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 150
Maple Grove, MN 55369
(Address of principal executive offices)
(952) 345-2244
(Registrant’s 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:
☒ Rule 13p-1 under the Securities Exchange Act (17CFR 240.13p-1) for the reporting period from January 1 to December 31, 2019.
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, 2019 to December 31, 2019, 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 21, 2020 |
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Nortech Systems Incorporated |
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(Registrant) |
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/s/ Constance Beck |
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Constance Beck, Chief Financial Officer |
2
Exhibit 1.01
Conflict Minerals Report for the year ended December 31, 2019
Nortech Systems, Inc. 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.
Nortech’s 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.
Nortech's 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: |
Document Specialist |
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Global Supplier Quality Manager | ||
Executive Sponsors: | President & CEO | |
Chief Financial Officer |
Due Diligence Measures Performed
Our RCOI (reasonable country of origin inquiry) and due diligence procedures include the following:
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Due to the size of the Nortech's 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). |
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We surveyed relevant suppliers representing over 90% of our total company supplier spend on components and materials directly incorporated into our final products. |
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Relevant suppliers were evaluated to identify whether the products, materials, or components supplied to Nortech contain Conflict Minerals. |
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Data was collected directly from suppliers using the Conflict Minerals Reporting Template developed by the Responsible Minerals Initiative (RMI) formerly known as CFSI. |
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Supplier declarations were reviewed for completeness, accuracy and conformance to Nortech requirements. |
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An escalation process was initiated with relevant suppliers who were nonresponsive after the initial contact was made, or whose initial response was incomplete, unclear or nonconforming. |
Analysis of Supplier Survey Responses
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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. |
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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 not in our supply chain. |
Due Diligence Results
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Suppliers that responded to our survey provided lists of smelters and refiners on which we conducted due diligence. |
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Our due diligence process included comparing the supplier-provided names of smelters/refiners against lists of audited and verified smelters and refiners from RMI. The lists of smelters and refiners are included as Table 1. |
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Certain suppliers identified Kaloti Precious Metals, Sudan Gold Refinery, Tony Goetz NV, Universal Precious Metals Refining Zambia, African Gold Refinery, and Fidelity Printers and Refiners as sources of gold in their supply chains. These refineries are not audited by the RMI 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. If we determine that material sourced from these facilities is present in Nortech's supply chain, we will work with our suppliers to explore alternatives. |
