EXTRANCHECK: POST SHIPMENT VERIFICATION:

UNCLAS HONG KONG 001730 SIPDIS USDOC FOR 532/OEA/MNICKSON-DORSEY/LLAUCIUS USDOC FOR 3132 FOR FCS/OIO REGIONAL DIRECTOR WILLIAM ZARIT BICE FOR OFFICE OF STRATEGIC INVESTIGATIONS SINGAPORE FOR FCS SIPDIS E.O. 12958: N/A TAGS: BMGT BEXP ETRD ETTC HK SUBJECT: EXTRANCHECK: POST SHIPMENT VERIFICATION: SILTRONIC SINGAPORE PTE LTD REF: A) USDOC 04879 B)GBS 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), Regional Export Control Officer Philip Ankel (ECO) conducted a post shipment-verification (PSV) at Siltronic Singapore Pte Ltd., 10 Tampines Industrial Ave. 5, Singapore (Siltronic). The ECO was accompanied by Kevin Boo of Singapore Customs for this PSV. The items in question are 20 sic coated graphite single wafer susceptors exported on or about March 1, 2007 and March 8, 2007. On the applicable shippers export declaration (SED), the items are classified under ECCN 3B001 and are most likely controlled for national security (NS) reasons. The exporter was SGL Carbon of St. Mary's Pennsylvania. ¶3. According to the Singapore companies registry, Siltronic has been in existence since 1997. Its paid-up share capital is the Singapore equivalent of USD 180 million. Singapore national, Mr. Bock Cheng Niew and German national Michael Bernhard Peterat are listed as directors. The sole shareholder is listed as Netherlands company Siltronic Holding International B.V. ¶4. On June 21, 2007, the ECO met with several officials of Siltronic including Mr. Divakaran Krishnan, Head of Procurement and Logistics and Klaus Mortiz, Senior Manager of Strategic Procurement. Siltronic officials provided an overview of the company which is part of the Siltronic group of companies, a worldwide leader in silicon wafer production (more information at www.siltronic.com). The Singapore operation has been in existence since 1997 and has approximately 530 staff primarily engaged in production of silicon wafers. Its customers are located primarily in Asia although it ships product worldwide. ¶5. As to the specific items in question, Mr. Krishnan provided the ECO with copies of the relevant company invoices and delivery notes confirming receipt of the items. These were so- called goods receipt slips (dated April 2, 2007 and March 5, 2007) referencing purchase order ¶4500455637. Siltronic engineer Boon Koon Ow stated that the items are consumables used in surface deposition on the silicon wafers. When they are needed, they are taken from the warehouse to the production line and later incinerated once they are used. Mr. Ow provided ECO with a sample of the product. ¶6. At the time visited, Siltronic appeared to be a suitable recipient of the commodities shipped since Siltronic cooperated with the PSV and operates a line of business consistent with the use of the items. The ECO recommends that this PSV be classified as Favorable. Cunningham