UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM SD
Specialized Disclosure Report
NORTECH SYSTEMS INCORPORATED
(Exact name of registrant as specified in charter)
Minnesota |
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0-13257 |
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41-16810894 |
(State or other jurisdiction |
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(Commission |
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IRS Employer |
of incorporation) |
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File Number) |
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Identification No.) |
7050 Meridian Circle N, Suite 15
Maple Grove, MN 55369
(Address of principal executive offices)
(952) 345-2244
(Registrants telephone number, including area code)
Not Applicable
(Former name or former address, if changed from last report)
Check the appropriate box to indicate the rule pursuant to which this form is being filed, And provide the period to which the information in this form applies:
x Rule 13p-1 under the Securities Exchange Act (17CFR 240.13p-1) for the reporting period from January 1 to December 31, 2016.
Section 1 Conflict Minerals Disclosure
Item 1.01 Conflict Minerals Disclosure and Report
Nortech Systems Incorporated (the Company) has prepared and filed a Conflict Minerals Report for the reporting period January 1, 2016 to December 31, 2016, which is provided as an Exhibit hereto and is publicly available at http://www.nortechsys.com/wp-content/uploads/Conflict-Minerals-Disclosure.pdf.
Item 1.02 Exhibit
The Company has filed, as Exhibit 1.01 to this Specialized Disclosure Report on Form SD, a Conflict Minerals Report.
Section 2 Exhibits
Item 2.01 Exhibits
Exhibit 1.01 - Conflict Minerals Report as required by Items 1.01 and 1.02 of this Form.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the duly authorized undersigned.
Date: May 31, 2017 |
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Nortech Systems Incorporated |
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(Registrant) |
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/s/ Paula M. Graff |
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Paula M. Graff, CFO |
Exhibit 1.01
Conflict Minerals Report May 19, 2017
Nortech is a full-service electronics manufacturing (EMS) provider of wire and cable assemblies, printed circuit boards assemblies and higher-level complete box build assemblies for a wide range of industries. Metallic forms of tin, tantalum, tungsten and gold (Conflict Minerals) are present in some of the products, components and materials we purchase and are necessary to the functionality of many of the products we manufacture. We do not buy any ores directly, nor do we directly purchase these processed metals in their raw form.
Nortechs corporate policy regarding Conflict Minerals and disclosure regarding whether any Conflict Minerals necessary to the functionality or production of a product originated in Covered Countries is made public on our website at: http://www.nortechsys.com/about-nortech/quality-regulatory-compliance/conflict-minerals-policy/
Design of Due Diligence Framework
Our due diligence procedures are in compliance with the Organization for Economic Co-operation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (Third Edition) and its supplements.
Nortechs policy regarding Conflict Minerals was communicated to employees internally and to suppliers externally via e-mail and posted to our website.
Our cross functional conflict minerals team was established to carry out the necessary due diligence and reporting requirements. The team currently includes the following roles:
Team Members: |
Global Sourcing |
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Manager Supply Chain |
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Managers |
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Global Supplier Quality Manager |
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Executive Sponsors: |
President & CEO |
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VP & Chief Financial Officer |
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VP of Operations |
Due Diligence Measures Performed
Our RCOI (reasonable country of origin inquiry) and due diligence procedures include the following:
· Due to the size of the Nortechs sourcing functions, we focused on our largest suppliers that provide components and materials directly incorporated into our final products, ranked by the amount the Company spends with each such supplier, and the suppliers that had the highest probability of supplying us with products or components containing Conflict Minerals (e.g. electronics).
· We surveyed relevant suppliers representing 83% of our total company supplier spend on components and materials directly incorporated into our final products.
· Relevant suppliers were evaluated to identify whether the products, materials or components supplied to Nortech contain Conflict Minerals.
· Data was collected directly from suppliers using the Conflict Minerals Reporting Template developed by the Conflict-Free Sourcing Initiative (CFSI)
· Supplier declarations were reviewed for completeness, accuracy and conformance to Nortech requirements.
