Ding, Lim, and Cheng Indicted for Conspiring to Export to China

On September 26, 2008, usexportblog reported that BIS had issued a warning regarding the export of some rather mundane technology which could be used to support Iran nuclear proliferation activities. Among the technologies called out by BIS was the carbon fiber (ECCNs 1A002, 1C010, 1C210, and 1C990). On October 28, 2008, the District of Minnesota returned an indictment charging Jian Wei Ding, Kok Tong Lim, and Ping Cheng with conspiring to illegally export carbon fiber material to China. Also on October 28, 2008, the Department of Justice (DOJ) issued two press releases mentioning the indictment, BIS posted a third press release at its website on behalf of DOJ, and the FBI offered a fourth press release of the story. The District of Minnesota barely mentions the indictment among the recent filings posted to its website, and I have been unable to obtain a copy of the indictment.

According to the aforementioned press releases, Ping Cheng is a resident of New York and the sole shareholder of Prime Technology Corporation, which appears to be the same company to which the Department of Defense awarded a contract in 2007 for the procurement of nuts and washers. Jian Wei Ding and Kok Tong Lim are residents of Singapore and affiliated with FirmSpace (Singapore) Pte Ltd, purportedly a Singaporean import/export company which also seems to have an apparent interest in research and experimental development of electronics.

In an investigation conducted by BIS and ICE, it was allegedly discovered that Ding, Lim, and Cheng intended to illegally export carbon fiber material to the China Academy of Space Technology (CAST). The press releases state that CAST oversees research institutes working on spacecraft systems for the Government of China, but a quick study of CAST's website reveals that CAST currently also has a hand in supporting Pakistani satellite capabilities, and similar capabilities for the governments of Nigeria, Venezuela, and Brazil. The CAST website does not reveal any CAST involvement in missiles or uranium enrichment, although satellite and spacecraft launching technologies, in particular, frequently employ missile technology.

The press releases stress that carbon fiber material has "applications in aircraft, rockets, spacecraft, and [the] uranium enrichment process." Carbon fiber material also has applications in automobiles, bearings for any purpose, and bicycles. In fact, carbon fiber materials are receiving attention across various industries as a lightweight, fuel-efficient alternative to steel. ECCNs 1A002, 1C010, and 1C210 require licensing from BIS for exports to China unless the carbon fiber material falls within one of the list-based exclusions tied to the specific end uses called out under the associated ECCN. ECCN 1C990, in and of itself, would not require licensing from BIS for exports to China. BIS has suggested that carbon fiber material could fall under any of these four ECCNs, and, even for the initiated, navigating the CCL to find the correct classification for your carbon fiber material is among one of the more difficult self-classifications to proficiently execute. It will be interesting to read the indictment to see the theory under which BIS puts the screws to this Great Neck nuts and washers salesman.