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Cablegate: Extrancheck: Post Shipment Verification:

VZCZCXYZ0009
RR RUEHWEB

DE RUEHHK #4298 3060719
ZNR UUUUU ZZH
R 020719Z NOV 06
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 9296
RHMFIUU/HQ BICE WASHINGTON DC

UNCLAS HONG KONG 004298

SIPDIS

USDOC FOR 532/OEA/LHINES/DFARROW
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:
SENGITAL LTD.

REF: A) USDOC 04720

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) and FCS Vice Consul Tyler
Warren conducted a post shipment verification (PSV) at
Sengital Ltd. (Sengital), Unit 207, Building 5, No. 6
Science Park West Avenue, Hong Kong. The items in
question are hybrid integrated circuits exported to
Sengital on June 6, 2006 and valued at USD 16,500. The
ECCN listed on the SED is 7A994 and these items are
controlled for anti-terrorism reasons. The exporter is
Kionix Inc. of Ithaca New York.

3. The ECO and Vice Consul Warren visited Sengital on
October 27, 2006 and met with Mr. Alan Lam, Chief
Technical Officer of Sengital. Mr. Lam provided
background on Sengital and its business, which includes
design and production of controllers for video games
(more background can be found at www.Sengital.com).

4. Mr. Lam stated that the integrated circuits had
been used in the production of hand held video game
controllers sold under the brand name E-Dimensional
(www.edimensional.com). These were produced at
Sengital's contract manufacturing facility in Shenzhen.
The integrated circuits supplied by Kionix include
motion sensing features which allows their use, in this
instance, in video game controllers that translate user
motion into computer action.

5. At the time visited, Sengital appeared to be a
suitable recipient of the commodities shipped since
Sengital cooperated with the PSV and provided all
requested information concerning the use and final
disposition of the items. At the same time, the ECO
and Vice Consul Warren were not able to inspect the
subject items as they had already been incorporated
into video game controllers. Consistent with guidance
on reporting of PSVs where the items cannot be
physically inspected, the ECO and Vice Consul Warren
recommend that this PSV be classified as Limited.

CUNNINGHAM

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