· An escalation process was initiated with relevant suppliers who were non responsive after the initial contact was made, or whose initial response was incomplete, unclear or nonconforming.
Analysis of Supplier Survey Responses
· We were unable to confirm through our RCOI that conflict minerals contained in our products did not originate from the Covered Countries or were from recycled/scrap materials. Therefore we conducted due diligence on the processing facilities identified by our suppliers and prepared this Conflict Minerals Report.
· Conflict minerals information from some suppliers was presented to Nortech at a company-level rather than a Nortech product-specific response. As a result, it is likely that our lists of smelters, refiners and countries of origin (discussed below) include sources that are actually not in our supply chain.
Due Diligence Results
· Suppliers that responded to our survey provided lists of smelters and refiners on which we conducted due diligence.
· Our due diligence process included comparing the supplier-provided names of smelters/refiners against lists of audited and verified smelters and refiners from CFSI, LBMA, RJC, TI-CMC and the US Department of Commerce. The lists of smelters and refiners are included as Tables 1 and 2.
· Certain suppliers identified Fidelity Printers and Refiners, Sudan Gold Refinery, Kaloti Precious Metals, and Universal Precious Metals Refining Zambia as sources of gold in their supply chains. These refineries are not audited by the CFSI and public information indicates the possibility that these are high-risk facilities. Because the conflict minerals information from these suppliers was presented to Nortech as company-level responses rather than Nortech product-specific responses, it is uncertain if these facilities are actually in our supply chain. As part of our due diligence process, Nortech implemented our risk mitigation plan for the subject suppliers, engaging them to conduct additional research on whether these facilities are, in reality, present in our supply chain. At this time, those suppliers have not completed their investigation. If we determine that material sourced from these facilities is present in Nortechs supply chain, we will work with our suppliers to explore alternatives.
· Country of origin information was obtained where reasonably available to Nortech and is presented in the list following Tables 1 and 2.
CMRT Reporting to our customers.
· Nortech issues a standard response using the EICC CMRT.
Third Party Audits of Processing Facilities
· Nortech does not conduct audits of smelters or refiners. We support the Conflict Free Sourcing Initiatives Conflict Free Smelter program through our corporate policy and procurement requirements by encouraging suppliers to source from audited facilities.
Annual Reporting
· In accordance with the OECD Guidance and the Rule, this report is available on our website: www.nortechsys.com
Declaration
· Based on our due diligence results, Nortech has determined that our products are DRC Conflict Undeterminable.
