ROC CUSTOMS REQUEST FOR ASSISTANCE RE SUSPECT

UNCLAS NICOSIA 000874 SIPDIS SENSITIVE SIPDIS ATHENS FOR ICE ATTACHE PM/DTCC FOR PETER SABATINI U.S. CUSTOMS EXODUS COMMAND CENTER FOR MARY HAMMOND DEPT. OF COMMERCE FOR BUREAU OF INDUSTRIAL SECURITY E.O. 12958: N/A TAGS: CY EI ETTC KOMC SUBJECT: ROC CUSTOMS REQUEST FOR ASSISTANCE RE SUSPECT SHIPMENT ¶1. (SBU) On October 24, the Chief of the Anti-Smuggling Enforcement Team (ASET),Republic of Cyprus (ROC) Customs, requested Embassy Nicosia's assistance regarding a suspect cargo shipment in the port of Limassol. On October 25, Econ Chief, PolOff, visiting Immigration and Customs Enforcement (ICE) Special Agent, Pol Intern, and Export Control and Border Security LES traveled to Limassol seaport to meet with ROC Customs officials and inspect the suspect shipment. During the meeting, the ASET Chief and the Limassol Customs warehouse supervisor briefed Mission personnel on a shipment of an IBM 3584-L53 magnetic tape storage unit from IBM Mexico to IBM Italia in Cyprus, which went unclaimed for over two months. A review of the documents associated with the shipment showed that there was recent interest in sending the cargo back to its point of origin in Mexico. This raised ROC Customs suspicions, causing them to take interest in the shipment. ¶2. (SBU) A representative from the Committee of Experts, which advises the Government of Cyprus (GOC) on the export/re-export of items, particularly dual-use items, inspected the shipment on October 24. This expert's assessment was that the item was a dual-use item, based on European Union tariff codes, and required an export license from the GOC before it could be returned to Mexico. Customs Limassol was concerned about the apparent routing of the cargo. An air bill recovered from the shipment labels the shipper as IBM of Mexico Commercialization and Services. The container's point of origin was listed as Guadalajara, Mexico with a final destination of Larnaca, Cyprus via aircraft. The unit departed Guadalajara on June 27. According to further documentation recovered from the container, the stated value of the machine is $33,275 USD. With an approximate weight of 525 kilograms, the unit was the sole item found in the 20 foot sea container which further raised suspicions. The request to return the cargo to its point of origin despite the expense paid to ship it to Cyprus, as well as what were deemed to be inadequate codes on export paperwork, further made Customs Limassol suspicious of the shipment. ¶3. (SBU) An inspection of the cargo showed that the contents were consistent with the description of the cargo in the shipping documents. A phone call to IBM,s Cyprus branch General Manager (GM) Kyriacos Kokkinos revealed that IBM Cyprus was part of IBM Italia, was aware of the cargo's presence in Cyprus and was attempting to have the cargo returned to IBM Mexico. GM stated that an order had indeed been placed by IBM Cyprus branch for a replacement part for the unit, but the entire unit was sent in error. Upon realization of the mistake, IBM Cyprus began working to resolve the situation. GM then provided the following routing for the cargo: 1.) sent by air from Mexico to Athens; 2.) supposed to be sent further by air to Cyprus, but the cargo proved to be too large for the cargo holds of the aircraft used for commercial flights to Cyprus; 3.) finally, sent by sea to Limassol. GM's explanation does help to understand why ROC Customs at Larnaca airport had no paperwork on the cargo's arrival. A letter from the GM to Mission's Econ Counselor received on October 29 advised that IBM was trying to arrange to return the cargo to Mexico as soon as possible. The letter indicates that IBM is now focused on the shipment and will remain engaged with ROC Customs to get the cargo back to Mexico. Post notes that Customs had not contacted IBM directly to discuss the shipment. ¶4. (SBU) Regardless of their suspicions, Customs advised that, barring any USG information which would indicate the shipment was illegal, they would be obligated to release the cargo if the freight forwarder obtained the appropriate export license from the GOC, which the freight forwarder was attempting to do. Customs Limassol provided copies of the shipping documents and allowed Mission personnel to inspect and take digital photographs of the cargo. The documents were faxed to the Exodus Command Center for review and the ICE Special Agent followed this with a phone call to Exodus to discuss the shipment. Cypriot Customs will release the cargo when requested by the freight forwarder unless otherwise directed by Post. SCHLICHER