Identifier
Created
Classification
Origin
08HONGKONG2320
2008-12-30 00:13:00
UNCLASSIFIED
Consulate Hong Kong
Cable title:
EXTRANCHECK: POST SHIPMENT VERIFICATION: EXODUS
how-toVZCZCXYZ0001 RR RUEHWEB DE RUEHHK #2320 3650013 ZNR UUUUU ZZH R 300013Z DEC 08 FM AMCONSUL HONG KONG TO RUCPDOC/USDOC WASHDC INFO RUEHC/SECSTATE WASHDC 6537 RHMFIUU/HQ BICE WASHINGTON DC
UNCLAS HONG KONG 002320
USDOC FOR 532/OEA/LHINES/ADYSON
USDOC FOR 3132 FOR FCS/OIO REGIONAL DIRECTOR PATRICK SANTILLO
BICE FOR OFFICE OF STRATEGIC INVESTIGATIONS
SIPDIS
E.O. 12958: N/A
TAGS: BMGT BEXP HK ETRD ETTC
SUBJECT: EXTRANCHECK: POST SHIPMENT VERIFICATION: EXODUS
MICROELECTRONICS CO.
REF: A) USDOC 06824 B) USDOC 06825 C) HK 00001(2008) D)HK 00966
(2008)
UNCLAS HONG KONG 002320
USDOC FOR 532/OEA/LHINES/ADYSON
USDOC FOR 3132 FOR FCS/OIO REGIONAL DIRECTOR PATRICK SANTILLO
BICE FOR OFFICE OF STRATEGIC INVESTIGATIONS
SIPDIS
E.O. 12958: N/A
TAGS: BMGT BEXP HK ETRD ETTC
SUBJECT: EXTRANCHECK: POST SHIPMENT VERIFICATION: EXODUS
MICROELECTRONICS CO.
REF: A) USDOC 06824 B) USDOC 06825 C) HK 00001(2008) D)HK 00966
(2008)
1.Unauthorized disclosure of the information provided below is
prohibited by Section 12C of the Export Administration Act.
2. As per reftel A and B requests and at the direction of the Office
of Enforcement Analysis (OEA) of the USDOC Bureau of Industry and
Security (BIS),Export Control Officer Philip Ankel (ECO) attempted
to conduct a post shipment-verification (PSV) at Exodus
Microelectronics Co., Unit 9B, Nathan Commercial Building, 430-436
Nathan Road, Kowloon, Hong Kong (Exodus). The items in question for
the check referenced in reftel A are semiconductors exported to
Exodus on or about August 18, 2006 and valued at USD 5,200. The
items in question for the check referenced in reftel B are
semiconductors exported to Exodus on or about May 31, 2005 and March
23, 2005 with a combined value of USD 4,060. All of these items are
classified under export control classification number (ECCN) 3A001
and, if properly classified, would be controlled for national
security (NS) reasons. These appear to be items that may be shipped
license-free to Hong Kong but would, in virtually all circumstances,
require a license for shipment to mainland China. The exporter was
QP Semiconductor of Santa Clara, California.
3. As further detailed in reftels C and D, Exodus is related to a
range of other problematic companies in Hong Kong including Victory
Wave, Echelon Microsystems Limited and Centre Bright, among others.
These companies are, in turn, related or conduct business with a
range of problematic mainland China companies. Based on information
received from an industry source, ECO believes that the directors
and shareholders of Exodus, Centre Bright, Victory Wave and Echelon
are all members of the same family (parents and adult son). A
review of the Hong Kong Companies Registry reveals that Exodus
Microelectronics Company Limited was established in March 2003 and
had paid-up share capital of HKD 10,000 (the Hong Kong equivalent of
USD 1250). The registered office of the company is listed as Unit
6B, Block 1, International Center, 2-8 Kwei Tei Street, Shatin, Hong
Kong.
4. As detailed further in reftel C, Mr. Wong, Yung Fai is the
director of Victory Wave. He is also a director of Exodus. During
the PSV of Victory Wave, Mr. Wong, Yung Fai claimed that Exodus
never sources items from the United States. That claim is clearly
false.
5. A web search reveals that Exodus does not appear to have its own
web presence. It is, however, listed as a partner of Centre Bright
(referenced above). In the description of Exodus listed on the
Centre Bright web site, Exodus is listed as being a provider of
military grade semiconductors. Another company's web site lists
Exodus as a partner (www.elnec.sk) and the Exodus link on that
company's web site links to the Centre Bright web site.
6. FCS Commercial Assistant Carrie Chan attempted, on several
occasions, to set up a meeting with representatives of Exodus. When
made aware of the purpose of the ECO's proposed visit, the staff
person answering the phone hung up. ECO subsequently sent a
registered letter to Exodus requesting a meeting. The Hong Kong
Post Office confirms that the letter was rejected as undeliverable
(no such company at the listed address. ECO remains unable to
schedule the PSV.
