VZCZCXYZ0001
RR RUEHWEB

DE RUEHHK #0673/01 0991031
ZNR UUUUU ZZH
R 091031Z APR 09
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
RUEHC/SECSTATE WASHDC 7380
RHMFIUU/HQ BICE WASHINGTON DC
INFO RUEHBJ/AMEMBASSY BEIJING 3082
RUEHIN/AIT TAIPEI 0264

UNCLAS HONG KONG 000673 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/CM 
STATE FOR ISN 
USDOC FOR 532/OEA/LHINES ADYSON 
USDOC FOR 3132/FOR FCS/OIO SANTILLO 
BICE FOR OFFICE OF STRATEGIC INVESTIGATIONS 
 
E.O. 12958: N/A 
TAGS: BEXP ETRD ETTC PARM HK
SUBJECT: HKTID LETTER EMPHASIZES EXPORT CONTROL REQUIREMENTS 
 
¶1.  (SBU) Hong Kong Trade and Industry Department (HKTID) 
told us on April 2 that they have begun including with every 
import license for certain controlled electronic components 
(US 3A001) a letter that explains the  control requirements. 
 The licensee (importer) will be required to pass the letter 
to the recipient of the goods in Hong Kong.  The letter, in 
English and Chinese, explicitly states that the license only 
authorizes the import of the licensed goods into Hong Kong. 
Subsequent re-export of the goods to a destination outside of 
Hong Kong must be covered by a Hong Kong export license 
issued by HKTID.   The letter explains that U.S. origin 
strategic commodities (in this case - electronic components) 
may be imported into Hong Kong without a U.S. export license, 
but require a U.S. export license if exported to other 
destinations (i.e. mainlanQChina).  We believe that HKTID,s 
action is in response to recent BIS end-use checks and 
related cases involving diversion of U.S. origin electronics 
through Hong Kong to mainland China where higher licensing 
requirements apply.  While the direct impact on diversions of 
electronic components from Hong Kong to mainland China may be 
limited (the diverters are probably aware they are violating 
export control regulations and this letter will not stop 
them), the letter may make the eventual prosecution of 
diverters by the Hong Kong government more straight forward 
as it undermines the &ignorance of the licensing 
requirement8 defense. 
 
¶2.  Begin Text of HKTID Letter: 
 
Important Note on Import and Re-Export of Strategic 
Commodities of US Origin 
 
Import Licence No. 
 
This note should be read carefully by all recipients in Hong 
Kong of the consignment (or any part of the consignment) 
covered by the above Import Licence.  It should be passed to 
the new recipient of the goods whenever the goods are 
transferred in Hong Kong. 
 
(1) The above Import Licence only authorises the import of 
the goods.  Subsequent re-export of the goods to a 
destination outside Hong Kong must be covered by an export 
licence issued by the Director-General of Trade and Industry. 
 
(2)  Under the US export control regulations, US origin 
strategic commodities authorised to be exported to Hong Kong 
under U.S. licence exception may be subject to US individual 
licences when they are further re-exported to other 
destinations.  In some other cases, U.S. origin strategic 
commodities authorised to be exported to Hong Kong under US 
individual licences are not permitted to be re-exported to 
other destinations. 
 
(3)  Before arranging further re-export of strategic 
commodities which are originally authorised by the US 
authorities for export to Hong Kong for local consumption 
only, the relevant trader should ensure that there is an 
applicable licence exception or should seek re-export 
authorisation from the US authorities. 
 
(4) For enquiries on the application for strategic 
commodities licences in Hong Kong, please approach: 
Strategic Trade Control Branch of the Trade and Industry 
Department 
Tel:               2398 5575 
Email:            stc@tid.gov.hk 
Address:       Room 516B, 5F, Trade and Industry Department 
               Tower, 700 Nathan Road, Mongkok 
Website:       www.stc.tid.gov.hk 
 
For more details on the requirements for the import and 
export of strategic commodities of US origin, please refer to 
Strategic Trade Controls Circular No. 3/2009 available at the 
above website. 
 
(5)  For enquiries on the export control regulations of the 
US, please visit the website of the Bureau of Industry and 
Security (BIS) of the US Department of Commerce 
(www.bis.doc.gov). 
 
Strategic Trade Controls Branch 
Trade and Industry Department 
DONOVAN