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

UNCLAS STATE 061076 SIPDIS SEOUL FOR HEATHER GRELL E.O. 12958: N/A TAGS: ETTC KOMC KS SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSE 050081569 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 Embassy's assistance in conducting a post-shipment check on license 050081569 for the export of spare aircraft component parts for the T-50, KF-16, F-15K, KT-1, KHP UH-60 and C-130 to South Korea. Embassy 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 South Korean Air Force (SKAF),and need to verify its relationship with unfamiliar foreign consignee, Kyonju Aerospace Electrical Systems Co., Ltd. (Kyonju). ¶4. ACTION: Embassy is requested to make inquiries with appropriate host government officials to determine if the SKAF has received the miscellaneous spare parts from Kyonju and that the articles are being used for the purpose stated on the license. Post is requested to exercise its contacts within the South Korean MOD to verify this order. The Department also requests that Embassy conduct a site visit to Kyonju in order to provide an assessment of its business operations, on-site security, and general reliability as a recipient of United States Munitions List (USML) items. Kyonju POC is Eun-Soo Kim, Deputy General Manager, Production Control Team, Telephone No. 054-770-9600. The following questions are offered as suggested guidance with Kyonju: Can Kyonju provide documentation from the SKAF establishing it as the end user of these items? Does the company have an established, legitimate customer base to which it plans to sell these commodities? Does the company keep proper, detailed records of its sales and customers? Does the company understand the restrictions on USML articles, particularly regarding re-export and retransfer? END ACTION. ¶5. Details of license application: DTC Case: 050081569 QUANTITY/COMMODITY: 1 Components, parts, accessories, attachments and associated equipment designed or modified for the maintenance of the following aircraft: T-50, KF-16, F-4, F-15K, KT-1, KHP UH-60 and C-130. License Value: USD 4,000,000 SELLER: CBOL Corporation 8944 Mason Ave. Chatsworth, CA 91311 FOREIGN CONSIGNEE: Kyonju Aerospace Electrical Systems Co., Ltd. 324 Moseo-RI, Gangdong-Myun Kyungju-City, Kyungbuk-Do KS FOREIGN INTERMEDIATE CONSIGNEE Korea Aerospace Industries 802, Yuchun-RI, Sanam-Myun Sachon-City, Kyungna KS FOREIGN END-USER: South Korea Ministry of National Defense 2-15, 2-KA Yongsan-Ku Seoul, 140-833 KS PURPOSE: Components, parts, accessories, attachments and associated equipment designed or modified for the maintenance of the following aircraft: T-50, KF-16, F-4, F-15K, KT-1, KHP UH-60 and C-130. ¶6. 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 ¶7. Department is grateful for Post's assistance in this matter. RICE