Independent Private Sector Audit
· Not required for reporting year 2016.
Limitations
Conflict Minerals sourcing and traceability information is limited at this time. Moreover , there are inherent limitations and risks in the information that is available. We are reliant on the information provided to us by our suppliers and industry initiatives such as the CFSI. Our processes are intended to provide reasonable assurance - not absolute certainty- about the identification of processing facilities and the sources of their ores.
Table 1: Refineries
CFSI Audited Gold Refineries
Abington Reldan Metals, LLC |
Advanced Chemical Company |
Aida Chemical Industries Co., Ltd. |
Al Etihad Gold |
Allgemeine Gold-und Silberscheideanstalt A.G. |
Almalyk Mining and Metallurgical Complex (AMMC) |
AngloGold Ashanti |
Argor-Heraeus SA |
Asahi Pretec Corporation |
Asahi Refining Canada Limited |
Asahi Refining USA Inc. |
Asaka Riken Co., Ltd. |
AU Traders and Refiners |
Aurubis AG |
Bangalore Refinery |
Bangko Sentral ng Pilipinas (Central Bank of the Philippines) |
Boliden AB |
C. Hafner GmbH + Co. KG |
CCR Refinery - Glencore Canada Corporation |
Cendres + Métaux SA |
Chimet S.p.A. |
Daejin Indus Co., Ltd. |
Daye Non-Ferrous Metals Mining Ltd. |
DODUCO GmbH |
Dowa |
DSC (Do Sung Corporation) |
Eco-System Recycling Co., Ltd. |
Emirates Gold DMCC |
Geib Refining Corporation |
Gold Refinery of Zijin Mining Group Co., Ltd |
Great Wall Precious Metals Co., Ltd. of CBPM |
Heimerle + Meule GmbH |
Heraeus Metals Hong Kong Ltd |
Heraeus Precious Metals GmbH & Co. KG |
Inner Mongolia Qiankun Gold and Silver Refinery Share Co., Ltd. |
Ishifuku Metal Industry Co., Ltd. |
Istanbul Gold Refinery |
Italpreziosi S.p.A. |
Japan Mint |
Jiangxi Copper Company Limited |
JSC Ekaterinburg Non-Ferrous Metal Processing Plant |
JSC Uralelectromed |
JX Nippon Mining & Metals Co., Ltd. |
Kazzinc |
Kennecott Utah Copper LLC |
KGHM Polska Miedź Spółka Akcyjna |
Kojima Chemicals Co., Ltd. |
Korea Zinc Co., Ltd. |
Kyrgyzaltyn JSC |
LS-NIKKO Copper Inc. |
Marsam Metals |
Materion |
Matsuda Sangyo Co., Ltd. |
Metalor Technologies (Hong Kong) Ltd. |
Metalor Technologies (Singapore) Pte., Ltd. |
Metalor Technologies (Suzhou) Co Ltd |
Metalor Technologies SA |
Metalor USA Refining Corporation |
METALÚRGICA MET-MEX PEÑOLES, S.A. DE C.V |
Mitsubishi Materials Corporation |
Mitsui Mining and Smelting Co., Ltd. |
MMTC-PAMP India Pvt., Ltd. |
Modeltech Sdn Bhd |
Moscow Special Alloys Processing Plant |
Nadir Metal Rafineri San. Ve Tic. A.Ş. |
Navoi Mining and Metallurgical Combinat |
Nihon Material Co., Ltd. |
Ögussa Österreichische Gold- und Silber-Scheideanstalt GmbH |
Ohura Precious Metal Industry Co., Ltd. |
OJSC The Gulidov Krasnoyarsk Non-Ferrous Metals Plant (OJSC Krastsvetmet) |
OJSC Novosibirsk Refinery |
PAMP S.A. |
Prioksky Plant of Non-Ferrous Metals |
PT Aneka Tambang (Persero) Tbk |
PX Precinox SA |
Rand Refinery (Pty) Ltd. |
Republic Metals Corporation |
Rio Tinto Group |
Royal Canadian Mint |
SAAMP |
SAFINA A.S. |
Samduck Precious Metals |
