EXTRANCHECK: POST-SHIPMENT VERIFICATION: HINDUSTAN

UNCLAS NEW DELHI 003083

SIPDIS

USDOC FOR 532/OEA/WILLIS/HOLLAND
USDOC FOR 532/OEA/NICKSON/GAINES
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: HINDUSTAN
AERONAUTICS LIMITED, HYDERABAD, INDIA (D372511)

REF: USDOC 05418


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


2. On November 18, 2008, Export Control Officer (ECO) Paul Cushman
and FSN Shailendra Srivastava conducted a Post-Shipment Verification
(PSV) at Hindustan Aeronautics Limited (HAL) in Hyderabad.


3. BIS requested a PSV at HAL Avionics Division located at Balanagar
in Hyderabad. HAL was listed as the ultimate consignee for 131 Bulk
Acoustic Wave Delay Devices manufactured by Teledyne Wireless Inc.
of Mountain View, Virginia. Export License: D372511. ECCN: 3A001.


4. ECO and FSN Srivastava met with Mr. Prabhu, Additional General
Manager, Mr. Rajnish Kumar Sud, Purchase Manager, and Mr.
Satyanarayan, Senior Manager, HAL. Mr. Randhir Jaiswal, Deputy
Secretary, Ministry of External Affairs, arranged and was present at
the meeting.


5. HAL representatives were familiar with BIS regulations. However,
this was the first visit by BIS officials to their facility. Prabhu
provided copies of the following documents relating to this
transaction: HAL Purchase Order, Teledyne Invoice, HAL End-Use
Statement, BIS License Conditions, Teledyne Packing List, and the
Air Waybill. Prabhu acknowledged that he understood, had complied
with, and would continue to comply with the license conditions.


6. Prabhu confirmed the stated end-use. He explained that the BAW
delay devices are being incorporated in radio altimeters for Indian
Coast Guard helicopters. Once operational, the delay devices allow
pilots to test the altimeter's accuracy prior to launching.


7. After the meeting, the BIS team was given a tour of the
HAL facility. ECO physically verified 25 delay devices stored in a
supply room. ECO physically verified another 55 units in the
Production Department. Prabhu stated that an additional 10 units
had already been installed in radio altimeters. Another 10 units
had been sent to the HAL facility in Bangalore. He provided
paperwork to support this transfer. Of the remaining 31 units,
Prabhu explained that some are maintained in their R&D laboratory
and some, found to be defective, are maintained as dead-stock.


8. Established in 1965, Hindustan Aeronautics Limited is India's
largest aerospace company and falls under the Ministry of Defence.
HAL employs approximately 20,000 personnel. Round-the-clock
security is provided by a private security force.


9. Recommendation: At the time of this visit, Hindustan Aeronautics
Limited appeared to be a reliable recipient of this controlled
technology. The items on check were accounted for and were being
used in a manner consistent with the Export Administration
Regulations.
MULFORD