Cablegate: Extrancheck: Post Shipment Verification: Chu Kong

VZCZCXYZ0007
RR RUEHWEB

DE RUEHHK #0236 0400004
ZNR UUUUU ZZH
R 090004Z FEB 10
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 9586
RHMFIUU/HQ BICE WASHINGTON DC

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).

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