EXTRANCHECK: PRE-LICENSE CHECK: CHANCE

UNCLAS MOSCOW 011260 SIPDIS USDOC FOR 532/OEA/MHAMES/DMUSLU USDOC FOR 3150/USFCS/OIO/CEENIS/MCOSTA USDOC FOR 532/OEE/MO'BRIEN SIPDIS E.O. 12958: N/A TAGS: BEXP ETRD ETTC RS SUBJECT: EXTRANCHECK: PRE-LICENSE CHECK: CHANCE 2003LLC, KOSTROMA, RUSSIA, LICENSE NO. D363828 REFTEL: (a) USDOC 05125, (b) MOSCOW 006077 ¶1. Unauthorized disclosure of the information provided below is prohibited by Section 12C of the Export Administration Act. ¶2. Reftel requested a Pre-license check to determine the legitimacy and reliability of the end-user, Chance 2003 LLC, Kostroma, Russia. The company is listed on BIS license application D363828 as the ultimate consignee of 500 air pistols with red dot sight and flashlight. These items are controlled for missile technology reasons under ECCN EAR99. The licensee is Crossman Corporation, Routes 5 and 20, East Bloomfield, NY 14443. ¶3. On October 3, 2006, Export Control Attache Donald Pearce and FSN Natalya Shipitsina conducted the requested pre-license check at the offices of Chance 2003 LLC, 2, Elektrodnaya St., bld. 12-14, Moscow, Russia. The export control team met with Anatoly Shpatin, Commercial Director of Chance 2003, who is also the Director of the Moscow office. ¶4. The company was originally founded in 1999 as a supplier of Crossman brand air rifles. The company has been reorganized three times since inception, using the names Chance, Chance Plus, Chance 2003 and Chance Kostroma. Over the last three years, Chance has expanded to distribution of other hunting, fishing and outdoors equipment. The company also operates 8 retail outlets in Kostroma and one in Moscow under the brand name "Ohotnik" (hunter). The company has two new offices, one in Kostroma and a representation office and warehouse in Moscow. The company employs 150, with 15 in the Moscow office, 50 in the Kostroma headquarters, and the remainder in the retail stores. The company headquarters moved from its original location to the Kostroma Hotel, where they are renting the second floor of the hotel for temporary use as offices pending the completion of a two-story building with warehouse space in Kostroma. ¶5. The company plans to sell the air pistols to consumers in Moscow and Kostroma. Air pistols do not require licenses or permits from the Government of Russia, and therefore, the company is not required to keep detailed records of buyers. The company does log sales, but without specific customer identification. Mr. Shpatin is aware of U.S. export controls, and does not intend on exporting goods outside of Russia. ¶6. With regards to the Post-Shipment Verification (PSV) in reftel (b),Mr. Shpatin will review the records for the importation, which occurred in 2005. The records are kept at the company headquarters in Kostroma. Mr. Shpatin agreed to provide copies indicating the disposition of the commodities. ¶7. Recommendations: Post will recommend Chance 2003 LLC of Kostroma and Moscow, Russia, as reliable recipients of sensitive U.S. origin commodities, upon receipt of documents requested in regards to Post- Shipment Verification originally reported in reftel (b). It is requested that post be notified of final disposition of the application, and of any shipments for this organization in order to conduct appropriate FCS follow-up and statistical reporting. (FCS MOSCOW/SBOZEK/DPEARCE) BURNS