EXTRANCHECK: POST-SHIPMENT VERIFICATION: PHILIPS

UNCLAS NEW DELHI 002524

SIPDIS

USDOC FOR 532/OEA/M. NICKSON-D/K.GAINS
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: PHILIPS
ELECTRONICS INDIA LIMITED, BANGALORE, INDIA

REF: USDOC 04235


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


2. On September 9, 2008, Export Control Officer (ECO) Paul Cushman
and FSN Shailendra Srivastava conducted a Post-Shipment Verification
(PSV) at Philips Electronics India Limited (PHILIPS) in Bangalore.


3. BIS requested a PSV at PHILIPS, located at Manyata Tech Park,
Nagavara. PHILIPS was listed as the ultimate consignee for one
arbitrary waveform generator with accessories manufactured by
Tektronix Inc. of Beaverton, Oregon. Export License: D391202. ECCN:
3A002.


4. ECO and FSN Srivastava met with Mr. Srinivas Y.C., Program
Manager, Mr. Arvind Narang, Senior Manager, Mr. Prakash Shetty,
Logistical Department and Mr. P. Krishnaraja, Test Architect,
PHILIPS. The meeting was held in a conference room at the Philips
Innovation Campus.


5. PHILIPS representatives were familiar with BIS regulations.
However, this was the first visit by BIS officials to their
facility. Narang provided copies of the following documents
relating to this transaction: Tektronix Customs Invoice and Packing
List, PHILIPS Purchase Order, Tektronix Quotation, Tektronix
Proforma Invoice, PHILIPS End-Use Statement, a copy of Export
License D391202, Air Waybill, Arrival Notice, a receipt for duties
paid to Indian Customs Authority, and an Import Certificate from the
Government of India. Narang acknowledged that he understood, had
complied with, and would continue to comply with the license
conditions.


6. Narang stated that the original arbitrary waveform generator was
defective and was returned to Tektronix for replacement. He
provided copies of the following documents pertaining to the
replacement unit: PHILIPS RE-Export Invoice and Packing List,
Tektronix Letter, Air Waybills, Tektronix Invoice and Packing List.


7. Krishnaraja confirmed the stated end-use. He explained that this
device is used for compliance testing of Philips products with High
Definition Multimedia Interface (HDMI) features. HDMI is a consumer
electronics standard used for digital audio and video communication
between various entertainment components. The device is programmed
to generate signals of varying strength and quality for system
testing purposes.


8. After the meeting, the BIS team was given a tour of the PHILIPS
facility. The ECO physically verified the arbitrary waveform
generator's serial number as B010425, model AWG 7102. The equipment
is maintained and utilized in the HDMI Authorized Testing Centre.
Access to this section is controlled through a proximity card reader
system. A private security force is on duty at the facility 24/365.



9. ECO noticed three additional pieces of sophisticated equipment
manufactured by Tektronix collocated with the AWG 7102. They were
two digital serial analyzers and one data timing generator. When
asked, Krishnaraja stated that these items were imported without a
license on March 14, 2008. ECO had not been tasked to perform PSVs
on these devices but decided to do so in order to determine whether
they had been legally exported from the United States. Their serial
numbers were recorded as B010699 (model DSA 71604),B020633 (model
DSA 8200) and B020369 (model DTG 5334). Upon request, Narang
provided copies of the following documents relating to these
transactions: PHILIPS Purchase Order, Tektronix Invoice and Packing
List, Air Waybill, and a receipt for duties paid to the Indian
Customs Authority. Subsequent research revealed that the digital
serial analyzers are actually high performance oscilloscopes. ECO
later confirmed with the BIS Office of Enforcement Analysis that
none of these three items required an export license.


10. Established in 1930, Philips Electronics India Limited,
headquartered in the Netherlands, is a multi-national organization
manufacturing consumer electronics, lighting, and medical equipment.
The Philips Innovation Campus is a software development and testing
center for Philips consumer lifestyle products with HDMI. The
facility has approximately 1,000 employees.


11. Recommendation: At the time of this visit, Philips Electronics
India Limited appeared to be a reliable recipient of controlled
technology. The item on check was physically verified and was being
used in a manner consistent with the Export Administration
Regulations.
MULFORD