BIS Makes Changes to Unverified List
Today the Bureau of Industry and Security (BIS) issued a notice in the Federal Register advising exporters that the Unverified List maintained by BIS will now also include persons in foreign countries in situations 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. BIS indicated that this could include situations where the end-users or consignees are merely post-office boxes, drop shipment points, or front companies.
The notice also adds five entities to the Unverified List and reminds exporters that the involvement of these entities as a party to a proposed transaction constitutes a "red flag'' for purposes of the "Know Your Customer'' guidance set forth in Supplement No. 3 to 15 CFR part 732. Under the "Know Your Customer'' guidance, whenever there is a "red flag,'' exporters and other persons 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 by part 744, and does not violate other provisions of the EAR.
The notice also states that persons that are included on the Unverified List may request that BIS review their inclusion on the Unverified List by filing an appeal with BIS.
A copy of BIS's notice can be found at the following link:
http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/pdf/04-16143.pdf
|posted by Douglas N. Jacobson| Permalink 
