EXTRANCHECK: POST-SHIPMENT VERIFICATION: LAP-ROSS

UNCLAS NEW DELHI 001107 SIPDIS SIPDIS USDOC FOR 532/OEA/M. NICKSON-D/JAY HATFIELD USDOC FOR 3131/USFCS/OIO/ANESA/KREISSL USDOC FOR 4530/MAC/ANESA/OSA ICE HQ FOR STRATEGIC INVESTIGATIONS STATE FOR EB/ESP E.O. 12958: N/A TAGS: BEXP ETRD ETTC IN SUBJECT: EXTRANCHECK: POST-SHIPMENT VERIFICATION: LAP-ROSS ENGINEERING LTD., CHENNAI, INDIA. REF: USDOC 01764 ¶1. Unauthorized disclosure of the information provided below is prohibited by Section 12(c) of the Export Administration Act. ¶2. On April 10, 2008, Export Control Officer (ECO) Paul Cushman and BIS FSN Shailendra Srivastava conducted a Post-Shipment Verification (PSV) at Lap-Ross Engineering Ltd. (LRE),Chennai. ¶3. BIS requested a PSV at LRE, a private sector company located in Pulivalam Village, Post Banavaram, District Vellore. The LRE facility is approximately 120 kilometers from Chennai. LRE was listed as the ultimate consignee for five absolute pressure transducers, 1000 torr range, manufactured by MKS Instruments Inc., Six Shattuck Road, Andover, Massachusetts. Export License: D350680. ECCN: 2B230. ¶4. ECO and FSN Srivastava met with Mr. K. Kannan, General Manager, Mr. S. Sundaram, Manager - Material and Mr. G. Dhineshbabu, Assistant Manager - R&D, LRE. ¶5. LRE representatives were not aware of any BIS regulations and this was the first visit by BIS officials to their facility. Mr. Sundaram provided copies of the following documents relating to this transaction: MKS Commercial Invoice, LRE Purchase Order, Air Waybill, Air Cargo Arrival Notice, a receipt for import duties paid to the Indian Customs Authority and Delivery Challan confirming receipt of the transducers. A similar version of the BIS license conditions was printed on the MKS Commercial Invoice. ECO provided to Mr. Kannan a copy of the actual license conditions. He reviewed the license conditions and confirmed that he had complied with them and would continue to do so. ¶6. Mr. Kannan confirmed the stated end-use. He explained that the absolute pressure transducer is used in the die casting process for compressor wheels of diesel engine turbo chargers. The transducer is used to monitor and regulate the vacuum pressure in the tubes transferring molten aluminum from the furnace to the die. ¶7. After the meeting, the BIS team was given a tour of the LRE factory. ECO physically verified the pressure transducer serial numbers as 05XX07-016070529, 05XX07-016070530, 09XX05-001810722, 09XX05-001810723 and 08XXD6-010555042. All were model number 121AA-01000B. Only one pressure transducer is currently installed. The remaining four are held in reserve. Mr. Kannan stated that of the five pressure transducers, 09XX05-001810723 was found to be defective. LRE is planning to return this item to MKS for replacement. The spare transducers are stored in a locked cabinet to which only authorized persons have access. The facility is locked after hours and a roving security force is on duty 24/365. ¶8. Established in 2005, LRE is a joint venture between Light Alloy Products, a subsidiary of Brakes India Ltd. (www.brakesindia.com) and Ross Casting and Innovations, Sidney, Ohio (www.rciwheels.com). LRE was established in India to cater to the growing market for automotive parts in the region. The company manufactures master and wheel cylinders for automotive brake assemblies, as well as compressor wheels, covers, and back plates for automotive turbo chargers. LRE has approximately 150 employees. ¶9. Recommendation: At the time of this visit, Lap-Ross Engineering Ltd. appeared to be a suitable recipient of the controlled technology. The items on check were physically verified and were being used in a manner consistent with the Export Administration Regulations. WHITE