EXTRANCHECK: PRE-LICENSE CHECK: DYNAMIC

UNCLAS HONG KONG 004607

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: DYNAMIC
PROGRESS INTERNATIONAL LIMITED

REF: A) USDOC 06190


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 of the USDOC Bureau of
Industry and Security (BIS),Export Control Officer
Philip Ankel (ECO) conducted a pre-license check (PLC)
at Dynamic Progress International Limited, Unit 1707,
Tower II, 138 Shatin Rural Committee Road, Hong Kong
(Dynamic Progress). The purpose of the visit was to
determine the suitability of Dynamic Progress to be a
recipient of a PVDF plastic magnetic driven, seal-less
horizontal centrifugal pump that is the subject of
license application D366279. The item (ECCN 2B350) is
valued at USD $2,227 and is controlled for chemical and
biological weapons reasons (CB). The license applicant
is Finish Thompson, Inc. of Erie, Pennsylvania.


3. On November 21, 2006, the ECO visited Dynamic
Progress at the address above and met with Steve Choi,
Executive Director and Steven Lord, Technical Director.
Dynamic Progress is a small start-up company whose
primary business involves the construction of a
facility that will convert used cooking oils into
biodiesel. According to an extract from the Companies
Registry, Mr. Choi and Mr. Lord are both members of the
company's board of Directors as are the two
shareholders of the company, Wing On Yau and Yin Kee
Lam. Mr. Choi indicated that the company was in
existence from 1997 until a year ago as a Hong Kong
shelf company at which time it was acquired for
purposes of this project.


4. According to Mr. Choi, the pump will be used to
remove toxic and flammable gases produced during the
recycling process. The recycling facility is presently
in the initial stages of construction at a remote
location in Hong Kong. As a result, the ECO was not
able to view the facility where the item will be used.
Mr. Choi offered to show the ECO the facility when it
is nearer to completion so that he may see where the
pump will be installed. Likewise, Messrs. Choi and
Lord made available to the ECO extensive technical
drawings showing how and where the production facility
will be constructed.


5. At the time visited, Dynamic Progress appeared to be
a suitable recipient of the subject controlled items
since it cooperated fully with the PLC and provided
substantial information on Dynamic Progress's proposed
use of the item in Hong Kong. In addition, Dynamic
Progress operates a line a business that is consistent
with the potential use of the ordered item. The ECO
recommends that this PLC be classified as Favorable.

Cunningham