EXTRANCHECK: PRE-LICENSE CHECK: IT DEALS FZC, DEIRA, DUBAI,

UNCLAS ABU DHABI 001002 STATE FOR PM/DTCC FOR BLUE LANTERN COORDINATOR USDOC FOR 532/OEA/M.HAMES/D.FARROW DHS FOR ICE/STRATEGIC SIPDIS E.O. 12958: N/A TAGS: BEXP ETRD ETTC AE SUBJECT: EXTRANCHECK: PRE-LICENSE CHECK: IT DEALS FZC, DEIRA, DUBAI, UAE REF: USDOC 05355 ¶1. Reftel requested that post conduct a pre-license check at IT Deals FZC, Deira, Dubai for their order of drilling and fluid related products from Computer Dynamics of Illinois (CDI),a General Electric company. On August 31, 2008, Embassy Export Control Officer (ECO) attempted to locate Mr. Basheer Shabeen of IT Deals at their Deira, Dubai address. ECO discovered that the address listed: Suite 217 Twin Towers, P.O. Box 4404, Deira, Dubai is actually the Dubai address for the Ras Al Khaimah (RAK) FreeZone Authority. (Note: RAK is the northern-most of the seven emirates that comprise the United Arab Emirates). All companies located in the RAK FreeZone use this Deira, Dubai address for business dealings relating to Dubai. The use of this specific address signifies that the company is registered and operating in the RAK FreeZone but conducting business through the emirate of Dubai, i.e. goods may be transiting, entering a Dubai port etc. ¶2. On 1 Sept 2008, after establishing contact through the RAK FreeZone Authority, ECO met with Mr. Basheer Shabin (note: last name is spelled Shabin not Shabeen),Managing Director of IT Deals FZC. Shabin stated that he was completely unaware of anything relating to this order. He advised that he had never heard of the purchaser, XPERTECH nor was he aware of any orders from CDI, GE or anything having to do with drilling and fluid products from the U.S. ECO queried why anyone would list his company as the end user for this order. He stated that no one should be ordering items under his company's name without his knowledge. Shabin went on to explain that IT Deals' business involved personal computer products such as hard-drives, memory, laptops, desktops, and LCDs mainly from Malaysia, China, and Singapore. They have only one order from the U.S. which was miscellaneous computer parts from MA Labs, a California based computer parts company. ¶3. On 2 Sept 2008, ECO received a call from Shabin who had just been told by a business associate that an order had indeed been placed with CDI/GE listing IT Deals as the end user. He explained that this order was placed on behalf of XPERTECH, another RAK FreeZone company for items to be received by IT Deals and then to be re-exported to Egypt. On 4 Sept 2008, Shabin provided the following additional details: Mr. Salim Chorfi, the Algerian owner of XPERTECH, an oil and gas-field specialty company had placed this order to be received by IT Deals but to be shipped to the ultimate end user: International Logging located at 25 Road 257, New Maadi, Cairo, Egypt, Tel: 2025201121, Fax:2025201121 (www.inter-log.com). Shabin provided a letter of guarantee signed by International Logging which explains that the Wolverine Computer (presumably referring to the CDI/GE product for U.S. export) "will be used on our Mud-logging units operating in the Oil and Gas fields." Additionally, International Logging also states that "Wolverine Computer" will never be put to work in countries under U.S. Embargo such as Iran, North Korea or Sudan. ¶4. Post considers this PLC to be inconclusive as we are unable to make a determination on the end use and ultimate end user in Egypt. QUINN