VZCZCXYZ0002
RR RUEHWEB
DE RUEHHK #1087/01 1680845
ZNR UUUUU ZZH
R 160845Z JUN 08
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 5100
RHMFIUU/HQ BICE WASHINGTON DC
UNCLAS HONG KONG 001087
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: WINSUNY TECH HK
LTD
REF: A) USDOC 03398
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) conducted
a post shipment-verification (PSV) at Winsuny HK Ltd., Rm. 145A
Chung Kiu Commercial Building, 47-51 Shantung Street, Hong Kong
(Winsuny). The items in question are semiconductors exported to
Winsuny on or about April 5, 2008 and valued at USD 3,296. 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 Rochester Electronics of
Newburyport, Massachusetts.
3. According to the Hong Kong Companies Registry, Winsuny has been
in existence since 2001. Its paid up share capital is the Hong Kong
equivalent of USD 500,000. Mainland China national Chen Long
(mainland ID 320626197603301439/DOB March 30,1976) is listed as the
sole director and shareholder. Chen Long acquired the shares of the
company in November 2006 from Huang Hong Wei. Neither individual
appears to be a director in any other company in Hong Kong.
4. A search of Winsuny's web page (www.winsuny.com) reveals that
the company is a electronics distributor. The site further states
that the company has additional offices in Shenzhen, Shanghai,
Beijing, Chengdu and Xian. It claims a staff of over 30 engineers
providing service to customers in Chinese telecom, industry,
military and aerospace markets. It claims military and space
customers including CASC and CETC, among others. It claims also to
represent a number of semiconductor and other electronics companies
including Intersil, Xilinx, TI and others. The company's Hong Kong
address listed on its web site is the location of a wide range of
companies, many unrelated to electronics.
5. Commercial Assistant Carrie Chan attempted for some time to
arrange a time to conduct the PSV. The Hong Kong number provided
for the company rolled to a mainland China number. Eventually, Ms.
Chan was able to establish with a Hong Kong contact, namely Jenney
who agreed to meet at the company's headquarters in Hong Kong. She
stated that the general manager of the company was on business
travel and would not be able to meet.
6. On June 5, 2008, ECO and Commercial Assistant Carrie Lam visited
Winsuny and met with Jenney (no last name or business card given),
purchasing manager (buyer) for the company. The meeting occurred at
the offices of a company secretarial service in a 25 square foot
room apparently used by Winsuny (Winsuny apparently rents a second,
similar size room in the same office complex). Jenney provided
background on Winsuny stating that it is a small electronics trading
company. She further stated that most of its business is in the
commercial and consumer fields. She noted that sometimes mil-spec
semiconductors (such as the items in question) are used in medical
equipment and oil field equipment. The company has sales agents in
Hong Kong and mainland China. She stated that when Winsuny orders
from Rochester, it does so from the Shanghai office of the company
rather than from Hong Kong Rochester distributors because the
Shanghai Rochester office provides better pricing terms.
7. As to the specific items in question, Jenney stated that she had
no purchase order to provide to the ECO because Winsuny had
purchased the items on behalf of a customer without a purchase
order. She stated that Winsuny had expected to receive an order but
that had not materialized. When ECO expressed skepticism about this
approach, Jenney stated that this was a long-standing customer and
that it is often necessary to act quickly to secure orders. Jenney
stated that no order ever actually materialized and, as a result,
she was able to show the ECO the items (marked as MG80C196KB-12/R
and Made in Malaysia). ECO doesn't know how it came to pass that
Winsuny still had the items in hand but does not believe that
Winsuny did not have a purchase order for these items.
8. When asked about the purported end-user listed on the end-use
certificate provided to Rochester (by Winsuny), Jenney stated she
had been told by the salesperson to enter the name (Cam-IC). ECO
was able to find a web site for a Cam-IC (www.cam-ic.com). The web
site includes a claim that the company manufactures full industry
and aerospace, rugged, commercial-off-the-shelf industrial control
boards. That site is a hodgepodge of language apparently lifted
from other web sites including the web site for CM Computer
(Cmcomputer.com), a military contractor and EG (www.urscorp.com),
another provider of various military and homeland security services
to the U.S. government. When asked whether she knew anything about
Cam-IC, Jenney stated that she did not. When asked why her name was
included as a contact for Cam-ic of that company's web site, Jenney
stated that the companies might be related but that she was unsure
as to why her name would be included as a contact for this company.
9. Winsuny is an entirely unsuitable recipient of U.S. origin
technology. ECO did not find the answers of Jenney to be credible.
In fact, ECO expects that all shipments to Winsuny are immediately
diverted to mainland China. ECO recommends a thorough review of all
shipments to Winsuny and its address. ECO also recommends that BIS
reach out to Rochester to determine what information it had on hand
when it shipped the items. Further, ECO requests that OEA confirm
the 3A001 classification of the shipment so that ECO may reach out
to Hong Kong TID concerning a potential violation of Hong Kong's
export control rules in connection with this shipment. Finally, ECO
recommends that Winsuny be added to the BIS Unverified List.