EXTRANCHECK: POST SHIPMENT VERIFICATION: SUNFLY ELECTRONICS

UNCLAS HONG KONG 001011

USDOC FOR 532/OEA/MHAMES/MCANNER
USDOC FOR 3132 FOR FCS/OIO REGIONAL DIRECTOR PATRICK SANTILLO
BICE FOR OFFICE OF STRATEGIC INVESTIGATIONS

SIPDIS

E.O. 12958: N/A
TAGS: BMGT BEXP HK ETRD ETTC
SUBJECT: EXTRANCHECK: POST SHIPMENT VERIFICATION: SUNFLY ELECTRONICS
(HK) LIMITED

REF: A) BIS e-mail request dated March 17, 2009


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


2. As per reftel A request and at the direction of the Office of
Enforcement Analysis (OEA) of the USDOC Bureau of Industry and
Security (BIS),Export Control Officer Philip Ankel (ECO) attempted
to conduct a post shipment verification (PSV) at Sunfly Electronics
(HK) Limited, Flat L, 11/F, Phase 3, Kwun Tong Industrial Centre,
448-458 Kwun Tong Road, Hong Kong (Sunfly). The items in question
for this PSV are various microprocessors exported to Sunfly on or
about January 20, 2009. On the applicable shippers export
declaration (SED),these items are not classified meaning that they
are likely EAR99 and eligible for shipment to virtually all
destinations and end-uses/users worldwide. The exporter was
Mitronics, Inc. of East Rutherford, New Jersey.


3. According to the Hong Kong Companies Registry, Sunfly has been
in existence since May 2008. The company has no paid up share
capital. The Hong Kong Companies Registry lists Ji, Fang (likely a
mainland national),as director but does not include a passport
number or other identification.


4. According to the company's web site (www.Sunflyele.com),Sunfly
is an independent distributor of electronic components.


5. Commercial Assistant, Carrie Chan, attempted for some time to
arrange a meeting with the company. A person identifying herself
only as Catrina (the contact person on the underlying invoices)
provided multiple reasons why she and the company's director could
not come to Hong Kong to meet. In particular, she stated that the
company is registered in Hong Kong but has its operations in
Shenzhen. She further stated that neither she nor the company's
director had permits to enter Hong Kong and this would take some
time to obtain. Later, Catrina stated that her director had the flu
and was under observation at the hospital. Given the time that has
passed and the delay in arranging this EUC, ECO does not believe
that the company is willing to meet. If that changes, ECO will
update this cable.


6. Catrina did provide documentation by fax confirming that the
items had been received by Sunfly. She stated that the items were
for stock and, as a result, Sunfly did not have any customer
purchase order to share. ECO views it as unlikely that Sunfly
ordered such a large number of these items for stock and has
apparently not yet sold any of them.


7. Based on the information noted above, ECO believes that Sunfly
most likely does not have any permanent Hong Kong presence and uses
its Hong Kong address to receive shipments and correspond with
international clients and suppliers. While there is no apparent
export control violation associated with this shipment, ECO
nonetheless does not believe Sunfly to be a suitable recipient of
controlled U.S. origin technology.