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