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

UNCLAS ABU DHABI 000797 SENSITIVE SIPDIS DEPARTMENT FOR PM/DTCC:TWATKINS E.O. 12958: N/A TAGS: KOMC ETTC US AE SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENCE 050056087 REF: A. STATE 05974 ¶B. STATE 64698 SENSITIVE BUT UNCLASSIFIED; PLEASE HANDLE ACCORDINGLY. ¶1. (U) On July 8, TDY ECONOFF and OFAC Treasury Attache met with Mr. Pierre Dupas, Managing Director of the Hassani Clearing and Forwarding (HCF) Company, regarding license 050056087 for a post-shipment end-use check on CH47C helicopter spare parts for the UAE Armed Forces General Headquarters (GHQ). ECONOFF explained the background for the visit and provided information on the U.S. munitions licensing system. Mr. Dupas expressed an understanding of the importance of U.S. Munitions List restrictions as well as a desire to work with the U.S. Government. ¶2. (SBU) HCF was incorporated in 1990 and has its head office in Abu Dhabi. The Managing Director of HCF, Mr. Dupas, is a French National but also holds a UAE passport. He has been living in the UAE since ¶1989. HCF has an 8000 square meter storage facility in Mina Zayed Free Zone as well as a bonded warehouse in Abu Dhabi International Airport. HCF does conduct other services including: offshore projects (submarine line services, diving and equipment, etc.), general cargo shipping, and packing but its major customer is currently the UAE Armed Forces. According to Mr. Dupas, HCF is the UAE Armed Forces exclusive forwarding agent. Mr. Dupas explained that HCF does not store any of the articles procured on behalf of the UAE Armed Forces at any of its warehouses. All articles are delivered straight to the UAE GHQ warehouse. Mr. Dupas stated that HCF is not allowed to handle or inspect the items upon delivery to the GHQ warehouse. The HCF contract with the UAE Armed Forces is "Delivery Duty Unpaid," in which delivery at the port of arrival in the UAE, without getting Customs clearance and without unloading the goods, fulfills HCF's obligation under the contract. Mr. Dupas says HCF checks the number of containers for conformity with shipping and L/C documents. ¶3. (SBU) Mr. Dupas added that GHQ does not have the capacity to order and track goods on its own and this is the primary reason for using HCF for the purposes of these types of transactions. (NOTE: Mr. Dupas also stated that the GHQ warehouse has no inventory control with all sorts of items, including munitions, scattered about. END NOTE.) Mr. Dupas expressed familiarity with U.S. regulations prohibiting re-transfers and re-exports without USG authorization. Mr. Dupas emphasized that he is willing to share any documentation the U.S. requires as part of these transactions, including the HCF's contract with the UAE Armed Forces, although he will have to put in a formal request to the UAEG before he can provide a copy. HCF has a fairly extensive website at http://www.hcf.co.ae/. ¶4. (SBU) Mr. Dupas stated that he was aware of the license for the CH47C helicopter spare parts and that they have been delivered to the UAE Armed Forces. Mr. Dupas produced invoices indicating delivery to LTN/II Kuhllood Abdulla, UAE, GHQ Armed Forces, Directorate General Purchasing. However, post has not yet been able to reach UAE GHQ to confirm delivery. Post has sent written inquiries and continues to follow-up with UAE GHQ on the delivery on the spare parts. Post will continue to follow up with GHQ on this matter and report septel. ¶5. (SBU) Although not part of this post-shipment verification license, Mr. Dupas went into some detail regarding license 730003856, which involved the shipment of several demonstration model KRISS submachine guns for the UAE Armed Forces. The items were apparently delivered to the UAE Armed Forces. Post can follow-up with the matter, if necessary. QUINN