EXTRANCHECK: POST-SHIPMENT VERIFICATION: SIEMENS

UNCLAS NEW DELHI 000920 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: BEXP ETRD ETTC IN SUBJECT: EXTRANCHECK: POST-SHIPMENT VERIFICATION: SIEMENS INFORMATION SYSTEMS LTD., BANGALORE, INDIA. REF: USDOC 00161 ¶1. Unauthorized disclosure of the information provided below is prohibited by Section 12(c) of the Export Administration Act. ¶2. On March 25, 2008, Export Control Officer (ECO) Paul Cushman and BIS FSN Shailendra Srivastava conducted a Post-Shipment Verification (PSV) at Siemens Information Systems Ltd. (SISL),Bangalore. ¶3. BIS requested a PSV at SISL, a private sector company located at 84 Keonics Electronics City, Hosur Road, Bangalore; Tel: 91-080-2852-1122, Fax: 91-080-2511-3670. SISL was listed as the ultimate consignee for an Infrared Imaging Camera manufactured by Infrared Solutions International (ISI),Minneapolis, Minnesota. Export License: D361908. ECCN: 6A003. ¶3. ECO and FSN Srivastava met with Dr. Mukul Saxena, Vice President, Mr. N.S. Hariharan, Chief Manager Business Administration and Dr. Zubin Varghese, Program Manager, SISL. These individuals are assigned to SISL's R&D section. ¶4. The SISL representatives were aware of some BIS regulations. However, this was the first visit by BIS officials to their facility. Mr. Hariharan provided copies of documents pertaining to this transaction including the ISI Invoice, SISL Purchase Order, an Import Certificate from the Director General of Foreign Trade, SISL Acceptance Letter acknowledging export license conditions, Air Cargo Arrival Notice, a receipt for import duties paid to the Indian Customs Authority, Certificate of Insurance and Delivery Challan. ¶5. Mr. Saxena confirmed the stated end-use. He said that the camera is currently being used for a project involving one of their customers, Britannia Industries Ltd. (BIL),a food manufacturer. Specifically, the camera is being used to conduct energy efficiency analysis of the BIL baking facilities. This analysis results in consistently high-quality products with reduced energy costs. SISL is also considering using the camera to study newly forged railway rails in order to detect structural flaws prior to installation. This could significantly reduce the number of train derailments. ¶6. After the meeting, the BIS team was given a tour of the SISL facility where the ECO verified the camera's serial number as IR-20051201. A private security force patrols the SISL facility 24/365. The camera is maintained in a locked cabinet. Access to the R&D section is controlled through an electronic card reader system. ¶7. SISL is a subsidiary of Siemens Ltd. (India) and Siemens Nixdorf Information Systems (Munich, Germany). SISL has six strategic business units and software factories in Mumbai, New Delhi, Bangalore and Chennai. SISL's R&D section works to find solutions specifically for India in the following sectors: Industrial Automation, Infrastructure Improvement, Health Care, and Energy. The R&D section attempts to enhance and customize existing technologies as well as finding practical applications for new, cutting-edge technologies. SISL has 63 full-time employees. ¶9. Recommendation: At the time of this visit, Siemens Information Systems Ltd. appeared to be a suitable recipient of the U.S.-origin technology. The item on check was physically verified and was being used in a manner consistent with the Export Administration Regulations. MULFORD