EXTRANCHECK: POST SHIPMENT VERIFICATION: CHU KONG

UNCLAS HONG KONG 000236 USDOC FOR 532/OEA/ 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: CHU KONG TRANSSHIPMENT AND LOGISTIC REF: A) BIS e-mail request dated December 15,2010 (01210100) ¶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 Chu Kong Transshipment and Logistic Co., 1/F, 97 Ho Yeung St., Tuen Mun, N.T., Hong Kong (Chu Kong). The item in question for this PSV is flexible silicone rubber transmission line absorber exported to Chu Kong on or about June 8, 2009. According to the exporter, this item is classified under ECCN 1C001 and if properly classified, would require a license to both Hong Kong and China for national security (NS) and missile technology (MT) reasons. The exporter was Cuming Microwave Corporation of Avon, Massachusetts. ¶3. According to the Hong Kong Companies Registry, Chu Kong has been in existence since 1989. It is a freight forwarding company (www.cksd.com). Documentation provided by OEA reveals that the likely end user for this item is Mitac Computer (Shunde) Ltd., in Shunde, mainland China. Mitac is an IT company that produces various wireless and enterprise solutions products (www.mitac.com). It has a range of worldwide offices including some in the United States. ¶4. FCS Commercial Assistant Carrie Chan attempted, on several occasions, to arrange a meeting with Chu Kong. Mr. Xu, Wang, Logistic Department Manager, declined to meet with the ECO unless ECO was accompanied by Hong Kong Government officials. He stated that Chu Kong is a freight forwarder and had forwarded the item in question to Shunde. Ms. Xu stated that ECO should reach out to Mitac for additional information. ¶5. As it is clear that the item in question has been shipped to mainland China, ECO recommends that OEA request an official commodity classification for this item. ECO would not be surprised if the exporter has over-classified the item. Should the item be subject to control under ECCN 1C001, ECO will reach out to the Hong Kong government to assist in follow-up with Chu Kong. At OEA's request, ECO may reach out to the Hong Kong government regarding Chu Kong's unwillingness to meet irrespective of the final ECCN (ECO does not recommend such an approach).