EXTRANCHECK: POST-SHIPMENT VERIFICATION: NATIONAL

UNCLAS NEW DELHI 002025

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: NATIONAL
INFORMATICS CENTRE SERVICES, NEW DELHI, LICENSE NO. D365443

REF: USDOC 02901


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


2. Former Export Control Officer (ECO) Michael Rufe (Rufe) and BIS
FSN Prem Narayan conducted a Post-shipment Verification (PSV) at the
National Informatics Centre Services, Inc. (NICSI),New Delhi, on
April 24, 2007.


3. BIS requested a PSV at NICSI, a National Informatics Centre (NIC)
company under Ministry of Communications and Information Technology
(MCIT),located at Hall No. 6, NBCC Towers, 15 Bhikaji Cama Place,
New Delhi 110001, Tel: 91-11-2436-4874, Fax: 91-11-2436-4873, Email:
hmr@nic.in, Website: www.nicsi.com. NICSI was listed as the
Ultimate Consignee for hardware and encryption software items
controlled under ECCNs 5A002, 5A991 and 5D002. The license
applicant was Cisco Systems, Inc. (Cisco),San Jose, CA.


4. ECO along with FSN Narayan met with H. Madhav Reddy (Reddy),
Senior Technical Director and Vinod Patni (Patni),Territory Account
Manager, Cisco. Prashant Agrawal (Agrawal),Under Secretary (AMS),
Ministry of External Affairs (MEA),facilitated the meeting.
Agrawal was also present at the meeting.


5. NICSI officials were aware of certain BIS regulations. This was
the first USG or BIS official visit to NICSI. They were cooperative
and forthcoming. They produced the shipment documentation for Rufe
and Narayan to view. The file contained the NIC Supply order to
NICSI and internal correspondence between NIC and NICSI with regard
to procurement of Cisco hardware and encryption software items.
Patni, the Cisco representative based at NICSI, electronically
forwarded a spreadsheet containing details of items supplied against
the NICSI Purchase Order and Cisco Invoice including the ultimate
end-user. Patni also faxed copies of the NICSI Purchase Order to
Cisco, and Cisco Invoice. Also, Patni provided a copy of Cisco
questionnaire which was completed by NICSI concerning the BIS export
license compliance on which NISCI declared the intended end-use of
technology as encryption for the data, video and voice digital
signature, e-post, and email.


6. Reddy made a slide presentation on various activities undertaken
and supported by NIC and NICSI including the end-use of hardware and
encryption software items. He stated in order to achieve full
e-governance, the GOI has directed all state governments and Union
Territories (UT) to make everything virtually-available online such
as passport application forms, birth/death registration, digital
signature, etc. NIC, the primary GOI IT agency, is the host and a
preferred choice of all Government organization websites.


7. Reddy stated there are approximately 607 districts in India and
GOI, via NIC, has a mandate to connect them electronically for
better e-governance. Reddy stated that they have been purchasing
and using similar Cisco products since 1998 in order to provide
cyber-security. The items covered under this license will be
installed at NIC facility in Sikkim for State Wide Area Network
(SWAN) project. The items from A to F listed in reftel are stored in
NICSI warehouse and G to I has already been shipped to NIC Sikkim.
Reddy stated that items stored in Delhi will be tested first at
NICSI New Delhi before shipped to Sikkim. These will be used to
provide a secure and reliable network infrastructure. The items
covered under D365443 will be used to detect and prevent cyber
attacks. Reddy stated that all listed items would strictly be
handled by and under the control of NICSI personnel in Sikkim. He
further stated that at least two NIC/NICSI personnel are stationed
in each district. BIS Team was given a tour of the NICSI warehouse
where the items purchased under this license were stored. The boxes
were sealed with Commerce Department's Office of Export Enforcement
(OEE) green tape indicating an inspection by OEE prior to shipment.
BIS Team noted the serial numbers of two key items.


8. Established in 1995, NICSI is the commercial arm of NIC under the
administrative control of the Information Technology Department of
GOI's MCIT. NIC provides the network backbone and e-governance
support to the Central Government, State Governments, UT
Administrations, Districts and other Government bodies. NIC has so
far hosted approximately 4,000 government websites. NICSI's primary
objective is to develop and promote value-added computer and
computer-communications services over the basic infrastructure and
services developed by NIC. The products and services provided by
NICSI include hardware, systems software, software development,
intra-networking, wide area networking, videoconferencing,
customized software, IT training, IT consultancy and IT
implementation support. NIC/NICSI has a presence in all 28 Indian
states and UTs.



9. Recommendation: All commodities covered under this license were
not available for verification since a few items were dispatched to
NIC Sikkim facility. Also, BIS team did not see Cisco products
functioning; it cannot be determined whether the listed commodities
will be used by the National Informatics Centre Services Inc. in
accordance with BIS export license conditions. The PSV remains
inconclusive. (PSCUSHMAN/MKRUFE/PNARAYAN) Kaestner