7. Based on the information noted above, ECO believes that Exodus is
a most unsuitable recipient of U.S. origin controlled technology.
ECO recommends that BIS reach out to QP Semiconductor to determine
what information it had on hand when it shipped the items. Further,
ECO requests that OEA confirm the 3A001 classification of the
shipment so that ECO may reach out to Hong Kong TID concerning a
potential violation of Hong Kong's export control rules in
connection with this shipment. Finally, ECO recommends that Exodus
be added to the BIS Unverified List and/or Entities List.
USDOC FOR 532/OEA/LHINES/ADYSON
USDOC FOR 3132 FOR FCS/OIO REGIONAL DIRECTOR PATRICK SANTILLO
BICE FOR OFFICE OF STRATEGIC INVESTIGATIONS
SIPDIS
E.O. 12958: N/A
TAGS: BMGT BEXP HK ETRD ETTC
SUBJECT: EXTRANCHECK: POST SHIPMENT VERIFICATION: EXODUS
MICROELECTRONICS CO.
REF: A) USDOC 06824 B) USDOC 06825 C) HK 00001(2008) D)HK 00966
(2008)
1.Unauthorized disclosure of the information provided below is
prohibited by Section 12C of the Export Administration Act.
2. As per reftel A and B requests and at the direction of the Office
of Enforcement Analysis (OEA) of the USDOC Bureau of Industry and
Security (BIS),Export Control Officer Philip Ankel (ECO) attempted
to conduct a post shipment-verification (PSV) at Exodus
Microelectronics Co., Unit 9B, Nathan Commercial Building, 430-436
Nathan Road, Kowloon, Hong Kong (Exodus). The items in question for
the check referenced in reftel A are semiconductors exported to
Exodus on or about August 18, 2006 and valued at USD 5,200. The
items in question for the check referenced in reftel B are
semiconductors exported to Exodus on or about May 31, 2005 and March
23, 2005 with a combined value of USD 4,060. All of these items are
classified under export control classification number (ECCN) 3A001
and, if properly classified, would be controlled for national
security (NS) reasons. These appear to be items that may be shipped
license-free to Hong Kong but would, in virtually all circumstances,
require a license for shipment to mainland China. The exporter was
QP Semiconductor of Santa Clara, California.
3. As further detailed in reftels C and D, Exodus is related to a
range of other problematic companies in Hong Kong including Victory
Wave, Echelon Microsystems Limited and Centre Bright, among others.
These companies are, in turn, related or conduct business with a
range of problematic mainland China companies. Based on information
received from an industry source, ECO believes that the directors
and shareholders of Exodus, Centre Bright, Victory Wave and Echelon
are all members of the same family (parents and adult son). A
review of the Hong Kong Companies Registry reveals that Exodus
Microelectronics Company Limited was established in March 2003 and
had paid-up share capital of HKD 10,000 (the Hong Kong equivalent of
USD 1250). The registered office of the company is listed as Unit
6B, Block 1, International Center, 2-8 Kwei Tei Street, Shatin, Hong
Kong.
4. As detailed further in reftel C, Mr. Wong, Yung Fai is the
director of Victory Wave. He is also a director of Exodus. During
the PSV of Victory Wave, Mr. Wong, Yung Fai claimed that Exodus
never sources items from the United States. That claim is clearly
false.
5. A web search reveals that Exodus does not appear to have its own
web presence. It is, however, listed as a partner of Centre Bright
(referenced above). In the description of Exodus listed on the
Centre Bright web site, Exodus is listed as being a provider of
military grade semiconductors. Another company's web site lists
Exodus as a partner (www.elnec.sk) and the Exodus link on that
company's web site links to the Centre Bright web site.
6. FCS Commercial Assistant Carrie Chan attempted, on several
occasions, to set up a meeting with representatives of Exodus. When
made aware of the purpose of the ECO's proposed visit, the staff
person answering the phone hung up. ECO subsequently sent a
registered letter to Exodus requesting a meeting. The Hong Kong
Post Office confirms that the letter was rejected as undeliverable
(no such company at the listed address. ECO remains unable to
schedule the PSV.
7. Based on the information noted above, ECO believes that Exodus is
a most unsuitable recipient of U.S. origin controlled technology.
ECO recommends that BIS reach out to QP Semiconductor to determine
what information it had on hand when it shipped the items. Further,
ECO requests that OEA confirm the 3A001 classification of the
shipment so that ECO may reach out to Hong Kong TID concerning a
potential violation of Hong Kong's export control rules in
connection with this shipment. Finally, ECO recommends that Exodus
be added to the BIS Unverified List and/or Entities List.