EXTRANCHECK: POST-SHIPMENT VERIFICATION: INTERNATIONAL

UNCLAS NEW DELHI 000614 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: INTERNATIONAL ADVANCED RESEARCH CENTRE, HYDERABAD, LICENSE NO. D345695 REF: USDOC 06364 ¶1. Unauthorized disclosure of the information provided below is prohibited by Section 12(c) of the Export Administration Act. ¶2. Acting Export Control Officer (ECO) David Nardella and BIS FSN Prem Narayan conducted a Post-shipment Verification (PSV) at the International Advanced Research Centre (IARC),Hyderabad, on January 19, 2007. Begin Note: The IARC's full name is International Advanced Research Centre for Powder Metallurgy and New Materials whereas reftel listed it as International Advanced Research Centre. End Note. ¶3. BIS requested a PSV at IARC, a GOI entity under the Ministry of Science & Technology, Website: www.arci.res.in. IARC was listed as the Ultimate Consignee for one Elastomeric model to make parts produced in cold isostatic press (CIP) (Model QIC 434358) controlled under ECCN 2B204. The license applicant was Flow Autoclave Systems, Inc. (FASI),Columbus, OH. ¶4. ECO along with FSN Narayan met with Dr. G. Sundararajan (Sundararajan),Director and Dr. Thiyagarajan (Thiyagarajan),IARC. Prashant Agrawal (Agrawal),Under Secretary (AMS),Americas Division, GOI Ministry of External Affairs (MEA),facilitated the meeting. Agrawal was also present at the meeting. ¶5. IARC officials were aware of certain BIS regulations. However, this was the first USG or BIS official visit to IARC. FASI provided license conditions to IARC by providing a copy of the BIS Export License. Sundarajan provided a copy of the IARC brochures, IARC Purchase Order, Undertaking Certificate for the Import of Rubber Mould, FASI Commercial Invoice, BIS export license D345695, and Delivery Note. ¶6. Sundararajan confirmed the stated end-use of the CIP mold. It will be used for R&D work for development of silicon carbide (SIC) based seal rings for automotive, chemical industry, and commercial pump manufacturers. He stated that IARC was set-up for the promotion of R&D in the areas of powder metallurgy, ceramics, surface engineering and new materials. The primary objective is to develop technologies at a pilot scale and transfer the demonstrated technology to the Indian civilian industries. He informed that as of the PSV date IARC has not received any assignment for the CIP rubber mold. He stated that the IARC would be the sole end-user of the CIP mold. It will be used to make the ceramic parts such as SIC and alumina-based seals and wear parts for wear resistance applications, ceramic insulators and long refractory ceramic tubs for refractory applications by CIP. It will also be used to make powder metallurgyQts such as near net shaped metal filters, connecting rods and camshaft for automobile applications. ¶7. Sundararajan stated that CIP is a compaction process for powders enclosed in an elastomer mold. The mold is placed in a pressure chamber, a liquid medium is pumped in, and high pressure is applied uniformly from all sides. CIP applications include nozzles, blocks, and crucibles for the refractory industry, cemented carbides, isotropic graphite, ceramic insulators, tubes for chemical applications, ferrites, metal filters, performs, and plastic tubes and rods. The parts made by the rubber mold in CIP equipment will be used for commercial application requiring demonstration of pilot scale production. He further confirmed by a written statement sent to BIS New Delhi stating that the mold for CIP bags and aluminum containers would be used for SIC kiln support beams for sanitary ware manufacturing, SIC tiles for blast furnaces, SIC based hydro-cyclones for pulp and paper industry and SIC mechanical seals and wear parts for automotive applications. Eco asked the life span of the rubber mould. Sundrarajan answered that it is good for 100 pieces. ECO asked IARC officials if the product is going to be used in any Nuclear Weapon, CBW, or Missile Applications. Sundrarajan stated that the mold would not be used for the production of any chemical, biological and nuclear weapons or missiles capable of delivering such weapons. Since IARC was not currently using the CIP rubber mold, it was produced in the conference room for verification and inspection. The IARC building is guarded 24 hours a day. ¶8. Established in 1995, IARC is an autonomous R&D institute under the GOI's Ministry of Science and Technology. It was set-up for the promotion of research and development in the areas of powder metallurgy, ceramics, surface engineering and new materials. IARC's primary objective is to carry out basic and applied R&D work in the area of materials for the benefit of Indian civilian industries. It develops technology at a pilot-scale and after assessing its viability and economies the demonstrated technologies are transferred to the industries. During the last five years IARC has transferred more than 30 technologies to 22 Indian private sector companies. IARC major clients include, automotive components manufacturers, chemical manufacturing companies, coating industries and engineering industries. IARC employs 160 personnel. ¶9. Recommendation: Post recommends the International Advanced Research Centre as a reliable recipient of the controlled U.S.-origin commodity. All indications are that the listed commodity will be used in accordance with U.S. Export Administration Regulations. (DNARDELLA/PNARAYAN) Mulford