Ross Announces Activation of ZTE Denial Order in Response to Repeated False Statements

April 16th, Secretary of Commerce Wilbur L. Ross, Jr. 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.

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 www.bis.doc.gov.

Upcoming Event: Licensing Expo 2018 – IBP SELECT

Detailed Event Information For Licensing Expo 2018 – IBP SELECT

Licensing Expo 2018 – IBP SELECT
Apparel, Artwork, Audio/Visual Eq., Books/Periodicals, Consumer Electronics, Films/Videos, Foods – Processed, General Consumer Goods, Musical Instruments, Toys/Games

Location/Date:

Las Vegas, NV, United States
05/23/2018 – 05/25/2018

Event Summary:

For more than 35 years, Licensing Expo has connected the world’s most influential entertainment, character, fashion, art, and corporate brand owners and agents with consumer goods manufacturers, licensees, and retailers. Licensing Expo is the meeting place for the global licensing industry, whether you are looking to spot trends, build strategic partnerships, or secure the rights to brands for your products. Millions of products across the world first began as a conversation at Licensing Expo. Licensing Expo is where you can find the right partners to expand and transform your business.

U.S. Department of Commerce Issues Affirmative Preliminary Antidumping Duty Determinations on Stainless Steel Flanges from China and India

Today, the U.S. Department of Commerce announced the affirmative preliminary determinations in the antidumping duty (AD) investigations of imports of stainless steel flanges from China and India.

“The United States will not sit back and watch as our domestic businesses are destroyed by unfair foreign government subsidies and dumping,” said Secretary Ross. “This Administration is taking fair and transparent action on behalf of American industry to defend businesses and workers while we continue reviewing the facts related to this decision.”

The Commerce Department preliminarily determined that exporters from China and India have sold stainless steel flanges in the United States at 257.11 percent, and 18.10 to 145.25 percent less than fair value, respectively.

As a result of today’s decision, Commerce will instruct U.S. Customs and Border Protection (CBP) to collect cash deposits from importers of imports of stainless steel flanges from China and India based on these preliminary rates.

In 2016, imports of stainless steel flanges from China and India were valued at an estimated $16.3 million and $32.1 million, respectively.

The petitioners are the Coalition of American Flange Producers and its individual members: Core Pipe Products, Inc. (Carol Stream, IL) and Maass Flange Corporation (Houston, TX).

Enforcement of U.S. trade law is a prime focus of the Trump administration. From January 20, 2017, through March 20, 2018, the Commerce Department has initiated 102 antidumping and countervailing duty investigations – a 96 percent increase from January 20, 2016, through March 20, 2017.

The AD law provides U.S. businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair pricing of imports into the United States. Commerce currently maintains 428 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.

Commerce is scheduled to announce the final determinations in these investigations on or about June 5, 2018.

If Commerce makes affirmative final determinations of dumping and the U.S. International Trade Commission (ITC) makes affirmative final injury determinations, Commerce will issue AD orders. If Commerce makes negative final determinations of dumping or the ITC makes negative final determinations of injury, the investigations will be terminated and no orders will be issued.

The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international rules and is based solely on factual evidence.

Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to antidumping duties.

313,000 New Jobs in February, Job Growth Strongest Since President Trump’s Election

The U.S. economy added 313,000 new jobs in the month of February, according to the February 2018 Employment Situation report published today by the Bureau of Labor Statistics.

More from the Department of Labor:

“Job growth was the strongest since President Trump’s election, with 313,000 jobs created in the month of February. The non-stop job creation since the election has yielded 2.9 million jobs. For the fifth month in a row, the unemployment rate remained at 4.1%, a 17-year low. Goods-producing industries such as manufacturing, mining and logging, and construction collectively had the highest month-to-month growth since 1998. These were among many sectors experiencing significant growth.

“President Trump’s tax reform continues to boost economic confidence with more than 400 companies handing out bonuses, raises, or other benefits to more than 4 million Americans. Today’s report shows that average hourly earnings significantly increased in February and have increased by 2.6% over the last year. We saw positive movement in the labor force participation rate, and we would like to see that continue over the coming months.”

In total, 2.92 million jobs have been added to the U.S. economy since President Trump was elected – including 263,000 manufacturing jobs since President Trump took office. In addition, the number of long-term unemployed Americans is the lowest since 2008.

Secretary Ross Outlines Commerce-Led Initiatives to Advance Space Leadership

Secretary Wilbur Ross addressed the second meeting of the reconstituted National Space Council today, where he outlined Commerce-led initiatives to advance American leadership in space commerce.

Read more of Secretary Ross’s remarks at the National Space Council meeting.

