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Cablegate: Extrancheck: Post Shipment Verification: Allied Specialty

VZCZCXYZ0012
RR RUEHWEB

DE RUEHHK #1984 2110705
ZNR UUUUU ZZH
R 300705Z JUL 07
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 2440
RHMFIUU/HQ BICE WASHINGTON DC
RUEHGP/AMEMBASSY SINGAPORE 3604

UNCLAS HONG KONG 001984

SIPDIS

USDOC FOR 532/OEA/MNICKSON-DORSEY/LLAUCIUS
USDOC FOR 3132 FOR FCS/OIO REGIONAL DIRECTOR WILLIAM ZARIT
BICE FOR OFFICE OF STRATEGIC INVESTIGATIONS
SINGAPORE FOR FCS

SIPDIS

E.O. 12958: N/A
TAGS: BMGT BEXP ETRD ETTC HK
SUBJECT: EXTRANCHECK: POST SHIPMENT VERIFICATION: ALLIED SPECIALTY
COMPOUNDS PTE LTD

REF: A) USDOC 04423 B) D364246 C) USDOC 04880

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), Regional Export Control Officer Philip Ankel (ECO)
conducted two post shipment-verifications (PSVs) at Allied Specialty
Compounds Pte Ltd. 2304 Bedok Reservoir Road, No. 04-02B Bedok
Industrial Park C, Singapore (Allied Specialty Compounds). The
items in question for the first PSV are buckytubes tubular
fullerenes exported on or about December 22, 2006 and valued at USD
10,000. The items are classified under Export Control
Classification Number (ECCN) 1C010 and are controlled for national
security (NS) reasons. The exporter was Carbon Nanotechnologies
Inc., of Houston, Texas. The second PSV involved 15 lbs. Of HC 200
polystyrene with fibril nanotubes (ECCN 1C010 and value USD 420), 15
lbs of HC 600 poycarbonate with fibril nanotubes (ECCN 1C010 and
value USD 495) and 15 lbs. HC 600 polycarbonate with fibril
nanotubes (ECCN 1C010 and value USD 495). The exporter for these
items was Hyperion Catalysis Int'l of Cambridge, Massachusetts.

3. According to the Singapore Companies Registry, Allied Specialty
Compounds has been in existence since 1980. Its paid-up share
capital is the Singapore equivalent of approximately USD 600,000.
Singapore nationals, Soo Ye Wah, Lim Teck Yan and Phan Sin Chong are
listed as directors. More information is located at the company's
web site, www.ascpl.com.

4. On June 21, 2007, the ECO met with S.C. Phan, President, Toh Soo
Ling, Assistant R&D Manager and Li Yu Ying, Senior R&D Manager.
According to Mr. Pham, the business of Allied Specialty Compounds
involves the production of thermal/engineering plastics. The
company has compounding lines at the location visited by the ECO.
Plastics produced by the company are then delivered to ejection
molding companies for production. End-users for its products are
electronics, semi-con and automotive customers. In this instance,
the items are being used in R&D for the production of packaging
materials for semiconductors. Ms. Pham stated that customers like
Seagate and Western Digital are using very clean plastics as disk
separators. The items will be mixed with the plastic packaging
materials to enhance electrical conductivity (so that electrical
charges will not damage the contents).

5. Toh Soo Ling and Li Yu Ying provided the ECO with documentation
confirming receipt of the items and with a spreadsheet displaying
the amounts of the items that had already been used in R&D. They
also showed the ECO the remaining product that is stored in the
company's controlled storeroom.

6. At the time visited, Allied Specialty Compounds appeared to be a
suitable recipient of the commodities shipped since Allied Specialty
Compounds cooperated with these PSVs, provided the ECO with access
to the items and operates a line of business consistent with the use
of the items. The ECO recommends that these PSVs be classified as
Favorable.

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