EXTRANCHECK: POST SHIPMENT VERIFICATION: CHEMICAL

UNCLAS HONG KONG 001985 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: CHEMICAL INDUSTRIES (FAR EAST) LTD. REF: A) USDOC 05087 B) D360000 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 Chemical Industries (Far East) Ltd., No. 3, Jalan Samulun, Singapore (Chemical Industries). The items in question are five valves exported on or about August 29, 2006 and valued at USD 2,900. On the applicable shippers export declaration (SED),the items are classified as 2B350. This ECCN is controlled for chemical/biological weapons (CB) reasons. The exporter was Flowserve Corporation of Cookeville, Tennessee. ¶3. According to the Singapore companies registry, Chemical Industries has been in existence since 1962. Its paid-up share capital is the Singapore equivalent of USD 50 million. Singapore nationals, Lim Yew Tou Eric, Lim Soo Peng, Chua Sui Leng, Wan Soon Bee and Ong Choo Lin Valerie are listed as directors. The company is publicly traded. ¶4. On June 22, 2007, the ECO met with Mr. J. Immanuvel Raj, Head, Control and Instrumentation, Mr. Lim Yi Yung, Operations Manager, Mr. Lim Yew Tee Collin, Deputy Plant Manager and Mr. Manickam Venkatesan, Maintenance Leader. According to Mr. Lim Yi Yung, Chemical Industries produces industrial chemicals for use in Singapore and abroad. For example, it provides chlorine gas to water treatment facilities in Singapore. The facility where the PSV occurred is clearly a chemicals production facility and is located in a secure area of Singapore restricted to chemicals and related industries. ¶5. Mr. J. Immanuvel Raj provided the ECO with documentation verifying that the company had received all the valves. The ECO inspected four of the five valves that were the subject of the PSV. They were located in the company's storage area and are spares. The final unit was in the production line and could not be viewed. ¶6. At the time visited, Chemical Industries appeared to be a suitable recipient of the commodities shipped since Chemical Industries cooperated with the PSV, provided ECO with access to the items and operates a line of business consistent with the use of the items. The ECO recommends that this PSV be classified as Favorable.