EXTRANCHECK: PRE-LICENSE CHECK: MEDIC PHARM

UNCLAS HONG KONG 004493

SIPDIS

USDOC FOR 532/OEA/LHINES/DFARROW
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: PRE-LICENSE CHECK: MEDIC PHARM

REF: A) USDOC 05783 B) EXP.LIC. D364367


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 pre-license
check (PLC) at Medic Pharm Technology (International)
Limited (Medic Pharm),Room 1301, Fook Yip Building,
53-57 Kwai Fung Crescent, Kwai Chung, Hong Kong. The
purpose of the PLC was to determine the suitability of
Medic Pharm to be the recipient of biochemical and
clinical diagnostic kits that test for the presence of
biological agents. The items (ECCN 1A004) are valued
at USD $2,500 and are controlled for chemical and
biological warfare (CB) reasons. The license applicant
is Tetracore, Inc., of Rockville, Maryland (Tetracore).


3. In fact, Medic Pharm is the procurement agent for
the Hong Kong Police Force in this transaction. Prior
to visiting Medic Pharm, on November 1, 2006, the ECO
visited the procurement department of the Hong Kong
Police Force and met with Ms. Angie Woo, Supplies
Officer. She confirmed the order for the applicable
items. According to Ms. Woo, Medic Pharm supplies
various items to the Hong Kong Police Force pursuant to
tenders roughly three to four times per year and Ms.
Woo considers them to be a reputable and reliable
company.


4. On November 8, 2006, the ECO visited Medic Pharm at
the address above and met with Mr. Fuk Sang Chiu,
Managing Director. Medic Pharm's corporate
registration documents list Mr. Chiu as one of the
directors of the company as well as Ms. Wang Marie Chiu
and Ms. Sui Mei Lo. Those documents also list a
corporate address that matches with the address where
the PLC was conducted. Medic Pharm has been in
existence since February 2000. It is a small trading
company with a handful of employees.


5. Mr. Chiu stated that Medic Pharm is a trading
company specializing in items with various medical
applications, primarily relatively low-level items such
as surgical masks and gloves. Approximately three
years ago, Mr. Chiu met representatives of Tetracore at
a trade show and developed a business relationship with
that company thereafter. Medic Pharm is presently the
exclusive distributor of Tetracore in Hong Kong and
Macau. Mr. Chiu stressed that he does not sell
Tetracore's products into mainland China and that
Tetracore has indicated it will terminate his
distributorship agreement if he does so.


6. Mr. Chiu stated that he is quite familiar with U.S.
export laws and is keen to maintain access to U.S.
origin products by complying with U.S. export controls.
He further stated that he expects that one or two
additional license applications will be forthcoming
from Tetracore for Medic Pharm generated orders in Hong
Kong and Macau.


7. When asked for promotional literature concerning
the company, Mr. Chiu provided a Company Profile that
makes reference to the Yue Tai Trading Group that
comprises both Medic Pharm and Yue Tai Trading Company.
According to the profile, Yue Tai was founded in 1987
and serves primarily the mainland China market. Yue
Tai's primary customers are the Beijing Ministry of
Health Bureau and military hospitals as well as
provincial public health bureaus. When asked about the
company's business in mainland China, Mr. Chiu
indicated that this business has been substantially
reduced since 2002 as a result of difficulties in doing
business in mainland China and difficulties in
obtaining controlled items to sell to the mainland.


8. Medic Pharm was very forthcoming during the PLC
visit. Mr. Chiu provided information on the underlying
transaction and was keen to provide the ECO all
necessary information concerning his business and his
intent to comply with U.S. export controls. The ECO
recommends that this PLC be considered Favorable.
Cunningham