BIS Removes Chinese Entity from its List of "Unverified" Persons in Foreign Countries
The Bureau of Industry and Security (BIS) has issued a notice, effective April 23, 2004, announcing that it has updated its Unverified List by removing one Chinese entity.
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(On June 14, 2002, BIS published a notice that set forth the initial list of persons in foreign countries who were parties to past export transactions where pre-license checks (PLCs) or post-shipment verifications (PSVs) could not be conducted for reasons outside the control of the U.S. Government (Unverified List). Prior to the publication of this most recent notice, BIS had added three new entities and deleted two entities from the initial Unverified List.
In its initial notice, BIS 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 Export Administration Regulations (EAR).
Under that guidance, whenever there is a "red flag," exporters have an affirmativeduty to inquire, verify, or otherwise substantiate that 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.)
BIS Removes Power Test & Research Institute of Guangzhou from Unverified List
BIS states that it has recently conducted a PSV in a transaction involving Power Test & Research Institute of Guangzhou, No. 38 East Huangshi Road, Guangzhou, China. As a result, BIS is advising exporters that Power Test & Research Institute of Guangzhou is removed from the Unverified List, and the "red flag" resulting from its inclusion on the Unverified List is rescinded.
Unverified List Now Includes 11 Entities from China, Malaysia, Singapore, Hong Kong, and UAE
As a result of the removal of Power Test & Research Institute from the Unverified List, the list now contains the following entities (see notice for last known address):
Lucktrade International (Hong Kong)
Brilliant Intervest (Malaysia)
Dee Communications M SDN, BHD (Malaysia)
Shaanxi Telecom Measuring Station (China)
Yunma Aircraft Mfg. (China)
Civil Airport Construction Corporation (China)
Beijing San Zhong Electronic Equipment Engineer Co., Ltd. (China)
Huabei Petroleum Administration, Bureau Logging Company (China)
Peluang Teguh (Singapore)
Lucktrade International PTE Ltd. (Singapore)
Arrow Electronics Industries (United Arab Emirates)
(See ITT's Online Archives or 06/18/02 news, 02061815, for BP summary of BIS' initial Unverified List. See ITT's Online Archives or 11/22/02, 05/20/03, and 08/07/03 news, 02112215, 03052015, and 03080735, for BP summaries of BIS' previous additions to and deletions from the initial Unverified List.)
BIS contact - Thomas Andrukonis (202) 482-4255
BIS notice (D/N 040416120-4120-01, FR Pub 04/23/04) available at
http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2004/pdf/04-9313.pdf.