VZCZCXYZ0001
RR RUEHWEB

DE RUEHHK #3068/01 3540740
ZNR UUUUU ZZH
R 200740Z DEC 07
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 3707
RHMFIUU/HQ BICE WASHINGTON DC

UNCLAS HONG KONG 003068 
 
SIPDIS 
 
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: POST SHIPMENT VERIFICATION: SCITOP INSTRUMENT 
CO. 
 
REF: A) USDOC 07857 B) D369652 C) D370796 D)D378078 
 
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 (PSV) at Scitop Instrumentation Co, 
Unit 2, 28/F, Kwong Kin Trade Centre, No. 5 Kin Fat St., New 
Territories, Hong Kong. The items in question are masks, glove boxes 
and valves exported to Scitop Instrumentation Co. on or about April 
21, 2007, March 24, 2007 and July 28, 2007. These items are 
classified under Export Control Classification Number (ECCN) 2B350 
and are controlled for chemical and biological weapons reasons (CB). 
 The exporter was Cole Parmer Instrument Company of Vernon Hills, 
Illinois. 
 
¶3.  Background research reveals that Scitop Instrumentation Co. 
exists in Hong Kong as Scitop Systems Limited (Scitop Systems). 
That company was registered in February 2003.  Hong Kong residents, 
Lee, Chi Keung, Leung, Tak Yui and Wong, Yuk Cheung are listed as 
directors.  The company has the Hong Kong equivalent of USD 1,000 in 
paid up share capital. 
 
¶4.  Scitop Systems director, Lee, Chi Keung is also a director in 
Right Products Trading Limited (Right Products). That company was 
established in 2002 and has the Hong Kong equivalent of less than 
one USD in paid up share capital.  Besides Mr. Lee, Hong Kong 
resident, Lock, Man Pan is also listed as a director of Right 
Products. 
 
¶5.  Scitop Systems director, Wong, Yuk Cheung, is also a director of 
Trade International Limited (also registered in February 2003) along 
with mainland Chinese citizen Yang, Yan Bin.  Trade International 
Limited has the same registered address as Scitop Systems.  The 
paid-up share capital of Trade International Limited is the Hong 
Kong equivalent of USD 300. 
 
¶6.  A review of Scitop Systems's web site (www.scitop.com) reveals 
that Scitop Systems is a distributor of a range of Cole Parmer and 
other instruments including items in the forensics/law enforcement 
arena as well as biological and biomedical products.  The site lists 
several offices in mainland China although some links to those 
locations are not operational.  The link listing Scitop Systems's 
office in Shenzhen links to a site for Right Products Trading 
Limited (with e-mail contact listed as www.rightproducts.com.hk). 
 
¶7.  On September 12, 2007, the ECO visited Scitop Systems at the 
Kwon Kin Trade Center address listed above and met with Mr. Andy 
Wong (Wong, Yuk Cheung), one of the directors of the company.  His 
business card lists subsidiary companies as On Tech Winfull Company 
Ltd. (Beijing), Scitop Instrument Company Ltd. (Guangzhou) and Right 
Products Company Ltd. (Shenzhen) as well as a sales office in 
Shanghai.  Mr. Wong stated Scitop Systems is a group of companies 
that trades filters, thermometers and testing equipment acquired 
from the U.S., U.K., and France.  Mr. Wong stated that for some 
companies, Scitop Systems is the authorized distributor (Cole Parmer 
being one of those) while for other companies it is an authorized 
dealer.  The company also operates using agents that bring it 
business while in other situations the customer comes directly to 
it. The company has been in existence for six years and its 
facilities include an office and a warehouse.  Mr. Wong stated that 
the offices in Shenzhen and Guangzhou are affiliated with the Hong 
Kong operation but he is unclear as to their ownership structure. 
Scitop Systems has approximately USD 2 million in annual turnover. 
 
 
¶8.  As to the specific transactions in question, Mr. Wong stated 
that Cole Parmer has stated to him that it may decline future 
licensed orders below a certain dollar threshold in light of the 
compliance costs associated with such orders.  He expects to receive 
that dollar figure soon.  For transactions where a license is 
required, Mr. Wong stated that he provides Cole Parmer with the 
standard end-user/end-use information requested by Cole Parmer. 
 
¶9.  D369652:  As to this transaction involving an order by the Hong 
Kong Health Laboratory, Mr. Wong provided documentation confirming 
the order and receipt of the Captair Pyramid Glove Bag by the Hong 
Kong Government. 
 
¶10.  D378078:  As to this transaction, Mr. Wong stated that the 
needle valves had been delivered to Right Products for resale to the 
Hong Kong University of Science and Technology.  He provided a 
delivery document confirming delivery to Right Products.  He stated 
that Scitop Systems has a longstanding and good relationship with 
Right Products.  He did not mention the shared directorship between 
Right Products and Scitop Systems.  When asked during a subsequent 
 
 
phone conversation whether the items had been sent to Right Products 
in Shenzhen, Mr. Wong stated that they had.  He stated that Right 
Products had informed him that the items were destined for the 
University of Science and Technology.  When the ECO inquired why a 
product destined for a Hong Kong University would be shipped to 
Shenzhen, Mr. Wong stated that often researchers come from the 
mainland to work in Hong Kong universities.  During a subsequent 
telephone conversation, Mr. Wong stated that the final destination 
of the products was not entirely clear to him. 
 
¶11.  D369652:  As to this transaction involving protective masks, 
Mr. Wong stated at the September meeting that this transaction 
involved a P.O. from 2006.  He stated that this P.O. was with the 
auditors who were completing the company's tax returns and he would 
again have access to them in late October.  On December 9, 2007, Mr. 
Wong e-mailed a copy of the invoice in question as well as e-mail 
correspondence between Scitop Instruments and an e-mail address of 
World Ways Co. (HK) Ltd. (Guangzhou@worldways.com.cn).  In that 
e-mail, the World Ways representative (presumably from that 
company's Guangzhou office) stated that the end-user for the items 
is Agricultural Tests & Supervises Institution of Dong Guan.  That 
entity's business is inspection and the end-use is listed as 
protecting.  Mr. Wong provided an additional invoice from Scitop 
Systems addressed to Guangzhou Gilson, which includes the applicable 
licensed items.  Despite a number of requests, Mr. Wong did not 
provide delivery documentation confirming actual delivery of the 
items. 
 
¶12.  World Ways has a Hong Kong affiliated company named World Ways 
Company (HongKong) Limited.  It was registered in 1969 and has the 
Hong Kong equivalent of USD 200,000 in paid-up capital.  Hong Kong 
residents Chou, Kin Wah, Chou Sun Wha Simon and Wong, Kwong Yung are 
listed as directors.  The web site of World Ways states that it is a 
distributor of Gilson products. 
 
¶13.  ECO recommends that OEA conduct a review of all shipments to 
Scitop Systems, Right Products and World Ways Company (HongKong) 
Limited as well as all shipments to the addresses of those 
companies.