EXTRANCHECK: POST SHIPMENT VERIFICATION: MACAU

UNCLAS HONG KONG 004112

SIPDIS

STATE US HQ BICE WASH DC

USDOC FOR 532/OEA/VELARDO/MHAMES
USDOC FOR 3132 FOR FCS/OIO REGIONAL DIRECTOR WILLIAM
ZARIT
BICE FOR OFFICE OF STRATEGIC INVESTIGATIONS

SIPDIS

E.O. 12958: N/A
TAGS: BMGT BEXP HK ETRD ETTC
SUBJECT: EXTRANCHECK: POST SHIPMENT VERIFICATION: MACAU
SECURITY FORCES MANAGEMENT BUREAU

REF: A) USDOC 04935 B) EXP.LIC. D352751


1. Unauthorized disclosure of the information provided
below is prohibited by Section 12C of the Export
Administration Act.


2. As per reftel A request and at the direction of the
Office of Enforcement Analysis (OEA) of the USDOC
Bureau of Industry and Security (BIS),Export Control
Officer Philip Ankel (ECO) conducted a post shipment
verification (PSV) at the Macau Security Forces
Management Bureau, Calcada Dos Quarteis, Macau (Macau
Security). The PSV concerned an infra-red thermal
telescopic camera kit valued at $19,500 that was the
subject of export license D352751 and which was
exported to Macau Security in April 2006. The camera
kit is classified under ECCN 6A003 and is controlled
for national security reasons (NS).


3. On October 12, 2006, the ECO visited Macau Security
at the address above and met with several
representatives of Macau Security including
Commissioner Sam Peng Chan, and Chief of the
Procurement Division, Christine Poon.


4. Mr. Chan stated that the Special Duty Unit of the
Macau Security Forces is using the item. Mr. Chan
further stated that the item is currently only being
used for training purposes since it is a very
specialized item. He noted, however, that with
increasing foreign investment and growth in Macau,
Macau Security needed to be adequately prepared for all
possibilities including terrorism or hostage
situations.


5. Mr. Chan declined to allow the ECO to visit the
location where the item is being kept, although he
stressed that the item was under the specific control
of the Special Duty Unit and for use only by that unit.
At the request of the ECO, two representatives of the
Special Duty Unit produced the item for inspection by
the ECO. In addition, Mr. Chan's assistant provided
documentation confirming import of the item into Macau
as well as related procurement documents confirming the
purchase of the item through procurement tender using
trading company Artigos Electricos Tico (the purchaser
referenced in reftel A).


6. Mr. Chan was well aware of the restrictions on use
(law enforcement in Macau only) and/or reexport of the
item.


7. It is worth noting that as a result of some initial
confusion about the specific item that was the basis of
the check, Macau Security produced a different item for
review by the ECO. That item was a Bullard thermal
imaging camera (Bullard Tacsight S1)that had recently
been received by Macau Security (August 25, 2006). The
ECO was provided with Bullard documentation indicating
that Macau Security was aware of and agreed to
restrictions on use and/or reexport of that item. OEA
may wish to confirm that the Tacsight S1 was exported
to Macau Security pursuant to a valid BIS license (the
ECO suspects that is was).


8. At the time visited, Macau Security appeared to be a
suitable recipient of the subject controlled item since
it cooperated with the PSV and provided assurances
reflecting appropriate controls over the item. In
addition, the consignee's activities are consistent
with the use of the item ordered, and the consignee
understands restrictions on use and/or reexport of the
item. The ECO recommends that this PLC be classified
as Favorable.
Cunningham