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Viewing cable 06HONGKONG4628, EXTRANCHECK: POST SHIPMENT VERIFICATION: EMS-

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Reference ID Created Released Classification Origin
06HONGKONG4628 2006-12-04 09:11 2011-08-23 00:00 UNCLASSIFIED 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