EXTRANCHECK: POST-SHIPMENT VERIFICATION: KYOCERA WIRELESS

UNCLAS NEW DELHI 000423 SIPDIS 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: ETTC ETRD BEXP IN SUBJECT: EXTRANCHECK: POST-SHIPMENT VERIFICATION: KYOCERA WIRELESS (INDIA) PVT. LTD., BANGALORE REF: USDOC 09897 ¶1. Unauthorized disclosure of the information provided below is prohibited by Section 12(c) of the Export Administration Act. ¶2. On November 27, 2007, Bureau of Industry & Security (BIS) Export Control Officer (ECO) Paul Cushman and BIS FSN Prem Narayan conducted a Post-shipment Verification (PSV) at Kyocera Wireless India, Pvt. Ltd. (KYOCERA INDIA),Bangalore. ¶3. BIS requested a PSV at KYOCERA INDIA, a private sector company located at: Global Village Campus, Mylasandra Village, RVCE College Post, Bangalore 560059, website: www.kyocera-wireless.com. KYOCERA INDIA was listed as the ultimate consignee for telecommunications test equipment, one Position Determination Entity for Cellular Phone Testing (PDE),PLTS-PDE43-UPDT. The exporter was Spirent Communications (SPIRENT),Eatontown, New Jersey. Export License Number: No License Required. ECCN: 5B001. ¶4. ECO and FSN Narayan met with D.M. Kiran, Director, Corporate Affairs, Arunachalam Karthikeyan, Senior Manager, S. Sathish, Manager, Engineering Services, and M.S. Sundaresh, Assistant Manager, Logistics & Purchasing. ¶5. KYOCERA INDIA representatives were not aware of BIS regulations and this was the first visit by BIS officials to their facility. Karthikeyan provided copies of documents relating to this transaction including SPIRENT Invoice, Indian Customs Authority's authorization to re-export to the U.S. for replacement, Re-Export Invoice and Gate pass for re-exporting, Air Cargo Arrival Notice Cum Invoice, Goods Received Note reflecting receipt of the PDE. ¶6. Karthikeyan stated that the telecommunication test equipment on check was malfunctioning and as it was still under warranty, it was sent to SPIRENT's New Jersey facility for replacement. Karthikeyan stated that prior to introducing a new mobile telephone model to the Indian market, its compatibility with the local network is thoroughly tested and the PDE is one of the tools employed. Specifically, the PDE evaluates network compatibility by comparing its data with global positioning system (GPS) data. Documents provided by KYOCERA INDIA representatives confirmed that the old PDE (still under warranty) was sent to SPIRENT's New Jersey facility for replacement after malfunctioning. A new PDE was then shipped to KYOCERA INDIA's Bangalore facility. ¶7. After the meeting, the BIS team was given a tour of the KYOCERA INDIA facility where the ECO physically verified the PDE serial number as 6STTR91. The KYOCERA INDIA facility is secured with an electronic security system. Access is gained using special electronic security cards issued to employees. ¶8. KYOCERA INDIA is a subsidiary of the Kyocera Corporation, headquartered in Japan, with offices worldwide. Kyocera is one of the world's largest manufacturers of mobile telephones and other wireless products. KYOCERA INDIA opened its service center in Bangalore in 2003. It began its Indian operation with only 50 engineers but now boasts a staff of 500 engineers. The core activities of KYOCERA INDIA include product approval and quality validation, technical support for Indian telecommunication carriers, customer management and exclusive operation of Kyocera's Indian service center network. ¶9. Recommendation: At the time of this visit, KYOCERA INDIA appeared to be a suitable recipient of the U.S.-origin commodity. The item on check was physically verified and was apparently being used in a manner consistent with the Export Administration Regulations. MULFORD