[Federal Register Volume 69, Number 79 (Friday, April 23, 2004)]
[Notices]
[Pages 22002-22003]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-9313]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

[Docket No. 040416120-4120-01]


Revisions to the Unverified List--Guidance as to ``Red Flags''

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Notice.

-----------------------------------------------------------------------

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 
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 
remove persons from the Unverified List. Recently a PSV was completed 
at the facilities of Power Test & Research Institute of Guangzhou, No. 
38 East Huangshi Road, Guangzhou, People's Republic of China. 
Accordingly, by this notice, Power Test & Research Institute of 
Guangzhou is removed from the Unverified List.

DATES: This notice is effective April 23, 2004.

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 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 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, 2002 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 other requirements set forth in 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 list when 
warranted.
    BIS has now conducted a PSV in a transaction involving Power Test & 
Research Institute of Guangzhou, No. 38 East Huangshi Road, Guangzhou, 
People's Republic of China, a person included on the Unverified List. 
This notice advises exporters that Power Test & Research Institute of 
Guangzhou is removed from the Unverified List, and the ``red flag'' 
resulting from Power Test & Research Institute of Guangzhou's inclusion 
on the Unverified List is rescinded.
    The Unverified List, as modified by this notice, is set forth 
below.

    Dated: April 20, 2004.
Julie Myers,
Assistant Secretary for Export Enforcement.

Unverified List (as of April 23, 2004)

    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

[[Page 22003]]

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.

----------------------------------------------------------------------------------------------------------------
                    Name                                  Country                      Last known  address
----------------------------------------------------------------------------------------------------------------
Lucktrade International....................  Hong Kong Special Administrative   P.O. Box 91150, Tsim Sha Tsui,
                                              Region.                            Hong Kong.
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 Station..........  People's Republic of China.......  39 Jixiang Road, Yanta District
                                                                                 Xian, Shaanxi.
Yunma Aircraft Mfg.........................  People's Republic of China.......  Yaopu, Anshun, Guizhou.
Civil Airport Construction Corporation.....  People's Republic of China.......  111 Bei Sihuan Str., East, Chao
                                                                                 Yang District, Beijing.
Beijing San Zhong Electronic Equipment       People's Republic of China.......  Hai Dian Fu Yuau, Men Hao 1 Hao,
 Engineer Co., Ltd..                                                             Beijing.
Huabei Petroleum Administration, Bureau      People's Republic of China.......  South Yanshan Road, Ren Qiu
 Logging Company.                                                                City, Hebei.
Peluang Teguh..............................  Singapore........................  203 Henderson Road 09-
                                                                                 05H Henderson Industrial Park,
                                                                                 Singapore.
Lucktrade International PTE Ltd............  Singapore........................  35 Tannery Road 01-07
                                                                                 Tannery Block Ruby Industrial
                                                                                 Complex Singapore 347740.
Arrow Electronics Industries...............  United Arab......................  204 Arbift Tower, Benyas Road,
                                                                                 Emirates Dubai.
----------------------------------------------------------------------------------------------------------------

[FR Doc. 04-9313 Filed 4-22-04; 8:45 am]
BILLING CODE 3510-33-P