Scribd Logo
Upload

Welcome to Scribd!

  • Kisi Kisi

    Uploaded by

    Muh Ikram
    76 views18 pages

    Original Title

    kisi-kisi

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    76 views18 pages

    Kisi Kisi

    Uploaded by

    Muh Ikram

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 18
    18i112020, ‘complance mator Part 1 Related on the Export Administration Regulation of the United States 1. what are the four elements of Export Control Compliancs?, Item: tems referred in the EAR (Export Administration Regulations) can be commostes, software, or technolagies. Party: Focus on the resticied pay list screening County: ams ave probbites to be delivered tothe sanctioned counties of ragions, ineluding Iran, Sucan, Syria, North Korea, Cuba and the Crimea region, Endl: The EAR mainly estes the end-uses of tems in weapons of mass destruction {nuclear weapons and missies) legal interception and surveance, mitary end-uses. The EAR also spectcaly restricts he expod, raexpor nd transfer (in-country) of tems to the miliary parties and end-uses of China, Russa end Venezuela. Owe ‘Tho eight eloments of ZTE's Expot Compliance 3 Who issued the ECP? What's the purpose of the ECP? ‘The ECP is issued by he U.S. Bureau of Industy and Security (BIS) forthe purpose of bulding series of procedures t help enterprises make thelr export actives (n a broad sense, ‘including expat re-export, and transfer win a county) align with he Expo Adminstration FRegulaons (EAR). ® cotny watastmi bing tothe°6+" sanctioned contin orrnlonet SEARS Nate ya or Kasia anton county eregon TS" coute or epans SH SONCHONE GUAR, ab = + 5 What are the itoms and what is the scope of EAR? ‘online Sips. comYiasbowbtp=t we saii2020 compliance mate ltams subject to the EAR include commodities, software, or technologies. The scope of EAR. ‘fers tothe toms ene aotities thal meet the canditons etipuleted inthe EAR under the [arisdiction ofthe US expoct control authority Ways to transfer tems subject to the Export Control Inclusing but not lites to international sales, donation, delivery, exhibition, serves, ema, phone ‘What are the common types of restricted party list? Indlvidvas or enties on the folowing name Ess are “restricted pares" Reasons for being edded to the restricted party list. ‘The US. government has established an expat contol and economic sanctions system in ‘order to safeguard the U.S, national securty and foreign poly interests. The spectc reasons for acing in the restcted paris lst inlude, fr example, shipment of items subject tothe EAR to sanctioned counties or regions, restricted end-users or use for retited end-uses, and ‘any Volto of economic sanctions programs and acts that treaten the national security ang foroign policy interests ofthe Urited Sites. ‘The scope of items subject tothe EAR: online ip. corniebalogp=t ane rart2cz0 ‘compliance mate ‘Atoms inthe U.S. inclusing a U.S. Foreign Trade Zone or movingin rans through the US. ro one foreign county to another. AIIU.S-origin tems wherever locate. Items developed or manufactured outside the U.S. and wih the percentage velue of U.S-oran controled content exceeding the de minimis level. (U.S.otgin contalled content generaly refers toitome thal cannot be dolivrad fo @ country/region of destination without an expert license, which are incorporated nto te inl products) Certain foreign-made ‘Steet products” of U.S.-igin technology or sofware, Certin czec: products of U.S -ogin technology or software that ara made ouside the US. oF ‘certain commodities produced by any planter major component ofa plant located outside the US. thats drect product of U.S.-origin teemnology or star. 10. What isthe “de minimis"? ‘The de minis is one ofthe basis for determining whether an item subject othe EAR.AS a ‘on-US. company, itis usualy nol necessary to resell or transfer U.S.-rain lems drei, for ‘most part of tems reeling or vansfering you need to proceed the caleiaton based on the {0 minimis ule, which determines the percentage of U.S.-origin controled tems included in ‘non-US. origin ils for usoin commodtes, software, and technology. | 11 What is export teense? ‘Export icense usually refers tothe authorization of exporting exporting or oer spaced || actos issu by the Untes Stales a ether enunties and regions. The ECCN system is ctrerkty finite to the authorization of U.S. export. 