ZTE Corporation (00763) issued an announcement, March 23, 2017 (US time), the U.S. Department of Commerce's Bureau of Industry and Security (BIS) issued a settlement order, the agreement reached between the company and BIS has entered into force.

Previous announcements revealed that the company had agreed on an investigation by the U.S. Department of Commerce's Bureau of Industry and Security, the U.S. Department of Justice (DOJ) and the U.S. Treasury Department's Office of overseas Asset Management (OFAC) into the company's compliance with US export controls and US sanctions laws. In view of the fact that the company violated US export control laws and violated relevant US laws and regulations for providing information and other acts in the course of the investigation, the company has agreed to plead guilty and pay a total fine of US $892 million.

It is reported that the US Department of Commerce's Industrial and Security Bureau also imposed a suspended fine of 300 million US dollars on the company, which will be exempted after the company complies with the requirements of the agreement reached with the U.S. Department of Commerce's Industrial and Security Bureau during the seven-year suspension period.

The agreement between the company and OFAC takes effect upon signing, and the agreement with DOJ becomes effective upon approval by the United States District Court for the Northern District of Texas, which approves the agreement between the company and DOJ as a prerequisite for a settlement order issued by the Industrial and Security Agency of the U.S. Department of Commerce.

At the same time, after the agreement between the company and DOJ is approved by the court, the company pleads guilty and the Assistant Secretary of the Bureau of Industry and Security of the U.S. Department of Commerce issues a settlement order, the U.S. Department of Commerce's Bureau of Industry and Security will recommend that the company be removed from the entity list.