EXTRANCHECK: POST-SHIPMENT VERIFICATION: ELECTRONICS

UNCLAS NEW DELHI 002596

SIPDIS

SIPDIS

USDOC FOR 532/OEA/M. NICKSON-D/KGAINES/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: ELECTRONICS
CORPORATION OF INDIA LTD., HYDERABAD, LICENSE D365179

REF: USDOC 03207


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 Electronics
Corporation of India Ltd. (ECIL),Hyderabad, on May 24, 2007.


3. BIS requested a PSV at ECIL, a GOI public sector undertaking
(PSU),located at: ECIL P.O., Hyderabad 500062, Tel:
91-40-2712-0131, Fax: 91-40-2712-1611, Email:dgmsec@ecil.in,
Website: www.ecil.co.in. ECIL was listed as the Ultimate Consignee
for two Vaportracer explosive detection systems controlled under
ECCN 2A983. The license applicant was GE Homeland Protection, Inc.,
Newark, CA.


4. BIS Team met with G. Sai Reddy (Reddy),Head, Instruments &
Systems Division (ISD) and A. Ashok Kumar (Kumar),Senior Deputy
General Manager-Security Systems, ECIL. Prashant Agrawal (Agrawal),
Under Secretary (AMS),Ministry of External Affairs (MEA),
facilitated the meeting. Agrawal was also present at the meeting.


5. ECIL officials were not aware of the BIS regulations. This was
the first USG or BIS official visit to ECIL. Kumar did not recall
receiving BIS export license conditions from GE. ECIL officials
were cooperative and forthcoming and provided a copy of GE Proforma
Invoice, GE Commercial Invoice, ECIL Purchase Order, ECIL End-Use
Statement, Bill of Entry of Home Consumption, a receipt for customs
duties paid at the Indian port and GE Delivery Confirmation.


6. Kumar confirmed the stated end-use. He stated that besides
manufacturing and marketing electronic products, ECIL also acts as
systems integrator for security and surveillance systems in India.
Advanced Systems Laboratory, Hyderabad, a Defence Research
Development Organization (DRDO) Laboratory, GOI Ministry of Defence
(MOD),awarded a contract to ECIL to supply and install a security
system at ASL. Kumar stated that under the contract, ECIL supplied
a security and surveillance system to ASL which consists of CCTV
system, access control system, boom barriers, under-vehicle
surveillance system, UPS, network systems and hand-held explosive
detectors. In addition to supplying and installing the security
systems, ECIL will also be responsible for its maintenance through

2011.


7. Kumar stated that vaportracers are hand-held portable devices
used for detecting explosives and narcotics. As part of the
agreement, ECIL personnel are using the vaportracers at ASL to
screen visitors and packages. He stated that the units are always
in ECIL custody and are operated by their personnel. ECO and
Narayan were taken to a storage area where both vaportracers were
kept in a lockable room. Kumar stated that they maintain a log
whenever vaportracers are removed from the ECIL premises to use at
ASL. ECO noted the serial numbers of the vaportracers as 120869 and

120874.


8. Established in 1967, ECIL is a GOI-owned Public Sector
Undertaking (PSU),engaged in the manufacture of security systems
including x-ray baggage/cargo inspection systems, computers,
communication equipment, control systems, electronic components, and
defense production. ECIL is organized into 13 divisions serving
various industry sectors. The divisions are: Control & Automation
Division, Instruments & Systems Division, Components Division,
Communication Division, Antenna Products Division, Servo Systems
Division, Strategic Electronics Division, Special Products Division,
Supervisory Control & Data Acquisition Division, Business Systems
Division, Telecom Division, Customer Support Division and Computer
Education Division. ECIL employs approximately 5,100 personnel.
ECIL's sales for FY-06 were approximately $180 million.


9. Recommendation: Post recommends Electronics Corporation of India
Ltd. as a reliable recipient of the controlled U.S. origin
commodities. All indications are that the listed commodities are
used in accordance with U.S. export control regulations.
(PSCUSHMAN/PNARAYAN) Mulford