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

UNCLAS STATE 133964 SIPDIS KUALA LUMPUR FOR WYNN S. PINKSTON AND BRASILIA FOR JOHN ERATH E.O. 12958: N/A TAGS: ETTC KOMC MY BR SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON APPLICATION 050136184 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 pre-shipment check on application 050136184 for the export of armor plating to Malaysia. 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: Lack of documentation from foreign end-user the Malaysian MoD and unfamiliar foreign consignee Avibras Industria Aerospacial Rodovia Presidente Dutra (Avibras). The company has appeared on previous licenses but the bona fides of the company have not been verified by a Blue Lantern check. ¶4. ACTION KUALA LUMPUR: Embassy is requested to make inquiries with appropriate host government officials to determine if the Malaysian MoD ordered the armor plating and if so, that the articles will be used for the purpose stated on the license. Post is requested to exercise its contacts within the Malaysian MoD to verify this order. END ACTION ¶5. ACTION BRASILIA: Department requests that Embassy make appropriate inquiries to verify the bona fides of foreign consignee Avibras, 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 8). 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? --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? --Does the company understand the prohibition against the unauthorized stockpiling of USML items? END ACTION ¶6. Details of license application: DTC Case: 050136184 QUANTITY/COMMODITY: 130 MIL A 46100 Revision D Armor Plate 25"x96"x288" License Value: USD 687,642.00 SELLER: Clifton Steel Company 16500 Rockside Rd. Maple Heights, OH 44137 POC is Jim Somogyi, Tel. 216-662-6111 ext.228 FOREIGN CONSIGNEE: Avibras Industria Aerospacial Rodovia Presidente Dutra KM 152.4 Predios P-01A P-05 Jardim Das Industrias Cep 12240-420 San Jose Dos Campos Brazil No POC provided FOREIGN INTERMEDIATE CONSIGNEE Avibras Industria Aerospacial Rodovia Presidente Dutra KM 152.4 Predios P-01A P-05 Jardim Das Industrias Cep 12240-420 San Jose Dos Campos Brazil No POC provided FOREIGN END-USER: Secretary General Ministry of Defense Procurement Division Jalan Padang Tembak Attn Pero-1 50634 Kuala Lumpur Kuala Lumpur Malaysia No POC provided PURPOSE: Armored vehicles for the protection of the Astros systems crew. The Astros is the vehicle for the Malaysian MLRS. ¶7. Submitted in support of the license application was the following document (PM/DTCC can fax documentation to post upon request): --Purchase Order No. 000174/08 submitted by Avibras on 3 November 2008, illegible signature ¶8. 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 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 ¶9. Department is grateful for post's assistance in this matter. RICE