BIS Removes Five Chinese Entities from its List of "Unverified" Persons in Foreign Countries
The Bureau of Industry and Security (BIS) has issued a notice, effective July 28, 2004, announcing that it has updated its Unverified List by removing five Chinese entities.
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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).
Additionally, on July 16, 2004, BIS published a notice that advised exporters that the Unverified List would also include persons in foreign countries in 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.
In its notices, 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 affirmative duty 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 Five Chinese Entities from Unverified List
BIS states that it has recently conducted PSVs in transactions involving the following five persons included on the Unverified List:
Shaanxi Telecom Measuring Station, 39 Jixiang Road, Yanta District Xian, Shaanxi, China;
Yunma Aircraft Mfg., Yaopu Anshun, Guizhou, China;
Civil Airport Construction Corporation, 111 Bei Sihuan Str. East, Chao Yang District, Beijing, China;
Huabei Petroleum Administration Bureau Logging Company, South Yanshan Road, Ren Qiu City, Hebei, China; and
Beijing San Zhong Electronic Equipment Engineer Co., Ltd., Hai Dian Fu Yuay, Men Hao 1 Hao, Beijing, China
BIS states that the five above-listed entities are removed from the Unverified List and the "red flags" resulting from their inclusion on the Unverified List are rescinded.
Unverified List Now Includes 11 Entities from Hong Kong, Malaysia, Singapore, and UAE
As a result of the removal the five Chinese entities 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 MSDN.BHD (Malaysia)
Peluang Teguh (Singapore)
Lucktrade International PTE Ltd. (Singapore)
Arrow Electronics Industries (United Arab Emirates)
Jetpower Industrial Ltd. (Hong Kong)
Onion Enterprises Ltd. (Hong Kong)
Lucktrade International (Hong Kong)
Litchfield Co. Ltd. (Hong Kong)
Sunford Trading Ltd. (Hong Kong)
(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 07/21/04 news, 04072125, for BP summary of BIS' most recent additions to the Unverified List, this notice also expanded the List's criteria.)
BIS Contact - Thomas Andrukonis (202) 482-4255
BIS notice (D/N 040719210-4210-01, FR Pub 07/28/04) available at http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/pdf/04-17186.pdf