EXTRANCHECK: POST-SHIPMENT VERIFICATION: FLIC MICROWAVE

UNCLAS NEW DELHI 000264 SIPDIS USDOC FOR 532/OEA/HINES/GAINES 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: FLIC MICROWAVE PRIVATE LIMITED, HYDERABAD, INDIA REF: USDOC 0169 ¶1. Unauthorized disclosure of the information provided below is prohibited by Section 12(c) of the Export Administration Act. ¶2. On February 3, 2009, Export Control Officer (ECO) Paul Cushman and FSN Shailendra Srivastava conducted a Post-Shipment Verification (PSV) at FLIC Microwave Private Limited (FLIC) in Hyderabad. ¶3. BIS requested a PSV at FLIC, located at Ashok Nagar, Hyderabad. FLIC was listed as the ultimate consignee for two sets of solid state power amplifiers manufactured by Spectra Innovations Inc. of San Jose, California. The end-user was Bharat Electronics Limited, a Government of India entity. Export License: D382965. ECCN: 3A001. ¶4. ECO and FSN Srivastava met with Mr. Sukumar Pradhan, Managing Director, and N. Shanmugam, Director, in Pradhan's office. ¶5. FLIC representatives were not familiar with BIS regulations and this was the first visit by BIS officials to their facility. Shanmugam provided copies of the following documents relating to this transaction: FLIC Purchase Order, FLIC End-Use Statement, Spectra Invoice, Spectra Packing List, Air Waybill, a receipt for duties paid to the Indian Customs Authority, a copy of Export License D382965, Delivery Challan and a courier receipt. Shanmugam acknowledged that he understood, had complied with, and would continue to comply with the license conditions. ¶6. Pradhan explained that this importation was made on behalf of GOI's Bharat Electronics Limited (BEL). The amplifiers are installed in EDLVA (Extended Dynamic Range Detector Log Video Amplifier) receivers, a component in the electronic warfare system manufactured by BEL for the Indian Army's SAMYUKTA project. FLIC has already sold nine EDLVA receivers to BEL. ¶7. After the meeting, Pradhan presented the amplifiers for inspection. ECO physically verified the serial numbers as 113332 and 113335 (both model KMA180400A01) and 113301 and 113302 (both model KMA180400A02). FLIC holds these units in reserve and will use them as replacement components as required by the Indian Army. ¶8. Established in 1992, FLIC Microwave Private Limited designs and manufactures microwave components for various equipment and systems used by the Indian military. FLIC has 43 employees. A private security guard is on duty at the facility around the clock. ¶9. Recommendation: At the time of this visit, FLIC Microwave Private Limited appeared to be a reliable recipient of this controlled technology. The items on check were physically verified and were being used in a manner consistent with the Export Administration Regulations. MULFORD