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.