Upcoming Event: Discover Global Markets

Indo-Pacific
Opportunities at the Convergence of Aerospace + Defense + Security
Dec. 10-12, 2018 | Salt Lake City, UT

About Discover Global Markets

Discover Global Markets is the U.S. Department of Commerce’s flagship event series for U.S. exporters.

In just a few days, attendees will uncover new exporting opportunities, learn from seasoned exporters, and connect with hundreds of networking contacts.

Sign up for e-mail updates to learn about upcoming events in the Discover Global Markets series.

At Each Discover Global Markets Conference, you will:

  • Meet one-on-one with U.S. Commercial Diplomats visiting from abroad
  • Participate in panel discussions on the latest industry trends
  • Identify new and emerging markets of opportunity ahead of your competition
  • Learn about U.S. export programs designed to cut your time to market
  • Network with U.S. trade officials, leading private sector experts and like-minded U.S. businesses active in overseas markets

U.S. Department of Commerce Announces Selection of ZTE Special Compliance Coordinator

August 24, Secretary of Commerce Wilbur L. Ross, Jr. announced the selection of Roscoe C. Howard, Jr. to be the Special Compliance Coordinator (SCC) for Zhongxing Telecommunications Equipment Corporation, of Shenzhen, China and ZTE Kangxun Telecommunications Ltd. of Hi-New Shenzhen, China (collectively, ZTE). The Special Compliance Coordinator was selected after a rigorous search by the Bureau of Industry and Security (BIS). This appointment is the result of the historic settlement between the Department of Commerce and ZTE that includes a $1.761 billion fine, a ten-year probationary period, and the installation of the coordinator to conduct regular and comprehensive compliance supervision by a team answerable to BIS.

“Today’s appointment is the continuation of the unprecedented measures imposed on ZTE by the Department of Commerce,” said Secretary Ross. “Mr. Howard is exceptionally well-versed in corporate compliance, having tried more than 100 cases as a federal prosecutor, as well as helping those in the private sector on compliance and ethics issues.”

“I am honored to be selected for this critical role,” said Mr. Howard. “My team and I will be vigilant in efforts to ensure that ZTE complies with all U.S. export control laws and regulations.”

Mr. Howard is a Partner in Barnes & Thornburg’s Litigation Department in Washington, D.C. He is a graduate of Brown University and earned his J.D. from the University of Virginia School of Law. He previously served as the U.S. Attorney for the District of Columbia from 2001-2004. Prior to his appointment, Mr. Howard was a tenured, full professor at the University of Kansas School of Law. He has twice served as an Associate Independent Counsel under both Republican and Democrat Presidents and was an Assistant U.S. Attorney in the District of Columbia and in the Eastern District of Virginia. Howard has served as an Associate Independent Counsel on two occasions. During his first occasion serving as an Associate Independent Counsel, Howard served as a lead prosecutor for the Office of Independent Counsel (OIC) investigating questionable programs, officials and activities at the U.S. Department of Housing and Urban Development under former Secretary Samuel R. Pierce, Jr. During his second occasion serving as an Associate Independent Counsel, Howard was lead trial counsel in the fraud, false statements and gratuities investigation and trial of former Secretary of Agriculture A. Michael Espy.

The Special Compliance Coordinator’s function will be to coordinate, monitor, assess, and report on compliance with U.S. export control laws by ZTE, its subsidiaries, and affiliates worldwide. As stated in the Superseding Agreement and Order, the coordinator will operate with unprecedented access across the company.

In addition to the requirement to retain the coordinator, the Superseding Agreement and Order imposed a $1.761 billion monetary penalty, a ten-year conditionally-suspended denial order, which BIS can activate in the event of additional violations during the ten-year probationary period, and a requirement that ZTE replace the entire board of directors and the senior leadership of the company.

BACKGROUND:

On April 15, 2018, BIS activated the seven-year conditionally-suspended denial order against ZTE in response to ZTE’s admission that it made false statements to the U.S. Government during the probationary period when the company falsely stated that it would or had disciplined numerous employees responsible for the violations that led to the March 2017 settlement agreement. ZTE instead rewarded that illegal activity with bonuses. This action followed the March 2017 settlement agreement, in which ZTE agreed to a then record-high BIS civil penalty of $661 million, after engaging in a multi-year conspiracy to supply, build, and operate telecommunications networks in Iran using U.S.-origin equipment in violation of the U.S. trade embargo, and committing hundreds of U.S. sanctions violations involving the shipment of telecommunications equipment to North Korea. Moreover, ZTE also made false statements and obstructed justice by creating an elaborate scheme to prevent disclosures to and mislead the U.S. Government. In addition to monetary penalties, ZTE had agreed to a seven-year suspended denial of export privileges.

The Department of Commerce’s Bureau of Industry and Security 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.

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.

Commerce Pledges Support for Commercial Space Industry

Coming on the heels of Secretary Ross’s announcement of a new initiative to support space commerce, space-focused professionals filled the Walter E. Washington Convention Center in Washington, D.C., on March 12th – 15th for the satellite industry’s annual meeting.

On Monday, the industry heard from Secretary Ross about his plans for elevating space commerce functions within the department, a key objective in the Department of Commerce’s recently released strategic plan for 2018-2022.

