EXTRANCHECK: POST SHIPMENT VERIFICATION: ADVANCED MATERIAL

UNCLAS HONG KONG 000823 USDOC FOR 532/OEA/MNICKSON-DORSEY/GCARDAK 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: ADVANCED MATERIAL ENGINEERING REF: A) USDOC 01386 B) D380636 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 a post shipment-verification (PSV) at Advanced Material Engineering, 601 Rifle Range Road, Singapore (AME). The items in question are 30 detonators exported on or about December 11, 2007 and valued at USD 2,148. The items are classified under Export Control Classification Number (ECCN) 3A232 and are controlled for nuclear nonproliferation (NP) reasons. The exporter was RISI of Tracy California. ¶3. According to the Singapore companies registry, AME has been in existence since 1994. Its paid-up share capital is the Singapore equivalent of USD 27 million. The following Singapore nationals are listed as directors: Low, Yee Kah, Jway, Ching Hua, Fong, Saik Hay, Wu, Tzu Chien, Gan, Boon Jin, Kwok, Wai Onn, Sew, Chee Jhuen and Tay, Kian Seng. Singapore Technologies Kinetics Ltd. is listed as the sole shareholder. ¶4. According to its website, Singapore Technologies Engineering Ltd. (ST Engineering) is the parent company of Singapore Technologies Kinetics (ST Kinetics) which is the parent company of AME. ST Engineering group has over 100 subsidiaries and associated companies in 20 countries including the United States, Europe, China, Singapore and Australia. ST Kinetics is the land systems and specialty vehicles arm of ST Engineering. It is one of Asia's leading defense and specialty vehicles companies with sales of over USD 600 million in 2006. AME designs and manufactures conventional and smart munitions, advanced protective materials as well as guided system components. More information is available at www.stengg.com. ¶5. On April 21, 2008, the ECO, accompanied by a representative of Singapore Customs visited the company and met with Mr. Goh, Beng Kwang, Senior Manager. Mr. Goh is responsible for export control compliance at AME. He confirmed that the information on the company's web site was correct. ¶6. As to the particular item in question, Mr. Goh accompanied the ECO to inspect the items. ECO notes that entry into the entire AME complex is very highly controlled. He further noted that the items were kept under lock and key in a bunker. ECO reviewed the application documentation for the shipment confirming receipt of the detonators. ECO also inspected the box containing the detonators that remained under its original seal. According to Mr. Goh, the items are used to test metal bonding techniques. Use of conventional detonators has not provided the necessary precision and, as a result, very high precision detonators were procured. ¶7. At the time visited, AME appeared to be a suitable recipient of the commodities shipped since AME cooperated with the PSV, provided ECO with access to the items and operates a line of business consistent with the their use. Also, AME was well aware of U.S. export licensing rules and indicated its intent to comply with those rules.