BLUE LANTERN LEVEL 3: PRE-LICENSE CHECK ON LICENSE 05-1014382

UNCLAS BAKU 000413 SIPDIS SIPDIS E.O. 12958: N/A TAGS: ETTC KOMC AJ SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE CHECK ON LICENSE 05-1014382 REFTEL: STATE 20662 ¶1. Reftel requested a pre-license end-use check to determine the reliability of Sulaco Consulting Engineering Co. for the export of ammunition to Azerbaijan. Sulaco Consulting Engineering Co. was listed on DTC license application 05-1014382 as the proposed consignee of 250 Winchester Cal 308 win 180 gr and 750 S&B Sellier and Bellot cal 380win. The application was submitted by Valor Corporation, 1001 Sawgrass Corporate Parkway, Sunrise, FL 33323, USA. ¶2. On March 27 Commercial Officer and Commercial FSN met with Mr. Elhan Hasanov, Director of the Browning Hunting Store, a retail store of Sulaco Consulting/Engineering Company. Mr. Hasanov himself was very forthcoming and readily communicated with us and answered all questions without hesitation. He also had an appreciation for the purpose of our visit. ¶3. Mr. Hasanov was able to confirm the order with Valor Corporation for 1000 bullets. The specific end-use of the ammunition is retail sale to client hunters. The security of their facilities was reviewed during our site visit to the hunting store, where a large safe deposit box for secure storage was shown to us in the back storage room. The store's back exit had a secure metal door. The store was authorized by the GOAJ to store and sell ammunition. ¶3. According to Mr. Hasanov, Sulaco has been in the hunting retail business since 1999. He met representatives of Valor Corporation during a hunting trade show in Germany. Sulaco had previously placed an order with Valor Corporation for rifles and that shipment was successfully delivered in December 2005. This time, representatives of Valor Corporation warned representatives of Sulaco that, because of the nature of the products, the latest ammunition order would have to be cleared by appropriate U.S. agencies. ¶4. Sulaco sells a whole range of hunting products, including rifles, ammunition, knives, fishing equipment, etc. Mr. Hasanov was informed of the restrictions prohibiting unauthorized re-export and confirmed that his order is for his hunting clients in Azerbaijan. When asked for a copy of Sulaco's license to import ammunition, he went to the file room and immediately produced a copy of the license from the Ministry of Internal Affairs to import 1000 Cal 308 ammunition. Mr. Hasanov brought to our attention the fact that the license would expire on 10 May 2007 and he requested our swift response to ensure their shipment is delivered before the license expires. However, he also noted that renewing the license would not be a problem. ¶5. Recommendation: Embassy recommends that the sale be permitted, as the intended purchaser meets all the requirements. DERSE