TAIWAN RESPONSE TO NONPAPER: IRAN SEEKING MACHINE

S E C R E T AIT TAIPEI 000081 ISN/MTR,ISN/ECC,EAP/TC E.O. 12958: DECL: 01/19/2020 TAGS: PARM MTCRE PREL TW IR SUBJECT: TAIWAN RESPONSE TO NONPAPER: IRAN SEEKING MACHINE TOOL ASSISTANCE FROM TAIWAN'S ROUNDTOP REF: 09 STATE 124113 Classified By: Economic Chief Hanscom Smith for reasons 1.4 (b) and (d) (S) On January 15, AIT received a letter in response to reftel from the Taiwan Ministry of Economic Affairs Bureau of Foreign Trade (BOFT). Below is an unofficial AIT translation of the letter. Begin translation: Subject: BOFT's findings regarding Iran-based Machine Sati Tabriz Company's alleged procurement of one set of 20,000-rpm spindles which are used for the operation of the DMC-3000 double-column machining center, from Taiwan-based Roundtop Machinery Industries Company Limited (NOTE: the Chinese name of the company is Chiao-Fu Machinery Industries Co., Ltd.) in October 2009. Explanations: ¶1. This letter is in response to a December 3, 2009 confidential document identified by AIT's reference number SS124113. ¶2. The following are BOFT's findings on the above-mentioned AIT confidential document. (a) By letter dated June 7, 2006, BOFT informed Roundtop Machinery Industries Company Limited that an export permit is necessary for exports of components/parts specifically designed for the operation of the above-mentioned machining center. BOFT also informed Roundtop that export permits would be required for exports of all commodities to Iran-based Machine Sati Tabriz Company. (b) To verify whether the above-mentioned machining center is a Wassenaar Arrangement (WA) controlled item, the SHTC Verification and Investigation Task Force of the Ministry of Economic Affairs (MOEA) reviewed the technical parameters of the machining center. According to the verification results, the model DMC-3000 double column machining center is not a WA controlled item. (c) With regard to Iran-based Machine Sati Tabriz Company's alleged procurement of one set of 20,000-rpm spindles from Taiwan-based Roundtop Machinery in October 2009, BOFT obtained information from both Taiwan Customs and Roundtop Machinery. The business records of Roundtop Machinery showed that two sets of spindles were sold to U.S.-based Absolute Machine Tools, Inc.: One set was shipped on December 30, 2009, and the second set has yet to be delivered. Taiwan Customs records confirmed the December shipment to Absolute Machine Tools. Customs found no other shipment of spindle by Roundtop. End translation. STANTON