TAIWAN: RESULTS OF BLUE LANTERN POST-SHIPMENT CHECKS

UNCLAS AIT TAIPEI 001203 SIPDIS STATE FOR EAP/TC, PM/DTCC AND ISN/MTR PM/DTCC FOR BLUE LANTERN COORDINATOR JUDD STITZIEL E.O. 12958: N/A TAGS: ETTC KOMC TW SUBJECT: TAIWAN: RESULTS OF BLUE LANTERN POST-SHIPMENT CHECKS 050068901, 050071121, 050081551 AND 050082501 REF: STATE 80984 ¶1. Per reftel request, AIT/T visited the end user, Legend Laser Inc.(Legend). Legend's General Manager, Sherman Kuo, and Sales Division Secretary, Maggie Tsai, provided the following information. Responses to the Questions in Reftel Para 4 -------------- ¶2. Legend received subject shipments, except for the three Cleartran Zinc Sulfide (DDTC case 050082501),from Wavelength Technology. Mr. Kuo explained that the company ordered three pieces of Cleartran Zinc Selenide lenses, not the Zinc Sulfide as indicated in case number 050082501. In addition to the subject lenses, Legend also purchased BK7 and doublet cemented focus lenses from Wavelength. ¶3. Legend receives lenses machined to its specifications by Wavelength containing Zinc Selenide. Legend places orders with Wavelength in Singapore and receives shipments directly from Wavelength in Singapore. ¶4. Mr. Kuo states that he knows Wavelength has machining facilities in China and Singapore but does not know where Wavelength does the machining for the subject lenses. ¶5. After receiving finished lenses, Legend assembles them to laser-marking machines according to Legend's customer requests. Prior to the assembly, Legend stores those lenses in a locked storage container in a locked storage room. ¶6. The company was established in 1984 and has 40 employees. Legend manufactures laser-marking machines. It imports lenses and components, then assemble them into customer-specific machines. ¶7. Legend has factories in the Taipei County, and service offices in Beijing, Shanghai, and Shencheng in China. About 60 percent of its products go to China, and the rest to Taiwan. Starting 2007, the company has sold a few machines to South Korea. ¶8. Mr. Kuo said he is not familiar with USML restrictions since the company purchase lenses from Wavelength at sizes that are not controlled by USML. He further stated that the actual sizes ordered by Wavelength could be 10-20 percent larger, which could be USML controlled. Mr. Kuo stated that larger sizes are needed to properly machine the lenses to the specifications. ¶9. Copies of purchase orders and invoices indicating the specific ordered and delivered items have been faxed to PMDDTC. YOUNG