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Viewing cable 06HONGKONG3591, EXTRANCHECK: POST SHIPMENT VERIFICATION: HONG

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Reference ID Created Released Classification Origin
06HONGKONG3591 2006-09-07 08:00 2011-08-23 00:00 UNCLASSIFIED Consulate Hong Kong
VZCZCXYZ0026
RR RUEHWEB

DE RUEHHK #3591 2500800
ZNR UUUUU ZZH
R 070800Z SEP 06
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 8499
RHMFIUU/HQ BICE WASHINGTON DC
UNCLAS HONG KONG 003591 
 
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: HONG 
KONG AERO ENGINE SERVICES LIMITED 
 
REF: A) USDOC 04150 
 
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) and Export Enforcement 
Special Agent (SA) John McKenna conducted a post 
shipment verification (PSV) at Hong Kong Aero Engine 
Services Limited (HAESL), 70 Chun Choi Street, Tseung 
Kwan O Industrial Estate, Hong Kong. The items in 
question are pressure transducers (model APTE-4RB-1625) 
exported to HAESL on May 3, 2006 and valued at USD 
28,500.  The ECCN listed on the SED is 2B230 and these 
items are controlled for nuclear nonproliferation and 
anti-terrorism reasons. The exporter is Transaero Inc., 
80 Crossways Park Drive, Woodbury, N.Y. (Transaero). 
 
3.  The ECO and SA McKenna visited HAESL on August 17, 
2006 and met with Maggie Leung, Procurement Assistant 
for HAESL. Ms. Leung provided background on HAESL and 
its business, which includes aircraft engine overhaul 
services (more background can be found at 
www.haesl.com).  HAESL is a joint venture between Rolls 
Royce, Hong Kong Aircraft Engineering Company and SIA 
Engineering Company. 
 
4.  Ms. Yeung provided extensive documentation showing 
that HAESL had received six pressure transducers (part 
# APTE-4RB-1625) and that these six transducers had all 
already been placed on recently overhauled aircraft 
engines, which are no longer at HAESL.  As a result, SA 
McKenna and the ECO were not able to view the 
transducers at the facility.  Note:  The SED provided 
to the ECO in anticipation of the check references only 
three transducers.  The remaining transducers where 
shipped on a different date than those referenced in 
the SED. 
 
5. Ms. Leung stated that the only commodity that HAESL 
purchases from transaero are the pressure transducers 
that are the subject of this check. Ms. Leung further 
stated that Rolls Royce is also a manufacturer of these 
pressure transducers and that normally HAESL purchases 
the transducers from them. 
 
6. Note: The ECCN cited by Transaero on the SED (2B230) 
would appear to require a license for export to Hong 
Kong even though the item was shipped NLR (No License 
Required).  The ECO recommends that an Outreach visit 
be conducted at Transaero to determine if Transaero is 
exporting its commodities in compliance with U.S. 
export regulations. The ECO also requests guidance on 
whether this item is controlled pursuant to 
NSG/Wassenaar control lists.  If yes, the ECO may reach 
out to the Hong Kong authorities on this matter as 
import of multilaterally controlled items absent a Hong 
Kong import license could represent a violation of Hong 
Kong law. 
 
7. At the time visited, HAESL appeared to be a suitable 
recipient of the commodities shipped since HAESL 
cooperated with the PSV and provided all requested 
documentation concerning the use and final disposition 
of the items.  At the same time, the ECO and SA McKenna 
were not able to inspect the subject items as they had 
already been incorporated into aircraft engines and 
shipped from the facility.  Consistent with guidance on 
reporting of PSVs where the items cannot be physically 
inspected, the ECO and SA McKenna recommend that this 
PSV be classified as Limited. 
 
CUNNINGHAM