SAXONIA Edelmetalle GmbH |
Schone Edelmetaal B.V. |
SEMPSA Joyería Platería SA |
Shandong Zhaojin Gold & Silver Refinery Co., Ltd. |
Sichuan Tianze Precious Metals Co., Ltd. |
Singway Technology Co., Ltd. |
SOE Shyolkovsky Factory of Secondary Precious Metals |
Solar Applied Materials Technology Corp. |
Sumitomo Metal Mining Co., Ltd. |
Sungeel Hitech Co., Ltd. |
T.C.A S.p.A |
Tanaka Kikinzoku Kogyo K.K. |
The Refinery of Shandong Gold Mining Co., Ltd. |
Tokuriki Honten Co., Ltd. |
Tony Goetz NV |
Torecom |
Umicore Brasil Ltda. |
Umicore Precious Metals Thailand |
Umicore SA Business Unit Precious Metals Refining |
United Precious Metal Refining, Inc. |
Valcambi SA |
Western Australian Mint trading as The Perth Mint |
WIELAND Edelmetalle GmbH |
Yamamoto Precious Metal Co., Ltd. |
Yokohama Metal Co., Ltd. |
Zhongyuan Gold Smelter of Zhongjin Gold Corporation |
Gold Refineries Not CFSI Audited
Atasay Kuyumculuk Sanayi Ve Ticaret A.S. |
Caridad |
Changcheng Gold & Silver Refining Factory |
China Gold International Resources Corp. Ltd |
Chugai Mining |
CMP-COMPAGNIE DES METAUX PRECIEUX |
Degussa Sonne / Mond Goldhandel GmbH |
Fidelity Printers and Refiners Ltd. |
Gannon & Scott |
Gansu Seemine Material Hi-Tech Co Ltd |
Guangdong Jinding Gold Limited |
Gujarat Gold Centre |
Guoda Safina High-Tech Environmental Refinery Co., Ltd. |
Hangzhou Fuchunjiang Smelting Co., Ltd. |
Henan Yuguang Gold & Lead Co., Ltd. |
HOMESTAKE MINING COMPANY |
Hunan Chenzhou Mining Co., Ltd. |
HwaSeong CJ Co. Ltd |
Jinlong Copper Co., Ltd. |
Johnson Matthey Chemicals Ltd. |
Kaloti Precious Metals |
Lazurde Company For Jewelry |
LOrfebre S.A. |
Lingbao Gold Company Ltd. |
Lingbao Jinyuan Mining Co., Ltd. |
Lingbao Jinyuan Tonghui Refinery Co. Ltd. |
Luoyang Zijin Yinhui Gold Refinery Co., Ltd. |
METAUX PRECIEUX SA METALOR |
Minsur |
Morris and Watson |
Morris and Watson Gold Coast |
Pease & Curren |
Penglai Penggang Gold Industry Co Ltd |
Remondis Argentia B.V. |
Sabin Metal Corp. |
Sai Refinery |
SAMWON METALS Corp. |
Shandong Tiancheng Biological Gold Industrial Co., Ltd. |
So Accurate Group, Inc. |
Sudan Gold Refinery |
TongLing Nonferrous Metals Group Holdings Co., Ltd. |
Universal Precious Metals Refining Zambia |
Yunnan Copper Industry Co Ltd |
CFSI Audited Tantalum Smelters
Changsha South Tantalum Niobium Co., Ltd. |
Conghua Tantalum and Niobium Smeltry |
D Block Metals, LLC |
Duoluoshan |
Exotech Inc. |
F&X Electro-Materials Ltd. |
FIR Metals & Resource Ltd. |
Global Advanced Metals Aizu |
Global Advanced Metals Boyertown |
Guangdong Zhiyuan New Material Co., Ltd. |
H.C. Starck Co., Ltd. |
H.C. Starck Hermsdorf GmbH |
H.C. Starck Inc. |
H.C. Starck Ltd. |
H.C. Starck Smelting GmbH & Co. KG |
H.C. Starck Tantalum and Niobium GmbH |
Hengyang King Xing Lifeng New Materials Co., Ltd. |
Hi-Temp Specialty Metals, Inc. |
Jiangxi Dinghai Tantalum & Niobium Co., Ltd. |
Jiangxi Tuohong New Raw Material |
JiuJiang JinXin Nonferrous Metals Co., Ltd. |
Jiujiang Nonferrous Metals Smelting Company Limited |
Jiujiang Zhongao Tantalum & Niobium Co., Ltd. |
