EXTRANCHECK: PRE-LICENSE CHECK: SRI KOTESWARA CAM SYSTEMS

UNCLAS NEW DELHI 000641 SIPDIS USDOC FOR 532/OEA/HINES/LAUCIUS 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: ETTC ETRD BEXP IN SUBJECT: EXTRANCHECK: PRE-LICENSE CHECK: SRI KOTESWARA CAM SYSTEMS PRIVATE LIMITED, HYDERABAD REF: USDOC 00606 ¶1. Unauthorized disclosure of the information provided below is prohibited by Section 12(c) of the Export Administration Act. ¶2. On March 25, 2009, Export Control Officer (ECO) Paul Cushman and FSN Shailendra Srivastava conducted a Pre-License Check (PLC) at Sri Koteswara CAM Systems Private Limited (SKCS). ¶3. BIS requested a PLC at SKCS, located at Kamalanagar in Hyderabad. SKCS is listed as the ultimate consignee for one VF 5/40 Five Axis Vertical Machining Center controlled under ECCN 2B001. The license applicant is Haas Automation Inc. of Oxnard, California. ¶4. ECO and FSN Srivastava met with Mr. K. Koteswara Rao, Managing Director, in his office. Rao was not familiar with BIS regulations and this was the first visit by BIS officials to his facility. Rao provided copies of SKCS Purchase Order and their End-Use Statement. ¶5. Rao stated that the Five Axis Vertical Machining Center will be used for manufacturing sophisticated industrial components used in commercial air conditioning units, microscopes, spectrophotometers, and surgical microscopes. ¶6. After the meeting, the BIS team was given a tour of the SKCS facility. During the tour, ECO spotted a HAAS Super Mini Mill multi-axis lathe. Although ECO had not been tasked to perform a PSV on this machine, he decided to do so in order to determine the legitimacy of this U.S. export. Its serial number was recorded as ¶1061182. Upon request, Rao provided copies of documents pertaining to this transaction including SKCS Purchase Order, SKCS End-Use Statement, HAAS Commercial Invoice and Packing List (both dated 10/13/2007) and the Bill of Lading (dated 10/13/2007). ¶7. Established in 1997, Sri Koteswara CAM Systems Private Limited is a state-of-the-art facility manufacturing custom components for its customers in India and the United States. SKCS employs 40 personnel. ¶8. Recommendation: At the time of this visit, Sri Koteswara CAM Systems Private Limited appeared to be a suitable recipient of a Five Axis Vertical Machining Center. SKCS cooperated fully with the BIS team, has a demonstrated need for the technology, and understands its responsibilities with respect to the Export Administration Regulations. Request BIS Office of Export Analysis conduct research to determine if an Export License was granted to HAAS Automation Inc. for the Super Mini Mill imported by Sri Koteswara CAM Systems Private Limited. WHITE