EXTRANCHECK: POST SHIPMENT VERIFICATION: ALLIED SPECIALTY

UNCLAS HONG KONG 001984 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: ALLIED SPECIALTY COMPOUNDS PTE LTD REF: A) USDOC 04423 B) D364246 C) USDOC 04880 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 two post shipment-verifications (PSVs) at Allied Specialty Compounds Pte Ltd. 2304 Bedok Reservoir Road, No. 04-02B Bedok Industrial Park C, Singapore (Allied Specialty Compounds). The items in question for the first PSV are buckytubes tubular fullerenes exported on or about December 22, 2006 and valued at USD 10,000. The items are classified under Export Control Classification Number (ECCN) 1C010 and are controlled for national security (NS) reasons. The exporter was Carbon Nanotechnologies Inc., of Houston, Texas. The second PSV involved 15 lbs. Of HC 200 polystyrene with fibril nanotubes (ECCN 1C010 and value USD 420),15 lbs of HC 600 poycarbonate with fibril nanotubes (ECCN 1C010 and value USD 495) and 15 lbs. HC 600 polycarbonate with fibril nanotubes (ECCN 1C010 and value USD 495). The exporter for these items was Hyperion Catalysis Int'l of Cambridge, Massachusetts. ¶3. According to the Singapore Companies Registry, Allied Specialty Compounds has been in existence since 1980. Its paid-up share capital is the Singapore equivalent of approximately USD 600,000. Singapore nationals, Soo Ye Wah, Lim Teck Yan and Phan Sin Chong are listed as directors. More information is located at the company's web site, www.ascpl.com. ¶4. On June 21, 2007, the ECO met with S.C. Phan, President, Toh Soo Ling, Assistant R&D Manager and Li Yu Ying, Senior R&D Manager. According to Mr. Pham, the business of Allied Specialty Compounds involves the production of thermal/engineering plastics. The company has compounding lines at the location visited by the ECO. Plastics produced by the company are then delivered to ejection molding companies for production. End-users for its products are electronics, semi-con and automotive customers. In this instance, the items are being used in R&D for the production of packaging materials for semiconductors. Ms. Pham stated that customers like Seagate and Western Digital are using very clean plastics as disk separators. The items will be mixed with the plastic packaging materials to enhance electrical conductivity (so that electrical charges will not damage the contents). ¶5. Toh Soo Ling and Li Yu Ying provided the ECO with documentation confirming receipt of the items and with a spreadsheet displaying the amounts of the items that had already been used in R&D. They also showed the ECO the remaining product that is stored in the company's controlled storeroom. ¶6. At the time visited, Allied Specialty Compounds appeared to be a suitable recipient of the commodities shipped since Allied Specialty Compounds cooperated with these PSVs, provided the ECO with access to the items and operates a line of business consistent with the use of the items. The ECO recommends that these PSVs be classified as Favorable.