EXTRANCHECK: POST-SHIPMENT VERIFICATION: B.K. VET PVT.

UNCLAS NEW DELHI 000730 SIPDIS SIPDIS USDOC FOR 532/OEA/M. NICKSON-D/KGAINS/JHATFIELD 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: B.K. VET PVT. LTD., DELHI, LICENSE NO. D341999 REF: USDOC 10497 ¶1. Unauthorized disclosure of the information provided below is prohibited by Section 12(c) of the Export Administration Act. ¶2. On January 18, 2008, Export Control Officer (ECO) Paul Cushman and BIS FSN Prem Narayan conducted a Post-shipment Verification (PSV) at B.K. Vet Pvt. Ltd. (BKVL),Delhi. ¶3. BIS requested a PSV at BKVL, a private sector company located at: F-4 DSIDC Industrial Complex, Rohtak Road, Delhi 110041, Tel: 91-11-2547-2673, Fax: 91-11-2547-5191, Email: bks@balkrishan.com. BKVL was listed as the ultimate consignee, and Omira Marketing Pvt. Ltd. (OMPL),Mumbai, as the End-User for one model VF-3 W TR2105XB three-axis vertical machining center and TR210XB two-axis rotary table, making it a five-axis machining center, controlled under ECCN 2B001. The license applicant was Haas Automation, Inc., Oxnard, California. Reftel listed BKVL as the Ultimate Consignee and OMPL as the End-User, which was incorrect. OMPL was the Ultimate Consignee and the authorized distributor for Haas in India. BKVL is the End-User and dealt with OMPL for this transaction. Reftel also listed the model as VF-3 W which was incorrect the model is a VM-3 CNC three-axis vertical machining center. ¶4. ECO and FSN Narayan met with B.K. Sehgal, Proprietor, BKVL. BIS New Delhi conducted a favorable PLC for the same item in December ¶2005. Sehgal stated that he was aware of the BIS license conditions which he received verbally from Haas. He provided copies of the BKVL Purchase Order, Haas Invoice and Packing List, a receipt of import duties paid at the Indian port by BKVL, a Nuclear Certificate stating that these items would not be used for any nuclear activities and Form BIS-711. ¶5. Sehgal confirmed the stated end-use of the five-axis machining center. The machining center is used for making dies, molds and fixtures. BKVL uses these dies to manufacture artificial insemination equipment and components that are used for animal husbandry applications. ¶6. At the time of the PSV, the two-axis rotary table was not integrated with the three-axis machining center. Sehgal stated that they only make use of the five-axis capability for special projects requiring a higher degree of sophistication. BKVL's customers include semen banks and governmental animal husbandry departments. ¶7. After the meeting, the BIS team was given a tour of the factory where the machine was operating. ECO recorded the serial numbers as model VM-3, s/n 47976, model STR2105XB, s/n 901443 and model SL-10T, s/n 72740 (lathe machine purchased along with the machining center). ¶8. Established in 2001, BKVL is a sister company of Bal Krishan Plastikrafts, which is a small, family-owned company. BKVL manufactures artificial insemination equipment such as semen storage straws, artificial insemination sheaths, artificial insemination guns, goblets, forceps and related laboratory machinery such as automatic filler sealers, and mechanical printing machines. BKVL exports its products to China and Thailand. BKVL employs 25 personnel. ¶9. Recommendation: At the time of this visit, B.K. Vet Pvt. Ltd. appeared to be a reliable recipient of the licensed technology. The items on check were physically verified and were apparently being used in accordance with the license conditions. MULFORD