EXTRANCHECK: POST SHIPMENT VERIFICATION:

UNCLAS HONG KONG 004113

SIPDIS

STATE FOR US HQ BICE WASH DC

USDOC FOR 532/OEA/LHINES/DFARROW
USDOC FOR 3132/FCS/OIO REGIONAL DIRECTOR WILLIAM ZARIT

BEIJING FOR FCS JEANETTE CHU

BICE FOR OFFICE OF STRATEGIC INVESTIGATIONS

SIPDIS

E.O. 12958: N/A
TAGS: BMGT BEXP HK ETTC
SUBJECT: EXTRANCHECK: POST SHIPMENT VERIFICATION:
KINPO INTERNATIONAL LTD.

REF: A) USDOC 04811


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 Bureau of
Industry and Security (BIS),Export Control Officer
(ECO) Philip Ankel conducted a post shipment
verification (PSV) of Kinpo International Ltd. (Kinpo
H.K.) on October 12, 2006. This PSV concerned a tri-
axis accelerometer exported by Kionix Inc. (Kionix) of
Ithaca, New York, classified as 7A994 (controlled for
anti-terrorism reasons) and valued at $10,456.


3. An extract from the Hong Kong Companies Registry
provides that Kinpo H.K. was dissolved as a commercial
entity in March 1998 and is no longer in existence.
No further information concerning this company was
available from the Companies Registry.


4. The contact information in the Kionix invoice
provided by OEA led to the following results: A visit
to the Kinpo H.K. address (13 Argyle Street, Room
2309-10, Hong Kong) listed in the "bill to" portion of
the invoice revealed that Kinpo was not located at
that address. Rather, that location housed another
company "Win Global Electrical Appliance Ltd." Calls
by the commercial assistant to the contact person in
the "ship to" portion of the Kionix invoice, Mr.
Terence Fung, revealed that Mr. Fung actually works
for a company called Soonest Express, a freight
forwarder.


5. Mr. Fung confirmed that Soonest Express had
received the applicable item from Kionix on May 1,
2006 and had forwarded it to Kinpo International Ltd.
in Dong Guan, China (Kinpo China) on May 6, 2006. Mr.
Fung stated that Soonest Express no longer acts as a
freight forwarder for Kinpo China. Ms. Emily Zhang of
Kinpo China's purchasing department in Dong Guan
confirmed that Kinpo China had received the applicable
item from Kionix (via freight forwarder Soonest
Express in Hong Kong).


6. Kinpo's web site (www.kinpo.com.tw) provides
greater background about this Taiwan based company.
Begin Quote: Kinpo has established itself as a front
runner in Taiwan's electronics industry since 1973.
After thirty years' hard working, Kinpo diversifies
its product lines from basic electronic calculators at
one end, a wide range of 3C consumer electronics in
between, and to internet application products at the
other. To date, Kinpo has a staff of more than 10,000
employees worldwide. Under its current global
corporate structure, Kinpo places its corporate
management center and R&D design facilities in Taiwan,
software development centers in Shanghai and Beijing,
mass production facilities in Dongguan, and
manufacturing supports in Thailand. End quote.


7. Given the information noted above, the ECO
recommends that this PSV of Kinpo H.K. be categorized
as Unfavorable. However, it should be noted that the
item in question (if properly classified) may be
exported to Hong Kong and reexported to China "no
license required" (NLR). As such, the ECO suggests
that the "Unfavorable" recommendation not be applied
to Kinpo's operations in other countries.
Cunningham