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Viewing cable 07HONGKONG151, EXTRANCHECK: POST SHIPMENT VERIFICATION:

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Reference ID Created Released Classification Origin
07HONGKONG151 2007-01-17 09:10 2011-08-30 01:44 UNCLASSIFIED Consulate Hong Kong
VZCZCXYZ0007
RR RUEHWEB

DE RUEHHK #0151 0170910
ZNR UUUUU ZZH
R 170910Z JAN 07
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 0143
RHMFIUU/HQ BICE WASHINGTON DC
UNCLAS HONG KONG 000151 
 
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: 
GIATEK CORPORATION LIMITED 
 
REF: A) USDOC 06881 
 
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), accompanied by Commercial 
Assistant Sandy Lai, conducted a post shipment 
verification (PSV) at Giatek Coporation Limited 
(Giatek), Unit A, 9th Floor, Roxy Industrial Center, 
58-66 Tai Lin Pai Road, Kwai Chung, Hong Kong.  The 
items in question are monolithic analogic integrated 
circuits exported to Giatek on or about September 1, 
2006 and valued at USD 8,600.  While the export 
documentation for these items does not include an 
Export Control Classification Number (ECCN), related 
documentation provide by OEA (invoice) suggests that 
these items are likely 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 Texas Instruments, Inc. 
of Dallas Texas. 
 
3.  The ECO and Commercial Assistant visited Giatek at 
the address referenced above on January 8, 2007 and met 
with Terence Lee, Division Manager and Ms. Margo Tsang, 
HR and Administration Manager as well as export 
compliance manager.  Mr. Lee provided background on 
Giatek and its parent company, Yosun Group.  Yosun is a 
Taiwan listed company with close to 1,000 worldwide 
employees (600 in Hong Kong and mainland China). 
Giatek provides consulting and related equipment sales 
to mainland electronics manufacturing facilities.  The 
equipment sales are the logical outgrowth of the 
consulting business, which involves consulting on the 
best inputs for certain types of electronics 
manufacturing.  In particular, Giatek provides advice 
on appropriate inputs and then procures them on behalf 
of its clients.  More information on Yosun and Giatek 
may be found at www.yosungroup.com. 
 
4.  With respect to the shipment that was the subject 
of the PSV, Mr. Lee provided the applicable 
documentation reflecting that the items had been 
received by Giatek and subsequently resold to 
purchasers in Hong Kong. 
 
5.  Mr. Lee and Ms. Tsang also stated that Giatek 
complies with both U.S. and Hong Kong export licensing 
rules.  Ms. Tsang provided an English language copy of 
Giatek's "Export Control Management System".  That 
document is most unusual in this ECO's experience in 
that it incorporates many of the "best practices" 
associated with corporate internal compliance programs 
including lines of authority over export compliance 
matters, screening procedures for order taking that 
include checks against problematic end-uses and end- 
users as well as screening against BIS's denied parties 
lists.  The document also calls for ongoing training 
for employees in export compliance matters.  While the 
document is not perfect, it reflects a remarkable 
understanding of U.S. and Hong Kong export control 
rules by a Hong Kong company. 
 
6. At the time visited, Giatek appeared to be a 
suitable recipient of the commodities shipped since 
Giatek cooperated with the PSV and provided all 
requested information concerning the final disposition 
of the applicable items.  At the same time, the ECO was 
not able to inspect the subject items as they had 
already been delivered to Giatek's customers. 
Consistent with guidance on reporting of PSVs where the 
items cannot be physically inspected, the ECO 
recommends that this PSV be classified as Limited.