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Apr 16 2018

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Trade and Investment Trade Enforcement

FOR IMMEDIATE RELEASE
Monday, April 16, 2018

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(202) 482-4883
[email protected]

Secretary of Commerce Wilbur L. Ross, Jr. today announced that the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has imposed a denial of export privileges against Zhongxing Telecommunications Equipment Corporation, of Shenzhen, China (“ZTE Corporation”) and ZTE Kangxun Telecommunications Ltd. of Hi-New Shenzhen, China (“ZTE Kangxun”) (collectively, “ZTE”).

In March 2017, ZTE agreed to a combined civil and criminal penalty and forfeiture of $1.19 billion after illegally shipping telecommunications equipment to Iran and North Korea, making false statements, and obstructing justice including through preventing disclosure to and affirmatively misleading the U.S. Government. In addition to these monetary penalties, ZTE also agreed a seven-year suspended denial of export privileges, which could be activated if any aspect of the agreement was not met and/or if the company committed additional violations of the Export Administration Regulations (EAR).

The Department of Commerce has now determined ZTE made false statements to BIS in 2016, during settlement negotiations, and 2017, during the probationary period, related to senior employee disciplinary actions the company said it was taking or had already taken. ZTE’s false statements only were reported to the U.S. Government after BIS requested information and documentation showing that employee discipline had occurred.

“ZTE made false statements to the U.S. Government when they were originally caught and put on the Entity List, made false statements during the reprieve it was given, and made false statements again during its probation.” said Secretary of Commerce Ross.

These false statements covered up the fact that ZTE paid full bonuses to employees that had engaged in illegal conduct, and failed to issue letters of reprimand.

“ZTE misled the Department of Commerce. Instead of reprimanding ZTE staff and senior management, ZTE rewarded them. This egregious behavior cannot be ignored,” Secretary Ross said.

Click to view the denial order.

BACKGROUND:

Denial Orders are issued by the Assistant Secretary for Export Enforcement of the Bureau of Industry and Security, denying the export privileges of a company or individual. A denial of export privileges prohibits a person from participating in any way in any transaction subject to the EAR. Furthermore, it is unlawful for other businesses and individuals to participate in any way in an export transaction subject to the EAR with a denied person.

This is a regulatory action and is unrelated to any ongoing trade-related actions.

BIS is the principal agency involved in the implementation and enforcement of export controls for commercial technologies and many military items. The BIS Office of Export Enforcement detects, prevents, investigates and assists in the sanctioning of illegal exports of such items. For more information, please visit us at Angara Amethyst Solitaire Ring with Diamond in Rose Gold v90dgbz
.

Organizations and Groups

Edition
BI ACCOUNTS
Will Martin
Jan. 12, 2018, 2:00 AM
Brexit will inevitably have an impact on economies in Europe outside the UK. A "group of economic geographers" used complex datasets to try and map the potential impacts Brexit could have on the EU-27 countries. Ireland's economy will understandably be worst hit, while Germany and the Netherlands are also at risk.

LONDON — Brexit will damage the British economy. Jude Frances Moroccan Narrow Sterling Silver Hinge Bracelet with Labradorite/Quartz Doublets PUZmT

There is already clear evidence that the domestic economy has slowed markedly, and faces uncertainty from all corners.

That uncertainty has pushed businesses to delay spending, and inflation caused by the weak pound has made spending more expensive for consumers.

Less clear is the impact Brexit will have on the economies of other countries in the EU, particularly in a hard Brexit scenario where the UK's trading relationship with the bloc fundamentally changes.

In a recent note from the investment bank Jefferies, economists David Owen and Marchel Alexandrovich point to a study by a "group of economic geographers" who used complex datasets to try and map the potential impacts Brexit could have on the EU-27 countries.

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According to Owen and Alexandrovich, the study "looks beyond export and import figures which may only scratch the surface of the potential hit, to complicated supply chains at a regional (NUTS-2) level, importantly across the EU-28," creating a reasonably clear picture of the potential economic hit to individual nations.

This hit is quantified in terms of what proportion of each country's GDP is at risk in the event of hard Brexit.

Jefferies' economists then put the data into a chart, which can be seen below:

"The fact that the UK and Ireland come off worst is hardly surprising, nor the hit to the trading hubs of Belgium and the Netherlands. However, of the larger countries in the EU-27 it is Germany that is hit worst, with Italy and Spain impacted a lot less," the economists note.

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