EXTRANCHECK: POST SHIPMENT VERIFICATION: A&P

UNCLAS HONG KONG 000150 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: POST SHIPMENT VERIFICATION: A&P INSTRUMENT CO LTD REF: A) USDOC 06875 B) D362961 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),accompanied by Commercial Assistant Sandy Lai, conducted a post shipment verification (PSV) at A&P Instrument Co. Ltd. (A&P), Unit 1, Kam Hon Industrial Building, 8 Wang Kwun Road, Kowloon Bay, Hong Kong. The items in question are two position elliptical valves exported to A&P on October 27, 2006 and valued at USD 158. The Export Control Classification Number (ECCN) is 2B350 and the items were exported pursuant to export license D362961. The exporter was Cole-Parmer Instrument Company of Vernon Hills, Illinois. ¶3. The ECO visited A&P at the address referenced above on January 9, 2007 and met with Mr. Andy Wu, Senior Manager. Mr. Wu provided background on A&P and its business, which involves the resale and distribution of testing equipment and other scientific instrumentation (more information including names of various U.S. suppliers at www.anpico.com). Mr. Wu stated that the company had been representative of the exporter, Cole- Parmer, for 24 years. He noted that A&P initially focused primarily on customers in Hong Kong but with the transition of significant manufacturing to the mainland, presently A&P's main business is with mainland Chinese companies (multiple mainland China offices are noted in the A&P website). ¶4. A review of the Hong Kong Companies Registry reveals that A&P has been in business since 1990 and that Mr. Wu, a Hong Kong resident, is a director as is Hong Kong resident Yuet Ling Au. ¶5. With respect to the shipment that was the subject of the PSV, Mr. Wu provided the applicable documentation reflecting that the items had been received by A&P and subsequently resold to the end-user noted on license D362961, namely Millipore China Limited (Millipore). The U.S. parent of Millipore China Limited (Millipore Corporation) is a New York Stock Exchange listed company that provides a range of products and services in the biopharmaceutical manufacturing and medical research fields (www.millipore.com). Mr. Wu stated that at the request of Cole-Parmer, he obtained from Millipore a statement regarding the proposed end-use of the items, a copy of which he provided to the ECO. That statement was in the form of an e-mail indicating that the items were for "valve use for filtration system." Mr. Wu stated that the item was for use in Hong Kong and was delivered to Millipore in Hong Kong. Mr. Wu also stated that he was made aware of the conditions of License D362961 and provided ECO with a copy of the license itself. ¶6. Mr. Wu also stated that he is familiar with both U.S. and Hong Kong export licensing rules. He further stated that as a general rule A&P avoids dealing in items that may require an export license as obtaining such licenses represents a significant regulatory burden. He noted that A&P's items typically are not at the level of technical sophistication that would result in them being controlled for export. Information provided by OEA to the ECO indicates that A&P has rarely been the subject or applicant in export/reexport licenses. ¶7. At the time visited, A&P appeared to be a suitable recipient of the commodities shipped since A&P cooperated with the PSV and provided all requested information concerning the use and final disposition of the shipment. At the same time, the ECO was not able to inspect the subject item as it had already been delivered to A&P's customer, Millipore. Consistent with guidance on reporting of PSVs where the items cannot be physically inspected, the ECO recommends that this PSV be classified as Limited.