12 whats teense exception? “The cense exceptions an authorization of expat, report. and tanste (county) onthe basis of the coresponding conditions. allows to export, reexport and transfer (in- country) items subject to EAR under specific conditions 13. Wat isthe full name of ECCN? What are the ECCN rules? ECON (Export Control Claceication Number) is the code composed of numbers and English leter as Is shown below] assigned to items by the Bureau of Indust Socuty (BIS) af tho Untod States Department cf Commerce. This code is specified in he CCL of the EAR. fan onne.phimis.comyiaowbgap= a8 sariv2020 ‘complianca mated tem matches the description fisted Inthe CCL, i sheul be glen ECCN. Ganorlly, an tem is ‘subject tothe EAR but not specaly enumoratad onthe CCl, iti claesfied ae GARGS, 14 what's the fu name of the CCL? What aro the specific contents within the scope of the EAR? ‘Tho CCL refers to the Commerce Control List containing commode, oftware, of technologies. hat are subject to tha EAR. Il stipulates certain tems and thei corresponding ‘expoctcontil reasons and lcense requiramerts. There are tn categories of CCL, 15 The EAR determines the control levet of a item subject tothe EAR based on two factors, Wat are the two factors? ‘ontneiphims.comyibwtgrp=1 ane. seit12020, 16 v compliance mater “The to factors inchids ECCN and destination county. ECON: An ECON explains wy the tem that the number represenisis subjectio the EAR. Destination County: The United States clases the counties around the wodd into ve \0Up= AB.C,0,and E, and takes differant management and contol mesoures on them. ECCN+ Destination Country = whether a icansais noodod to axporta ite subject to the EAR, tothe destination countyragion, i ‘What's the “controlled item"? Wan tam subject tothe EAR requires alcsnse or canse exception when delivered 10.2 ‘ourizyregion, then the ors controle in his countyfegion. The ECCN of his item and the Lutinatly destined countyregion shout be consires, ‘The dlferonces betwoen Denial Onder and Entity List sy ie op ia a : 8 Introduction ofthe Restricted Party List List that 21S Maintains Unverited List CUVL’Y The end user included In this It isthe one that U.S. Department ot ‘Commerce fais to complete the end-use checking In previous ransactons. The consequences ‘of being inctided inthe UVL including: (1) No eens exceptions may be used for expors or ‘eexpatts to unverified partes. (2) The end use and end user statement sha be submited for ‘ems thal do not require the export conse, nin iphimis.combinoningitp=t sie serz020 ‘comptance mater Denied Person List (PL): The United States prohibits any transaction in violation of the Derial ‘Order. For the scope of prohibited transactions, refer tothe Denial Order. nity List Special conse requirements shall be made forthe exzert, reexport and tense Go county) of tems subjectto the EAR tothe partes sted in the Entity List. Mest ofthe tcerse polices required are2s follows: Presumably refsing to export, reexport and vansfer (im county) its subject tothe EAR to tho partes in tho Entity Lit List that OFAC Maintains ‘Specialy Designated Naonals and Blocked Persons List ("SDN"): SDN ist fs thelist, ‘maintained by OFAC.SDN can be a company or an individual (owned er conte by er acing ‘on bohat of he ergotod country cr orantzaion),tean slsobe a specific indivi, such a8 3 terrorist a drug raffcker. The U.S. goverment considers them tobe involved in actves that threaten or cpardize U.S. foreign poley or nora security objectives. Once inci inthe ‘SDN List, its propery and gh wll be frozen In adston, SON parties shat nat angagein any. transaction with U.S persons (eluding US. ltzens, permanent resents, enies established under U.S. Law, and organizations located inthe US.) oF access U.S financial systems (og. USS, dollars), et, Olhensse,tiey shall be subject Lo severe cil end criminal penatles. The Influence is rot ont imited to te scope of iusnce, but se includes the enites whose ‘ropedy righ and interests are over 50% by SDN, Conducting business with SDN in violation ‘of ecanomic sanctions may tigger secondary sanctons, and causing the party Ast to be Included in SON. Part 2 Export Control Compliance Policy 1. What's the composition of ZTE's rule system for export control compliance? ZITE’s Rule System for Export Control Compliance is a pyramid system which ‘consists of the Exaort Control Compliance Policy, Export Control Compliance ‘Manuals, and Work Instructions (business processes). What's the main content of the Corporate-Level Manual of ZTE Export Control Compliance Manual? ‘ontino Aphis. comvgplbwbgAp=1 one sar72020 compliance mate Chapter 1 provides