Expanding commercial space activities is a key objective in the Department’s recently released strategic plan for 2018-2022.

The scientific discoveries resulting from space exploration have created new industries and technologies that improve our lives, our economy, and our national security. While the technological advancement of commercial space activities has created profitable opportunities, current government regulations are an impediment to the commercial space sector.

As Secretary Ross outlined earlier today, Commerce will be leading efforts to cut red tape that hinders the American commercial space sector.

Let’s invest in U.S. future – Transportation Secretary Chao

President Donald Trump has announced a bold, innovative plan for improving and investing in America’s infrastructure. The proposal is the culmination of a year-long effort between Cabinet agencies, including the Department of Transportation, with significant input from state, local, and private sector leaders. It is designed to change how infrastructure is built, financed and maintained in communities across the country.

A national discussion on how we build and fund our roads, bridges, tunnels, seaports, airports, rural infrastructure and transit systems is long overdue. As U.S. Secretary of Transportation, I’ve had countless conversations with governors and local officials across the country — including Florida Gov. Rick Scott — about strengthening America’s critical infrastructure. Florida is doing it the right way.

One project in particular is the I-4 Ultimate Project. I-4 Ultimate will help transform Central Florida by rebuilding 21 miles of interstate. From its inception in 1965, I-4 has been a vital east-west connector that cuts through Central Florida, serving as the main transportation corridor from Daytona Beach to Tampa.

I-4 Ultimate includes the addition of two new dynamic tolled Express Lanes in each direction, replacing more than 140 bridges, reconfiguring 15 major interchanges, and reconstructing the entire existing roadway. By utilizing a public-private partnership procurement method, the Florida Department of Transportation will deliver the project in seven years where standard funding options projected it would take 27 years to complete. When finished, the project is expected to decrease travel times by increasing options for commuters and visitors in central Florida.

The $2.3 billion construction project is benefiting from more than $1 billion in private financing from the concessionaire, I-4 Mobility Partners, including private bank loans, Federal TIFIA loans, and private investment. As such, the project also needs a workforce, including engineers, designers, skilled workers, as well as all that goes into supplying product and equipment along the way. This means jobs for Central Florida.

Unfortunately, Florida is the exception, not the norm. One out of every five miles of U.S. highway pavement is in poor condition. Americans spent an estimated 6.9 billion hours delayed in traffic in 2014, or 42 hours per driver. Almost 40 percent of America’s bridges are more than 50 years old.

Fortunately, the president is a builder and he is making infrastructure a priority.

President Trump’s proposal will stimulate at least $1.5 trillion in infrastructure investment, which includes a minimum of $200 billion in direct federal funding. It will include not only roads and bridges, but drinking and wastewater, energy, broadband, and veterans hospitals as well.

The guiding principles are to: 1) provide federal dollars as matching funds to incentivize infrastructure investment; 2) provide for the needs of rural communities; 3) streamline and speed up project delivery; and, 4) provide for workforce training.

The key element of the proposal is to empower decision making by State and local officials, who know best the infrastructure needs of their communities, including those in rural America. The Federal government needs to stop dictating and start listening to State and local leaders, including those who encourage private sector investment in infrastructure.

Permitting reform will eliminate duplication and enhance environmental protections by delivering infrastructure improvements in a timelier fashion. The Department of Transportation is already developing a new process to handle the reviewing of complicated, multi-agency projects to reduce permitting from ten years to two.

And as a former U.S. Secretary of Labor, I could not be more pleased that this plan also has a work-force component, to help workers access the education and skills needed to build these new projects and better prepare them to remain an active part of the American work force.

Infrastructure is the foundation of our economy, and the key to job growth and keeping our country competitive. The citizens of Florida know this. Americans know this.

President Trump’s proposal will create new jobs, strengthen our economy, and improve quality of life. It will help ensure that our country has the infrastructure needed for today and the plans for tomorrow to remain a global leader. The Administration looks forward to working with both parties in Congress to get it done.

By Secretary Elaine Chao
Orlando Sentinel
February 15, 2018

Elaine L. Chao is the secretary of the Department of Transportation

Upcoming Event: SBA Southern California Small Business and Government Contracting Conference

THURSDAY APRIL 12, 2018
Irvine Marriott
18000 Von Karman Ave.
Irvine, CA 92612

The SBA Southern California Small Business and Government Contracting Conference is a forum that educates, guides and assists small businesses in working with federal, local, and state governments. This event provides an opportunity to meet buyers and contracting officers from large companies and government agencies to discuss business opportunities in a one-on-one setting.

Registration includes: a networking coffee with continental breakfast, morning plenary session, as well as a seated banquet lunch and onsite complimentary parking.

General Admission before 3/20/2018