[Federal Register Volume 72, Number 128 (Thursday, July 5, 2007)]
[Notices]
[Pages 36655-36658]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-12894]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

[Docket No: 070206026-7213-01]


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

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 or post-shipment verifications 
could not be conducted for reasons outside the control of the U.S. 
Government (``Unverified List''). Additionally, on July 16, 2004, BIS 
published a notice in the Federal Register that advised exporters that 
the Unverified List would also include persons in foreign countries who 
are parties to transactions where BIS is not able to verify the 
existence or

[[Page 36656]]

authenticity of the end-user, intermediate consignee, ultimate 
consignee, or other party to the transaction and persons affiliated 
with a person on the Unverified List by virtue of ownership, control, 
position of responsibility, or other affiliation or connection in the 
conduct of trade or business. These notices 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. This notice 
adds three entities to the Unverified List. The entities are: Al Minzal 
Medical Equipment & Instruments, P.O. Box 31107, Sharjah, United Arab 
Emirates; JSC Chop Vityaz-S, 146 Unikh Pionerov Ave, Samara, Russia; 
Sistem Dizayners Co., APA: 2 NO.: 60, Merdanov Gardashlari St., Baku, 
Azerbaijan.

DATES: This notice is effective July 5, 2007.

FOR FURTHER INFORMATION CONTACT: Deniz Muslu, 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, software or technology. In carrying out these activities, 
BIS officials, or officials of other federal agencies acting on BIS's 
behalf, selectively conduct pre-license checks (``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 
post-shipment verifications (``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 
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). 
BIS listed a number of foreign end-users and consignees involved in 
such transactions in the Unverified List that was included in BIS's 
Federal Register notice of June 14, 2002. 67 FR 40910. On July 16, 
2004, BIS published a notice in the Federal Register that advised 
exporters that the Unverified List would also include persons in 
foreign countries where BIS is not able to verify the existence or 
authenticity of the end user, intermediate consignee, ultimate 
consignee, or other party to an export transaction and persons 
affiliated with a person on the Unverified List by virtue of ownership, 
control, position of responsibility, or other affiliation or connection 
in the conduct of trade or business. 69 FR 42652.
    The June 14, 2002 and July 16, 2004 notices advised exporters that 
the involvement of a listed person in a transaction constituted 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 provisions of the EAR. The Federal Register notices 
further stated that BIS may periodically add persons to the Unverified 
List based on the criteria set forth above, and remove persons when 
warranted.
    This notice advises exporters that BIS is adding Al Minzal Medical 
Equipment & Instruments in the United Arab Emirates, JSC Chop Vityaz-S 
in Russia, and Sistem Dizayners Co. in Azerbaijan to the Unverified 
List. BIS has determined that it is appropriate to add these entities 
to the Unverified List because BIS was unable to conduct a PLC, a PSV, 
and/or was unable to verify the existence or authenticity of an end 
user, intermediate consignee, ultimate consignee, or other party to an 
export transaction. A ``red flag'' now exists for transactions 
involving these entities 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 other provisions of 
the EAR.
    The Unverified List, as modified by this notice, is set forth 
below.

    Dated: June 28, 2007.
Darryl W. Jackson,
Assistant Secretary of Commerce for Export Enforcement.

Unverified List (As of July 5, 2007)

    The Unverified List includes names, countries, and last known 
addresses of foreign persons involved in export transactions with 
respect to which: The Bureau of Industry and Security (``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; BIS was not able to verify the existence or authenticity of 
the end user, intermediate consignee, ultimate consignee or other party 
to an export transaction; and/or the person is affiliated with a person 
on the Unverified List by virtue of ownership, control, position of 
responsibility, or other affiliation or connection in the conduct of 
trade or business. Any transaction to which a listed person is a party 
will be deemed 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
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Lucktrade International.....  Hong Kong Special     P.O. Box 91150 Tsim
                               Administrative        Sha Tsui, Hong
                               Region.               Kong.
Brilliant Intervest.........  Malaysia............  14-1, Persian 65C,
                                                     Jalan Pahang Barat,
                                                     Kuala Lumpur,
                                                     53000.
Dee Communications M SDN.     Malaysia............  G5/G6, Ground Floor,
 BHD.                                                Jin Gereja Johor
                                                     Bahru.
Peluang Teguh...............  Singapore...........  203 Henderson Road
                                                     09-05H
                                                     Henderson
                                                     Industrial Park.
Lucktrade International PTE   Singapore...........  35 Tannery Road
 Ltd..                                               01-07
                                                     Tannery Block Ruby
                                                     Industrial Complex
                                                     Singapore 347740.
Arrow Electronics Industries  United Arab Emirates  204 Arbift Tower,
                                                     Benyas Road Dubai.

