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

UNCLAS STATE 129720 SIPDIS ALGIERS FOR LEIGH O'GUYNN AND PARIS FOR ERIC J. RUETER E.O. 12958: N/A TAGS: ETTC KOMC AG FR SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSE 050113393 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 post's assistance in conducting a post-shipment check on application 050115687 for the export of night vision device (NVD) component parts to Algeria. Post is 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: Lack of documentation from the end-user and unfamiliar foreign consignee, OCEA. The company has appeared on previous license applications but the bona fides of the company have not been verified by a Blue Lantern check. ¶4. ACTION ALGIERS: Embassy is requested to make inquiries with appropriate host government officials to confirm that the Algerian MoD has ordered and received the NVD component parts, and that the articles will be used for the purpose stated on the license. Automated Export System (AES) indicates that items worth $24,424 were shipped from the U.S. on the following dates: 8 units ($8,548) on 09/21/08, 9 units ($8,910) on 10/16/08, and 7 units ($6,930) on 10/26/08. ¶5. ACTION PARIS: Department also requests that Embassy make appropriate inquiries to verify the bona fides of foreign consignee OCEA, and to confirm the legitimacy of this transaction. PM/DTCC also requests that post conducts a site visit to the company in order to provide Department with an assessment of its business operations and on-site security. Finally, post is asked to assess whether the company appears to be a reliable recipient of USML items. If a site visit is not possible, please inform the PM/DTCC officer (see para 7). The following questions are provided as suggested guidance: --Does the company have supporting documentation for this proposed transaction? --Does the company have secure facilities and proper accounting and security procedures for handling sensitive USML items? --Will OCEA retain positive control over the NVD component parts at all times? --When was the company established and who are its principals? --What is the nature of its business -- what type of items does it handle, does it serve as a broker? --What type 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? END ACTION ¶5. Details of license application: DTC Case: 050113393 QUANTITY/COMMODITY: 8 4286-4561-00, AZ Motor 16 4286-4551-00, EL Motor License Value: USD 24,424.00 SELLER: Elmec, Inc. 229 Billerica Rd. Chelmsford, MA 01824 POC is Heather L. Borchers, Tel. 978-250-0084 ext. 130 FOREIGN CONSIGNEE: OCEA Quai de Mean Saint Nazaire France No POC provided, Tel. 33(0)2 51 76 01 00 Elbit Systems Electro-Optics Ltd.(ELOP) Advanced Technology Park Kiryat Weismann Rehovot Israel POC is Director of Material Management, Avi Shoham, No Tel. provided FOREIGN INTERMEDIATE CONSIGNEE ORION 8 Hamelacha Street Industrial Zone Lod Israel No POC provided Current Corporation 2933 Murray Street Port Moody, British Columbia Canada No POC provided Transclal Trade Ltd. 11 Pessach Lev Street Northern Industrial Zone Lod Israel No POC provided FOREIGN END-USER: Algeria Ministry of Defense Val d'Hydra BP 677 Alger Gare Algiers Algeria POC is Chiki Si Aissa, Tel. (213) 021 72 02 11 / (213) 021 90 51 89 PURPOSE: The motors will be used by ELOP for the Micro Compass (Night Navigator Micro). The Micro Compasses are for use on the 30m Coast Guard vessels that will be built at OCEA shipbuilding in Saint Nazaire, France. The Micro Compass will be installed on vessels for the Ministry of Defense in Algeria to operate in local seas on coastguard law enforcement duties and search or rescue operations. ¶6. Submitted in support of the license application were the following documents (PM/DTCC can fax documentation to post upon request): --Purchase Order No. P45865/B submitted by ELMEC, Inc. (an ELBIT company) on 26 June 2008, No signature provided --End-user Certificate submitted by Elbit Systems Electro Optics, signed by Director of Material Management, Avi Shoham on 10 July 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. PM/DTCC can fax documentation to post upon request. POC is Tim Mazzarelli, Phone: 202-663-3867; Email: MazzarelliTP@state.gov; SIPRNET: MazzarelliTP@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://buncheelectroniclibrary.state.gov/eboo ks/ BlueLanternGuidebook2006%20 final .pdf ¶8. Department is grateful for post's assistance in this matter. RICE