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Viewing cable 07HONGKONG1746, EXTRANCHECK: PRE LICENSE CHECK: HS

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Reference ID Created Released Classification Origin
07HONGKONG1746 2007-06-28 09:47 2011-08-23 00:00 UNCLASSIFIED Consulate Hong Kong
VZCZCXYZ0002
RR RUEHWEB

DE RUEHHK #1746/01 1790947
ZNR UUUUU ZZH
R 280947Z JUN 07
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 2142
RHMFIUU/HQ BICE WASHINGTON DC
RUEHGP/AMEMBASSY SINGAPORE 3563
UNCLAS HONG KONG 001746 
 
SIPDIS 
 
USDOC FOR 532/OEA/MHAMES/LLAUCIUS 
USDOC FOR 3132 FOR FCS/OIO REGIONAL DIRECTOR 
WILLIAM ZARIT 
BICE FOR OFFICE OF STRATEGIC INVESTIGATIONS 
SINGAPORE FOR FCS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: BMGT BEXP ETRD ETTC HK
SUBJECT: EXTRANCHECK: PRE LICENSE CHECK:  HS 
INSPECTION PTE LTD. 
 
REF: A) USDOC 05665 B) D377090 
 
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), 
Regional Export Control Officer Philip Ankel (ECO) 
conducted a pre-license check (PLC) at HS 
Inspection Pte Ltd, BLK 3021, UBI Avenue 2, No 02- 
161, Singapore (HS Inspection).  The item in 
question is a thermacam PM 390 thermal imaging 
system valued at USD 15,000.  The item is 
classified under Export Control Classification 
Number (ECCN) 6A003 and controlled for national 
security (NS) and nuclear nonproliferation (NP) 
reasons.  The license applicant is FLIR Systems, 
Inc. of Wilsonville Oregon.  FLIR is requesting 
authorization to accept the camera from HS 
Inspection, repair it and return it to HS 
Inspection.  Since the camera was apparently 
transferred to HS Inspection in violation of the 
export license that authorized its export to HS 
Inspection's seller, FLIR is requesting permission 
to complete certain repairs on behalf of HS 
Inspection. 
 
3.  According to the Singapore companies registry, 
HS Inspection has been in existence since 1994. 
Its paid-up share capital is the Singapore 
equivalent of USD 65,000.  Singapore nationals, 
Peter Lim Wee Lee, Peng Wai Ng and Chng Young Huee 
Mdm are listed as directors.  The company registry 
lists Ng and Mdm each as 50 percent shareholders. 
 
4.  On June 21, 2007, the ECO, accompanied by 
Singapore Customs representative Kevin Boo, met 
with Peng Wai Ng (Terence), Senior NDT Specialist. 
Mr. Ng provided a short overview of HS Inspection, 
which is a Singapore-based non-destructive testing 
company.  The company conducts a range of 
nondestructive testing using infrared and 
ultrasound equipment and partial discharge testing 
methods.  Mr. Ng stated that he is one of the 
founders of the company, which has been in 
existence since 1994 (consistent with information 
in the companies registry).  The meeting was held 
in a small workshop, which is also the company's 
headquarters.  Mr. Ng provided a longer 
description of the company's history and present 
activities and showed the ECO the equipment HS 
Inspection uses in its testing work. Mr. Ng stated 
he was surprised that the ECO was coming to 
conduct a check on this particular item as he felt 
it is a quite old and outdated item and he 
recently received a much more up to date system 
(also pursuant to license) from the United States. 
 
5.  As to the specific item in question, Mr. Ng. 
stated that he will use the item for petrochemical 
furnace inspection.  He stated that while the item 
is old, its testing range is quite suitable for 
petrochemical furnace inspection. He is also in 
need of an additional camera since his business is 
growing and he presently has only one camera. 
 
6.  Mr. Ng stated that he purchased the item from 
a company in Indonesia (PT Hotspot Inspectindo 
Utama), which previously performed some testing 
services in Indonesia and was also an affiliate of 
a FLIR distributor (PT Tirta Saki).  Mr. Ng stated 
that since PT Hotspot Inspectindo Utama was doing 
poorly, it had elected to sell HS Inspection the 
unit at a good price (USD 12,000).  Ng claims to 
have obtained the camera in a cash transaction and 
has no documentation in relation to the sale.  The 
ECO explained that the transfer to Mr. Ng was 
likely completed in violation of the export 
administration regulations (EAR) and that the 
camera remained subject to the restrictions of the 
EAR.  The ECO also provided Mr. Ng with additional 
information about reexport controls.  Mr. Ng 
stated he understood that EAR requirements would 
 
 
apply and that he would review the reexport 
materials. 
 
7.  At the time visited, HS Inspection appeared to 
be a suitable recipient of the item in question 
since HS Inspection operates a line of business 
that is consistent with the item's potential use 
and understands its responsibilities under the 
EAR.  The ECO recommends that this PLC be 
classified as Favorable. 
 
Cunningham