DATE: 7.26, 2018
TO: All Directors, Officers, Employees and Contractors
SUBJECT: 2018 Export Control Compliance Management Commitment Statement
ZTE Corporation and its subsidiaries and branches (collectively, “ZTE”) are fully committed to compliance with all applicable export control and sanctions laws and regulations. ZTE has committed and will continue to commit substantial resources to ensure compliance with applicable export control and sanctions laws around the world. This year we will be implementing a full range of new export control compliance measures, including a revised Compliance Manual at our subsidiaries worldwide and rolling extensive training programs. The Compliance Committee— which is the chief organization for ZTE’s compliance management—and all ZTE management fully support ZTE’s goal to have a best-in-class export control and sanctions compliance program. ZTE has made progress on export compliance but has much more work to do to build a best-in-class export compliance program. It is the responsibility of every individual to support this effort. As we have seen recently with the Denial Order, compliance creates and protects value.
Please review ZTE’s Export Control Compliance Policy and become familiar with the restrictions within the Policy. All directors, officers, employees, and contractors must comply with all applicable export control and sanctions laws and regulations as well as ZTE’s policies and procedures. Under no circumstances will exports, re-exports, or transfers (in-country) be made contrary to law or policy by any employee or entity on behalf of ZTE. For example, ZTE makes certain products incorporating U.S. content that are fully subject to the U.S. export control and economic sanctions regulations, including products subject to international security/dual-use controls.
Violations of the export control and economic sanctions laws will result in serious consequences for ZTE and responsible individuals, including criminal and/or civil fines, sanctioned party designation and even imprisonment, as well as damage to the individual and ZTE’s reputation, or re-imposition of the Suspended Denial Order. Any director, officer, employee, and contractor found to be in violation of the laws or policies will be subject to disciplinary actions by the company, up to and including termination, in addition to legal responsibilities. ZTE’s Export Compliance Program is subject to audits by the Independent Compliance Monitor, appointed by the U.S. Court. ZTE’s Export Compliance Program will also be monitored and assessed by the Special Compliance Coordinator (“SCC”) pursuant to the June 8, 2018, Superseding Settlement Agreement (“SSA”) between the US Department of Commerce, Bureau of Industry and Security (“BIS”) and ZTE. Any failure to comply with ZTE’s Export Control Compliance Policy and management’s statements regarding cooperation and honesty with the Monitor, the SCC, the Export Control Compliance Department (“ECC”), or ZTE’s outside counsel and support teams will result in significant discipline up to and including termination.
We need to do better because it is the right thing to do and Compliance Creates Value for ZTE. I ask each of you to take this matter very seriously and report all export compliance concerns, questions, or potential violations that you identify. If you have any questions concerning potential violations, procedural uncertainties, or if you have suggestions to improve our compliance program, please contact Lawrence Koh, Chief Export Compliance Officer, his colleagues at ECC, or the Reporting Hotline.
, President of ZTE , Chairman of ZTE