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