[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
[[Page 26570]]
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