en overview and instructions forthe use of this Manual Employees can leam about the composition and application of this Manual in this chapter. Chapter 2 is a full view of ZTE’s export control compliance mechanism, including the details of export controt compliance policy, hierarchy of compliance rules, collaboration mechanism for export control compliance, and decision-making ‘escalation mechanism. Chapter 3 specifies the basic principles of export contol. includes the interpretation of being subject tothe Export Administration Regulations {hereinafter refered to as the “EAR, elaboretion on the EAR by item, pary, country, and end-use, definition and common examples of export control ‘compliance red flags, and description ofthe common export control comy tools deployed by ZTE, euch a the “SAP-GTS(SAP Global Trade ‘Servces),"LCM,"*RPA,’ and “ECON system". Chapter 4 elaborates the eight elements of ZTE's Export Compliance Program (hereinafter referred to as the *ECP"), including commitment of ZTE ‘management to export compliance, descriptions of the compliance risks in RAD, sales, supply chain, finance, and other business fields and the corresponding risk management and control measures, interpretation of export authorization and its application scenarios, general requirements for recordkeeping, planning, implementation, and evaluation of export contso! compliance taining, requirements and methods for audis, inspection, and self-evaluation, reporting and punishment requirements for export compliance violations, and building and maintenance of the Export Control Compliance Manuals. ‘Chapter 5 introduces the Independent Corporate Compliance Monitar (hereinafter referred to as “Monitor’) and the Special Compliance Coordinator (hereinafter referred to as “SCC, including a brief introduction fo their ‘backgrounds. The collaboration modes between the two teams and ZTE, as well 1s the requirements for ZTE employees’ cooperation with the Monitor and the ‘SCC are also elaborated on, ‘ontinefiphim5.comiastowbaltpet ms serrv2020 comptance mated How many years shall the documents and records related to Export Control Compliance be retained? (eg. how many years should an SPL screening record of training record be retained?) Atleast five years (A retention period can be even longer). {fa product contains more than a certain percentage of U.S.-origin controlled content, and it becomes a product subject to the EAR, that is, the percentage value of the U.S.-origin controlled content in a product exceeds the de minimis level, how to operate it? Ifa product withthe percentage value of the U.S.-origin controled content ‘exceeds a certain ratio (such as 25%), then the product is subject to the EAR. Before exporting, re-exporting or transferring, the ECCN and destination of the item should consider whether an applicable license or a license exception is required., and the transaction will not be completaly terminated. At present, the license exception commonly used by ZTE is the license exception of ENC. (encrypted), ‘Why should ZTE products be subject to the EAR? ZTE purchases its production components from many countries including the U.S. The proportion of U.S.-crigin component in ZTE's products up to a certain ‘extent (such as 25%) might make the products produced in China or other places be subject to the EAR. ince whistleblowing? If there is @ reasonable ground to suspect that a ZTE employee commits Violations, all ZTE employees and partners can report the violation through the following channels: Extemal ZTE Compliance Reporting Channel Website: httpywuwtip-offs.com.cnZTE Emall; ZTEWhisteblowing@tip-offs.com.on Hotline: 400-0707-099 (Mainland China); +8621-3913-8584 (Overseas, Hongkong, Macao and Taiwan) online Aphis. comloxagt#=1 is requested by corresponding laws and regulations, the ane seisz020 compliance mater Internal ZTE Compliance Reporting Channel Email: complanceaudt@zte.com.cn {In adcition to ZTE's intemal system for receiving reports of potential violations of U.S. Export Law, tha SCC team has established a global whistleblowing system {8 an adcitional means of communication to directly accept compliance issues land concerns. Anyone wishing to use the SCC whistieblowing system can access to the folowing website: los secure.ethiespaint.comidemainimedia/enigui/6077a\index.himl or enter the system by phone. Dialing instructions of a specific country can be obtained {rom the "Report a Concem" option of the website, You can also report to the: ‘SCC by sending