EXTRANCHECK: PRE-LICENSE CHECK: DIRECTORATE GENERAL OF

UNCLAS NEW DELHI 006504

SIPDIS

SIPDIS

USDOC FOR 532/OEA/M. NICKSON-DORSEY/JAY HATFIELD
USDOC FOR 3131/USFCS/OIO/ANESA/KREISSL
USDOC FOR 4530/MAC/ANESA/OSA
ICE HQ FOR STRATEGIC INVESTIGATIONS
STATE FOR EB/ESP

E.O. 12958: N/A
TAGS: ETTC ETRD BEXP IN
SUBJECT: EXTRANCHECK: PRE-LICENSE CHECK: DIRECTORATE GENERAL OF
SUPPLIES AND DISPOSALS, NEW DELHI, LICENSE NO. D361025

REF: USDOC 04749


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


2. Export Control Officer (ECO) Michael Rufe and BIS FSN Prem
Narayan conducted a Pre-license Check (PLC) at the Directorate
General of Supplies and Disposals (DGS&D),New Delhi, on September
14, 2006.


3. BIS requested a PLC at DGS&D, a GOI agency under the Department
of Commerce (Supply Division),Ministry of Commerce and Industry,
Website: www.dgsnd.gov.in. DGS&D was listed as the Ultimate
Consignee; Ingram Micro India Pvt. Ltd. (Ingram),Mumbai as the
Foreign Purchaser and Symantec Ltd., Dublin, Ireland as the
Intermediate Consignee for one Symantec Gateway Security 5620
appliance and one Symantec Gateway Security 3.0 software controlled
under ECCN 5A002 and ECCN 5D002, respectively. The license
applicant was Symantec Corp. (Symantec),Cupertino, CA.


4. The ECO met for approximately 2 hours with M.C. Chakrabortty
(Chakrabortty),Director-Vigilance and C&T and R. Karuppiah
(Karuppiah),Deputy Director, Quality Assurance and C&T, DGS&D and
Ajit Kumar Shukla (Shukla),Regional Manager, HCL Infosystems Ltd.
(HCL). HCL is the marketing agent and after sales support provider
and Ingram is the C&F/Distributor for Symantec in India. The meeting
was facilitated by Deputy Secretary (AMS) Viraj Singh, Ministry of
External Affairs (MEA),GOI. Singh was also present in the
meeting.


5. This was the first USG or BIS official visit to DGS&D. Karuppiah
provided a copy of the HCL Quotation, DGS&D Supply Order in favor of
HCL, and four revised DGS&D End-Use statements.


6. Chakrabortty stated that DGS&D is already using the Symantec
Gateway Security 5600 series appliance along with Symantec Gateway
Security software purchased in March 2003 to protect the DGS&D
web-server from receiving junk mail and virus attacks. The Symantec
license for these products expired on March 17, 2005. In April
2005, DGS&D approached HCL to renew the license and upgrade the
system with the latest versions of Symantec anti-virus and firewall
protection. Symantec informed DGS&D through HCL that they are no
longer producing nor supporting the system that DGS&D is currently
using and they needed to purchase the latest versions. DGS&D
ordered the new versions with Symantec license valid through March

2008. In the absence of Symantec's latest versions, DGS&D is using
a HCL stand-by security system, provided by HCL but it is not as
effective as Symantec's product.


7. Chakrabortty confirmed the stated end-use. The Symantec Gateway
Security 5620 appliance along with Symantec Gateway Security 3.0
software will be used to protect the DGS&D web-based server from
receiving junk mail, viruses and software hackers. He stated that
DGS&D, being the central government's procurement agency, use their
computer system for electronic procurement, tendering, inspection,
inventory and payment follow-up. The ECO visited the DGS&D Data
Centre where the Symantec products will be installed.


8. Established in 1951, DGS&D is the nodal agency of GOI under the
Department of Commerce (Supply),Ministry of Commerce and Industry.
It renders procurement services to Central and state governments by
placing rate contracts for common user items and contracts against
their ad-hoc demands. Ad-hoc procurement was decentralized in
December 1991. The main function now is to conclude rate contracts,
form GOI purchase policy and procedure and carry out inspection of
items purchased through DGS&D. DGS&D identifies such items, whose
anticipated annual purchase by GOI organizations is normally more
than approximately $55,000 a year and lists these items under a
DGS&D rate contract. DGS&D concludes rate contracts with
manufacturers as a matter of policy and if the manufacturer itself
does not market its products, it entertains sole
distributors/selling agents instead. DGS&D has rate contracts with
approximately 90 Indian and foreign vendors and has approximately 15
offices spread throughout India including all metropolitan and major
satellite cities.


10. Recommendation: Post recommends the Directorate General of
Supplies and Disposals as a reliable recipient of the controlled
U.S. origin commodities. All indications are that the listed
commodities will be used in accordance with U.S. export control
regulations (MKRUFE) Mulford