EXTRANCHECK: POST-SHIPMENT VERIFICATION: BEC CHEMICALS PVT.

UNCLAS NEW DELHI 002412 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: BEC CHEMICALS PVT. LTD., RAIGAD DISTRICT, MAHARASHTRA, LICENSE D351086 REF: USDOC 03132 ¶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 BEC Chemicals Pvt. Ltd. (BCL) Raigad District, Maharashtra, on May 4, ¶2007. BCL is located approximately 150 kilometers south of Mumbai. ¶3. BIS requested a PSV at BCL, a private sector company, located at: Plot No. 24, MIDC, Dhatav, Roha, Dist. Raigad, Maharashtra 402116, Tel: 91-2194-263-551, Fax: 91-2194-263-613, Email: roha@becchemicals.com, Website: www.becchemicals.com. BCL was listed as the Ultimate Consignee; Lutz-Pumpen GmbH and Co., Wertheim, Germany as the Foreign Purchaser; and Shanbhag and Asociates (Shanbhag),Mumbai as the Intermediate Consignee for one Model 5700-100 1/4-inch air-operated, double diaphragm pump controlled under ECCN 2B350. The license applicant was Lutz-Jesco (Lutz-Jesco) America Corp., Rochester, NY. ¶4. ECO and Narayan met with G.M. Jain (Jain),General Manager, BCL. ¶5. Jain was not aware of the BIS regulations. This was the first USG or BIS official visit to BCL. Jain did not recall receiving final BIS export license conditions either from Lutz-Jesco or Shanbhag who is an exclusive distributor of Lutz-Jesco in India. Jain provided a copy of the BCL Purchase Order and End-Use Statement, Shabhag Invoice and Delivery Challan reflecting the pump's delivery at BCL on May 18, 2006. BCL issued the Purchase Order to Shanbhag on August 26, 2005 and End-Use Statement on September 8, 2005. Shanbhag delivered the pump to BCL after nine months. ¶6. Jain confirmed the stated end-use of the air-operated pump for unloading/transferring of liquids, mainly ketoprofen nitrite from tanks/drums into various processes for manufacturing active pharmaceutical ingredients and bulk drug intermediates. He stated that the solvents are lifted from barrels to the reactors for various manufacturing processes. The end product is then exported to medicine manufacturers. ¶7. Jain stated that they are already using five locally made pumps at the BCL plant. BCL has expansion plans for which they are constructing a site within the BCL premises to add a new plant. The construction of the new site will be completed in 5-6 months. He stated that they would require 5-6 similar Lutz-Jesco pumps for their new plant. ECO and Narayan were given a tour of the BCL plant where the pump was operating. BIS team noted the pump's serial number as 123909. BCL is run in three shifts and is guarded 24 hours a day. ¶8. Established in 1976, BCL is a closely held small-sized company, engaged in the manufacture of bulk drugs and intermediates. The product range includes ketoprofen BP/USP/EP, mesalamine, mesalazine, miconazole nitrate, meloxicam, ketoprofen nitrite, 3-acetoxy acetophenone and 5-amino salicylic acid. BCL is a 100 percent export-oriented unit. It exports its products mainly to European and Scandanavian countries including Italy, Sweden and Denmark. BCL employs 60 personnel. Its sales for the FY 2006 were approximately $2.6 million. ¶9. Recommendation: Post recommends BEC Chemicals Pvt. Ltd. as a reliable recipient of the controlled U.S. origin commodity. All indications are that the listed commodity is used in accordance with U.S. Export Control Regulations. (PSCUSHMAN/PNARAYAN) Mulford