an email to Reporting@scct.org. 7) nes on expr cont comphance (tran, Cuba, Syria, Sudan, North Korea and Crimea Region). cline phim. comiyepowby#p=1 one spriz020 compliance mater Part 3 ZTE's ECP Construction 1 3 ‘What are the main concerns of the Management Commitment? ‘Three aspects: Offers public support for compliance polices and processes, Provides enough resources for compliance; Participates in and supports export control taining, Which ECP element does issuing company-level compliance policies by the president of the company represent? {shows the "Management Commitment’, which especialy meets the requirements for “offering public support for cornpliance policies and procedures" by management members, ‘To meet the requirements for “Export Authorization”, which export control system can be used for automatic inspection when the ‘company handles day-to-day product delivery? ‘The SAP.GTS system must be used to inspect. This system can inspect export control, What kind of business activities in the company require ECCN classification? Specialy, tho businoss eciviios involving sales, supply, prodution, manufacture, assembly, export, re-export, and tanstr. Introduce three ECCN query portals of the company SRM system: Itis used to query the ECCN of purchased materials; (inranet, need access authority) ECCN system: Itis used to query the ECCN of ZTE products; (Intranet, no need accoss authority) ZTE Ofcil Website: The data originates from ECCN system, the diferentis, that only the controlled products ECCN information wore published on the oficial webste. ‘online ips. comylebwbalp=t sone seri20z0 compliance mated 6 © Whatis the GTS? GTS, Global Trade Services, is an industry-leading automatic system developed by SAP company for export contol complisnce. Now ithas been used by a number of mulinational companies. 7 Why does ZTE introduce the GTS compliance management module? ‘To implement specified export, reexport, and transfer (in-country) related- ccontrots checking, thus making the company meet the requirements for ‘automatic compliance management. Three major functions used by ZTE Include: Denial Order checking: to block ail documents and transactions involving ‘embargoed counties/regions; ‘SPL screening: to screen for parties sanctioned by the U.S. or ather governments; License management: based on the de minimis calculation of controled U.S. crigin content, o analyze whether an item is subject to the EAR and whether _an export license is requested! license exception applies, 8 — Whatis the use of GTS-RPA? “The Robotic Process Automation (RPA) is used to help @ subsidiary whose IT system does not interconnect the GTS for the SPL screening. 9 Inthe GTS system, what does a locked item in an SPL Screening (the screening result is marked with a red light) indicate? ‘SPL Screening, namely Sanctioned Party List Screening, Is used to soreen for suspicious partners, thus checking whether the partners are sanctioned. The resuit of an SPL screening can ellher be a green ight ora red light. A red light ‘means locked, thats, the partner is suspected of being sanctioned: A green light indicates approval, and the partner is not a sanctioned entity 10 What is Functional Subsi (FSCEP)? iary Compliance Enhancement Project According to the Supersading Seltiement Agreement agreed by ZTE Corporation and the United States Department of Commerce, the Company xine phi. comypdbwbafsp=1 ame sarr2020 comptance mate shal implement the Subsidiary Compliance Enhancement Project in allits holding and controling subsidiaries. Because functional subsidiaries undertake ‘the operation functions of specific modules ofthe parent company, their compliance governance enftancement requires unified guidance from the parent company, but also requires targeted adjustment and application bythe subsidiary according fo the actual situation. The cbjactve of the FSCEP project isto provide the digital sel- assessment and sel-establshment tools forthe functional subsidiaries by buildin the compliance panoramic space for functional subsidiaries andthe seltassessment tools for business Scenarios, 10 vide and promote the functional subsidiaries o cary out regular sel assessment and seltestablshment of complance, and to continuously build and improve the subsidiary’s system on the bass ofthe eight elements of ECP, and improve the compliance risk control capabilties and levels of subsidiaries. == END -- Part 4 External Supervision Coordination About Special Compliance Coordinator (SCC) of ZTE