EXTRANCHECK: POST-SHIPMENT VERIFICATION: SANCHAR ANTENNA

UNCLAS NEW DELHI 001949

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: SANCHAR ANTENNA
AND COMMUNICATIONS SYSTEMS, NEW DELHI, LICENSE NO. D331882

REF: USDOC 02168


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 attempted to conduct a Post-shipment Verification (PSV) at
Sanchar Antenna and Communications Systems (SACS),New Delhi. As it
was discovered that the Indian Purchaser, Agmatel India (Agmatel) in
New Delhi, retained the items, the interview took place at Agmatel
on April 13, 2007. Prior to meeting Agmatel representatives, FSN
Narayan spoke with Pankaj Gupta, Senior Partner at SACS, who stated
that Agmatel did stage a demonstration of the equipment at SACS
facility but due to disagreement in pricing, SACS never purchased
it. Agmatel later confirmed this.


3. BIS requested an appointment with 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. SACS was listed as the
Ultimate Consignee, Tektronix (India) Ltd., Bangalore, as the
Intermediate Consignee and Agmatel as the Foreign Purchaser for one
Model TDS3052B digital phosphor oscilloscope 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 D331882 under
which the subject was covered expired on February 28, 2007.


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
since SACS did not purchase the oscilloscope, they sold it to
another customer, Technical Education Quality Improvement Program
(TEQIP) Cell, G.B. Pant Engineering College (GBP),Pauri-Garhwal,
Uttaranchal. To support this transaction, Aggarwal provided a copy
of Tektronix Invoice, GBP Purchase Order, Tektronix Customs Invoice
& Packing List, Air Waybill and Agmatel delivery receipt confirming
that the oscilloscope was delivered at GBP. ECO and Narayan
reviewed the transaction documentation provided by Agmatel that
matched with details provided by BIS in supporting documentation for
subject including the oscilloscope serial number B025214.


6. ECO asked Aggarwal whether he secured BIS permission prior to
selling the oscilloscope to GBP since Agmatel purchased it for SACS.
Aggarwal stated that they informed Tektronix who in turn informed
Agmatel by an email message that since the item is decontrolled now,
no new license or permission is required. He promised that he would
forward this email to BIS New Delhi. To date, he has not provided a
copy of the Tektronix email message. ECO inquired about the end-use
of the oscilloscope at the GBP. Aggarwal stated that the
oscilloscope is used for experimentation, training and education
purposes at the Electronics Department of the GBP. He stated that
GBP submitted an end-use statement with Agmatel declaring the
end-use and agreeing that it will not sell or re-export it from
India and will use the item as per the stated end-use. Aggarwal did
not have a copy of the GBP end-use statement that he claimed was
submitted by GBP.


7. GBP: Per its Website, established in 1989 and commenced its first
academic session in 1991, GBP is an Uttaranchal state government
owned engineering college. GBP offers under-graduate courses in
Electronics and Communication Engineering, Computer Science &
Engineering, Electrical Engineering, Mechanical Engineering, Civil
Engineering, and Production Engineering. In addition, it offers
Master Degree courses in Bio-Technology, Digital Signal Processing
and Computer Applications.


8. Agmatel: 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.


9. Recommendation: This check is inconclusive since ECO could not
conduct the on-site verification for the oscilloscope at the G.B.

Pant Engineering College. (PSCUSHMAN/PNARAYAN) Mulford