Reference ID: 06HONGKONG4628    

Created: 2006-12-04 09:11    

Released: 2011-08-30 01:44    

Classification: UNCLASSIFIED    

Origin: Consulate Hong Kong


                   

VZCZCXYZ0000

RR RUEHWEB


DE RUEHHK #4628 3380911

ZNR UUUUU ZZH

R 040911Z DEC 06

FM AMCONSUL HONG KONG

TO RUCPDOC/USDOC WASHDC

INFO RUEHC/SECSTATE WASHDC 9647

RHMFIUU/HQ BICE WASHINGTON DC


UNCLAS HONG KONG 004628

 

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: EMS-

ITC C/O BAX HUB

 

REF: A) USDOC 05848 B) HK 01748

 

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 EMS-ITC C/O BAX Global Logistics

Center, 38 Wang Lee Street, Yuen Long Industrial

Estate, Hong Kong (BAX Global).  The items in question

are parts for mobile phone assemblies valued at USD

41,200, classified under Export Control Classification

Number (ECCN) 5A991 and controlled for anti-terrorism

(AT) reasons.  If properly classified, these items may

be exported and reexported license-free to virtually

all destinations worldwide (except to restricted end-

users and end-uses and to designated terrorist

sponsoring countries). The exporter is Skyworks

Solutions Inc., of Calexico, California (Skyworks).

 

¶3.  The ECO visited BAX Global at the address

referenced above on November 28, 2006 and met with Ms.

Freda Ho, Customer Service Officer and assistant to Mr.

Jovi Liu, Operations Supervisor (Mr. Liu is the contact

person on the applicable invoices and export

documentation).  Ms. Ho provided background on BAX

Global and its business, which involves the provision

of third party supply chain management services to a

range of companies including Motorola, Flextronics,

Cisco, Nike, Liz Clayborne (more information at

www.baxworld.com).  In particular, BAX Global provides

such supply chain management services on behalf of two

Motorola subcontractor production facilities in

mainland China. According to Ms. Ho, ITC-EMS (the

consignee on the exporters Shippers Export Declaration)

stands for International Trading Center -- Electronics

Manufacturing Services, which is a division of Motorola

located in Singapore.  In other words, the items were

shipped to the Hong Kong logistics hub of a Motorola

division.  As described below, these items were

destined for use by a Motorola contractor in mainland

China.

 

¶4.  Ms. Ho stated that the shipment in question was

destined for Motorola subcontractor, Flextronics

Manufacturing HK Ltd., for use at a Flextronics

production facility in Doumen, mainland China (more

information concerning Flextronics available at

Flextronics.com).  This information is consistent with

background provided by Skyworks and forwarded to the

ECO by OEA.  Flextronics Manufacturing HK Ltd. was the

subject of a prior PSV referenced in reftel B.

 

¶5.  Ms. Ho provided documentation indicating that the

shipment had been received by BAX Global on September

3, 2006 and shipped to Flextronics, C/O DHL Logistics

(HK) Limited on September 5, 2006.  While the

documentation provided by Ms. Ho does not confirm

onward shipment to mainland China, it does reflect that

the items were shipped to Flextronics Manufacturing HK

Ltd, c/o DHL Logistics (HK) Limited, in Hong Kong.

 

¶6.  Ms. Ho volunteered that, from time to time, BAX

Global's supply chain management work involves the

forwarding of items on behalf of manufacturers for

which Hong Kong import and export licenses must be

obtained.  She requested more information about BIS

controls to better understand U.S. rules governing

trade in controlled commodities.

 

¶7. At the time visited, BAX Global appeared to be a

suitable recipient of the mobile phone assemblies (as

supply chain logistics provider) since BAX Global

cooperated with the PSV and provided all requested

information concerning the final disposition of the

items.  At the same time, the ECO was not able to

inspect the subject items as they had already been

delivered to Flextronics. Consistent with guidance on

reporting of PSVs where the items cannot be physically

inspected, the ECO recommends that this PSV be

classified as Limited.

 

Cunningham