[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.
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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
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.
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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