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

UNCLAS STATE 071695 SIPDIS BERLIN FOR SHANE PETERSEN E.O. 12958: N/A TAGS: ETTC KOMC GM SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON DISTRIBUTION AGREEMENT (DA) 2592-05 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-license check on distribution agreement (DA) 2592-05 for the export of defense services and technical data related to Application Specific Integrated Circuits (ASICs) to multiple foreign end users via Litef GmbH in Germany. 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: Concern that Litef GmbH, foreign signatory located in Germany, may be exceeding the scope of an agreement with U.S. applicant NXP Semiconductors USA, Inc., by selling ASICs to unauthorized end users. ¶4. ACTION: Embassy is requested to make inquiries with appropriate Litef officials to determine if the company is following the terms of the agreement authorizing the sale and distribution of Application Specific Integrated Circuits (ASICs) to approved end users. Department requests that Embassy contact Litef in order to assess its compliance with the terms of the agreement and obtain answers to the following questions: - Can Litef provide an annual sales report (with a list of all end users) covering each year since the DA was approved in 2005? - Are sales limited to the governments of the countries in the distribution territory? Approved end users include only the Ministries of Defense of the following countries: Australia, Bahrain, Belgium, Brazil, Brunei, Canada, Chile, Columbia, Denmark, Ecuador, Finland, France, Germany, Greece, Israel, Italy, Kuwait, Malaysia, Mexico, Netherlands, New Zealand, Norway, Oman, Peru, Philippines, Poland, Qatar, Saudi Arabia, Singapore, South Korea, Spain, Switzerland, Thailand, Turkey, UAE, and the United Kingdom. - Can Litef verify that no items have been exported to Russia, Venezuela, or Indonesia? - Is Litef performing any repair work for the end users? - Are the ASICs or other United States Munitions List (USML) items stored in a dedicated portion of the warehouse (and kept separate from non-USML items)? END ACTION. ¶5. Details of license application: DTC Case: DA 2592-05 COMMODITY: Technical data and hardware in support of Application Specific Integrated Circuits (ASICs) SELLER: NXP Semiconductors USA, Inc 1109 McKay Drive San Jose, CA 95131 FOREIGN PURCHASER: Litef GmbH Lorracher Str. 18 79115 Freiburg Germany ¶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 Watkins, Phone: 202-663-2814; Email: WatkinsTR@state.gov; SIPRNET: WatkinsTR@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