EXTRANCHECK: POST-SHIPMENT VERIFICATION: SYSCOM, DUBAI,

UNCLAS ABU DHABI 000402 STATE FOR PM/DTCC FOR BLUE LANTERN COORDINATOR USDOC FOR 532/BIS/OEA/TWILLIS/EHOLLAND/DFARROW DHS FOR ICE/STRATEGIC SIPDIS E.O. 12958: N/A TAGS: BEXP ETRD ETTC AE SUBJECT: EXTRANCHECK: POST-SHIPMENT VERIFICATION: SYSCOM, DUBAI, UAE. REF: USDOC OEA Email, dated 4/7/2009 ¶1. Ref email requested that post conduct a post-shipment verification at Syscom, Dubai, UAE for the shipment of computer hardware exported by Prosoft Technology Inc., Bakersfield, CA. ¶2. On April 8, 2009 Export Control Officer (ECO) met with Mr. Musthaque Ahmed K, Sales Engineer, Syscom. Ahmed advised that Syscom (www.syscomme.com) is IT Systems integrator and is part of the Bin Ghalib Group of Companies (www.binghalib.com). ECO requested information regarding this transaction but Ahmed advised that he would have to research the issue and get back to ECO. ¶3. On April 16, 2009 ECO was contacted by Moazaz Khalil, the Public Relations Manager for the Bin Ghalib Group of Companies. The PR Director advised that he was made aware of ECO's recent visit to Syscom regarding the order from Prosoft. He stated that Syscom (and the Bin Ghalib Group) would be happy to provide information requested (on end users etc.) but would only do so "via the two legal ways": through the UAE government/per UAE law or via Prosoft Technology. He respectfully re-affirmed that he was aware of U.S. concerns but would only be able to provide details if done via one of the two "legal" ways he cited. (Note: Post conducted a recent favorable PLC (in mid-Feb 09)on another Bin Ghalib Company: Mohammad Bin Ghalib Energy for valves which could explain their concerns over feeling scrutinized by the USG). ECO subsequently received several follow-up calls from Mr. Khalil after his deliberations with Mohammad Bin Ghalid, Managing Director, Bin Ghalib Group. Khalil advised that they would make Syscom representatives available and would provide whatever was required to complete the PSV. ¶4. On 22 April 2009, ECO met with Mr. Pankaj Verma, Applications Manager, Syscom who explained that the hardware modules in question are used for industrial automation applications. The modules allow for disparate systems to communicate with each other in automated industrial machinery. Verma further advised that Syscom and Bin Ghalib Group are well aware of U.S. export control restrictions relating to embargoed destinations. Verma showed ECO documentation indicating that these items were destined for two specific end users: Nouri Industrial Establishment of Kuwait and Metito (Overseas) Ltd., Sharjah, UAE. Both locations will use them in industrial automation applications in Kuwait and Sharjah, UAE respectively. ¶5. Post considers Syscom to be a reliable recipient of U.S. origin equipment for this transaction. OLSON