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. WHITE