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Cablegate: Extrancheck: Post Shipment Verification: Huawei Technology

VZCZCXYZ0009
RR RUEHWEB

DE RUEHHK #2785 3112323
ZNR UUUUU ZZH
R 072323Z NOV 07
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 3373
RHMFIUU/HQ BICE WASHINGTON DC

UNCLAS HONG KONG 002785

SIPDIS

USDOC FOR 532/OEA/LHINES/ADYSON
USDOC FOR 3132 FOR FCS/OIO REGIONAL DIRECTOR WILLIAM ZARIT
BICE FOR OFFICE OF STRATEGIC INVESTIGATIONS

SIPDIS

E.O. 12958: N/A
TAGS: BMGT BEXP HK ETRD ETTC
SUBJECT: EXTRANCHECK: POST SHIPMENT VERIFICATION: HUAWEI TECHNOLOGY

REF: A) USDOC 09058

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)
accompanied by Commercial Officer Brock Wilson, conducted a post
shipment-verification (PSV) at Huawei Technology Co. Ltd., 9/F,
Tower 2, Ever Gain Plaza, Tower 2, Hong Kong (Huawei Hong Kong). The
items in question are various integrated circuits exported to Huawei
Hong Kong on or about March 23, 2007 and valued at USD 10,902. On
the applicable shippers export declaration (SED), these items are
classified under export control classification number (ECCN) 3A001
and, if properly classified, would be controlled for national
security (NS) reasons. The exporter was Xilinx Inc. of San Jose
California.

3. A search of Huawei Hong Kong's web page reveals that Huawei is a
unit of mainland company Huawei, a well-known worldwide
telecommunications network hardware manufacturer. The company has a
range of product portfolios including mobile network, broadband,
IP-based, optical network, telecom valued added service and
terminal. More information is available at the company's web site,
www.huawei.com.

4. According to the Hong Kong Companies Registry, Huawei Hong Kong
was registered in 1992. Its paid up share capital is the Hong Kong
equivalent of USD 40,000. Hong Kong identity card holders Ma,
Cheung Hon and Ma, Cheung Kwai are listed as directors.

5. On October 17, 2007, ECO and Commercial Officer, Brock Wilson
met with Mr. Dickson Law, Warehouse Supervisor. He stated that
Huawei Hong Kong acts as a logistics hub for Huawei production
facilities in Shenzhen and elsewhere in mainland China. The company
has no production facilities in Hong Kong and, as a result, items
exported/reexported to Hong Kong can be expected to be sent to
mainland China production facilities. Mr. Law stated that Huawei
Hong Kong is well aware of U.S. and Hong Kong export controls and
has special staff dedicated to those controls.

6. As to the specific items in question, ECO notes that documents
provided by OEA indicate that the items in question are likely
classified under ECCN subparagraph 3A001A7A. This subparagraph is
subject to a license requirement to mainland China but is eligible
for a license exception is sent for civil end-use (license exception
CIV).

7. During the October 17, 2007 meeting, Mr. Law stated that he
would provide confirmation that the items had been forwarded to
Huawei production facilities. By subsequent e-mail, Mr. Law
provided documentation confirming that the items had been shipped
through to the company's Shenzhen production facilities. He
provided further confirmation that the items were destined for civil
end-use at the company's headquarters in Shenzhen. Finally, he
provided a copy of the Hong Kong export license covering the
reexport to mainland China. That license includes a civil end-use
requirement.

8. At the time visited, it appeared that Huawei Hong Kong has
procedures in place for complying with U.S. and other export
controls. It further appeared that the items had been forwarded to
Huawei's facilities in Shenzhen.

© Scoop Media

 
 
 
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