EXTRANCHECK: POST-SHIPMENT VERIFICATION: SHAPOOR TRADING

UNCLAS ABU DHABI 001048 STATE FOR PM/DTCC FOR BLUE LANTERN COORDINATOR USDOC FOR 532/OEA/M.HAMES/D.PEARCE DHS FOR ICE/STRATEGIC SIPDIS E.O. 12958: N/A TAGS: BEXP ETRD ETTC AE SUBJECT: EXTRANCHECK: POST-SHIPMENT VERIFICATION: SHAPOOR TRADING LLC REF: USDOC 05466 ¶1. Reftel requested that post conduct a post-shipment verification at Shapoor Trading LLC, Deira, Dubai for a shipment of 3000 cellphone lithium batteries exported as No License Required by BProlific Inc., Brooklyn, NY. On 17 Sept 2008, Export Control Officer (ECO) met with Mr. Shahbaz Mirzai and a Mr. Nawaz Ak of Shapoor General Trading. Shahbaz Mirzai explained that he is the brother of the owner, Shapoor Mirzai and Mr. Ak is their Business Development Manager. Shahbaz stated that he and his brother are Iranian and that they have four wholesale outlets in Dubai and a showroom in Tehran. Their business focuses on wholesale trading in cellphone accessories and some cellphone handsets. They do business in Russia, the Middle East, and South Asia. Shahbaz also said that they do export accessories to Iran as well as sell locally in Dubai to businesses that may also export to Iran. ¶2. Regarding this shipment Ak and Shahbaz stated that these lithium batteries were sold locally to Ariana Phones which is owned by an Indian national. Shapoor reps were unable to provide additional information on Ariana's end use of these batteries except to say that they sell them to distributors in Dubai and to the South Asian and Egyptian markets for onward retail sale. They explained that the order placed with BProlific Inc. was for Grade A/B batteries which means that they are used and have a shorter life. These lower quality batteries are generally for the Indian, Egyptian, and Pakistani markets because they are cheaper. Ak provide ECO with the BProlific Invoice to Shapoor and the Shapoor Invoice indicating that 2,760 batteries were sold via a check sale but no end user is listed on the invoice. ECO queried the disposition of the other 240 batteries (since the original shipment from the U.S. was for 3000). Shahbaz stated that they were inoperable and damaged because they were so low quality. Shahbaz went on to explain that grade A/B batteries are never for the Iranian market because demand there is only for new high quality batteries. ¶3. Post is unable to confirm with any level of certainty where the ultimate destination and end-users are for this transaction. However, the information relating to Shapoor's business activities in Iran suggest that it may not be a reliable recipient of U.S. origin goods. GREENE