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Country of origin information was obtained where reasonably available to Nortech and is presented as Table 2. |
CMRT Reporting to our customers.
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Nortech issues a standard response using the RMI CMRT. |
Third Party Audits of Processing Facilities
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Nortech does not conduct audits of smelters or refiners. We support the Responsible Mineral Initiative's Conflict Free Smelter program through our corporate policy and procurement requirements by encouraging suppliers to source from audited facilities. |
Annual Reporting
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In accordance with the OECD Guidance and the Rule, this report is available on our website: www.nortechsys.com |
Declaration
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Based on our due diligence results, Nortech has determined that our products are 'DRC Conflict Undeterminable'. |
Independent Private Sector Audit
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Not required for reporting year 2019. |
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 RMI. 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: Smelters/Refiners
Gold Smelters/Refiners
8853 S.p.A. Abington Reldan Metals, LLC Advanced Chemical Company African Gold Refinery Aida Chemical Industries Co., Ltd. Al Etihad Gold Refinery DMCC Allgemeine Gold-und Silberscheideanstalt A.G. Almalyk Mining and Metallurgical Complex (AMMC) AngloGold Ashanti Corrego do Sitio Mineracao Argor-Heraeus S.A. Asahi Pretec Corp. Asaka Riken Co., Ltd. Atasay Kuyumculuk Sanayi Ve Ticaret A.S. AU Traders and Refiners Aurubis AG Bangalore Refinery Bangko Sentral ng Pilipinas (Central Bank of the Philippines) Boliden AB C. Hafner GmbH + Co. KG Caridad CCR Refinery - Glencore Canada Corporation Cendres + Metaux S.A. CGR Metalloys Pvt Ltd. Chimet S.p.A. China's Shandong Gold Mining Co., Ltd Chugai Mining Daejin Indus Co., Ltd. Daye Non-Ferrous Metals Mining Ltd. Degussa Sonne / Mond Goldhandel GmbH Dijllah Gold Refinery FZC |
Do Sung Corporation DODUCO Contacts and Refining GmbH Dowa DS PRETECH Co., Ltd. Eco-System Recycling Co., Ltd. Emirates Gold DMCC Fidelity Printers and Refiners Ltd. FSE Novosibirsk Refinery Fujairah Gold FZC GCC Gujrat Gold Centre Pvt. Ltd. Geib Refining Corporation Gold Refinery of Zijin Mining Group Co., Ltd. Guangdong Jinding Gold Limited Guoda Safina High-Tech Environmental Refinery Co., Ltd. Hangzhou Fuchunjiang Smelting Co., Ltd. HeeSung Metal Ltd. Heimerle + Meule GmbH Heraeus Metals Hong Kong Ltd. Heraeus Precious Metals GmbH & Co. KG Hunan Chenzhou Mining Co., Ltd. Hunan Guiyang yinxing Nonferrous Smelting Co., Ltd. HwaSeong CJ CO., LTD. Inner Mongolia Qiankun Gold and Silver Refinery Share Co., Ltd. International Precious Metal Refiners Ishifuku Metal Industry Co., Ltd. Istanbul Gold Refinery Italpreziosi Japan Mint Jiangxi Copper Co., Ltd. Johnson Matthey Inc. Johnson Matthey Limited JSC Ekaterinburg Non-Ferrous Metal Processing Plant JSC Uralelectromed JX Nippon Mining & Metals Co., Ltd. Kaloti Precious Metals Kazakhmys Smelting LLC Kazzinc Kennecott Utah Copper LLC KGHM Polska Miedz Spolka Akcyjna Kojima Chemicals Co., Ltd. Korea Zinc Co., Ltd. Kyrgyzaltyn JSC Kyshtym Copper-Electrolytic Plant ZAO L'azurde Company For Jewelry Lingbao Gold Co., Ltd. Lingbao Jinyuan Tonghui Refinery Co., Ltd. L'Orfebre S.A. LS-NIKKO Copper Inc. |
