TAIWAN RESPONSE TO NON-PAPER: POSSIBLE EXPORT TO

S E C R E T AIT TAIPEI 000607

SIPDIS


STATE/ISN/MTR, EAP/TC, ISN/ECC, NEA/ARP

E.O. 12958: DECL: 05/01/2018
TAGS: ETTC MTCRE PARM PREL TW SY AE

SUBJECT: TAIWAN RESPONSE TO NON-PAPER: POSSIBLE EXPORT TO
SYRIA BY EUMA-SPINNER

REF: 08 STATE 036646

Classified By: Stephen M. Young, AIT Director, for reasons 1.4(b) and (
d)


1. (S) On April 30, AIT received the Bureau of Foreign
Trade (BOFT) of the Taiwan Ministry of Economic Affairs'
response to reftel non-paper. An unofficial AIT translation
of BOFT's response follows:


2. (S) BEGIN TRANSLATION

Subject: Please find BOFT's findings regarding a
Syrian-based company, Sinan CNC Machine Tools, possibly
purchasing machine tools from a Taiwan-based company,
Euma-Spinner Corporation, through Golden Line, a UAE-based
company.

Explanation:


1. This action was made according to an AIT Economic Section
letter (number SS36646) dated April 8, 2008.


2. Based on the data provided by Taiwan Customs,
Euma-Spinner Corporation (Euma-Spinner) did not export
machine tools to these two companies - Golden Line and Sinan
CNC Machine (Sinan) - from January to March 24, 2008. To
prevent Euma-Spinner Corporation from exporting machine tools
to the UAE and subsequently transshipping them to Syria for
purposes of weapons proliferation, BOFT has enhanced control
measures on Euma-Spinner by: (1) requesting the Directorate
General of Customs (DGC) to list Euma-Spinner as a high-risk
manufacturer of Customs Risk Management Systems; (2)
notifying Euma-Spinner that, in the future, it needs to apply
for Strategic High-Tech Commodities (SHTC) export permits
prior to exporting commodities to its foreign trading
partners who are engaged in trading business with Golden Line
and Sinan; and (3) listing Euma-Spinner among the companies
that to receive regular outreach visits conducted by BOFT.

END TRANSLATION


3. (S) In addition to the above letter, BOFT copied AIT
instructions it sent to DGC on March 26, 2008 requesting that
the DGC: (1) notify BOFT if DGC finds Euma-Spinner exporting
any commodity to Sinan or Golden Line; and (2) obtain from
Euma-Spinner the export declaration, product category and
specifications, purchase orders or contracts with foreign
buyers or importers, and a statement guaranteeing that items
being exported are not SHTC items, for all exports to certain
restricted countries. The letter also states that the DGC
has the authority to release Euma-Spinner's shipments after
inspecting the goods. Lastly, BOFT requests that the DGC
forward the above-mentioned documents to BOFT for BOFT's use
in outreach visits.


4. (S) On May 2, the EXBS Advisor met with BOFT officials
to follow up on the contents of the April 30 letter.
Specifically, the Advisor requested a follow-up report on
exports by Euma-Spinner to Sinan and Golden Line since March

24. BOFT's reply will be sent via front channel cable.

YOUNG


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