EXTRANCHECK: POST-SHIPMENT VERIFICATION: AGMATEL INDIA, NEW

UNCLAS NEW DELHI 001947

SIPDIS

SIPDIS

USDOC FOR 532/OEA/M. NICKSON-D/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: AGMATEL INDIA, NEW
DELHI, LICENSE NO. D328865

REF: USDOC 02437


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


2. Export Control Officer (ECO) Paul Cushman and BIS FSN Prem
Narayan conducted a Post-shipment Verification (PSV) at Agmatel
India (Agmatel),New Delhi, on April 13, 2007.


3. BIS requested a PSV on Agmatel, a private sector company, located
at: B-28, First Floor, Patparganj Industrial Area, Delhi 110092,
tel: 91-11-2216-2969, fax: 91-11-2216-2967, email: agmatel@vsnl.com.
Website: www.agmatel.com. Agmatel was listed as the Ultimate
Consignee and Tektronix (India) Ltd., Bangalore, as the Intermediate
Consignee for two Models TDS5104B and TDS3054B digital phosphor
oscilloscopes controlled under ECCN 3A292. As of August 30, 2005,
BIS decontrolled NP2 controlled items for India including
oscilloscopes. The license applicant was Tektronix Inc., Beaverton,
OR. The BIS export license D328865 under which the subject was
covered expired on November 30, 2006.


4. Cushman and Narayan met with A.K. Aggarwal, Director, Test &
Measurement and V.K. Malhotra, Director, IT & Office Automation,
Agmatel.


5. In July 2005, then ECO Rufe conducted a favorable PSV at Agmatel
for a different BIS export license No.D310706. Agmatel
representatives were familiar with BIS and the Regulations as they
are the sole Tektronix distributors in India. Aggarwal stated that
they imported these two oscilloscopes for demonstration purpose to
promote their sale in India. Agmatel has a Rate Contract with the
GOI, Directorate General of Supplies and Disposals (DGS&D),New
Delhi, for the supply of Tektronix oscilloscopes.


6. What is a rate contract: DGS&D is the nodal agency of GOI under
the Department of Commerce (Supply),Ministry of Commerce and
Industry. It renders procurement services to Central and State
governments by placing rate contracts for common user items and
contracts against their ad-hoc demands. The main function of DGS&D
is to conclude rate contracts, form GOI purchase policy and
procedure and carry out inspection of items purchased through DGS&D.
DGS&D identifies such items, whose anticipated annual purchase by
GOI organizations is normally more than $55,000 a year and lists
these items under a DGS&D rate contract.


7. Subsequently, Agmatel sold these two oscilloscopes to two
different GOI organizations. The Model TDS5104B oscilloscope
bearing serial number B022245 was sold to Sashastra Seema Bal (SSB),
which is one of two border guarding forces under the administrative
control of the Ministry of Home Affairs, GOI, in December 2005 and
Model TDS3054B, bearing B033422, was sold to Instruments Research &
Development Establishment (IRDE),a Defence Research Development
Organization (DRDO) laboratory, Ministry of Defence.


8. To support the SSB transaction, Aggarwal provided SSB Supply
Order, Tektronix Invoice, Tektronix Customs Invoice & Packing List,
Customer Declaration, SSB agreeing that it will abide by BIS export
license conditions, Receipt of customs duties paid, DGS&D inspection
certificate, AIR Waybill, and Agmatel delivery receipt confirming
that the equipment was delivered to SSB. Though the end-use of the
oscilloscope was not specified as to how SSB will use it but the SSB
Customer Declaration states that it will abide by all BIS export
license conditions. Aggarwal confirmed in writing that it is used
for maintenance and repair of high frequency (HF) and very high
frequency (VHF) telecommunication equipment and trans-receivers.
Former ECO Rufe conducted a PSV at SSB on September 8, 2006 for a
different BIS export license D340854 for three Tektronix
oscilloscopes.


9. To support the second transaction, Agmatel provided a copy of
IRDE Supply Order, Tektronix Invoice, Tektronix Customs Invoice and
Packing List, AIR Waybill, DGS&D inspection certificate, Agmatel
Delivery Receipt confirming the oscilloscope was delivered to IRDE.
Aggarwal also provided copies of correspondence between Agmatel and
Tektronix with regard to BIS export license. Tektronix informed
Aggarwal that IRDE application for BIS export license was returned
without action on 10/05/05 and it further stated that this shipment
may be made with no license required since control was removed on
the oscilloscopes for India effective August 30, 2005. In the
documentation provided for IRDE transaction, there was no end-use
statement. Aggarwal confirmed in writing that the oscilloscope is
used for accurate measurement of signal and signal components, pulse
width, etc. IRDE is one of 51 laboratory/research establishments
operated by DRDO, Ministry of Defence.


10. Established in 1992, Agmatel is a marketing company in the
fields of test and measurement equipment, information technology and
office automation equipment. In the test and measurement division,
Agmatel represents Tektronix, Keithley, Mechatronics, Falcon and
Elnova. Agmatel has a Rate Contract with the GOI, Directorate
General of Supplies and Disposals, New Delhi, for the supply of
Tektronix oscilloscopes. Agmatel has sales offices in Jammu,
Lucknow, Dehradun, Bangalore, Bhopal and Chandigarh. Agmatel
employs 60 personnel including 30 engineers. Agmatel reported a
sales turnover in FY 2005-06 of approximately $17 million.


11. Recommendation: Agmatel provided sufficient documentation to
confirm both transactions. As no on-site inspection was conducted
of each oscilloscope, and such items have been decontrolled as of
August 30, 2005, the Post-shipment Verification remains limited.
(PCUSHMAN/PNARAYAN) Mulford