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Viewing cable 07HONGKONG1068, EXTRANCHECK: POST SHIPMENT VERIFICATION:

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Reference ID Created Released Classification Origin
07HONGKONG1068 2007-04-19 02:42 2011-08-23 00:00 UNCLASSIFIED Consulate Hong Kong
VZCZCXYZ0003
RR RUEHWEB

DE RUEHHK #1068 1090242
ZNR UUUUU ZZH
R 190242Z APR 07
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 1348
RHMFIUU/HQ BICE WASHINGTON DC
UNCLAS HONG KONG 001068 
 
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: 
EASTERN DRAGON EXPRESS CO. LTD. 
 
REF: A) USDOC 01522 
 
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 at Eastern Dragon Express Company Limited, 
23 Man Lok Street, Unit C., 6th Floor, Kowloon, Hong 
Kong (Eastern Dragon).  The items in question are 
inductors exported to Eastern Dragon on or about 
September 8, 2006 and valued at USD 47,076.  On the 
applicable shippers export declaration (SED), these 
items are classified as EAR99.  Items properly 
classified as EAR99 may be exported/reexported to 
virtually all destinations and end-users worldwide, 
license free.  The exporter was Coilcraft, Inc. of 
Princeton, Illinois (www.coilcraft.com). 
 
3.  According to the Hong Kong Companies Registry, 
Eastern Dragon has been in existence since 1995.  It 
has nominal share capital (the equivalent of USD 10). 
The Commercial Registry lists Hong Kong Resident Card 
holders Pun Yue Lee and Siu Lung Keung as Directors. 
Another company with a similar name, Eastern Dragon 
Express (HK) Limited has been in existence since 2000. 
 One of its Directors is also Siu Lung Keung.  Another 
Director is listed as Shao Pin Keung.  This company's 
share capital is slightly higher, though still modest 
(the equivalent of USD 1250).  A profile of Eastern 
Dragon Express (HK) Ltd. on the Hong Kong Trade and 
Development Council's web site 
states that Eastern Dragon Express (HK) Ltd. is a full- 
service freight forwarding company with world-wide 
operations. 
 
4.  Commercial Assistant Sandy Lai attempted, on 
several occasions, to schedule the PSV with Eastern 
Dragon.  Eastern Dragon refused to meet with the ECO 
asserting that information about shipments is 
confidential and that Eastern Dragon would only share 
 
SIPDIS 
such information with officials from Hong Kong Customs. 
 After several additional calls and letters, Eastern 
Dragon agreed to meet. 
 
5.  On April 12, 2007, the ECO met with Mr. T.Y. Ling, 
Eastern Dragon's Planning and Development Manager at 
the address referenced above.  Mr. Ling stated that 
Eastern Dragon acts as a freight forwarder and that its 
primary client (yielding approximately 70 percent of 
sales) is Coilcraft.  Eastern Dragon acts, in part, as 
a freight consolidator for Coilcraft in that Coilcraft 
has several manufacturing plants in China and sends 
components for assembly to Hong Kong to be consolidated 
and shipped to those production facilities. 
 
6.  With respect to the shipment in question, Mr. Ling 
provided documentation showing that the items had been 
received by Eastern Dragon and subsequently shipped to 
Coilcraft's production facilities in Xian and Shenzhen, 
China. 
 
7.  In response to the ECO's question, Mr. Ling stated 
that certain collocated companies at the Eastern Dragon 
business offices are affiliated with the owner and rent 
space in the overall Eastern Dragon facility.  These 
companies are Kinetic Co. (HK), Mitax Electronics 
(H.K.) Company, Snow Garden International Development 
Limited, East Dragon Development and China Jet Express 
Group Ltd. 
 
8.  The ECO recommends that this check be categorized 
as Favorable.