BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK

UNCLAS STATE 012290 SIPDIS SIPDIS BUDAPEST FOR JON MARTINSON E.O. 12958: N/A TAGS: ETTC HU KOMC SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON LICENSE 05-050085871 ¶1. This is an Action Request. See paragraphs 2 - 4. ¶2. The Department's Office of Defense Trade Controls Compliance (PM/DTCC) requests Post's assistance in conducting a pre-license check on license 05-050085871 for the export of rifles and ammunition to Hungary. Post is requested to complete this Blue Lantern check within 30 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 authenticity of supporting documentation for past license requests has been questionable. The present license requests a quantity that exceeds end-user's entire imports of Remington rifles in ¶2007. ¶4. Action Request: Post is requested to establish the bona fides of end-user, Magnum Vadasz & Hajos Ltd, as a legitimate recipient of the United States Munitions List (USML) items listed below. Post should also question end-user on their familiarity with the International Traffic in Arms Regulation (ITAR). Additionally, Post should verify the validity of the Nontransfer and Use Certificate (DSP-83) and import documentation listed in paragraph 6. The following points are included for guidance: (To Magnum Vadasz & Hajos Ltd) -- How long has your company been in the business of importing and selling defense articles in Hungary? What services and products are sold by your company? Who are your regular customers and where do they reside? What were your total sales of Remington rifles in 2007? How many Remington rifles did you import in 2007? Are you familiar with the regulations governing the import of U.S.-origin defense articles, including restrictions on re-transfer or re-export? In its reply, Post may also comment on any other information pertinent to these transactions such as security of facilities, end-use, and concerns about the entities involved. . ¶5. Details of license application: DTC Case: 05-050085871 QUANTITY/COMMODITY: 345 Model 700 Bolt Action Rifles (.17-.458 caliber) 300 Model 770 Bolt Action Rifles (.17-.458 caliber) 50 Model Seven Bolt Action Rifles (.17-.458 caliber) 20 Model 7615 Pump Action Rifles (.17-.458 caliber) 25 Model 597 Autoloading (Not Automatic) Rifles (.17 & .22 caliber) 20 Model Five Bolt Action Rifles (.17 & .22 caliber) 30 Model 572 Pump Action Rifles (.22 caliber) 5 Model 552 Autoloading (Not Automatic) Rifles (.22 Caliber) 40 Model 7600 Pump Action Rifles (.17-.458 caliber) 25 Model R15VTR Autoloading (Not Automatic) Rifles (.17-.458 caliber) 10 Model 750 Autoloading Rifles (.17-.458 caliber) 3 Model 40X Bolt Action Rifles (.17-.458 caliber) 130 Model 715 Bolt Action Rifles (.17-.458 caliber) 5 Model 798 Bolt Action Rifles (.17-.458 caliber) 547,500 Centerfire Cartridges (.17-.458 caliber) 2,000,000 Rimfire Cartridges (.17 & .22 caliber) 200 Assorted Rifle Parts, Clips License Value: USD $1,232,830 SELLER: RACI Holdings, Inc Attn: Remington Arms Co. 870 Remington Drive PO Box 700 Madison, NC 27025 FOREIGN CONSIGNEE: Same as End-User FOREIGN END-USER: Magnum Vadasz & Hajos Ltd. Csanyi Krt. 55 2600 VAC Budapest, Hungary Tel: 00 36 1 414-1034 PURPOSE: For commercial resale in Hungary ¶6. Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Posts upon request): DSP-83 signed by Agnes Havanne Erdelyi dated 01/04/2008 and Tonya Frederick dated 01/24/2008 Foreign Trade Permit no. 3TE0400136 dated 12/20/2007 from the Ministry of Economy and Transport signed by Eszter Toth (translated by Agnes Haven) Purchase Order from Magnum Vadasz & Hajos, LTD dated 01/03/2008 ¶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