VZCZCXYZ0000
RR RUEHWEB

DE RUEHHK #2247/01 3440210
ZNR UUUUU ZZH
R 100210Z DEC 09
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 9126
RHMFIUU/HQ BICE WASHINGTON DC

UNCLAS HONG KONG 002247 
 
USDOC FOR 532/OEA/LHINES 
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: POST SHIPMENT VERIFICATION: COREZING 
INTERNATIONAL HK CO., LTD. 
 
REF: A) EUC request 01210082 B) EUC request 01210083 C) EUC request 
01210088 
 
¶1. Unauthorized disclosure of the information provided below is 
prohibited by Section 12C of the Export Administration Act. 
 
¶2. As per reftels A-C requests 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 
three post shipment verifications (PSVs) of shipments destined to 
Corezing International Co., Ltd., G/F, No. 89 Fuyan Street, Kwun 
Tong, Hong Kong.  The items in question for these PSVs are various 
semiconductors exported to Corezing on or about June 7, 2008, June 
27, 2008 and March 28, 2008.  For the shipment referenced in reftel 
C, the items are classified under Export Control Classification 
Number (ECCN) 3A001b2d, meaning that they are controlled for 
national security reasons and would require a license for 
export/reexport to mainland China but may be shipped license free if 
for use in Hong Kong.  The exporter for that shipment was Antennas 
and Components of Andover Massachusetts.  The remaining two 
shipments are classified by the exporter as EAR99 and, if properly 
classified, can be shipped to virtually all destinations and end 
users worldwide except sanctioned countries and restricted entities 
and individuals.  The exporter for these shipments was QPhotonics 
LLC, of Ann Arbor, Michigan. 
 
¶3.  According to the Hong Kong Companies Registry, Corezing has been 
in existence since July 2007.  Its paid up share capital is the Hong 
Kong equivalent of USD 65,000.  The Hong Kong Companies Registry 
lists Luo, Jie (with Mainland passport number 441481198206082304) 
and Zhou, Zhenyong (with Mainland passport number 
441900198910161558) as directors.  Corezing in Hong Kong is related 
to a range of Hong Kong and Singapore based companies.  Those 
companies are the subject of ongoing investigations and a recently 
published temporary denial order (TDO).  That TDO restricts the 
ability of those companies to acquire products that are subject to 
the Export Administration Regulations (EAR). 
 
¶4.  Background research on the address of Corezing (referenced 
above) revealed that it is the location of a RMB currency exchange 
booth later determined to be Chou Kee Money Exchange Co., an 
individual proprietorship established in October 2007.  The owner of 
the company is Mr. Lai, Cho Hing, with Hong Kong ID card #H3359761 
and a residential/business address of Flat/Rm B, 6/F, Lee Fung Bldg, 
315-319 Queen's Rd. Central, Sheung Wan, Hong Kong.  Chou Kee's 
phone number is (852) 2338-2916 and fax is (852) 2338 2917. 
 
¶5.  Prior to the meeting, Foreign Commercial Service (FCS) 
Commercial Assistant Carrie Chan received confirmation from Chow Kee 
contact person Ms. Lin that Chou Kee had received the three 
shipments referenced above.  Ms. Lin claimed to have no records 
associated with the shipments and stated that the shipments had been 
received as a favor for a friend.  Ms. Lin later clarified that the 
person was not a close friend and that Chou Kee no longer accepted 
shipments on behalf of this person.  That person was identified as a 
Ms. Luo with telephone number (86) 135 105 03709 who represents 
Corezing Shenzhen. 
 
¶6.  During an October 16, 2009, meeting, Ms. Lin stated (again) that 
she had received the three shipments in question and had done this 
service on behalf of a friend.  That friend was identified as Ms. 
Luo, Jie.  Ms. Lin believes that Ms. Luo may live in Shenzhen. 
 
¶7.  According to Mr. Chou (who stated that he is the boss of Chou 
Kee), Ms. Luo only came when there were packages coming.  Ms. Luo 
knew when the packages arrived and those packages never stayed at 
the premises of Chou Kee overnight.  Mr. Chou stated that he 
believes the items were destined for mainland China since that is 
where Ms. Luo is from.  Mr. Chou stated that Chou Kee no longer 
accepts packages on behalf of Ms. Luo.  He claimed that they are too 
busy to assist Ms. Luo.  Mr. Chou stated that Ms. Luo did not pay 
them.  Mr. Chou further stated that Ms. Luo took all documentation 
regarding the shipments with her when she picked up the packages. 
Mr. Chou claims that Chou Kee has no documentation regarding the 
shipments. 
 
¶8.  Mr. Chou stated that shipments arrived once every two to three 
months until they stopped over one year ago.  Sometimes those 
shipments came for Corezing and sometimes they were addressed to 
Chou Kee.  Mr. Chou stated that he did not know what was in the 
packages although at one point he stated that he had heard it was 
electronics.  When ECO stated that one package contained items 
valued at USD 100,000, Mr. Chou appeared genuinely surprised. 
 
¶9.  When asked about their relationship with Ms. Luo, Mr. Chou and 
Ms. Lin stated that Ms. Luo is a neighbor of their family in 
Shenzhen.  Mr. Chou and Ms. Lin both claimed not to know where Ms. 
Luo lives.  ECO believes Mr. Chou and Ms. Lin's statements 
 
 
 
minimizing their relationship with Ms. Luo are not credible. 
 
¶10.  By e-mail, Ms. Luo stated that she was unavailable to meet with 
the ECO as she travels extensively in mainland China and was 
therefore unable to come to Hong Kong.  Given Ms. Luo's past travels 
to Hong Kong and her apparent residence in Shenzhen, ECO does not 
find Ms. Luo's statements that she is unable to meet to be credible. 
 
 
¶11.  Ms. Luo provided some information by e-mail concerning the 
shipments.  As to the shipment referenced in reftel C (ITN: 
20080326057744), Ms. Luo stated that she was unable to find any 
information about this shipment (this is the more highly controlled 
shipment).  As to the shipments referenced in reftels A and B (ITN 
20080606051060 and 20080626029522), Ms. Luo stated that these items 
were destined for Sichuan Chengdu LingShen Co for use in laser 
medical equipment.  Ms. Luo also provided by e-mail a purported 
purchase order for these two transactions.  That purchase contract 
does not include an address or telephone number for the customer 
(ECO was unable to find any web reference to this company).  The 
purchase order also does not include any payment terms nor does it 
include any signatures.  For these and other reasons, ECO does not 
believe this purchase order to be a legitimate document. 
 
¶12.  ECO believes Corezing to be a unsuitable recipient of U.S. 
origin technology.  ECO recommends a close review of all shipments 
to Corezing and Chow Kee (and Chow Kee's address).