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

UNCLAS MANAGUA 000410 SIPDIS SIPDIS DEPT FOR PM/DTCC - BLUE LANTERN COORDINATOR E.O. 12958: N/A TAGS: ETTC KOMC NU SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON APPLICATION 05-985232 REF: STATE 10444 ¶1. ECONOFF has performed the requested pre-license check on application 05-985232. Giovanny's Gun Shop in Masaya, Nicaragua appears to be a thriving business selling weapons for legal, personal use. The Nicaraguan National Police (NNP) confirmed that the gun shop is owned by Giovanny Francisco Solis, and is registered and approved by the Government of Nicaragua as a weapons and ammunition vendor. NNP and USG interagency name checks on the proprietor did not reveal any derogatory information. Giovanny's Gun Shop has been in operation since July 2004. During a site visit to the gun shop, ECONOFF verified that the business sells personal weapons and ammunition for hunting, shooting, and home protection as well as supplies for outdoors enthusiasts. The shop is located on a busy commercial street and is open to the public. An armed guard is posted at the entry way and the weapons and ammunition are well secured. This is the business' first attempt to import weapons from the U.S. The shop previously imported guns from the Austrian weapons manufacturer GLOCK. The shop does not sell used weapons. ¶2. Sales records show that the shop sells weapons almost exclusively to individuals and these sales are for only one weapon. One sale of multiple rifles was made to the retailer PRICESMART. The request to import 270 rifles and shotguns is consistent with current sales levels for Giovanny's Gun Shop. The business sold 19 weapons in January of this year, which is slightly higher than average monthly sales for 2005. The business primarily serves people living in the cities of Masaya and Granada, as well as Department of Rivas. The owner's intention is to increase sales by expanding his product line to include U.S.-manufactured weapons. ¶3. Giovanny's Gun Shop showed evidence of complying with Nicaragua's stringent gun control laws. A poster outlining the law's provisions is displayed prominently in the shop. Purchasers must verify their identity with a properly issued government ID card. Complete biographic and address details of purchasers are recorded, maintained at the shop and submitted to the NNP. The owner demonstrated that he is familiar and in compliance with regulations on United States Munition List (USML) items, including on re-exporting. The gun shop does not yet have an importation license from the Government of Nicaragua because the owner is awaiting notification of approval for export from the United States. ¶4. Comment: The owners were very forthcoming in answering all questions and cooperative in providing all requested records to ECONOFF even though the site visit was not announced in advance. In post's assessment, this company is a reliable recipient of the USML items listed in REFTEL. TRIVELLI