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

UNCLAS SAN JOSE 000771 SIPDIS DEPT FOR PM/DTCC - BLUE LANTERN COORDINATOR E.O. 12958: N/A TAGS: ETTC KOMC CS SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK CONDUCTED ON LICENSE 050112184 REF: STATE 96188 ¶1. Per reftel request, on September 24, we met with Pablo Murillo, the owner of Electromecanica Pablo Murillo, and established the bona fides of the company. We also met with his business partner, Oldemar Echandi. As a result of this post-shipment check, we consider Electromecanica a legitimate recipient of United States Munitions List (USML) items. Murillo told us he was familiar with the regulations governing the import of U.S.-origin defense articles as well as the International Traffic in Arms Regulation (ITAR), regarding restrictions on re-transfer or re-export. ¶2. Electromecanica Pablo Murillo, located in San Jose, has been in business since 2004 importing and selling defense articles. The store is located above a veterinary clinic owned by Echandi's father. There is no sign indicating that the gunshop is located there so all customers are referred by word of mouth or local knowledge. ¶3. The gunshop maintains all proper paperwork on its customers and is in compliance with regulations of the Arms and Explosives section of the GOCR's Ministry of Public Security. All types of firearms are sold, including shotguns, rifles, and pistols. The 9mm pistol is the most sold firearm. In addition, Electromecanica sells a large variety of weapons accessories including munitions, clips, uniforms, flashlights, etc. They are official distributors of Sig Sauer and Smith & Wesson firearms in Costa Rica. ¶4. Electromecanica's primary customers are private security companies, other gunshops, or elements of the GOCR itself. These customers represent approximately 60 percent of their sales. The remaining 40 percent of sales are to private individuals. All are Costa Rican. ¶5. We assess the security of the premises as adequate and similar to other gunshops that we have visited in Costa Rica. They have a camera and alarm system that we verified is monitored by a private security company. Murillo told us they have never been robbed since they started business. (NOTE: Although located in a high-crime part of downtown San Jose, due to their location above a veterinary clinic, it is unlikely that many passersby would know of its existence. END NOTE.) They have two wardrobe-type storage vaults and one small, but wide vault located on the premises. Echandi told us they have another secure arms storage vault located off the premises. We did not visit that site. ======= COMMENT ======= ¶6. Both Murillo and Echandi seemed very well informed of the firearms business and clearly wanted to cooperate with us. They are aware of problems that other gunshops in Costa Rica have had with U.S. licenses, particularly Armeria Rex (a gunshop that has been found to be an unreliable user of USML in the past),which they emphasized had no dealings with them. Though some of their paperwork and customer tracking system seem inefficient, they are complete and in order. Of note, the post-shipment check was on 18 Sig Pistols that have not yet arrived because they are still in production in the U.S. CIANCHETTE