartlett: “ZTE Settlement Announcement Announced Today, But Don’t Ship Yet!”

* 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.

Posted in:
About the Author

Alexander Bosch

Alexander P. Bosch, Program Manager. Alexander Bosch has, due to his multidisciplinary academic background, a good overview of how the world of trade compliance is constructed. He is responsible for the drafting of engagement proposals, writing policies and procedures and designing an Internal Compliance Program, performing compliance assessments, audits, investigations related to (potential) export control violations, and is assistant editor of FCC’s daily newsletter, The Export/Import Daily Update (“The Daily Bugle”). In addition, Alexander plays a key role in the development and teaching of FCC’s training programs, and the Executive Masters in International Trade Compliance (EMITC) program, which FCC has set up in cooperation with the University of Liverpool London Campus. Alexander previously was responsible for a project for the Dutch government in which he assessed the effects of the U.S. Export Control Reform (ECR) upon the Dutch government and industry. He has earned his Master’s degree in International Relations from the University of Groningen and has written his master-thesis on the subject of European defense cooperation.

Leave a Reply