EXTRANCHECK: POST-SHIPMENT VERIFICATION: LNT ELECTRONICS,

UNCLAS NEW DELHI 001951

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: LNT ELECTRONICS,
HYDERABAD, INDIA

REF: USDOC 02928


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


2. On June 10, 2008, Export Control Officer (ECO) Paul Cushman and
FSN Shailendra Srivastava conducted a Post-Shipment Verification
(PSV) at LNT Electronics (LNT) in Hyderabad.


3. BIS requested a PSV at LNT, a private sector company located in
Huda Colony, Saroornagar. LNT was listed as the ultimate consignee
for a bulk shipment of capacitors/transistors/IC's, dielectric
multilayer and axial leads exported by MESA MW Corporation of
Gilbert, Arizona. Export License: No License Required.


3. ECO and FSN Srivastava met with Mr. P. Shanmugam, Director, and
Mr. A. Ramaswamy, Director-Technical, LNT.


4. LNT representatives were not aware of BIS regulations and this
was the first visit by BIS officials to their facility. Mr.
Shanmugam provided copies of the following documents relating to
this transaction: LNT Purchase Order, MESA Invoice, MESA Packing
List and the Air Waybill.


5. Shanmugham confirmed the stated end-use. He advised that the
items on check are incorporated into high voltage power supplies
manufactured by LNT. These power supplies are then installed in
high frequency transmitters manufactured by GOI's Bharat Electronics
Limited (BEL). The transmitters are then supplied to the Indian
Navy. ECO was not able to physically verify any of the items on
check as the entire inventory had been exhausted in the
manufacturing process.


6. Established in 1994, LNT is small company that develops and
manufactures a variety of electronic traveling wave tube (TWT)
devices. The majority of LNT's products are sold to GOI's Defense
Research Development Organization (DRDO). LNT has 28 employees.
LNT is housed in a single-story dwelling in a residential
neighborhood. A roving security guard is on-duty at the facility
24/365.


9. Recommendation: Based upon a review of documents and information
provided by LNT Electronics, it appears that this controlled
technology was imported by a legitimate end-user and used in a
manner consistent with the Export Administration Regulations.
However, because physical inspection of the items on check could not
be performed, this Post-Shipment Verification remains inconclusive.
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