Zte Superseding Agreement

19 Říj , 2021 Nezařazené

On June 8, 2018, I issued a replacement order authorizing an alternative settlement agreement between the BIS and ZTE (the „Replacement Agreement“) in which the parties agreed to additional and improved settlement terms, including, but not limited to, the full and timely payment of $1,000,000,000 to the Department of Commerce within 60 days of the date of ZTE`s replacement order. and the full and timely investment of $400,000,000 within 90 days of the redemption date in an escrow account with a U.S.-based bank selected by ZTE and approved by the BIS. The esc escling amount of $400,000,000 is the suspended portion of the $1,761,000,000 civil penalty imposed under the settlement agreement and the superseding redemption order. [2] The alternative order also provided, as agreed by the parties, that the BIS would terminate the denial of the export privileges set out in the April 15, 2018 order and remove ZTE from the list of rejected persons once ZTE had paid the $1,000,000,000 above in full and on time and would have met the esceding requirements with respect to the suspended portion of the $400,000 civil penalty. $000. On June 7, Commerce Secretary Wilbur Ross announced that the U.S. government had reached an agreement with ZTE Corporation (ZTE) to rescind a rejection order suspending ZTE`s export privileges for a period of seven years. Under the new agreement, ZTE must pay $1 billion and deposit an additional $400 million with a U.S.-approved bank within 90 days of that replacement order. The Bureau of Industry and Safety (BIS) will rescind the rejection order upon receipt of payment and inform the public that ZTE has been removed from the list of rejected persons. A Commerce Department press release states that the termination order was issued after ZTE fulfilled its obligations to pay a $1 billion fine and file $400 million under the replacement settlement agreement. These amounts are in addition to the $361 million fines ZTE has already paid to the BIS under the original Settlement Agreement of March 2017, and together, these payments represent the largest civil penalty for violations of U.S. export controls. The replacement settlement agreement also requires ZTE to retain an external compliance coordinator who will report to the BIS for a period of ten years to monitor and report on ZTE`s compliance.


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