Luoyang Zijin Yinhui Gold Refinery Co., Ltd. Marsam Metals Materion Matsuda Sangyo Co., Ltd. Metalor Technologies (Hong Kong) Ltd. Metalor Technologies (Singapore) Pte., Ltd. Metalor Technologies (Suzhou) Ltd. Metalor Technologies S.A. 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 Morris and Watson Morris and Watson Gold Coast Moscow Special Alloys Processing Plant Nadir Metal Rafineri San. Ve Tic. A.ª. Navoi Mining and Metallurgical Combinat NH Recytech Company Nihon Material Co., Ltd. Ogussa Osterreichische Gold- und Silber-Scheideanstalt GmbH Ohura Precious Metal Industry Co., Ltd. OJSC "The Gulidov Krasnoyarsk Non-Ferrous Metals Plant" (OJSC Krastsvetmet) PAMP S.A. Pease & Curren Penglai Penggang Gold Industry Co., Ltd. Planta Recuperadora de Metales SpA Prioksky Plant of Non-Ferrous Metals PT Aneka Tambang (Persero) Tbk PX Precinox S.A. QG Refining, LLC Rand Refinery (Pty) Ltd. Refinery of Seemine Gold Co., Ltd. REMONDIS PMR B.V. Royal Canadian Mint SAAMP Sabin Metal Corp. Safimet S.p.A SAFINA A.S. Sai Refinery Samduck Precious Metals SAMWON METALS Corp. SAXONIA Edelmetalle GmbH SEMPSA Joyeria Plateria S.A. Shandong Humon Smelting Co., Ltd. Shandong Tiancheng Biological Gold Industrial Co., Ltd. |
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. Sovereign Metals State Research Institute Center for Physical Sciences and Technology Sudan Gold Refinery Sumitomo Metal Mining Co., Ltd. SungEel HiMetal Co., Ltd. T.C.A S.p.A Tanaka Kikinzoku Kogyo K.K. The Great Wall Gold and Silver Refinery of China Tokuriki Honten Co., Ltd. Tongling Nonferrous Metals Group Co., Ltd. Tony Goetz NV TOO Tau-Ken-Altyn Torecom Umicore Brasil Ltda. Umicore Precious Metals Thailand Umicore S.A. Business Unit Precious Metals Refining United Precious Metal Refining, Inc. Universal Precious Metals Refining Zambia Valcambi S.A. Western Australian Mint (T/a The Perth Mint) WIELAND Edelmetalle GmbH Yamakin Co., Ltd. Yokohama Metal Co., Ltd. Yunnan Copper Industry Co., Ltd. Zhongyuan Gold Smelter of Zhongjin Gold Corporation |
Tantalum Smelters/Refiners
Asaka Riken Co., Ltd. |
Changsha South Tantalum Niobium Co., Ltd. |
CP Metals Inc. |
D Block Metals, LLC |
Exotech Inc. |
F&X Electro-Materials Ltd. |
FIR Metals & Resource Ltd. |
Global Advanced Metals Aizu |
Global Advanced Metals Boyertown |
Guangdong Rising Rare Metals-EO Materials Ltd. |
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. |
Jiangxi Dinghai Tantalum & Niobium Co., Ltd. |
Jiangxi Tuohong New Raw Material |
Jiujiang Janny New Material Co., Ltd. |
JiuJiang JinXin Nonferrous Metals Co., Ltd. |
Jiujiang Tanbre Co., Ltd. |
Jiujiang Zhongao Tantalum & Niobium Co., Ltd. |
KEMET Blue Metals |
Kemet Blue Powder |
LSM Brasil S.A. |
Metallurgical Products India Pvt., Ltd. |
Mineracao Taboca S.A. |
Mitsui Mining & Smelting |
Ningxia Orient Tantalum Industry Co., Ltd. |
NPM Silmet AS |
Power Resources Ltd. |
QuantumClean |
Resind Industria e Comercio Ltda. |
RFH |
Solikamsk Metal Works |
Taki Chemicals |
Telex Metals |
Ulba |
XinXing HaoRong Electronic Material Co., Ltd. |
Tin Smelters/Refiners
An Vinh Joint Stock Mineral Processing Company |
Chenzhou Yunxiang Mining and Metallurgy Co., Ltd. |
Chifeng Dajingzi Tin Industry Co., Ltd. |
China Tin Group Co., Ltd. |
CNMC (Guangxi) PGMA Co., Ltd. |
Cookson |
CV Ayi Jaya |
CV Dua Sekawan |
CV Gita Pesona |
CV Nurjanah |
CV Serumpun Sebalai |
CV Tiga Sekawan |
CV United Smelting |
CV Venus Inti Perkasa |
Dongguan CiEXPO Environmental Engineering Co., Ltd. |
Dowa |
Electro-Mechanical Facility of the Cao Bang Minerals & Metallurgy Joint Stock Company |
EM Vinto |
Estanho de Rondonia S.A. |
Fenix Metals |
Gejiu City Fuxiang Industry and Trade Co., Ltd.” |
Gejiu Fengming Metallurgy Chemical Plant |
Gejiu Kai Meng Industry and Trade LLC |
