2 Dec 2016
Suspension of Restrictions on Exports to Two ZTE Entities Extended
The Bureau of Industry and Security has extended from 28 November to 27 February the expiration date of a temporary general licence allowing exports of goods subject to the Export Administration Regulations from the United States to ZTE Corporation (Zhongxing Telecommunications Equipment Corporation) and ZTE Kangxun Telecommunications Ltd.
Restrictions on such exports had been imposed on 8 March when BIS placed these entities (and two others) on the Entity List following its determination that they were involved in a scheme to establish, control and use a series of shell companies to illicitly re-export controlled items to Iran. BIS subsequently issued a temporary general licence that suspended these restrictions and restored the licence requirements, licence review policies and licence exceptions under the EAR that applied prior to 8 March to exports, re-exports and transfers (in-country) to these two entities. BIS has said that this licence may be renewed if it determines that these entities are timely performing their undertakings to the U.S. government and otherwise co-operating in resolving the matter.
For the other two entities (Beijing 8-Star and ZTE Parsian) there continues to be a licence requirement for all items subject to the EAR and a licence review policy of presumption of denial. The licence requirement applies to any transaction in which items are to be exported, re-exported or transferred (in-country) to either of these entities or in which they act as purchaser, intermediate consignee, ultimate consignee or end-user. In addition, no licence exceptions are available for exports, re-exports or transfers (in-country) to these entities.