VZCZCXYZ0013
RR RUEHWEB

DE RUEHHK #1540 2330911
ZNR UUUUU ZZH
R 200911Z AUG 08
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 5593
RHMFIUU/HQ BICE WASHINGTON DC

UNCLAS HONG KONG 001540 
 
USDOC FOR 532/OEA/LHINES/ADYSON 
USDOC FOR 3132 FOR FCS/OIO REGIONAL DIRECTOR PATRICK SANTILLO 
BICE FOR OFFICE OF STRATEGIC INVESTIGATIONS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: BMGT BEXP HK ETRD ETTC
SUBJECT: EXTRANCHECK: PRE LICENSE CHECK PEIPORT SCIENTIFIC LIMITED 
 
REF: A) USDOC 04056 B) D396546 
 
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 Peiport Scientific Limited, Room 1302, 
Westlands Centre, 20 Westlands Road, Quarry Bay, Hong Kong (Peiport 
Scientific). The item in question is a FLIR Gasfinder-LW thermal 
imaging camera that is the subject of export license application 
D396546. The item is classified under export control classification 
number (ECCN) 6A003 and is controlled for national security (NS) and 
nuclear non-proliferation (NP) reasons.  The license applicant is 
FLIR Systems, Inc. of Wilsonville, Oregon. 
 
¶3.  According to the Hong Kong Companies Registry, Peiport 
Scientific has been in existence since 1998.  Its paid up share 
capital is the Hong Kong equivalent of USD 350,000.  Hong Kong 
residents Wong, Kwan Lik and Yeung, Lun Ching are listed as 
directors. These two individuals are also directors in two 
additional companies, namely DNL Optoelec Systems Limited and 
Peiport Industries Limited. 
 
¶4. According to Peiport Scientific's web site (www.peiport.com), the 
company specializes in importing high tech and scientific 
instruments into China, Hong Kong and Macau.  It has technical 
support and sales offices in a range of cities in China including 
Beijing, Shanghai, Guangzhou, Chengdu, Wuhan, Xian and Lanzhou. 
 
¶5.  On August 14, 2008, ECO Philip Ankel visited the company and met 
with Ms. Debby Lo, Administration Manager and Mr. Roger Tam, Export 
Sales Manager, Gimbals Systems Department, Peiport Industries Ltd. 
Ms. Lo provided an overview of Peiport Scientific.  She stated that 
the company was established in 1990.  In earlier years, the company 
was a reseller of Agema infrared (the predecessor of FLIR) and now 
represents FLIR in the China region (FLIR is the resulting company 
of a merger between Agema and other similar companies in 1997).  Ms. 
Lo stated that the company had sold more than 2000 infrared cameras 
into mainland China and has been a FLIR distributor for over 10 
years.  Its primary customers for FLIR products are power utility 
companies and Peiport Scientific is the sole agent for FLIR cameras 
for power utility applications.  Peiport Scientific's other 
customers include universities and factories. 
 
¶6.  Ms. Lo and Mr. Tam provided additional information about the 
related companies referenced above.  Peiport Industries Ltd. (as 
distinct from Peiport Scientific) designs and produces its own 
products, often using FLIR products.  For example, the company 
produces vehicle based IR and UV systems (what Ms. Lo called 
integrated systems).  Also, Peiport Industries distributes certain 
small aircraft engines including those manufactured by Rotax, an 
Australian company (www.rotax-aircraft-engines.com).  DNL Optoelec 
Systems Ltd. is a service provider and provides inspection services 
using thermal imaging cameras and related products. 
 
¶7.  As to the specific camera in question, Ms. Lo stated that the 
company actually has three outstanding license applications for the 
same item.  Two are for electric power applications (Lanzhou High 
Voltage Substation Company and Chongquing Electric Power Test and 
Research Institute).  The various sales offices will use the third 
camera (that is the subject of this check) as a demonstration unit. 
According to Ms. Lo, the camera will be kept under the company's 
tight control.  The camera will not be loaned to prospective 
customers and will remain in the physical custody of the company. 
When not being used for demonstration purposes the camera will be 
kept under lock and key and will be subject to a log-in/out system. 
The camera will be transferred among the various offices according 
to a schedule fixed by the company to accommodate demonstration 
requests.  According to Ms. Lo, FLIR required that the company 
purchase a demonstration unit in keeping with its exclusive 
distribution arrangement. 
 
¶8.  At the time visited, Peiport Scientific appeared to be a 
suitable recipient of the subject commodity as it cooperated with 
the PLC and appears to have an appropriate commercial need for the 
item.  Peiport Scientific likewise confirmed that it will maintain 
physical custody of the item at all times.