EXTRANCHECK: POST-SHIPMENT VERIFICATION: EMECON CONTROLS

UNCLAS NEW DELHI 001166

SIPDIS

SIPDIS

USDOC FOR 532/OEA/M. NICKSON-DORSEY/JAY HATFIELD
USDOC FOR 3131/USFCS/OIO/ANESA/KREISSL
USDOC FOR 4530/MAC/ANESA/OSA
ICE HQ FOR STRATEGIC INVESTIGATIONS
STATE FOR EB/ESP

E.O. 12958: N/A
TAGS: ETTC ETRD BEXP IN
SUBJECT: EXTRANCHECK: POST-SHIPMENT VERIFICATION: EMECON CONTROLS
PVT. LTD., NEW DELHI

REF: USDOC 00937


1. Unauthorized disclosure of the information provided below is
prohibited by Section 12(c) of the Export Administration Act.


2. Acting Export Control Officer (ECO) Perry Davis and BIS FSN Prem
Narayan conducted a Post-shipment Verification (PSV) at Emecon
Controls Pvt. Ltd. (Emecon),New Delhi, on March 8, 2007.


3. BIS requested a PSV at Emecon, a private sector company, located
at: S-361, 1st Floor, Greater Kailash-I, New Delhi 110018, Tel:
91-11-2923-6500, Fax: 91-11-2924-6500, Website:
www.emeconcontrols.com. The PSV was requested under EAR99/NLR.
Emecon was listed as the Ultimate Consignee for ten (10) Veridri
loop powered thermometers. The exporter was GE Infrastructure
Sensing Inc. (GE),Bilerica, MA.


4. ECO along with FSN Narayan met with Vibbhu Bhalla (Bhalla),
Director, Emecon. Bhalla was somewhat aware of certain BIS export
regulations. However, this was the first end-use check (EUC) visit
of USG or BIS official to Emecon.


5. Bhalla stated that Emecon is the authorized distributor for GE
for three north India states, namely, Haryana, National Capital
Region (NCR) of Delhi and Punjab to sell GE's process control and
instrumentation product line. He stated that items on check are
moisture transmitters not thermometers. Reftel listed them as
thermometers. Of the ten moisture transmitters, eight have been
sold to gas plant and air dryer manufacturers who are based in the
NCR. Bhalla produced two unsold units for verification. Bhalla
produced his sales book for ECO Davis and FSN Narayan to review.
The sales book reflected the sale of these eight sensors to
different manufacturers including the Emecon Invoice numbers and
subject items part and serial numbers. The Emecon invoices were
also produced for ECO to verify the sales information listed in
Emecon sales book. ECO asked for copies of six Emecon invoices
reflecting sales of eight moisture transmitters. Bhalla provided
the copies of invoices.


6. ECO inquired Bhalla whether they supply their foreign principals'
products to Indian nuclear facilities or defense establishments.
Bhalla replied they do not supply their products to these
organizations. He stated that with regard to complying with U.S.
export control laws, their U.S. principals always instruct Emecon
not to supply their products to embargoed countries and barred
organizations. He also stated that they do not export their foreign
principals' products.


7. He stated that the moisture transmitters are primarily used to
continually monitor air dryer performance and compressed air
quality. He further added that it is basically moisture-measuring
equipment for quality control in manufacturing processes. It can
work as a stand-alone unit or can be attached or integrated with
other equipment to gauge the required humidity level in the
manufacturing processes. Power plants, chemical and fertilizer
manufacturers and oil companies mainly use the moisture
transmitters. ECO inquired who installs these transmitters at
manufacturing facilities and whether Emecon has a service station.
Bhalla answered that Emecon engineers install them and they service
equipment at Emecon service station sold by them under warranty.


8. Established, in 1987, Emecon is a closely held small sized firm
operating from a residential area. Emecon primarily acts as an
indenting agent for foreign companies in the field of process
control and instrumentation. The foreign companies that Emecon
represents include GE, U.S.; Teledyne, U.S.; Magnetrol, U.S.; and
Braun, Germany. Emecon customers include, power plants, gas plant,
air dryer, fertilizers and chemical manufacturers. Emecon employs
ten personnel including engineers. On behalf of their foreign
principals' Emecon's sales for FY 2006 were approximately $225,000.


9. Recommendation: Although ECO did not conduct on-site inspection
for the eight units that were sold and only two transmitters were
available for inspection, Emecon's business operations appear
legitimate. Based on the discussion and documents produced for
reviewing by the BIS Team, Post recommends Emecon Controls Pvt. Ltd.
as a reliable recipient of controlled U.S.-origin commodities. All
indications are that the listed commodities are being used in
accordance with U.S. Export Administration Regulations.
(PDAVIS/PNARAYAN) Pyatt