Corporation ‘As part of our Company/s June 2018 Superseding Settlement Agreement (SSA) and accompanying order with the U.S. Government, ‘As sat forth in ZTE’s “June 2018 Seitlement Document’s with the U.S. Goverment, online fits convyigebwbglto=* ene sernv2020 complance mater duties extend to ZTE worldwide, including our Subsidiaries and Affiiates. During Mr. Howard's term as SCC, he will report to BIS and our Company's (CEO and Board of Directors concerning our Company's compliance with the terms of the June 2018 Settlement Documents and U.S. export contro! laws ‘and regulations, and including all compliance program enhancements and resource levels. ‘About Monitor of ZTE Corporation {n accordance with the U.S. Court (Texas Court's Order Modifying Conditions cof Probation issued on Ociober 3, 2018, the Company wil retain the Monitor, (MELEE MES ron rh 2,212 the poteay ea) The US Cutt ~ appointed. monitor. ‘and all rejated polices, practices, procedures, and systems regarding al ‘exports, exports, or transfers (in-country) subject to those laws and Tegulations, and the prevention, detection, and reporting of violations of U.S. export controls. Mr. Stanton’s duties extend to ZTE worldwide, including our ‘Subsidiaries and Affiiates. 3 Main work methods of the Monitor team and SCC team. ‘The Monitor team and SCC team conduct monitoring and auaiting mainly through onsite vists, personnel interviews, and document disclosure, and provide reports and recommendations according to the monitoring status. They ‘assess the performance of ZTE to improve and optimize its compliance work. During the probationary period, Request for Production (RFP) and Request for information (RFI) are usually officially sent by Monitor and SCC to the ‘company. ZTE employees are obliged to actively cooperate with the Monitor ‘end SCC in document requirements. ‘online fiphtns.convyiaebwbgitp=t sane sar2020 compliance mate What should an employee do when he/she receives a document tequest from a third-party supervisory authority such as ‘SCC/Monitor, sent by the ECC? ‘The employee should submit the document to ECC in a timely manner according to the normal approval and submission process (BU/subsidiary --BU ‘Complance ECC), and ensure the authenticity, integrity and accuracy of the document contents. For the documents submitted to third-party supervisory authority such as SCC/Monitor, the TS approval requiremerits for documents submitted by the BU/subsidiary to the Compliance Department in the document outgoing approval phase. For documents submitted to thi-party supervisory authorities such as ‘SCC/Monitor, for ZTEC’s business unit and its functional subsidiaries, approval ‘shall be obtained from the level-2 management of the corresponding BU, and {or operational subsidiaries, approval shall be obtained from the corresponding ‘general manager or chairman. The BU Compliance Ditector must participate in Cone of the three actions of TS approvel process iritiated by business tunis/subsidiaries which includes inkiation, countersignature and approval What should an employee do when he/she receives an urgent document request from third-party supervisory authorities such as SCC/Monitor at the interview site? Helshe can first submit the document tothe third-party supervisory authorities such as SCC/Monitor, and a copy of the email shall be sent to the ECPOC, BU ‘Compliance personnel and the public mailbox ofthe Monitor/SCC Liaison Office Monitor iaison@zte.com.cnlSCCLiaisonOffice@zte.com.cn or ECC document outgoing record “ECCDocRac” (ECCDocRec@zie.com.cn). Meanwhile the TS approval process shal be supplemented. For document requirements of third-party supervisory authority such ‘as SCC/Monitor, the file/folder naming rules for response documents. Requester -RFP*~Engish abbreviation ofthe eniy-Requesting date -Key ‘words of the request, The requiring party is SCC/Monitoriother third-party supervisory authority *is the requirement number, entity Is ZTElsubsidierylbrenchirepresentative office, the requirement date is the ‘online fiphins.com¥lgntwbaito=t santa ‘8/1172020 ‘compliance meter SCC/Monitor requirement issuing date, and the requirement keyword can refer to the key information in the requirement. The length of the fleffolder name shall not exceed 100 characters. Example: Monitor-RFPO t-Kengxun-20191 122-Organizational Chart 8 Can the encrypted documents from the UDM and PAL be submitted? When a document is submitted to a third-party supervisory authority such as ‘SCCiMonitor, it should