The U.S. Department of Commerce's Bureau of Industry and Security (BIS) is again extending the general license for exports, reexports (shipments from one foreign country to another foreign country), and in-country transfers of items subject to the Export Administration Regulations (EAR) to Zhongxing Telecommunications Equipment Corporation (ZTE) and its affiliate, ZTE Kangxun Telecommunications Ltd. (ZTE Kangxun). This extension, which is the third extension, is until February 27, 2017, and continues the general license without interruption. BIS's notice announcing this extension was published in the November 18 edition of the Federal Register.
On March 8, BIS added ZTE and ZTE Kangxun to its Entity List and, as a result, a license requirement was imposed on the export, reexport, and in-country transfer of any item subject to the EAR, including EAR99 items, to ZTE and ZTE Kangxun.1On March 23, BIS issued the general license "suspending" the license requirement imposed by the Entity List, thereby returning the license requirements for exports, reexports, and in-country transfers of items subject to the EAR to ZTE and ZTE Kangxun to the same level that existed prior to ZTE's and ZTE Kangxun's inclusion on the Entity List. Thus, if an export was authorized under no license required (NLR) to ZTE or ZTE Kangxun prior to the March 8 listing, then that export can continue to be sent under NLR to ZTE or ZTE Kangxun as a result of the general license. In addition, use of applicable license exceptions for exports, reexports, and in-country shipments to ZTE and ZTE Kangxun is again authorized.
Restrictions on the export, reexport, and transfer to the two additional entities added to the Entity List with ZTE, ZTE Parsian and Beijing 8-Star, remain in effect. Thus, a license is required for the export, reexport, or transfer of any item subject to the EAR to ZTE Parsian and Beijing 8-Star.
If you would like to discuss this matter, please contact Josephine Aiello LeBeau, 202-973-8813, jalebeau@wsgr.com; Anne Seymour, 202-973-8874, aseymour@wsgr.com; or any member of the export control and economic sanctions regulatory practice at Wilson Sonsini.
