BLUE LANTERN LEVEL 3: PRE-LICENSE END USE CHECK ON

UNCLAS LIMA 005445

SIPDIS

DEPT FOR PM/DTCC - BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: KOMC ETTC PE
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END USE CHECK ON
LICENSE #05-982280

REF: STATE 221386


1. Poloff met with Caddin S.A.C. (Caddin) Administrative
Manager (AM) Magdalena Paredes Guerra and Commercial Manager
Miguel Nopo Fernandez on 12/12 and visited the place of
business. Poloff also spoke with Director General (DG)
Alfonso Paredes Guerra by phone on 12/13. AM Paredes and GM
Paredes said Caddin has been in business for 18 years.
Caddin is registered under tax identification (RUC) number

20109709116. The tax database indicates they have been in
business since 4/26/1986, identifies GM Paredes as the legal
representative, and lists the same address for the business
as that in the license application information in reftel.


2. AM Paredes told poloff that all Caddin's customers are
Peruvian and include: the National Penitentiary Institute
(INPE); the Customs Agency; the branches of the Armed
Forces; private security companies including Orus, Prosegur,
and Hermes; and gun stores/distributors including el Halcon,
la Mela, and Adita Ching. AM Paredes said Caddin keeps
detailed records of sales and customers. AM Paredes
provided a printout list of clients and their recent
purchases indicating a legitimate customer base. Caddin is
regulated by the Directorate for the Control of Arms,
Munitions, and Explosives for Civil Use (DISCAMEC). AM and
GM Paredes said all imports and sales are conducted in
accordance with DISCAMEC regulations. AM Paredes added
these regulations require Caddin to sell ammunition only to
buyers with a license and with an allocation for the
munitions (e.g., a security guard can buy a net maximum of
only 600 units of ammunition/month.) She explained CADDIN
is required by DISCAMEC to record all transactions including
purchasers, license numbers and, in the case of shipments,
the license of the mandatory police escort for the shipment.


3. GM Paredes said the .223 caliber ammunition is generally
purchased by hunters of big animals like deer and puma and
by some of the security companies that protect valuables
like Prosegur and Hermes. He added that Caddin does not
sell much of this caliber, but does receive requests. GM
Paredes, expressing his desire to receive the shipment in
reftel said if the .223 caliber part of the order was
problematic, he would be willing to remove it from the
larger order.


4. Caddin has an on-site security system and is regularly
audited by DISCAMEC. Visual security inspection by Poloff
included a metal gate at entrance to building, a double
metal gate/cage entrance to the office within the building,
metal bars on windows, and alarms and motion detectors
linked to security service for when the office is closed.
AM Paredes said they follow all DISCAMEC requirements for
security. No/no security guard was present on-site, however
this is optional according to DISCAMEC documentation. AM
Paredes gave Poloff a copy of the most recent (10/19)
DISCAMEC one-page inspection sheet showing satisfactory
results.


5. Caddin gave Poloff a copy of a Permit from the Ministry
of Interior authorizing import of the munitions listed in
the license application information in reftel. The permit
also references a separate permit authorizing Caddin for the
commercialization of arms, munitions, and related articles
for civil use. NAS has a business relationship with Caddin
and their performance has been satisfactory. FCS also has a
working relationship with Caddin. The permit, the site
visit, the regulation of the company by DISCAMEC, and the 18-
year history of the company support the conclusion that
Caddin is a reliable recipient of USML items. Post can fax
Caddin documentation (including list of clients and recent
purchases, the DISCAMEC inspection sheet, and the
importation permit) to PM/DTCC upon request.

STRUBLE