[[Page 36657]]

 
Jetpower Industrial Ltd.....  Hong Kong Special     Room 311, 3rd Floor,
                               Administrative        Wing On Plaza, 62
                               Region.               Mody Road, Tsim Sha
                                                     Tsui East, Kowloon.
Onion Enterprises Ltd.......  Hong Kong Special     Room 311, 3rd Floor,
                               Administrative        Wing On Plaza, 62
                               Region.               Mody Road, Tsim Sha
                                                     Tsui East, Kowloon.
Lucktrade International.....  Hong Kong Special     Room 311, 3rd Floor,
                               Administrative        Wing On Plaza, 62
                               Region.               Mody Road, Tsim Sha
                                                     Tsui East, Kowloon.
Litchfield Co. Ltd..........  Hong Kong Special     Room 311, 3rd Floor,
                               Administrative        Wing On Plaza, 62
                               Region.               Mody Road, Tsim Sha
                                                     Tsui East, Kowloon.
Sunford Trading Ltd.........  Hong Kong Special     Unit 2208, 22/F 118
                               Administrative        Connaught Road
                               Region.               West.
Parrlab Technical Solutions,  Hong Kong Special     1204, 12F Shanghai
 LTD.                          Administrative        Industrial
                               Region.               Building, 48-62
                                                     Hennesey Road, Wan
                                                     Chai.
T.Z.H. International Co.      Hong Kong Special     Room 23, 2/F,
 Ltd..                         Administrative        Kowloon Bay Ind.
                               Region.               Center, No. 15 Wany
                                                     Hoi Rd., Kowloon
                                                     Bay.
Design Engineering Center...  Pakistan............  House 184, Street
                                                     36, Sector F-10/1,
                                                     Islamabad.
Kantry......................  Russia..............  13/2 Begovaya
                                                     Street, Moscow.
Etalon Company..............  Russia..............  20B Berezhkovskaya
                                                     Naberezhnaya,
                                                     Moscow.
Pskovenergo Service.........  Russia..............  47-A Sovetskaya
                                                     Street, Pskov,
                                                     Russia Federation,
                                                     180000.
Sheeba Import Export........  Yemen...............  Hadda Street, Sanaa.
Aerospace Consumerist         United Arab Emirates  Sheikh Zayed Road,
 Consortium FZCO.                                    P.O. Box 17951,
                                                     Jebel Ali Free
                                                     Zone, Dubai and
                                                     Dubai International
                                                     Airport, Dubai,
                                                     3365.
Medline International LLC...  United Arab Emirates  P.O. Box 86343
                                                     Dubai.
Al Aarif Factory Equipment    United Arab Emirates  Sheikh Fahad Saad
 Trading LLC.                                        Alsbah Bldg., Al
                                                     Maktoum Street,
                                                     P.O. Box 28162,
                                                     Dubai, UAE (also
                                                     located in Al Quoz
                                                     district of Dubai).
Al-Thamin General Trading     United Arab Emirates  P.O. Box 41364,
 LLC.                                                Dubai, UAE.
Amiran Trading Company......  United Arab Emirates  Arbift Tower, 1st
                                                     Floor, Flat No.
                                                     1803, Deira, UAE,
                                                     also P.O. Box
                                                     61463, Jebel Ali,
                                                     Dubai, UAE.
Bazar Trading Co............  United Arab Emirates  Baniyas Tower, Suite
                                                     212, Dubai, UAE.
Davood Khosrojerdi, dba Al    United Arab Emirates  Concord Tower, Al
 Musafer Tourism and Cargo.                          Maktoum Street,
                                                     P.O. Box 77900,
                                                     Dubai, UAE.
Fuchs Oil Middle East.......  United Arab Emirates  Sharjah Airport
                                                     International Free
                                                     Zone, Sharjah, UAE.
Part Tech Co................  United Arab Emirates  Baniyas Tower, Suite
                                                     212, Dubai, UAE.
Parto Abgardan..............  United Arab Emirates  Showroom 5,
                                                     Sheikh Rashid bin
                                                     Khalifa al Maktoum
                                                     Building, Dubai,
                                                     UAE.
Reza Nezam Trading..........  United Arab Emirates  Al Dana Center, Al
                                                     Maktoum Street,
                                                     P.O. Box 41382,
                                                     Dubai, UAE.
Sarelica (Sar Elica) FZC....  United Arab Emirates  Bldg. 3,
                                                     Office No. 3 G-08,
                                                     P.O. Box 41710,
                                                     Hamariya Free Zone,
                                                     Sharjah, UAE.
Semicom Technology            United Arab Emirates  Office No. 18, 6th
 International LLC.                                  Floor, Horizons
                                                     Business Centre, Al-
                                                     Doha Centre, Al-
                                                     Maktoum St., P.O.
                                                     Box 41096, Dubai,
                                                     UAE.
Vitaswiss Limited...........  United Arab Emirates  P.O. Box 61069,
                                                     Office R/A
                                                     8 CB03, UAE.
Centre Bright Company.......  Hong Kong Special     Unit 7A, Nathan
                               Administrative        Commercial
                               Region.               Building, 430-436
                                                     Nathan Road,
                                                     Kowloon City, Hong
                                                     Kong.
IC Trading Ltd..............  Russia..............  Yauzskaya Str. 8,
                                                     Bldg. 2, Moscow,
                                                     Russia.
Al Minzal Medical Equipment   United Arab Emirates  P.O. Box 31107,
 & Instruments.                                      Sharjah, UAE.
JSC Chop Vityaz-S...........  Russia..............  146 Unikh Pionerov
                                                     Ave., Samara,
                                                     Russia.
Sistem Dizayners Co.........  Baku, Azerbaijan....  APA: 2 NO.: 60,
                                                     Merdanov
                                                     Gardashlari St.,
                                                     Baku, Azerbaijan.
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[[Page 36658]]

[FR Doc. E7-12894 Filed 7-3-07; 8:45 am]
BILLING CODE 3510-33-P