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