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

UNCLAS MANAGUA 001517 SIPDIS SIPDIS PM/DTCC REBECCA VALERIN, WHA/CEN E.O. 12958: N/A TAGS: NU KOMC ETTC SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON APPLICATIONS 05-997983, 05-997984 REF: SECSTATE 78987 ¶1. Summary: Econoff has performed the requested pre-license check on application 05-997983. El Caza y Pesca in Managua, Nicaragua, presents as a legitimate business selling weapons for legal, personal and home security use. The Nicaraguan National Police confirmed that the gun shop is a legitimate business authorized by the police to import weapons. Sales records show that the El Caza y Pesca sells both to individuals and companies, including security companies and other weapons purveyors. The Manager demonstrated familiarity with applicable Nicaraguan laws and regulations, and demonstrated compliance with United States Munitions List (USML) regulations, including restrictions on re-exporting. In post's assessment, this company is a reliable recipient of the USML items listed in REFTEL. End Summary ¶2. The business had been open approximately one year and is owned by Maria Rivera Centeno and Ana Maria de Chamorro. Econoff met with Manager Lizbiana Araica, who shared the shop's current license and registration. The shop is located on a busy main street and is open to the public. An armed guard is posted in front of the shop, and most weapons are kept behind the sales counter, many of them displayed in locked glass cases. Some weapons are mounted on the back wall of the shop behind the counter. The rest of the inventory is located in a closed room behind the counter and office space, which can only be entered from within the store. The door has a standard doorknob lock which was unlocked during the visit. When asked, Araica said that only she has the keys to the storage room and access is limited to herself and two sales associates. ¶3. The shop has imported ammunition and hand-cuffs from the U.S. previously, however, the REFTEL order from Valor marks their first effort to import U.S. rifles and revolvers. According to Araica, it is less expensive to import the weapons directly from the U.S. than to buy them locally, allowing the business to become more competitive. She feels that the weapons she has ordered are those most demanded by the Nicaraguan market and aims to increase sales by supplying them at a better price than her competitors. ¶4. Sales records show that the El Caza y Pesca sells both to individuals and companies, including security companies and other weapons purveyors. The shop keeps good records, recording the name, national identification number and address of the buyer and the serial number(s) and quantity of weapon or ammunition sold. Sales to or purchases from other companies are recorded both in the sales register and with a separate receipt of exchange that includes the number, type and serial number of each gun bought or sold. The business serves primarily the Managua area and the surrounding countryside. The shop does not sell used weapons. The request to import 80 weapons is consistent with the shops sales records, which showed an average monthly sales rate of between 10 and 20 weapons. ¶5. Araica showed a great familiarity with Nicaragua's gun control laws, explaining to Econoff the latest legal reforms. She even provided Econoff with a copy of the new Law 510 and the Nicaraguan National Police's promotional material regarding the law. Araica also showed familiarity and demonstrated compliance with applicable United States Munitions List (USML) regulations, including restrictions on re-exporting. ¶6. Comment: The manager was forthcoming in answering all questions and cooperative in providing requested records. In post's assessment, this company is a reliable recipient of the USML items listed in REFTEL. TRIVELLI