Cablegate: Exbs: Taiwan Monthly Reporting Cable - January 2010

VZCZCXYZ0001
PP RUEHWEB

DE RUEHIN #0143 0360928
ZNR UUUUU ZZH
P 050928Z FEB 10
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC PRIORITY 3279
RHMFIUU/USCBP WASHINGTON DC PRIORITY
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
INFO RUEHDE/AMCONSUL DUBAI 0005

UNCLAS AIT TAIPEI 000143

SENSITIVE
SIPDIS

STATE FOR ISN/ECC - JFRIEDMAN, ACHURCH, NJOHANSON, AND ROWEN
STATE FOR EAP/TC - NTALBOT, DPARKER, TMANN
STATE FOR ISN/MTR - PDURHAM, JMAYES, RGUGLIANI
DHS/CBP/INA FOR NRIVERA
DOE/NNSA/INECP FOR TPERRY AND SJONES

E.O. 12958: N/A
TAGS: ETTC MNUC PARM PREL KSTC KNNP PGOV ETRD TW IR
SUBJECT: EXBS: TAIWAN MONTHLY REPORTING CABLE - JANUARY 2010

I. BROAD ITEMS OF INTEREST TO ADVISORS AND AGENCY MANAGERS:

(U) On January 28, 2010, an online Chinese-language Central News
Agency article reported that a Taiwan customs broker and an exporter
were prosecuted for violating Taiwan's export control laws.
(U) Sales Manager Wu Yi-wu of LSA Cargo Forwarding Co. Ltd. (the
Chinese name of the company is Chia-Yu Forwarding Co. Ltd.) was
indicted for aiding Taiwan-based Axiomtek Co. Ltd. (the Chinese name
of the company is Ai-Xun Co. Ltd.) to illegally export a controlled
Strategic High Tech Commodity to Iran. The Taipei Prosecutor's
Office concluded the investigation today.

(U) The Prosecutor's Office deferred prosecution and imposed NTD
600,000 (approximately USD 18,750) in fines against Axiomtek.
Prosecution against Axiomtek's Area Sales Manager Lu Wen-juan, Sales
Representative Hsu Li-lan, and Shipping Specialist Wu Lin-yu, were
also deferred with fines of NTD 80,000 (approximately USD 2,500)
against Lu, and NTD 50,000 (approximately USD 1,562) against Hsu and
Wu.

(U) According to the Prosecutor's Office, Axiomtek agreed to export
controlled SHTC, including computer CPUs and industrial panel PCs,
during the period from January 2007 to May 2008. The items were to
be delivered directly via air freight from Taiwan to Iran, but
Axiomtek was unable to do so. Axiomtek then hired LSA Cargo
Forwarding to ship the goods from Taiwan to Hong Kong and then to
Iran.

(U) The Prosecutor's Office indicated that lenient penalties were
imposed against Axiomtek employees because this was their first
offense and they cooperated with the investigation.
II. TRAINING CONDUCTED DURING REPORTING PERIOD:

None

III. UPCOMING TRAINING:

1. (U) A Commodity Identification Instructor Training, implemented
by the Department of Energy, is scheduled for March 4 - 7, 2010

2. (U) A WMD Investigation and Prosecution Training, implemented by
the Department of Justice, is scheduled for March 10 - 12, 2010.

IV. UPCOMING MEETINGS:

1. (SBU) The Advisor will be in Washington, DC the week of March 15
for meetings/consultations.

2. (SBU) The Advisor will be attending the 2010 EXBS Advisors
Conference in Astana, Kazakhstan, the week of April 19.

V. RED FLAG ISSUES:

None.

POC for this report is Mi-Yong Kim, EXBS Advisor. Telephone +886 2
2162 2347.

STANTON

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