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Viewing cable 08HONGKONG1000, EXTRANCHECK: PRE-LICENSE CHECK: ROTTER INTERNATIONAL

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Reference ID Created Released Classification Origin
08HONGKONG1000 2008-06-02 08:14 2011-08-23 00:00 UNCLASSIFIED Consulate Hong Kong
VZCZCXYZ0015
RR RUEHWEB

DE RUEHHK #1000 1540814
ZNR UUUUU ZZH
R 020814Z JUN 08
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 5003
RHMFIUU/HQ BICE WASHINGTON DC
UNCLAS HONG KONG 001000 
 
USDOC FOR 532/OEA/LHINES/ADYSON 
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: ROTTER INTERNATIONAL 
LIMITED 
 
REF: A) USDOC 03396 B) D397077 
 
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 pre-license check (PLC) at Rotter International Limited, 1019 
Hopesea Industrial Centre, 26 Lam Hing Street, Hong Kong (Rotter). 
The purpose of the visit was to determine the suitability of Rotter 
to be the ultimate consignee (but not end user) of various nylon 
restraint devices that are the subject of export license application 
D397077.  The items, classified under Export Control Classification 
Number 0A982, are valued at USD $800 and are controlled for crime 
control reasons (CC). The license applicant is Mae Group 
International of Upland, California. 
 
3. According to the Hong Kong Companies Registry, Rotter was 
registered in 1995. Its share capital is the Hong Kong equivalent of 
USD 250,000.  Hong Kong residents Man, Sau Kam, Wong, Siu Kei and 
Wong Siu Kwong are listed as directors.  The registered office of 
the company matches the physical location of the company's 
premises. 
 
4.  A review of Rotter's web site (www.rotter.com.hk) reveals that 
the company is a trading company that specializes in personal 
protective equipment (helmets, hazmat suits, etc.) as well as law 
enforcement equipment (including body armor, police helmets, 
camouflage gear, search and surveillance equipment, among others). 
It has a mainland China affiliate office in Guangzhou named Magma OS 
and EH Limited. 
 
5.  On May 29, 2008, ECO and Commercial Assistant Carrie Chan 
visited the company and met with Mr. Keith Wong, Administration 
Manager. He provided a general overview of the company consistent 
with the information noted above and on the company's web site.  He 
stated that Rotter is the authorized representative or sales agent 
of a range of U.S. and other manufacturers for a wide range of 
products.  He stated that the Guangzhou affiliate office focuses 
primarily on personal protective equipment related products. He 
provided ECO with a catalogue of the company's products including 
its law enforcement products.  That catalogue included body armor 
(including military assault armor), chemical protection suits, 
handcuffs, extendable batons and night vision equipment.  When asked 
about the various products that would likely require a license for 
export from the United States, Mr. Wong stated that he was well 
aware of U.S. export controls and noted that Rotter has no sales of 
night vision equipment (too hard to obtain licenses) and no longer 
sells extendable batons.  He stated that certain controlled products 
are also sourced from Europe and South Africa (the vests). 
 
6.  When asked about other co-located companies (Techflex 
International Ltd. and Techflex Trading), Mr. Wong explained that 
these companies are only common tenants and their businesses are 
separate. He stated that Techflex provides fall arresting systems as 
well as general personal protective equipment. 
 
7.  As to the specific items in question, Mr. Wong provided ECO with 
the originals of several documents including an End-User statement 
(with stamp) signed by Ms. Angie Woo of the Hong Kong Police 
Department as well as a non-transfer and use certificate.  Those 
documents provide that the Hong Kong Police Department is ordering 
20 units of two types of restraints for testing purposes.  Mr. Wong 
stated that a future order may be forthcoming but that the present 
order is only for sample purposes.  Mr. Wong was well prepared with 
the applicable documentation and his statements and representations 
were credible. 
 
8.  In light of the nature of Rotter's product line, ECO provided 
Mr. Wong with a detailed explanation of the restrictions on reexport 
of crime control items to mainland China as well as the fact that 
many of Rotter's products are controlled for export and reexport. 
Mr. Wong was quite familiar with the applicable export controls and 
affirmed his past compliance and commitment to further compliance 
with those rules. 
 
9. At this time, Rotter appears to be a suitable recipient of the 
subject controlled items since it cooperated with the PLC, provided 
appropriate records confirming the applicable order and affirmed its 
intent to comply with U.S. and Hong Kong export control laws. 
Nonetheless, given the company's mainland presence and its product 
mix, ECO recommends that any license (if granted) be linked to 
specific, verifiable, orders from appropriate end-users. 
 
Cunningham