BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON

UNCLAS SECTION 01 OF 02 HAMBURG 000046

SIPDIS

DEPARTMENT FOR PM/DTCC - BLUE LANTERN COORDINATOR;
SIPDIS

E.O. 12958: N/A
TAGS: KOMC ETTC US GM
SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON
LICENSES 05-1010712, 05-050024284, & 05-050028367

REF: A. A) STATE 53581


B. B) 03 BERLIN 479

C. C) 02 STATE 78812

HAMBURG 00000046 001.2 OF 002


Sensitive but Unclassified. Please protect accordingly.


1. (SBU) Summary: ConGen Hamburg Pol/Econ Officer and DHS ICE
Officer visited Heinz Henke - Hunting and Shooting Sport Inc. in
Werlte, Germany, on May 23 to perform a post-shipment end-use
check on licenses 05-1010712, 05-050024284, & 05-050028367 for
the export of rifles, rifle parts, pistol parts, triggers, and
ammunition to Germany. Officers spoke with Heinz Henke, founder
and owner of the company, and general manager Kerstin Blankmann.
Both Henke and Blankmann directly answered all of Pol/Econ Off
and ICE Off's questions regarding their trade with the U.S.,
products, customers, licensing, bookkeeping, and security
procedures. Officers inspected the facilities and received
copies of shipping receipts and sales for the products included
in the above listed licenses. End Summary.


2. (SBU) Prior to visiting Heinz Henke Inc., post inquired with
local law enforcement officials regarding the company's records
and reputation. The officials had recorded no derogatory
information to date on the company.


3. (SBU) On May 23 ConGen Hamburg Pol/Econ Off and DHS ICE Off
paid an unannounced visit to Heinz Henke Inc. Officers were
welcomed by the company founder/owner Heinz Henke and his
general manager Kerstin Blankmann. Heinz Henke Inc. is a
shooting/hunting supplies company. The majority of Henke's
customers are smaller hunting supply dealers/sports shops. A
small amount of their sales come from direct internet orders
from individuals. Henke publishes an annual catalogue, which he
supplies to his customers. The company's web page is:
www.Henke-online.de. Henke explained that he founded the
company in 1978 and started trading with the U.S. in 1981, in
particular with the U.S. company Leupold. Henke said he was
aware of U.S. export regulations and very familiar with U.S.
practice in the field. He maintains a regular trade
relationship with numerous U.S. hunting supply companies. Both
Henke and Blankmann stressed that they undergo all German
licensing requirements on a regular basis. They also require
that all of their customers provide the appropriate licenses for
the products they purchase as well as an EG IDENT number
(European tax number). Blankmann showed ConGen Officers
originals of the types of licenses their customers must provide.
Henke confirmed that the majority of their customers are
German, with a few customers in France, Italy, the Netherlands
and Portugal. He verified that all of the company's customers
were located within the EU. In a follow-up call on May 30,
Pol/Econ Specialist reiterated that according to U.S.
regulations there are licensing requirements for both exports as
well as re-exports. Furthermore, Pol/Econ Specialist pointed
out that U.S. regulations on re-exports apply to exports to all
countries, whether they are EU member states or not. Blankmann
confirmed in writing on June 14 that Henke Inc. is aware of
these licensing requirements. She also re-confirmed that Heinz
Henke Inc. was not exporting parts or complete weapons to non-EU
member states. Blankmann wrote that Heinz Henke Inc. did not
intend to re-export any of the articles contained in the three
licenses and had not applied for re-export licenses for those
products.


4. (SBU) Henke Inc. is currently located at Bahnhofstrasse 57 in
D-49757 Werlte, a former Telekom building. Henke explained that
the company was originally housed in his residence, but due to
business expansion and security concerns the business moved to
its current location in 1997. Henke bought the building in

2006. The entire complex is surrounded by a 7-foot fence topped
with barbed-wire and has a burglar alarm system throughout the
building. The business currently has 18 employees, although
about half are part-time. It maintains a fulltime accountant
and a computerized system of stock and sales. Henke explained
that all employees who handle weapons undergo a security
background check. Stock is stored on the ground floor of the
building, with offices on the second floor. Weapons and
ammunition are kept in a special gated room with steel
reinforcements, which Blankmann pointed out to ConGen Officers.


5. (SBU) Henke and Blankmann were able to quickly identify the
products received under the three licenses and produced original
invoices, customs documentation, shipping bills, and packaging
slips for the orders. Henke displayed an in-depth knowledge of
his stock and whether it had been sold or was still in the
warehouse.


6. (SBU) License 05-1010712: Henke confirmed receipt of the

HAMBURG 00000046 002.2 OF 002


pistol and rifle frames contender, barrels and cases. He stated
that this was the first time he had ordered these items, as this
particular design was new on the market and that he had a
personal interest in this type of weapon. Henke told Officers
that these particular items were at his home for testing and he
offered to retrieve them for Officers to view personally. He
verified that none of the items under this license had been sold.


7. (SBU) License 05-050028367: Henke also confirmed receipt of
these rifles from Savage Arms. He stated that Savage Arms had
sent the items to Henke for display at the International Weapons
Exposition (IWA) this past March in Nuremburg. According to
Henke, Savage Arms would like Henke to become its German
distributor. Henke verified that none of these items had been
sold and were all in storage in their warehouse.


8. (SBU) License 05-050024284: Henke confirmed receipt of the
replacement triggers from Shilen Rifles and stated that his
company regularly receives shipments from Shilen. Henke stated
that under German law customers are not required to show special
licensing in order to purchase triggers. He stated that some of
the triggers from this shipment were still in the warehouse and
procured one of them for ConGen Officers. Blankmann provided
ConGen Officers with documentation for the sale of some of the
triggers to customers. She also explained and documented that
17 of the triggers were being used for custom-designed rifles
that Henke Inc. produces and sells through its catalogue.


9. (U) Henke and Blankmann were very cooperative with ConGen
Officers and appeared pleased to have Officers visit their
facilities. Henke stated that the May 23 visit was the first
time he had been contacted by USG representatives. Henke not
only trades regularly with U.S. companies, he said, but also
travels to the U.S. at least once annually to attend trade shows
and meet with trading partners. He said that he had just
returned from Florida, where he had visited this year's Shot
Show in Orlando.


10. (U) This message has been coordinated with Embassy Berlin.
BUTCHER