EXTRANCHECK: POST-SHIPMENT VERIFICATION: MAHINDRA &

UNCLAS NEW DELHI 001453

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: MAHINDRA &
MAHINDRA LIMITED (D355831).

REF: USDOC 03124


1. Unauthorized disclosure of the information provided below is
prohibited by Section 12(c) of the Export Administration Act.


2. On May 20, 2008, Export Control Officer (ECO) Paul Cushman and
BIS FSN Shailendra Srivastava conducted a Post-Shipment Verification
(PSV) at Mahindra & Mahindra Limited in Mumbai.


3. BIS requested a PSV at Mahindra & Mahindra Limited (M&M),
Automotive Sector, Mumbai. M&M was listed as the ultimate consignee
for one Quest 51 Super Precision Lathe and accessories manufactured
by Hardinge Inc. of Elmira, New York. Export License: D355831.
ECCN: 2B001.


4. ECO and FSN Srivastava met with Mr. Prakash Shimpi, Vice
President, Mr. Ramanand Prabhu, General Manager - Asset Management,
Mr. Harshad Parulekar, Manager - Capital Purchase and Mr. Girish
Nair, Manager.


5. M&M representatives were not aware of BIS regulations and this
was the first visit by BIS officials to their facility. Prabhu
provided copies of documents pertaining to this transaction
including the M&M Purchase Order, Hardinge Commercial Invoice, Bill
of Lading, and a receipt for duties paid to the Indian Customs
Authority. Prabhu stated that the exporter did not advise them of
any license conditions. ECO then provided him with a copy of the
license conditions. He reviewed the document and asserted that M&M
had complied with these conditions and would continue to do so.


6. Prabhu confirmed the stated end-use. He explained that the lathe
is used to machine various engine and drive train components.


7. After the meeting, the BIS team was given a tour of the M&M
factory. ECO physically verified the Quest 51 Super Precision Lathe
serial number as QC-798. The plant operates seven days a week,
around the clock and a roving security force is always on duty.


8. Established in 1945, Mahindra & Mahindra Limited is India's
largest manufacturer of general purpose utility vehicles and
manufactures tractors and light commercial vehicles as well. M&M,
in a joint venture with Navistar USA, is currently building what
will be Asia's largest automotive assembly plant. The plant,
located in Pune, will produce 700,000 vehicles per year.


9. Recommendation: At the time of this visit, Mahindra & Mahindra
Limited appeared to be a suitable recipient of this controlled
technology. The item on check was physically verified and was being
used in a manner consistent with the license conditions and the
Export Administration Regulations.
MULFORD