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

UNCLAS STATE 123376 SIPDIS AMMAN FOR MARK E. WILSON ECON AMMAN FOR RAJEEV WADHWANI POLMIL E.O. 12958: N/A TAGS: ETTC KOMC JO IZ SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON AGREEMENT TA 0019-07B REF: BLUE LANTERN GUIDEBOOK 2006 ¶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 technical assistant agreement amendment TA 0019-07B for the transfer of technical data, hardware, and defense services necessary for intermediate maintenance and sustainment of the Iraqi Air Force's fleet of existing Mi-17 helicopters. 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 applications involving parties to this license. ¶3. Reason for request: PM/DTCC and the Defense Technology Security Administration have been unable to verify the existence of foreign licensee Rainbow Aircraft Parts International in Jordan. Post should make appropriate inquiries to verify the existence and the bona fides of Rainbow Aircraft Parts and confirm the legitimacy of the proposed transaction. The following questions are provided as suggested guidance: --Does the company have proper supporting documentation, including a contract with ARINC and/or the Iraqi Air Force, for this proposed transaction? --Will the company be handling or storing the United States Munitions List (USML) aircraft parts listed in the agreement? If so, does it have secure facilities and proper accounting and security procedures for handling these sensitive USML items? --When was the company established and who are its principals? How many and what types of employees (program managers, service technicians, etc.) does the company have? --Does the company appear in Jordanian business directories? Why does the company not have a website? --What is the nature of its business -- what types of items does it handle, does it serve as a broker? --What types of organizations are among its typical customers and where are the customers located? --Does the company understand the restrictions on United States Munitions List (USML) items, especially the prohibition against unauthorized re-transfers and re-exports? Finally, post is asked to assess whether the company appears to be a reliable recipient of USML items. End action. ¶4. For background, the following details of the license in question are provided: DTC Case: TA 0019-07B The previously approved agreement (TA 0019-07) and amendment (TA 0019-07A) authorized the permanent export of $188,000 worth of technical data, $7,468,000 worth of defense services, and $403,190 worth of defense articles ($15,000,000 total). Under the agreement, ARINC is responsible to train, assist, and provide hardware to the Iraqi Air Force (IqAF) for intermediate maintenance and sustainment of their Mi-17 helicopter fleet. Due to miscommunication, Rainbow was not listed on the two previous authorizations mentioned above, even though Rainbow is the primary contracting party with ARINC to provide defense services for the modification of the IqAF Mi-17 helicopters. The Jordanian company listed as a party to the agreement on the previous authorizations, Royal Wings, is in fact a sublicensee of Rainbow. U.S. APPLICANT: ARINC 2551 Riva Road Annapolis, MD 21401 Company contact: Mr. Bela Mariassy, Director Export Compliance Tel.: 800-633-6882 FOREIGN LICENSEE: Rainbow Aircraft Parts International Co. Petra Street, Huwwarah P.O. Box 4502 Irbid 21110 Jordan FOREIGN SUBLICENSEE: Royal Wings Amman International Airport Marka 11134, Amman P.O. Box 341018 Jordan FOREIGN END-USER: Iraqi Air Force TAJI Air Base Iraq Headquarters at Iraq Air Force (IqAF) Ministry of Defense Baghdad International Airport Baghdad Iraq ¶5. Submitted in support of the license application were the following documents (PM/DTCC can fax documentation to post upon request): --Letter from ARINC to PM/DDTC requesting proposed amendment, dated October 3, 2008, signed by Mr. Bela Mariassy, Director Export Compliance --Copy of proposed Technical Assistant Agreement between ARINC, IqAF, Royal Wings, and Rainbow Aviation ¶6. 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 Judd Stitziel, PM/DTCC, Phone: 202-663-3455; email: StitzielJD@state.gov; SIPRNET: StitzielJD@state.sgov.gov. The Blue Lantern Guidebook (ref) is available as a PDF file in the Bunche Library's Electronic Library collection on the DOS Intranet: http://virtuallibrary.state.gov/ BlueLanternGuidebook2006%2520 final .pdf ¶7. Department is grateful for post's assistance in this matter. RICE