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Cablegate: Extrancheck: Post Shipment Verification: Pemstar Singapore

VZCZCXYZ0002
RR RUEHWEB

DE RUEHHK #2226 2390328
ZNR UUUUU ZZH
R 270328Z AUG 07
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 2723
RHMFIUU/HQ BICE WASHINGTON DC
RUEHGP/AMEMBASSY SINGAPORE 3639

UNCLAS HONG KONG 002226

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: PEMSTAR SINGAPORE
PTE LTD

REF: A) USDOC 03972 B) D353774

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 a post shipment-verification (PSV) at Benchmark
Electronics Manufacturing Singapore Pte. Ltd., 2 Woodlands Sector 1,
NO. 01-21, Woodlands Spectrum, Singapore (Benchmark). This company is
the successor to the former Pemstar Singapore Pte. Ltd. referenced
in reftel A. The item in question is a single channel noncontact
measuring system exported on or about May 30, 2006 and valued at USD
3,714. The item is classified under Export Control Classification
Number (ECCN) 2B006 and controlled for national security (NS) and
nuclear nonproliferation (NP) reasons. The exporter was Lion
Precision of St. Paul, Minnesota.

3. According to the Singapore companies registry, Benchmark has
been in existence since 1998 (although its name was changed to
Benchmark Electronics Manufacturing Singapore Pte. Ltd. as of March
23, 2007). Its paid-up share capital is the Singapore equivalent of
USD 600,000. U.S. nationals Cary Tze Fu and Gayla Joyce Delly as
well as Singapore nationals, Ong Teik Lin and Lun Chee Leong are
listed as directors. The sole shareholder is listed as Benchmark
Electronics Manufacturing, Inc. of Rochester, Minnesota.

4. On June 20, 2007, the ECO visited the company and met with Mr.
Poh Cheng Chuan, Materials Director and Mr. Eric Ee, Senior
Engineer, Mechanical. Mr. Poh Cheng Chuan stated that the company
designs and manufactures semiconductor equipment including data
storage equipment. Its customers include Sun Micro.

5. Mr. Poh Cheng Chuan showed the ECO the applicable item (with
serial number 0602 7601). He stated that it is being used for
measuring the motion of air bearing spindles as part of the
company's design of multi-disk writers. Mr. Poh Cheng Chuan stated
that Benchmark's supplier, Scigate Automation Pte, had not informed
Benchmark of the applicable license conditions. He further stated
that Scigate is not a regular supplier for Benchmark. ECO provided
Benchmark with the applicable license conditions as well as
additional information on U.S. export/reexport controls.

6. At the time visited, Benchmark appeared to be a suitable
recipient of the commodities shipped since Benchmark cooperated with
the PSV, provided ECO with access to the item and operates a line of
business consistent with the item's use. However, in light of the
fact that Benchmark had not been informed of the applicable license
conditions as required by BIS license D353774, the ECO recommends
that this PSV be classified as Unfavorable.

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