US embassy cable - 05NEWDELHI8185

UNCLAS SECTION 01 OF 02 NEW DELHI 008185 
 
SIPDIS 
 
FOR DEPT FOR OFFICE OF INTERNATIONAL AFFAIRS, FOREIGN 
OPERATIONS DIVISION 
FOR DEPT OF CUSTOMS AND BORDER PROTECTION, CSI 
 
E.O. 12958: N/A 
TAGS: ASEC, KNNP, PARM, ENRG, IN, Energy 
SUBJECT: CONTAINER INSPECTION IN MUMBAI INDIA 
 
On October 7, 2005, while Department of Energy (DOE) 
installation engineers were analyzing archived system 
performance data from a newly installed DOE Radiation 
Portal Monitor (RPM) located at the Port of Colombo, Sri 
Lanka, it was discovered that a neutron radiation event was 
recorded when a container exited the Sri Lankan port two 
days earlier.  On October 13, 2005, container security 
initiative (CSI) personnel identified a group of containers 
that passed through the gate near the time of the alarm. 
The Department of Homeland Security (DHS), in conjunction 
with the DOE and others, narrowed the focus of the search 
to a conservative range of seventeen (17) possible 
containers.  One of the containers departed the port in Sri 
Lanka to the JNPT port in Mumbai, India.  DHS personnel at 
Headquarters requested the ICE Attach, New Delhi, India to 
travel to Mumbai to coordinate with Indian Customs and 
other relevant Government of India Officials to ascertain 
if the neutron radiation event was caused by that 
container.  The results are listed below as reported to 
Customs and Border Protection (CBP) and Immigration and 
Customs Enforcement (ICE) Headquarters by the ICE Attach, 
New Delhi, India. 
 
 
     REPORT  #1 - MUMBAI, INDIA - CONTAINER INSPECTION 
 
 
On October 17, 2005, ICE Attach James L. Dozier met with 
Mr. Najib Shah, Commissioner of Customs, Imports, 
Jawaharlal Nehru (JNPT) Customs House, Nhava-Sheva, Mumbai, 
India and various members of his staff on the inspection of 
container number CLHU2864014.  Also, Indian officials from 
the Atomic Energy Regulatory Board in a later meeting were 
apprised of the circumstances regarding the suspected 
container 
  1.   ICE Attach Dozier explained that the radiation alert 
     on the container in Colombo, Sri Lanka currently located in 
     Mumbai, India was allegedly caused by neutron radiation 
     from the container as registered by the equipment installed 
     by mega-port (Department of Energy) personnel in Colombo, 
     Sri Lanka. 
 
  2.   The detection equipment ascertained that the source 
     emitting the neutron radiation is believed to be located in 
     the center of the container. 
 
  3.   The ICE Attach communicated to Indian Customs and 
     Atomic Energy Regulatory Board officials that U.S. experts 
     recommend the following approach to evaluating the 
     container: 
 
     a.  Specific neutron detection equipment is required for 
         use on the container 
 
     b.  If a neutron reading is detected from the general 
         perusal of the outside of the container with the applicable 
         equipment, it is imperative that Indian officials not open 
         the container, but rather place the container in isolation 
         and assemble personnel with the expertise to determine the 
         next step. 
 
     c.  X-ray the container to identify the source of the 
         neutron reading. 
 
  4.   Personnel from Indian Customs and the Atomic Energy 
     Regulatory Board conducted inspection procedures on the 
     container consisting of the following: 
 
     a.  They perused the outside of the container with 
         equipment utilized to identify gamma rays.  The reason 
         provided by the subject matter expert is that neutron 
         radiation cannot exist without gamma rays.  The results of 
         the check on gamma radiation concluded in negative/minor 
         readings.  Indian Customs will provide the reading results 
         to the ICE Attach on October 18, 2005.  Indian Customs 
         requested officials with the Atomic Energy Regulatory Board 
         to conduct a check for neutron radiation with the 
         applicable equipment on October 18, 2005.  The officials 
         agreed to the request and the check will be conducted on 
         October 18, 2005.  As per their customary guidelines the 
         officials from the Atomic Energy Regulatory Board would not 
         allow the ICE attach to observe them inspecting the 
         container(s) utilizing the gamma or neutron radiation 
         equipment. 
     b.  The container was checked by an X-ray machine (NII 
         equipment - 400 capacity, Rapiscan equipment) in the early 
         PM of October 17, 2005.  The examinations and/or scanning 
         conducted on the container were negative regarding any 
         source/item other than scrap metal.  The assessment by the 
         Atomic Energy Regulatory Board personnel at this point is 
         there is no cause for alarm concerning neutron radiation 
         pertaining to the container. 
 
     c.  Indian Customs told ICE attach that the importer of 
         the stainless steel scrape metal shipment is SKM Steel 
         Limited, Nagpur, India.  The merchandise was destined for 
         Nagpur, India.  The company has a history of importing 
         scrap metal shipments from South Africa, Malaysia, and 
         Japan.  Indian Customs is unable at this time to ascertain 
         the country of origin of the shipment.  The information 
         they have is that the shipment was transshipped via 
         Colombo, Sri Lanka, but the country of origin is not listed 
         on the documents. 
 
     d.  Indian Customs also determined that another 
         shipment/container of stainless steel scrap metal was 
         shipped to Mumbai from Colombo, Sri Lanka on the same 
         vessel and by the same importer (SKM Steel Limited) of the 
         suspected container.  The other shipment was transported to 
         Mumbai from Colombo via container number CRXU1090624. 
 
     REPORT #2 - MUMBAI, INDIA - CONTAINER INSPECTION 
 
 
On October 18, 2005, officials from the Atomic Energy 
Regulatory Board, Government of India (GOI), conducted a 
check for neutron radiation on container numbers 
CLHU2864014 and CRXU1090624.  The equipment utilized was a 
Neutron REM Counter with a sensitivity level of 2.5 REM per 
hour and a distance of one meter.  The checks conducted by 
the aforementioned officials were negative.  The Atomic 
Energy Regulatory Board personnel concluded that a source 
or neutron radiation for container numbers CLHU2864014 and 
CRXU1090624 were negative and advised Indian Customs that 
it was safe to empty the contents of the containers. 
 
Indian Customs personnel removed the contents (stainless 
steel scrape metal) of the containers for inspection 
purposes.  Personnel with the Atomic Energy Regulatory 
Board again checked the merchandise inside the containers 
with negative results.  The ICE Attach viewed the 
stainless steel scrape metal during the latter stage of 
removal from the containers. 
 
Indian Customs conducted a check on SKM Steel Limited, 
Nagpur, India.  SKM Steel Limited is the company that 
imported the stainless steel scrap metal into the country. 
Subsequent checks for the past six months revealed that SKM 
imported fifteen (15) shipments of stainless steel scrape 
metal into India from Mexico, United Arab Emirates (UAE), 
Japan, Spain, Bangladesh, and Australia.  They are an 
established company in India. 
 
The country of origin for the merchandise in container 
numbers CLHU2864014 and CRXU1090624 is Bangladesh (city of 
Chittagong).  The bill of lading number for the merchandise 
is SCLDXBCGPNPR117. 
 
The ICE Attach was able to take pictures of the containers 
and the stainless steel metal scrap removed from the 
containers. The pictures will be forwarded via email 
attachment to Todd Horton and Mark J. Henry, Container 
Security Initiative, Washington D.C. 
 
Mulford