[Federal Register Volume 68, Number 95 (Friday, May 16, 2003)]
[Notices]
[Pages 26569-26571]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-12266]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

[Docket No. 030509121-3121-01]


Addition of Persons to Unverified List--Guidance as to ``Red 
Flags'' Under Supplement No. 3 to 15 CFR Part 732

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Notice.

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SUMMARY: On June 14, 2002, the Bureau of Industry and Security 
(``BIS'') published a notice in the Federal Register that set forth a 
list of persons in foreign countries who were parties to past export 
transactions where pre-license checks (``PLC'') or post-shipment 
verifications (``PSV'') could not be conducted for reasons outside the 
control of the U.S. Government (``Unverified List''). This notice also 
advised exporters that the involvement of a listed person as a party to 
a proposed transaction constitutes a ``red flag'' as described in the 
guidance set forth in Supplement No. 3 to 15 CFR part 732, requiring 
heightened scrutiny by the exporter before proceeding with such a 
transaction. The notice also stated that, when warranted, BIS would add 
persons to the Unverified List. This notice adds Lucktrade 
International PTE Ltd. and Peluang Teguh which are located in 
Singapore, and Lucktrade International which is located in Hong Kong to 
the Unverified List.

DATES: This notice is effective May 16, 2003.

FOR FURTHER INFORMATION CONTACT: Thomas W. Andrukonis, Office of 
Enforcement Analysis, Bureau of Industry and Security, Telephone: (202) 
482-4255.

SUPPLEMENTARY INFORMATION: In administering export controls under the 
Export Administration Regulations (15 CFR parts 730 to 774) (``EAR''), 
BIS carries out a number of preventive enforcement activities with 
respect to individual export transactions. Such activities are intended 
to assess diversion risks, identify potential violations, verify end-
uses, and determine the suitability of end-users to receive U.S. 
commodities or technology. In carrying out these activities, BIS 
officials, or officials of other federal agencies acting on BIS's 
behalf, selectively conduct PLCs to verify the bona fides of the 
transaction and the suitability of the end-user or ultimate consignee. 
In addition, such officials sometimes carry out PSVs to ensure that 
U.S. exports have actually been

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delivered to the authorized end-user, are being used in a manner 
consistent with the terms of a license or license exception, and are 
otherwise consistent with the EAR.
    In certain instances BIS officials, or other federal officials 
acting on BIS's behalf, have been unable to perform a PLC or PSV with 
respect to certain export control transactions for reasons outside the 
control of the U.S. Government (including a lack of cooperation by the 
host government authority, the end-user, or the ultimate consignee). In 
a notice issued on June 14, 2002 (67 FR 40910), BIS set forth an 
Unverified List of certain foreign end-users and consignees involved in 
such transactions.
    The June 14 notice also advised exporters that participation of a 
person on the Unverified List in a proposed transaction will be 
considered by BIS to raise a ``red flag'' under the ``Know Your 
Customer'' guidance set forth in Supplement No. 3 to 15 CFR part 732 of 
the EAR. Under that guidance, whenever there is a ``red flag,'' 
exporters have an affirmative duty to inquire, verify, or otherwise 
substantiate the proposed transaction to satisfy themselves that the 
transaction does not involve a proliferation activity prohibited in 15 
CFR part 744, and does not violate the EAR.
    The Federal Register notice further stated that BIS may 
periodically add persons to the Unverified List based on the criteria 
set forth above, and remove names of persons from the Unverified List 
when warranted. BIS has attempted, and was unable to conduct, a PSV in 
transactions involving the following persons:

Lucktrade International PTE Ltd., 35 Tannery Road 01-07 
Tannery Block, Ruby Industrial Complex, Singapore 347740.
Peluag Teguh, 203 Henderson Road 09-05H, Henderson Industrial 
Park, Singapore.
Lucktrade International, P.O. Box 91150, Tsim Sha Tsui, Hong Kong.

    This notice advises exporters that Lucktrade International PTE 
Ltd.; Pelaug Teguh; and Lucktrade International are added to the 
Unverified List, and a ``red flag'' now exists for transactions 
involving these persons due to their inclusion on the Unverified List. 
As a result, exporters have an affirmative duty to inquire, verify, or 
otherwise substantiate the proposed transaction to satisfy themselves 
that the transaction does not involve a proliferation activity 
prohibited in 15 CFR part 744, and does not violate the EAR.
    The Unverified List, as modified by this notice, is set forth 
below.

    Dated: May 12, 2003.
Thomas W. Andrukonis,
Acting Assistant Secretary for Export Enforcement.

Unverified List

(as of May 16, 2003)
    The Unverified List includes names and countries of foreign persons 
who in the past were parties to a transaction with respect to which BIS 
could not conduct a pre-license check (``PLC'') or a post-shipment 
verification (``PSV'') for reasons outside of the U.S. Government's 
control. Any transaction to which a listed person is a party will be 
deemed by BIS to raise a ``red flag'' with respect to such transaction 
within the meaning of the guidance set forth in Supplement No. 3 to 15 
CFR part 732. The ``red flag'' applies to the person on the Unverified 
List regardless of where the person is located in the country included 
on the list.

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             Name                    Country         Last known address
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Lucktrade International.......  Hong Kong Special  P.O. Box 91150, Tsim
                                 Administrative     Sha Tsui, Hong Kong.
                                 Region.
Brilliant Intervest...........  Malaysia.........  14-1, Persian 65C,
                                                    Jalan Pahang Barat,
                                                    Kuala Lumpur, 53000.
Dee Communications M SDN, BHD.  Malaysia.........  G5/G6, Ground Floor,
                                                    Jin Gereja, Johor
                                                    Bahru.
Shaanxi Telecom Measuring       People's Republic  39 Jixiang Road,
 Station.                        of China.          Yanta District Xian,
                                                    Shaanxi.
Yunma Aircraft Mfg............  People's Republic  Yaopu Anshun,
                                 of China.          Guizhou.
Civil Airport Construction      People's Republic  111 Bei Sihuan Str.
 Corporation.                    of China.          East Chao Yang
                                                    District, Beijing.
Power Test & Research           People's Republic  No. 38 East Huangshi
 Institute of Guangzhou..        of China.          Road, Guangzhou.
Beijing San Zhong Electronic    People's Republic  Hai Dian Fu Yuau Men
 Equipment Engineer Co., Ltd.    of China.          Hao 1 Hao, Beijing.
Huabei Petroleum                People's Republic  South Yanshan Road
 Administration Bureau Logging   of China.          Ren Qiu City, Hebei.
 Company.
Daqing Production Logging       People's Republic  No. 3 Fengshou
 Institute.                      of China.          Village Sartu
                                                    District Daqing
                                                    City, Heilongjiang.
Peluang Teguh.................  Singapore........  203 Henderson Road,
                                                    09-05H,
                                                    Henderson Industrial
                                                    Park, Singapore.
Lucktrade International PTE     Singapore........  35 Tannery Road,
 Ltd.                                               01-07
                                                    Tannery Block, Ruby
                                                    Industrial Complex,
                                                    Singapore 347740.
Arrow Electronics Industries..  United Arab        204 Arbift Tower,
                                 Emirates.          Benyas Road, Dubai.
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[FR Doc. 03-12266 Filed 5-15-03; 8:45 am]
BILLING CODE 3510-33-M