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

UNCLAS STATE 147604 SIPDIS SENSITIVE SIPDIS BUENOS AIRES FOR BRIAN JENSEN E.O. 12958: N/A TAGS: AR ETTC KOMC SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSE 05-996020 REF: 2006 BLUE LANTERN GUIDEBOOK ¶1. (U) This is an Action Request. See paragraphs 2 - 4. ¶2. (U) The Department's Office of Defense Trade Controls Compliance (PM/DTCC) requests Post's assistance in conducting a post-shipment check on license 05-996020 for the export of aircraft components to Argentina. Post is requested to complete this Blue Lantern check within 45 days. Lack of response to a Blue Lantern check will affect pending and future licenses involving parties to this license. ¶3. (SBU) Reason for Request: Alleged misrepresentation of end-use on previous license application (ref case 05-984996) raised suspicion regarding foreign consignee, Nell-Joy Ind Mendoza. Request is to confirm Nell-Joy's operation in Argentina and to assure United States Munitions List (USML) article, Audio Frequency Amplifier (Part No. 137777-02),is being used by the end-user for the purposes stated on the approved license. ¶4. (SBU) Action Request: Post should make appropriate inquiries to determine that the Audio Frequency Amplifier (Part No. 137777-02) listed below is being used in H-3 Sea King aircraft by the Argentine Joint Armed Forces. Post should also make appropriate inquiries, including a site visit, to substantiate the bona fides of Nell-Joy Ind Mendoza and to confirm its operation in Argentina. The following points may provide guidance: -- (To Nell-Joy Ind Mendoza) How long has Nell-Joy been in the business of importing and selling defense articles in Argentina? What services and products are sold by your company? Who are your regular customers and where do they reside? Are you familiar with the regulations governing the import of U.S.-origin defense articles, including restrictions on re-transfer or reexport? In its reply, Post may also comment on any other information pertinent to this transaction such as security of facilities and concerns about the company. ¶5. (U) Details of license application: DTC Case: 05-996020 QUANTITY/COMMODITY: 2 Bolts (Part No. S6120-65164-4) 2 Hose Assy. (Part No. SS45-1A110000) 1 Amplifier, Audio Frequency (Part No. 137777-02) 20 Packing (Part No. R130P247) 1 Kit, Rigging Var. Stat. (Part No. 21C4269G01) Several Other Items License Value: USD $34,239 SELLER: Nell-Joy Industries, Inc. 8 Reith Street Copiague, NY 11726 FOREIGN CONSIGNEE: Nell-Joy Ind Mendoza H.Yrigoyen 485-"9B" Cordoba, CBA X5000JHE Republica, Argentina FOREIGN END-USER: Argentine Joint Armed Forces Operative Purchasing Unit Azopardo 250, Ed. Libertador Buenos Aires, CP: C1107ADB PURPOSE: For use in Agusta-Sikorsky H-3 Sea King aircraft operated by the Argentine Navy. ¶6. (U) Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Posts upon request): Material of Purchase Order Letter from Nell-Joy Ind Mendoza dated 01/05/06 Letter of End-User Statement from Estado Mayor Conjunto de las Fuerzas Armadas dated 11/22/05 Purchase Order No. 0001-00010463 from Nell-Joy Ind Mendoza dated 11/16/05 Purchase Order No. 006955 from Nell Joy Industries dated 11/22/05 Permanent Export License Application 05-984996 from Nell-Joy Industries (returned without action) Purchase Order Nos. 006938 through 006943 and 006945 through 006952 from Nell-Joy Industries dated 11/18/05 Purchase Order Nos. 007043 and 007044 from Nell-Joy Industries dated 12/13/05 ¶7. (U) Please slug reply for PM/DTCC - BLUE LANTERN COORDINATOR and include the words "Blue Lantern" and the case number in the subject line. POC is Kyle M. Ballard, Phone: 202-663-1929; Email: BallardKM@state.gov. The Blue Lantern Guidebook (ref) is available as a PDF file in the Bunche Library's E-Book Collection on the DOS Intranet: http://virtuallibrary.state.gov/ BlueLanternGuidebook2006%2520 final .pdf ¶8. (U) Department is grateful for Post's assistance in this matter. RICE