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

UNCLAS STATE 135076 SIPDIS MADRID FOR E. STROTHER MURRAY AND BERLIN FOR SHANE M. PETERSEN E.O. 12958: N/A TAGS: ETTC KOMC SP GM SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON APPLICATION 050136522 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 050136522 for the export of M-113 component parts to Spain. 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 the Spanish MoD and unfamiliar foreign consignee, Zeltmann Import-Export GmbH. The company has appeared on previous licenses but the company's bona fides have not been established by a Blue Lantern check. ¶4. ACTION MADRID: Embassy is requested to make inquiries with appropriate host government officials to determine if the Spanish MoD (SMOD) ordered the M-113 component parts and if so, confirm that the articles will be used for the purpose stated on the license. Post is requested to exercise its contacts within the SMOD to verify this order. END ACTION. ¶5. ACTION BERLIN: Embassy is requested to make inquiries with appropriate host government officials in order to establish the bona fides of unfamiliar foreign consignee Zeltmann Import-Export GmbH (Zeltmann) and to verify 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. END ACTION The following questions are provided as suggested guidance: --Does the company have supporting documentation for this transaction? Are all of the USML parts going to the Spanish MoD? --Does the company have proper accounting and security procedures for handling USML items? --Will Zeltmann retain positive control over the M-113 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? --Does the company understand the prohibition against the unauthorized stockpiling of USML items? END ACTION ¶6. Details of license application: DTC Case: 050136522 QUANTITY/COMMODITY: 1 Spare parts and minor components used on M-113 amored personnel carriers License Value: USD 50,000.00 SELLER: International Parts Supply Corp. 7220 Ohms Lane Minneapolis, MN 55439 POC is Dan Everson, Tel. 952-832-0707 FOREIGN CONSIGNEE: Zeltmann Import-Export GmbH Postfach 43 D-76597 Loffenau Germany POC is Kurt Zeltmann, Tel. ( 49)07083/924828-7 FOREIGN END-USER: Spanish Army Ministerio de Defensa Direccion General de Armamento y Material E-28071 Madrid Madrid Spain No POC provided PURPOSE: Spare parts and minor components used for the repair and maintenance of M-113 armored personnel carriers. ¶7. Submitted in support of the license application was the following document (PM/DTCC can fax documentation to post upon request): --Purchase Order (no number provided) submitted by Zeltmann Import-Export GmbH, signed by Kurt Zeltmann on 12 November 2008 ¶8. 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 ¶9. Department is grateful for post's assistance in this matter. RICE