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

UNCLAS SECTION 01 OF 02 STATE 110204

SIPDIS
MOSCOW FOR NICKOLAS KATSAKIS
OTTAWA FOR LORI BALBI

E.O. 12958: N/A
TAGS: CA ETTC KOMC RS
SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK
ON LICENSE 050097822

REF: 2006 BLUE LANTERN GUIDEBOOK


1. This is an Action Request. See paragraphs 2 - 4.


2. The Department's Office of Defense Trade Controls
Compliance (PM/DTCC) requests Posts' assistance in conducting
a post-shipment check on license 050097822 for the export of
rifles to Canada. Posts are 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. Reason for Request: The license application lists Russian
company, Tulsky Oruzheiny Zavoid, as a manufacturer of
Winchester 'Wildcat' Rifles. However, PM/DDTC does not/not
have a manufacturing license agreement (MLA) on record, as
required under the International Traffic in Arms Regulation
(ITAR). PM/DDTC records indicate that more than twenty-five
(25) export licenses have been approved listing Tulsky
Oruzheiny Zavoid as the manufacturer of Winchester rifles.
This check is to determine what role Tulsky plays in the
manufacturing of Winchester rifles. This check is also to
establish the bona fides of Canadian end-user, The Gun Room
(Tel: 519-746-8139).


4. Action Request: Post Moscow is requested to determine the
role Tulsky Oruzheiny Zavoid plays in the manufacturing of
Winchester rifles by making appropriate inquiries to
representatives of the company. Post Ottawa is requested to
establish the bona fides of end-user, The Gun Room (Tel:
519-746-8139),by making appropriate inquiries to
representatives of the company. The following points are
included for guidance:

ACTION POST MOSCOW

(To Tulsky Oruzheiny Zavoid)

-- What is your company's relationship with Winchester and/or
BWA Inc.? What is your relationship to Japanese company,
Miroku Firearms MFG? Do you have a contract or agreement to
manufacture Winchester rifles? What are the terms of this
contract or agreement?

-- Are you aware of your obligation as a manufacturer of
United States Munitions List items under the International
Traffic in Arms Regulations (ITAR)?

ACTION POST OTTAWA

(To The Gun Room)

-- How long has The Gun Room been in the business of
importing and selling defense articles?

-- What services and products are sold by your company? Who
are your regular customers and where do they reside?

-- Can you confirm that your company received the defense
articles listed below?

-- Are you familiar with the restrictions against the
unauthorized re-export of US-origin defense articles?

In its reply, Posts may also comment on any other information
pertinent to these transactions such as security of
facilities and concerns about the entities involved.


5. Details of license application:

DTC Case: 050097822

QUANTITY/COMMODITY:

14 Winchester Wildcat Rifles, .22 Caliber

8 Winchester Centerfire Rifles, Model 70, Various Caliber


STATE 00110204 002 OF 002


License Value: USD $8,885

SELLER:

BWA Inc
One Browning Place
Morgan, UT 84050
636-287-6800

MANUFACTURERS OF COMMODITY

Tulsky Oruzheiny Zavoid
300002 Tula
Sovetskaja, Russia

Miroku Firearms MFG
537-1 Shinohara Nangoku City
Kochi Pref, Japan

FOREIGN CONSIGNEE:

Browning Canada Sports Ltd
5583 Chemin St Francois
St Laurent Quebec, Canada

FOREIGN END-USER:

The Gun Room
631 Colby Drive
Waterloo, Canada
Tel: 519-746-8139

PURPOSE:

To be shipped directly to Browning Canada and then forwarded
to their dealers for commercial resale in Canada.


6. Submitted in support of the license application were the
following documents (PM/DTCC will fax documentation to
Posts upon request):

Purchase Order No. 6528531 from The Gun Room dated 01/10/2008
signed by Frank Hiemstra

Import Certificate No. US0809850 dated 01/23/2008

DSP-83 signed by Shirley Harvey (BWA Inc) dated 04/03/2008,
Frank Hiemstra (The Gun Room) dated 01/10/2008, and C.
Lecompte (Browning Canada) dated 01/30/2008


7. 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; SIPRNET:
BallardKM@state.sgov.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. Department is grateful for Post's assistance in this
matter.
RICE