Identifier
Created
Classification
Origin
09HONGKONG797
2009-04-30 09:08:00
UNCLASSIFIED
Consulate Hong Kong
Cable title:  

EXTRANCHECK: POST SHIPMENT VERIFICATION: TECHPRO TECHNOLOGY

Tags:  BMGT BEXP HK ETRD ETTC 
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VZCZCXYZ0001
RR RUEHWEB

DE RUEHHK #0797 1200908
ZNR UUUUU ZZH
R 300908Z APR 09
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 7521
RHMFIUU/HQ BICE WASHINGTON DC
UNCLAS HONG KONG 000797 

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: TECHPRO TECHNOLOGY
HK CO LTD

REF: A) BIS e-mail request dated March 17, 2009
UNCLAS HONG KONG 000797

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: TECHPRO TECHNOLOGY
HK CO LTD

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) conducted
a shipment-verification (PSV) at Techpro Technology HK, Co., Ltd.,
14/F World Tech Center, 95 How Ming St., Kwun Tong, Hong Kong
(Techpro). The items in question for this PSV are various
transistors exported to Techpro on or about May 19, 2008. 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 Richardson Electronics of La Fox, Illinois.


3. According to the Hong Kong Companies Registry, Techpro has been
in existence since 2005. Its paid up share capital is the Hong Kong
equivalent of USD 1. The Hong Kong Companies Registry lists Hong
Kong resident Lau, Fei Fei as director. The company does not appear
to have a web presence.


4. On April 3, 2009, ECO accompanied by Commercial Assistant,
Carrie Chan, visited Techpro and met with Ms. Ada Lau, the owner of
the business. Ms. Lau stated that Techpro is a small electronics
trading company. Techpro's buyers are typically other trading
companies (90%)or factories. Ms. Lau stated that other trading
companies may use her trading company because she holds some stock
and because she is willing to provide financing terms that larger
suppliers may not be willing to provide to smaller, less established
trading companies buyers. While ECO found Ms. Lau to be credible
during the in-person meeting, the business model Ms. Lau described
is likely not very profitable in light of a range of online and
larger resellers in the market. Ms. Lau stated that she obtains
customers from referrals and repeat business from existing
companies. ECO notes that the company is located in a very small
office in a converted warehouse building.


5. Ms. Lau appeared familiar with Hong Kong export control rules
and stated that she is prepared to abide by all applicable
export/reexport regulations. By separate e-mail, ECO provided Ms.
Lau with BIS reexport guidance and other BIS web resources.


6. As to the shipment in question, Ms. Lau stated that the items
were sold to a company called Ristar Ltd. in Hong Kong. Ms. Lau
provided an invoice and other documentation confirming receipt in
Hong Kong by Techpro as subsequent resale to Ristar (at a very
modest markup). Ms. Lau stated that the items were going to be used
in the production of cable television broadcast equipment. She
further stated that Ristar had purchased product from Techpro once
before.


7. Ristar is also a Hong Kong company with Singapore passport
holder Lim, Kok Tong as director. It has only nominal share
capital. When Commercial Assistant Carrie Chan attempted to call
the company (a mobile phone was listed),the number was no longer in
service. The fax number of Ristar corresponds to the fax number of a
corporate secretarial service in Hong Kong as does Ristar's address
on the applicable Techpro invoice. Attempts to reach Ristar though
the company secretarial service proved to be successful. Ristar
representative (in Singapore),Joyce Lim, stated that Ristar had not
purchased the items from Techpro. Ms. Lim further confirmed that
the purported purchase order provided by Techpro was false. Ms. Lim
provided a version of a Ristar purchase order to illustrate that
Ristar's standard purchase order was different than the purported
Ristar purchase order provided by Techpro.


8. Based on the information noted above, ECO believes Techpro is
not a suitable recipient of U.S. origin technology. ECO recommends
a thorough review of past shipments to Techpro.