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

UNCLAS STATE 076746 SIPDIS WELLINGTON FOR THOMAS WALSH ECON AIT TAIPEI FOR O'CONNOR MATTHEW ECON E.O. 12958: N/A TAGS: ETTC KOMC NZ TW SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSE 05-050095335 AND 05-050097129 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 Wellington and AIT Taipei's assistance in conducting a post-shipment check on license 05-050095335 for the export of 16L401-21; SHIM to Taiwan and on license 05-050097129 for the export of spare parts for multiple aircraft platforms to Taiwan. Embassy Wellington and AIT Taipei are 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 these licenses. ¶3. Reason for request: Questionable routing to Taiwan via New Zealand and unfamiliar foreign intermediate consignee, Custom Aeronautical Solutions (CAS). ¶4. ACTION AIT Taipei: Department requests that AIT contact the Taiwan MOD and verify its order for the items listed on both license applications and provide information of its relationship with the New Zealand company CAS. END ACTION AIT Taipei. ACTION Wellington: Department requests that Embassy conduct a site visit to Custom Aeronautical Solutions (POC: Emma Niu, Sales Manager, Tel #: 64 3 355 2223, Email: emma@customaero.co.nz) in order to assess its business operations, on-site security, and general reliability as a recipient of United States Munitions List (USML) items. The following questions are offered as suggested guidance with CAS: - Can the company provide documentation from the Taiwan Air Force, the Taiwan Naval Logistics Command, and the Taiwan Army Logistics Command (e.g. purchase order, contract, or letter of intent) establishing them as the final end users of these items? - What is the company's exact role in these transactions? - Who are the company's main clients? - Does the company keep proper, detailed records of its sales and customers? - Does the company understand the restrictions on United States Munitions List (USML) articles, particularly regarding re-export and retransfer? If a site visit is not possible, please inform PM/DTCC case officer. End Action Wellington. ¶5. Details of license applications: ¶A. DTC Case: 05-050095335 
 QUANTITY/COMMODITY: 13 16L401-21; SHIM License Value: USD $234.00 SELLER: MAC Aerospace Corporation 14558 Lee Road Chantilly, VA 20151 703-885-8096 FOREIGN CONSIGNEE: Custom Aerospace Corporation 46 Maunsell Street Woolston, Christchurch NZ FOREIGN END-USER: Taiwan Air Force NO.55, SEC.3, Ten-Ai Roadda-An District Taipei City 106 TW PURPOSE: Minor part and component to be used on the Indigenous Defense Fighter (IDF) aircraft operated by the Taiwan Air Force. ¶B. DTC Case: 05-050097129 QUANTITY/COMMODITY: 1 SPARE PARTS FOR AT-3 AIRCRAFT, T-34 AIRCRAFT, S-70C AIRCRAFT, F-CK1 (IDF) AIRCRAFT, F-5 AIRCRAFT, F-16 AIRCRAFT, E-2T AIRCRAFT, B-1900 AIRCRAFT, C-130 HERCULES, FOKKER-50, UH-1H, OH-58D, AH-1W, CH-47, S-2T, AND 500 MD License Value: USD $ 4,000,000.00 SELLER: S.O.I. Aviation 23965 Ventura Blvd. Calabasas, CA 91302 818-591-3166 ext. 218 FOREIGN CONSIGNEE: AIDC/Aerospace Industrial Development Corporation/Ministry of Economic Affairs 111-17 Lane 68 Fu-Hsing N. Road Taichung 407 TW FOREIGN INTERMEDIATE CONSIGNEE: Custom Aeronautical Solutions 46/3 Maunsell Street Woolston 8014 Christchurch NZ FOREIGN END-USER: Taiwan Naval Logistics Command 20 Je-So Road Tsoying Kaohsuing TW Taiwan Air Force NO 55 Sec 3, Ren-Ai Road Da-An District Taipei City TW Army Logistics Command 100 Section San-Lin Chung Cheng Road Lung-Tan Village Taotyan TW PURPOSE: Spare parts for the repair and maintenance of AT-3, T-34, S-70C, F-CK1 (IDF),F-5, F-16, E-2T, B-1900, C-130, FOKKER-50, UH-1H, OH-58D, AH-1W, CH-47, S-2T, 500MD aircraft and helicopters including ground support equipment. ¶6. Submitted in support of the license application 05-050095335 was the following document (PM/DTCC will fax documentation upon request): -- Purchase Order prepared by Custom Aeronautical Solutions No: 00005241, dated 18 March 2008 -- End User Statement prepared by Custom Aeronautical Solutions, dated 22 March 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. 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 ¶8. Department is grateful for Embassy Wellington and AIT Taipei's assistance in this matter. RICE