KEMET Blue Metals |
Kemet Blue Powder |
King-Tan Tantalum Industry Ltd. |
LSM Brasil S.A. |
Metallurgical Products India Pvt., Ltd. |
Mineração Taboca S.A. |
Mitsui Mining and Smelting Co., Ltd. |
Ningxia Orient Tantalum Industry Co., Ltd. |
NPM Silmet AS |
Power Resources Ltd. |
QuantumClean |
Resind Indústria e Comércio Ltda. |
RFH Tantalum Smeltry Co., Ltd. |
Solikamsk Magnesium Works OAO |
Taki Chemical Co., Ltd. |
Telex Metals |
Tranzact, Inc. |
Ulba Metallurgical Plant JSC |
XinXing Haorong Electronic Material Co., Ltd. |
Yichun Jin Yang Rare Metal Co., Ltd. |
Zhuzhou Cemented Carbide Group Co., Ltd. |
Tantalum Smelters Not CFSI Audited
None
CFSI Audited Tin Smelters
Alpha |
Chenzhou Yunxiang Mining and Metallurgy Company Limited |
China Tin Group Co., Ltd. |
Cooperativa Metalurgica de Rondônia Ltda. |
CV Ayi Jaya |
CV Dua Sekawan |
CV Gita Pesona |
CV Serumpun Sebalai |
CV Tiga Sekawan |
CV United Smelting |
CV Venus Inti Perkasa |
Dowa |
Electro-Mechanical Facility of the Cao Bang Minerals & Metallurgy Joint Stock Company |
Elmet S.L.U. |
EM Vinto |
Fenix Metals |
Gejiu Fengming Metallurgy Chemical Plant |
Gejiu Jinye Mineral Company |
Gejiu Kai Meng Industry and Trade LLC |
Gejiu Non-Ferrous Metal Processing Co., Ltd. |
Gejiu Yunxin Nonferrous Electrolysis Co., Ltd. |
Guanyang Guida Nonferrous Metal Smelting Plant |
HuiChang Hill Tin Industry Co., Ltd. |
Huichang Jinshunda Tin Co. Ltd |
Jiangxi Ketai Advanced Material Co., Ltd. |
Magnus Minerais Metais e Ligas Ltda. |
Malaysia Smelting Corporation (MSC) |
Melt Metais e Ligas S.A. |
Metallic Resources, Inc. |
Metallo-Chimique N.V. |
Mineração Taboca S.A. |
Minsur |
Mitsubishi Materials Corporation |
Modeltech Sdn Bhd |
Nankang Nanshan Tin Co., Ltd. |
O.M. Manufacturing (Thailand) Co., Ltd. |
O.M. Manufacturing Philippines, Inc. |
Operaciones Metalurgical S.A. |
PT Aries Kencana Sejahtera |
PT Artha Cipta Langgeng |
PT ATD Makmur Mandiri Jaya |
PT Babel Inti Perkasa |
PT Bangka Prima Tin |
PT Bangka Tin Industry |
PT Belitung Industri Sejahtera |
PT Bukit Timah |
PT DS Jaya Abadi |
PT Eunindo Usaha Mandiri |
PT Inti Stania Prima |
PT Karimun Mining |
PT Kijang Jaya Mandiri |
PT Lautan Harmonis Sejahtera |
PT Menara Cipta Mulia |
PT Mitra Stania Prima |
PT O.M. Indonesia |
PT Panca Mega Persada |
PT Prima Timah Utama |
PT Refined Bangka Tin |
PT Sariwiguna Binasentosa |
PT Stanindo Inti Perkasa |
PT Sukses Inti Makmur |
PT Sumber Jaya Indah |
PT Timah (Persero) Tbk Kundur |
PT Timah (Persero) Tbk Mentok |
PT Tinindo Inter Nusa |
PT Tommy Utama |
PT WAHANA PERKIT JAYA |
Resind Indústria e Comércio Ltda. |
Rui Da Hung |
Soft Metais Ltda. |
Thaisarco |
VQB Mineral and Trading Group JSC |
White Solder Metalurgia e Mineração Ltda. |
Yunnan Chengfeng Non-ferrous Metals Co.,Ltd. |
Yunnan Tin Group (Holding) Company Limited |
Tin Smelters Not CFSI Audited
5NPLUS |
An Thai Minerals Company Limited |
An Vinh Joint Stock Mineral Processing Company |
Aoki Laboratories Ltd. |
CNMC (Guangxi) PGMA Co. Ltd. |
Complejo Metalurgico Vinto S.A. |
Elmet S.A. de C.V. |
Estanho de Rondônia S.A. |
