Sec. 6702. Prohibition on modification of civil penalties under export control and sanctions laws and prohibition on certain telecommunications equipment
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Notwithstanding any other provision of law, no Federal official may modify any penalty, including a penalty imposed pursuant to a denial order, implemented by the Government of the United States with respect to a Chinese telecommunications company pursuant to a determination that the company has violated an export control or sanctions law of the United States until the date that is 30 days after the President certifies to the appropriate congressional committees that the company— has not, for a period of one year, conducted activities in violation of the laws of the United States; and is fully cooperating with investigations into the activities of the company conducted by the Government of the United States, if any.
If, before the date of the enactment of this Act, any penalty imposed pursuant to the order of the Acting Assistant Secretary of Commerce for Export Enforcement entitled Order Activating Suspended Denial Order Relating to Zhongxing Telecommunications Equipment Corporation and ZTE Kangxun Telecommunications Ltd. (83 Fed. Reg. 17644), and dated April 15, 2018, is reduced or eliminated, or that order is suspended, on such date of enactment, that penalty shall be reinstated to the penalty in place before such reduction or elimination, or that order shall be reinstated, as the case may be.
Any modification to a penalty imposed pursuant to the order described in subparagraph
(A)on or after the date of the enactment of this Act shall be subject to the requirements of paragraph (1). The head of an executive agency may not— procure or obtain or extend or renew a contract to procure or obtain any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system; or enter into a contract (or extend or renew a contract) with an entity that uses any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system. The head of an executive agency may not obligate or expend loan or grant funds to procure or obtain, extend or renew a contract to procure or obtain, or enter into a contract (or extend or renew a contract) to procure or obtain the equipment, services, or systems described in subsection (b). The prohibitions under subsection (b)(1) and subsection
(c)shall take effect 180 days after the date of the enactment of this Act and the prohibition under subsection (b)(2) shall take effect three years after the date of the enactment of this Act. Nothing in subsection
(b)or
(c)shall be construed to— prohibit the head of an executive agency from procuring with an entity to provide a service that connects to the facilities of a third-party, such as backhaul, roaming, or interconnection arrangements; or cover telecommunications equipment that cannot route or redirect user data traffic or permit visibility into any user data or packets that such equipment transmits or otherwise handles. In this section: The term appropriate congressional committees ’ means— the Committee on Banking, Housing, and Urban Affairs and the Committee on Foreign Relations of the Senate; and the Committee on Financial Services and the Committee on Foreign Affairs of the House of Representatives. The term covered foreign country means the People’s Republic of China. The term covered telecommunications equipment or services means any of the following: Telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities). Telecommunications services provided by such entities or using such equipment. Telecommunications equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country. The term executive agency has the meaning given the term in section 133 of title 41, United States Code. Section 891, relating to a prohibition on certain telecommunications equipment, shall have no force or effect.
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- 83 FR 17644
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Sec. 6702
Prohibition on modification of civil penalties under export control and sanctions laws and prohibition on certain telecommunications equipment
Fed. Reg.83 FR 17644
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