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Viewing cable 06HONGKONG4627, EXTRANCHECK: PRE-LICENSE CHECK: QUADRANT EPP

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Reference ID Created Released Classification Origin
06HONGKONG4627 2006-12-04 09:10 2011-08-23 00:00 UNCLASSIFIED Consulate Hong Kong
VZCZCXYZ0007
RR RUEHWEB

DE RUEHHK #4627/01 3380910
ZNR UUUUU ZZH
R 040910Z DEC 06
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 9645
RHMFIUU/HQ BICE WASHINGTON DC
UNCLAS HONG KONG 004627 
 
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: PRE-LICENSE CHECK: QUADRANT EPP 
ASIA PACIFIC LTD 
 
REF: A) 05604 
 
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 of the USDOC Bureau of 
Industry and Security (BIS), Export Control Officer 
Philip Ankel (ECO) conducted a pre-license check (PLC) 
at Quadrant EPP Asia Pacific Ltd., 108 Tai To Tsuen, 
Yuen Long, Hong Kong (Quadrant Hong Kong). The purpose 
of the visit was to determine the suitability of 
Quadrant Hong Kong to be a recipient of various 
advanced engineering plastics including: 
polyetheretherketron (PEE); polyamide-imide, titanium 
dioxide and polytetrafluoroethylene (PAI); polyamide- 
imide, graphite and polyterafluoroethylene (PI); 
polyamide-imide, fibrous glass, 
polytetrafluoroethylene; preimidized torlon 4000TF, 739 
DC glass fiber, PTFE-F5, Orcon CF linion R32595 carbon 
fiber; UIR-P resin and graphite 4735 that are the 
subject of license application D364932.  The items 
(ECCN 0A018) are valued at approximately USD 1.9 
million and are all controlled for regional stability 
(RS) reasons. The license applicant is Quadrant EPP, 
USA of Reading, Pennsylvania. 
 
3. On November 8, 2006, the ECO visited Quadrant Hong 
Kong at the address above and met with Mr. Raymond Ho, 
General Manager.  Quadrant Hong Kong is the Hong Kong 
subsidiary of Quadrant Engineering Plastic Products, a 
worldwide niche provider of various high-end plastic 
products.  More information on the Quadrant group of 
companies can be found at www.quadrantplastics.com. 
 
4.  Mr. Ho provided an overview presentation of the 
Quadrant group of companies and then discussed Quadrant 
Hong Kong's role in the overall group structure.  He 
stated that the Quadrant group produces a range of 
plastics including general engineering plastics as well 
as advanced engineering plastics (the subject of this 
check) that are highly corrosion resistant and can 
withstand very high temperatures.  Advanced engineering 
plastics are often used in the place of metals as they 
have greater heat and corrosion resistant properties 
and are not as abrasive. 
 
5.  According to Mr. Ho, Quadrant sells advanced 
engineering plastics to semiconductor producers that 
require replacement parts for semiconductor 
manufacturing machines.  These customers are located in 
the major semiconductor manufacturing centers in the 
region such as Singapore, Korea, Taiwan and Hong Kong. 
 He indicated that few customers are presently located 
in mainland China. Mr. Ho stressed that his company 
sells finished and semi finished plastics that cannot 
be reformed or changed from their existing state into 
items used for other applications (unlike the 
underlying resin used to make the plastics). 
 
6.  According to Mr. Ho, Quadrant Hong Kong acts as a 
stocking facility providing both inventory management 
and logistics services for the Quadrant group.  The 
facility observed by the ECO is a relatively small 
warehouse space without local production or apparent 
finishing capacity. 
 
7.  When asked about prior shipments of the items that 
are subject of the PLC, Mr. Ho stated that at least 
some of them had already been received by Quadrant Hong 
Kong.   Mr. Ho was not aware whether licenses had been 
obtained for such shipments.  The ECO recommends that 
further inquiry be made by BIS concerning past 
shipments to determine whether licenses were obtained, 
as appropriate.  Mr. Ho stressed that Quadrant intends 
to comply with U.S. export controls.  He expressed some 
concern that the delays inherent in the licensing 
process not undermine Quadrant's ability to serve this 
niche market where quick delivery of custom products is 
key. 
 
8. At the time visited, Quadrant Hong Kong appeared to 
be a suitable recipient of the subject controlled items 
since it cooperated fully with the PLC and provided 
substantial information on Quadrant Hong Kong's 
proposed use of the item in Hong Kong and the region. 
 
 
In addition, Quadrant Hong Kong operates a line a 
business that is consistent with the potential use of 
the ordered item.  The ECO recommends that any 
licensing decision regarding Quadrant Hong Kong take 
into consideration the fact that Quadrant Hong Kong is 
an intermediary and not the end-user of the items it 
receives.  The ECO recommends that this PLC be 
classified as Favorable. 
 
Cunningham