# Revision to the Unverified List-Guidance as to “Red Flags” > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3AE7-12894 ## Record - **Collection:** Federal Register - **Document type:** Notice - **Published:** July 5, 2007 - **Citation:** 72 FR 36655 ## Text 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. 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 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 Lucktrade International Hong Kong Special Administrative Region P.O. Box 91150 Tsim Sha Tsui, 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. Peluang Teguh Singapore 203 Henderson Road #09-05H Henderson Industrial Park. Lucktrade International PTE Ltd. Singapore 35 Tannery Road #01-07 Tannery Block Ruby Industrial Complex Singapore 347740. Arrow Electronics Industries United Arab Emirates 204 Arbift Tower, Benyas Road Dubai. Jetpower Industrial Ltd Hong Kong Special Administrative Region Room 311, 3rd Floor, Wing On Plaza, 62 Mody Road, Tsim Sha Tsui East, Kowloon. Onion Enterprises Ltd. Hong Kong Special Administrative Region Room 311, 3rd Floor, Wing On Plaza, 62 Mody Road, Tsim Sha Tsui East, Kowloon. Lucktrade International Hong Kong Special Administrative Region Room 311, 3rd Floor, Wing On Plaza, 62 Mody Road, Tsim Sha Tsui East, Kowloon. Litchfield Co. Ltd. Hong Kong Special Administrative Region Room 311, 3rd Floor, Wing On Plaza, 62 Mody Road, Tsim Sha Tsui East, Kowloon. Sunford Trading Ltd. Hong Kong Special Administrative Region Unit 2208, 22/F 118 Connaught Road West. Parrlab Technical Solutions, LTD Hong Kong Special Administrative Region 1204, 12F Shanghai Industrial Building, 48-62 Hennesey Road, Wan Chai. T.Z.H. International Co. Ltd. Hong Kong Special Administrative Region Room 23, 2/F, Kowloon Bay Ind. 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 Consortium FZCO United Arab Emirates Sheikh Zayed Road, 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 Trading LLC United Arab Emirates Sheikh Fahad Saad Alsbah Bldg., Al Maktoum Street, P.O. Box 28162, Dubai, UAE (also located in Al Quoz district of Dubai). Al-Thamin General Trading LLC United Arab Emirates P.O. Box 41364, 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 Musafer Tourism and Cargo United Arab Emirates Concord Tower, Al 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 International LLC United Arab Emirates Office No. 18, 6th 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 Administrative Region Unit 7A, Nathan Commercial Building, 430-436 Nathan Road, Kowloon City, Hong Kong. IC Trading Ltd Russia Yauzskaya Str. 8, Bldg. 2, Moscow, Russia. Al Minzal Medical Equipment & Instruments United Arab Emirates P.O. Box 31107, 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. [FR Doc. E7-12894 Filed 7-3-07; 8:45 am] BILLING CODE 3510-33-P --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3AE7-12894. Public record. Not legal advice.