Gejiu Zili Mining And Metallurgy Co., Ltd. |
Jean Goldschmidt International SA |
JX Nippon Mining & Metals Co., Ltd. |
Nghe Tinh Non-Ferrous Metals Joint Stock Company |
PT Cipta Persada Mulia |
PT Justindo |
PT Tirus Putra Mandiri |
Tuyen Quang Non-Ferrous Metals Joint Stock Company |
Yuntinic Chemical GmbH |
CFSI Audited Tungsten Smelters
A.L.M.T. Corp. |
Asia Tungsten Products Vietnam Ltd. |
Chenzhou Diamond Tungsten Products Co., Ltd. |
Chongyi Zhangyuan Tungsten Co., Ltd. |
Fujian Jinxin Tungsten Co., Ltd. |
Ganzhou Huaxing Tungsten Products Co., Ltd. |
Ganzhou Jiangwu Ferrotungsten Co., Ltd. |
Ganzhou Seadragon W & Mo Co., Ltd. |
Global Tungsten & Powders Corp. |
Guangdong Xianglu Tungsten Co., Ltd. |
H.C. Starck Smelting GmbH & Co. KG |
H.C. Starck Tungsten GmbH |
Hunan Chenzhou Mining Co., Ltd. |
Hunan Chuangda Vanadium Tungsten Co., Ltd. Wuji |
Hunan Chunchang Nonferrous Metals Co., Ltd. |
Hydrometallurg, JSC |
Japan New Metals Co., Ltd. |
Jiangwu H.C. Starck Tungsten Products Co., Ltd. |
Jiangxi Gan Bei Tungsten Co., Ltd. |
Jiangxi Tonggu Non-ferrous Metallurgical & Chemical Co., Ltd. |
Jiangxi Xinsheng Tungsten Industry Co., Ltd. |
Jiangxi Xiushui Xianggan Nonferrous Metals Co., Ltd. |
Jiangxi Yaosheng Tungsten Co., Ltd. |
Kennametal Fallon |
Kennametal Huntsville |
Malipo Haiyu Tungsten Co., Ltd. |
Moliren Ltd |
Niagara Refining LLC |
Nui Phao H.C. Starck Tungsten Chemicals Manufacturing LLC |
Philippine Chuangxin Industrial Co., Inc. |
South-East Nonferrous Metal Company Limited of Hengyang City |
Tejing (Vietnam) Tungsten Co., Ltd. |
Unecha Refractory Metals Plant |
Vietnam Youngsun Tungsten Industry Co., Ltd. |
Wolfram Bergbau und Hütten AG |
Woltech Korea Co., Ltd. |
Xiamen Tungsten (H.C.) Co., Ltd. |
Xiamen Tungsten Co., Ltd. |
Xinfeng Huarui Tungsten & Molybdenum New Material Co., Ltd. |
Xinhai Rendan Shaoguan Tungsten Co., Ltd. |
Tungsten Smelters Not CFSI Audited
ACL Metais Eireli |
Ganzhou Haichuang Tungsten Industry Co., Ltd. |
Ganzhou Yatai Tungsten Co., Ltd. |
Jiangxi Dayu Longxintai Tungsten Co., Ltd. |
Jiangxi Minmetals Gaoan Non-ferrous Metals Co., Ltd. |
TaeguTec Ltd. |
Table 2: Aggregated Countries of Origin
Angola |
Argentina |
Armenia |
Australia |
Austria |
Bolivia |
Brazil |
Burundi |
Cambodia |
Canada |
Central African Republic |
Chile |
China |
Colombia |
Congo (Brazzaville) |
Czech Republic |
Djibouti |
DRC- Congo (Kinshasa) |
Ecuador |
Egypt |
Estonia |
Ethiopia |
Finland |
Germany |
Ghana |
Guinea |
Guyana |
India |
Indonesia |
Ireland |
Ivory Coast |
Japan |
Jersey |
Kazakhstan |
Kenya |
Korea, Republic of |
Kyrgyzstan |
Laos |
Madagascar |
Malaysia |
Mali |
Mexico |
Mongolia |
Morocco |
Mozambique |
Myanmar |
Namibia |
Niger |
Nigeria |
Papua New Guinea |
Peru |
Philippines |
Poland |
Portugal |
Russian Federation |
Rwanda |
Saudi Arabia |
Sierra Leone |
Slovakia |
South Africa |
South Sudan |
Spain |
Suriname |
Sweden |
Switzerland |
Taiwan |
Tajikistan |
Tanzania |
Thailand |
Turkey |
Uganda |
United Kingdom |
United States |
Uzbekistan |
Viet Nam |
Zambia |
Zimbabwe |