NTIA Assistant Secretary David Redl addressed the convention on Wednesday, pledging his commitment to collaborating with the U.S. satellite industry – highlighting the importance of maintaining global leadership for satellite-based services and manufacturing. He told attendees that the United States needs a vibrant satellite sector, which directly supports tens of thousands of family-sustaining jobs and indirectly enables millions more in the larger economy.

Fast-paced innovation in the satellite sector is paving the way for a new era in satellite coverage that will strengthen our nation’s broadband infrastructure and power advanced services to improve people’s lives. “The Commerce Department is invested in the health and success of all aspects of the satellite sector, from spacecraft design and manufacturing to earth-station equipment standards and manufacturing,” said Assistant Secretary Redl.

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.

Asia Nuclear Business Platform 2017 (TFC Event)

nbpf 2017

Asia Nuclear Business Platform will be held for the 5th consecutive year in Shanghai from May 16-18, 2017.

The past four editions of the event have seen tremendous support from U.S., Asia and International companies.

According to a recent report from the World Nuclear Association, nuclear power generation between 2014 to 2025 is projected to grow by 1400 GWe, over 120 GWe per year, which will account for 46% of the world’s new capacity. Much of this growth will be in China, Japan, India and Korea. The nuclear share of this to 2020 is expected to be considerable in three of those countries, especially if environmental constraints limit fossil fuel expansion nuclear business transactions.

Connect, interact and network with over 150 industry experts exploring NPP new build in Asia and 50+ international industry experts with a combined 100+ reactor years of experience.

Edward McGinnis, Deputy Asst. Secretary, Office of Nuclear Energy, US Department of Energy has confirmed his attendance.

This year’s show will feature a site visit to the Shanghai Electric manufacturing base, which is the biggest nuclear equipment manufacturing base in China.
There will be multiple sessions tailored to financing and risk management, localisation, human resource development and licensing.

For more information, please visit the event website at [http://www.nuclearbusiness-platform.com/asia/].

2017 North America International Auto Show (NAIAS)


JANUARY 8 – 22, 2017
Cobo Center
1 Washington Blvd.
Detroit, MI 48226

Last January, the 2016 NAIAS featured 61 vehicle introductions, a majority of which were worldwide debuts. News coming out of NAIAS is heard across the globe as more than 5,000 journalists from 60 different countries annually attend to cover the latest and greatest happenings our industry has to offer.

With the integration of AutoMobili-D, the 2017 NAIAS will serve as the world’s leading showcase of vehicles and technologies aimed at defining how people across the globe experience mobility.

NAIAS is unmatched in the industry in presenting six unique shows in one, including: The Gallery, an ultra-luxury automotive event, AutoMobili-D, an inside look at future mobility platforms, Press Preview, Industry Preview, Charity Preview and all concluding with a nine-day Public Show.

THE GALLERY – JANUARY 7, 2017

2017 marks the tenth year of the ultra-luxury automotive event, The Gallery. This event has now become the official kick-off to the North American International Auto Show. Once again, the event is hosted at the luxurious MGM Grand Detroit where a strolling dinner will be served by world-renowned chef Wolfgang Puck in the Ignite Lounge. Guests will then have the opportunity to stroll through the MGM Grand Ballroom and experience a nearly $7 million collection of the most amazing automobiles the world has to offer, including brands such as Aston Martin, Bentley, Ferrari, Lamborghini, Porsche and Rolls Royce. In addition, executives and designers responsible for the creation of these products will be on hand to discuss the brands.

AUTOMOBILI-D – JANUARY 8-12, 2017

Automobili-D is a dedicated exposition focused on the rapidly evolving global automotive and mobility landscape.

Spearheaded by NAIAS, AutoMobili-D will run in conjunction with the 2017 auto show and will feature more than 100 companies, including automakers, tier one suppliers and tech startups. AutoMobili-D will kick-off on Sunday, January 8, 2017, the day prior to the start of NAIAS Press Days (Jan. 9-10), and will run through NAIAS Industry Days (Jan. 11-12). A very prominent industry thought leader will keynote Sunday’s opening ceremony following an open house that will allow guests to network with peers and participating companies as well as interact with the technologies and vehicles on display. NAIAS will dedicate specific press conference slots for participating AutoMobili-D companies on the afternoons of both Press Days.

Planet M Hall will be open:

Sunday, January 8, 2017
2 p.m. – 7 p.m.
Monday, January 9, 2017
11 a.m. – 6:30 p.m,
Tuesday, January 10, 2017
11 a.m. – 6:30 p.m.
Wednesday, January 11, 2017
10 a.m. – 9 p.m.
Thursday, January 12, 2017
9 a.m. – 9 p.m.

Dates and Times
Wednesday, January 11, 2017
Noon – 9 p.m.
Thursday, January 12, 2017
7 a.m. – 9 p.m.

PUBLIC SHOW – JANUARY 14-22, 2017
Experience an automotive event unlike any other. At NAIAS you have the opportunity to see up-close the vehicles and technologies that will shape the future automotive landscape. From muscle and electric cars, to high-performance supercars and full-size trucks, NAIAS has something for everyone to enjoy.