EXTRANCHECK: POST SHIPMENT VERIFICATION:

UNCLAS HONG KONG 001006 USDOC FOR 532/OEA/MNICKSON-DORSEY /LLAUCIUS USDOC FOR 3132 FOR FCS/OIO REGIONAL DIRECTOR WILLIAM ZARIT BICE FOR OFFICE OF STRATEGIC INVESTIGATIONS SINGAPORE FOR FCS SIPDIS E.O. 12958: N/A TAGS: BMGT BEXP ETRD ETTC HK SUBJECT: EXTRANCHECK: POST SHIPMENT VERIFICATION: QIOPTIQ SINGAPORE PTE LTD REF: A) USDOC 01388 B) D375449 C) USDOC 01392 D) D383909 1.Unauthorized disclosure of the information provided below is prohibited by Section 12C of the Export Administration Act. ¶2. As per reftel A request and at the direction of the Office of Enforcement Analysis (OEA) of the USDOC Bureau of Industry and Security (BIS),Regional Export Control Officer Philip Ankel (ECO) conducted two post shipment-verifications (PSVs) at Qioptiq Singapore Pte. Ltd., 14 Fifth Lok Yang Road, Jurong Town, Singapore (Qioptiq). The items in question are two Moore Nanotechnology Nanotech 2-Axis turning lathes exported to Qioptiq on or about July 20, 2007 and November 8, 2007. The items are classified under Export Control Classification Number (ECCN) 2B001 and are controlled for national security (NS) and nuclear nonproliferation (NP) reasons. The exporter was Sachman Associates of Sudbury, Massachusetts. ¶3. According to the Singapore companies registry, Qioptiq was registered in 2005 and its registered share capital is the Singapore dollar equivalent of approximately USD 2.25 million. Its directors are Singapore citizens, Lee, Seng Gey and Chua Teow Tzing as well as French citizen Benoit Bazire. ¶4. A review of the company's web site (www.quioptiq.com.sg) reveals that the company specializes in providing design and manufacturing of precision optical components and assemblies for night vision, defense, medical and commercial applications. It has been in operation (under different names) since 1974. More information about the range of the company's activities can be found on its web site. ¶5. On April 21, 2008, the ECO, accompanied by a representative of Singapore Customs, visited the company and met with Mr. Wong, Chung Cheong, Export Control Officer, Mr. Jenny Choo, Supply Chain Manager and Mr. Jim McShane, Export Compliance Manager. Mr. McShare is known to the ECO and is a former senior manager in the State Department's Office of Defense Trade Controls. Mr. McShane provided additional information about the company. He stated that he had been brought into the company in 2005 to enhance its overall export compliance program and bring it into compliance with international standards. ¶6. As to the particular items in question, Mr. McShane stated that they were being used in the production of defense related as well civil products (but no WMD related products). He stated that the company is expanding its business and has two additional machines on order and is expecting those in June 2008. The customers for its products include military buyers in the United States, Pakistan, Israel, NATO and the UAE. ¶7. ECO verified that Qioptiq was informed of the applicable license conditions (as required by the relevant licenses) and that it keeps a production log as required by those licenses. ECO verified the two machines are at the company's premises (Serial # 2007-66-CPL and 2007-70-CPL). ¶8. At the time visited, Qioptiq appeared to be a suitable recipient of the commodities shipped since Qioptiq cooperated with the PSV, provided ECO with access to the items and related documents and operates a line of business consistent with the use of the items. Also, Qioptiq is familiar with the applicable license conditions and expressed its commitment to comply with them.