EXTRANCHECK: PRE-LICENSE CHECK: ESTEEM

UNCLAS HONG KONG 001654 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: ESTEEM INDUSTRIES LTD REF: A) USDOC 05257 B) D377129 ¶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 Esteem Industries Limited, 9/F, 9 Wing Hong Street, Cheung Sha Wan, Kowloon, Hong Kong (Esteem). The purpose of the visit was to determine the suitability of Esteem to be a recipient of a thermovision, infrared thermal imaging camera that is the subject of license application D377129. The item (ECCN 6A003) is valued at USD 24,950 and is controlled for national security (NS) and nuclear nonproliferation (NP) reasons. The license applicant is Sunbeam Products, Inc. of Boca Raton, Florida. ¶3. A review of Hong Kong Companies Registry records reveals that Esteem has been in existence since 1989. Its paid-in capital is the Hong Kong equivalent of USD two million. U.K. national Ian Guy Handley Ashken, U.S. national Martin Ellis Franklin and Hong Kong identity card holder Woon Fai Liu are listed as directors. ¶4. On May 21, 2007, the ECO visited Esteem at the address above and met with Tony Tam, Group Manager and Mickey Cheung, Purchasing Manager. Mr. Tam stated that Esteem is part of the Jarden Corporation group of companies. Jarden Corporation is a NYSE listed company and a worldwide producer of niche consumer products. Mr. Tam stated that Jarden Consumer Solutions (JCS) acquired Sunbeam Products, Inc. as well as the Holmes Group in 2005. Both companies are producers of various consumer products under brand names such as Crock-Pot, Mr. Coffee, Oster, Sunbeam and others. Esteem, formerly part of Holmes Group, is now a subsidiary of JCS. ¶5. Mr. Tam stated that as a result of corporate restructuring, some Sunbeam facilities in Boca Raton, Florida will be consolidated and some operations from those facilities will be moved to Hong Kong. More specifically, the infrared camera will no longer be used in Boca Raton and is therefore being exported to Hong Kong for use in the Hong Kong operation's product development and testing operations. The camera will be used in a small lab being prepared for this purpose at the Esteem headquarters location. Various products that generate heat as an aspect of their operation (i.e., toaster ovens) will be tested with the camera. The ECO reviewed the proposed location of the testing lab and it appeared suitable for the applicable use of the camera. ¶6. At the time visited, Esteem appeared to be a suitable recipient of the subject controlled items since it cooperated fully with the PLC and provided information on the proposed use of the items. In addition, Esteem operates a line a business that is consistent with the potential use of the ordered items. The ECO recommends that this PLC be classified as Favorable. Cunningham