be provided without being encrypted. When a document is submitted fo ECC, it should be provided without being encrypted or cen be decrypted, When an interviewee receives interview request from third-party supervisory authorities like SCC/Monitor, if the interviewee cannot 9 attend the on duty witha vacation approved, or has other special reasons, what shall the interviewee do? jerview because he/she is on vacation, The interviewee shal inform the management members of his/her department by email with a carbon copy sent to the public mailbox of Monitor Liaison Office (MonitorLiaison@zte.com.cn) or public mailbox of SCC Liaison Office (SCCLiaisonOfice@zte.com.cn). The interviewee shail not falsity or make up Foasons or excuses in order not fo participate in the interview with the thid- party supervisory authorly. I the interviewee intentionally and subjecively | Tefuses to accept the interview aller receiving an interview notice, after being verified by the Compliance Audit Dept, the interviewee willbe given the Punishment of demerit recording, Can the interviewed business unit ask the interviewees to seek consistency in what to say with other interviewees, or request interview minutes or other materials as a reference for answering questions? 10 No. The interviewee should answer the questions truthfully based on the known business facts, and cannot request interview minutes or other materials a6 a reference for answering questions. The interviewee cannot seek consistency in hat to say with other interviewees, if so, afier being verified by the ‘Compliance Audit Dept, the interviewee wil be given the punishment of demotion. online fiphinis.combiqplbwtatip=t a8 ssri2020 ‘compliance mater If the third-party supervisory authority requests to interview or visit ZTE business partners, how to deal with it? " It the third-party supervisory authorty requests to interview or visit ZTE business partners, including but not limited to customers, suppliers or joint- ‘stock compenies, the corresponding responsible department of the business. bailers stall be in charge of coordinalion and promotion, Ifthe business partner refuses, please provide sufficient and necassary proof materials and Etat her fo the thie party supenisoryauthonlythrugh MontoSCC Liaison Office, If the interviewee is not knowledgeable about the questions raised by 12 the third-party supervisory authority during the interview, how should the interviewee answer the questions? Ifthe interviewee is not the person in charge of the business but partially Understands the business facts, he/she stall answer trutfully the known facts by making a statement tothe thitd-party supervieory that the answer may be inaccurate or incomplete. If a quastion is beyond the scope of the intervieweo's business responsibilities, he/she shall truthfuly advise the third-party supervisory authority ofthe situation. if a question is beyond the scope of the Interviewee's business responsibillies, the thi-parly supervisory authority insists on requesting he/she to answer i based on what helshe knows, the interviewee shall make a statement firstly before answering that itis not within the scope of his/her business responsbillies and the answer may be inaccurate or incomplete before answering It. In the interview, if the questions raised by the third-party supervisory authority may potentially violate against laws and regulations other than the EAR of U.S., how should the interviewee answer these questions? 3 Ian interviewee finds any potential violation against laws and regulations other than the EAR of U.S., including but not imited to laws and regulations of state secrets, data protection o local laws and regulations, he/she shall explain it to the third-party supervisory authority, request not to answer relevant questions temporarily and report i to the Export Control Compliance Dept. through the ECPOC or the BU compliance team in a timely manner. ECC wil seek legal advice from departments such as Legal Affairs Dept. and Data Protection | Compliance Dept.. ‘ontneAiphimls.comyiastowbpet rene ser2020 14 15 compliance mate If itis found that the statements in the interview are inaccurate or incomplete, can the interviewee make a clarification or a supplementary explanation? Ifitis found that the statements in the interview are inaccurate or incomplete, the interviewee can clay or supplement some of the statements in the interview to the third-party supervisory authority. The interviewee can make a

    You might also like