Gejiu Non-Ferrous Metal Processing Co., Ltd. |
Gejiu Yunxin Nonferrous Electrolysis Co., Ltd. |
Gejiu Zi-Li |
Guangdong Hanhe Non-Ferrous Metal Co., Ltd. |
Guanyang Guida Nonferrous Metal Smelting Plant |
HuiChang Hill Tin Industry Co., Ltd. |
Huichang Jinshunda Tin Co., Ltd. |
Jiangxi Nanshan |
Ma'anshan Weitai Tin Co., Ltd. |
Magnu's Minerais Metais e Ligas Ltda. |
Malaysia Smelting Corporation (MSC) |
Melt Metais e Ligas S.A. |
Metallic Resources, Inc. |
Metallo Belgium N.V. |
Metallo Spain S.L.U. |
Mineracao Taboca S.A. |
Minsur |
Mitsubishi Materials Corporation |
Modeltech Sdn Bhd |
Nghe Tinh Non-Ferrous Metals Joint Stock Company |
O.M. Manufacturing (Thailand) Co., Ltd. |
O.M. Manufacturing Philippines, Inc. |
OMSA |
Pongpipat Company Limited |
Precious Minerals and Smelting Limited |
PT Artha Cipta Langgeng |
PT ATD Makmur Mandiri Jaya |
PT Babel Inti Perkasa |
PT Babel Surya Alam Lestari |
PT Bangka Prima Tin |
PT Bangka Serumpun |
PT Bangka Tin Industry |
PT Belitung Industri Sejahtera |
PT Bukit Timah |
PT DS Jaya Abadi |
PT Inti Stania Prima |
PT Karimun Mining |
PT Kijang Jaya Mandiri |
PT Menara Cipta Mulia |
PT Mitra Stania Prima |
PT Panca Mega Persada |
PT Prima Timah Utama |
PT Rajawali Rimba Perkasa |
PT Refined Bangka Tin |
PT Sariwiguna Binasentosa |
PT Stanindo Inti Perkasa |
PT Sukses Inti Makmur |
PT Sumber Jaya Indah |
PT Tambang Timah |
PT Timah (Persero) Tbk Mentok |
PT Tinindo Inter Nusa |
PT Tirus Putra Mandiri |
PT Tommy Utama |
Resind Industria e Comercio Ltda. |
Rui Da Hung |
Soft Metais Ltda. |
Super Ligas |
Thai Nguyen Mining and Metallurgy Co., Ltd. |
Thaisarco |
Tin Technology & Refining |
Tuyen Quang Non-Ferrous Metals Joint Stock Company |
White Solder Metalurgia e Mineração Ltda. |
Yunnan Chengfeng |
Yunnan Tin Company Limited |
Yunnan Yunfan Non-ferrous Metals Co., Ltd. |
Tungsten Smelters/Refiners
A.L.M.T. Corp. |
ACL Metais Eireli |
ATI Tungsten Materials |
Chenzhou Diamond Tungsten Products Co., Ltd. |
China Molybdenum Co., Ltd. |
Chongyi Zhangyuan Tungsten Co., Ltd. |
Fujian Ganmin RareMetal Co., Ltd. |
Fujian Jinxin Tungsten Co., Ltd. |
Ganzhou Haichuang 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. |
Hunan Litian Tungsten Industry Co., Ltd. |
Hydrometallurg, JSC |
Japan New Metals Co., Ltd. |
Jiangwu H.C. Starck Tungsten Products Co., Ltd. |
Jiangxi Dayu Longxintai Tungsten Co., Ltd. |
Jiangxi Gan Bei Tungsten Co., Ltd. |
Jiangxi Minmetals Gao'an Non-ferrous Metals Co., Ltd. |
Jiangxi Tonggu Non-ferrous Metallurgical & Chemical Co., Ltd. |
Jiangxi Xinsheng Tungsten Industry Co., Ltd. |
Jiangxi Yaosheng Tungsten Co., Ltd. |
JSC "Kirovgrad Hard Alloys Plant" |
Kennametal Fallon |
KGETS Co., Ltd. |
Lianyou Metals Co., Ltd. |
Malipo Haiyu Tungsten Co., Ltd. |
Masan Tungsten Chemical LLC (MTC) |
Moliren Ltd. |
Niagara Refining LLC |
Philippine Chuangxin Industrial Co., Inc. |
South-East Nonferrous Metal Company Limited of Hengyang City |
Tejing (Vietnam) Tungsten Co., Ltd. |
Unecha Refractory metals plant |
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. |
Table 2: Aggregated Countries of Origin
ANDORRA |
AUSTRALIA |
AUSTRIA |
BELGIUM |
BOLIVIA (PLURINATIONAL STATE OF) |
BRAZIL |
CANADA |
CHILE |
CHINA |
CZECHIA |
ESTONIA |
FRANCE |
GERMANY |
INDIA |
INDONESIA |
ITALY |
JAPAN |
KAZAKHSTAN |
KOREA, REPUBLIC OF |
KYRGYZSTAN |
LITHUANIA |
MACEDONIA, THE FORMER YUGOSLAV REPUBLIC OF |
MALAYSIA |
MEXICO |
MYANMAR |
NETHERLANDS |
NEW ZEALAND |
PERU |
PHILIPPINES |
POLAND |
RUSSIAN FEDERATION |
SAUDI ARABIA |
SINGAPORE |
SOUTH AFRICA |
SPAIN |
SUDAN |
SWEDEN |
SWITZERLAND |
TAIWAN, PROVINCE OF CHINA |
THAILAND |
TURKEY |
UGANDA |
UNITED ARAB EMIRATES |
UNITED STATES OF AMERICA |
UZBEKISTAN |
VIET NAM |
ZAMBIA |
ZIMBABWE |