China's Customs has revoked the qualification of ZTE as a "red name list" enterprise because the company failed to deliver provisional export equipment back to China on schedule.

A representative from ZTE has confirmed to local media that ZTE did not deliver the equipment back because its overseas operator used a longer time than expected to test the equipment.

ZTE is coordinating with the Customs Department to regain its qualification but the company is unclear when it will have its status reinstated.

China's Customs Administration published 139 "red name list" enterprises last year, which gave these companies preferential customs policies. ZTE was the only communications equipment manufacturer in China that was included on the list.