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

UNCLAS STATE 085802 SIPDIS AIT TAIPEI FOR MATTHEW OCONNOR AIT TAIPEI FOR MI-YOUNG KIM AIT TAIPEI FOR REBECCA HESTER E.O. 12958: N/A TAGS: ETTC KOMC TW SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON APPLICATION 050112953 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-license check on application 050112953 for the export of spare aircraft engine component parts to Taiwan. 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: Unfamiliar foreign end-user, Air Force Institute of Technology, and unfamiliar foreign consignee, Sense Tek. Neither company has appeared on any previous license applications, nor have the bona fides of the companies been verified by a Blue Lantern check. ¶4. ACTION: Department requests that AIT Taipei make appropriate inquiries to verify the bona fides of foreign end-user Air Force Institute of Technology and foreign consignee Sense Tek, and to confirm the legitimacy of this proposed transaction. PM/DTCC also requests that post conduct site visits to the companies in order to provide Department with an assessment of their business operations and on-site security. Finally, post is asked to assess whether the companies appear to be reliable recipients of USML items. If a site visit is not possible, please inform the PM/DTCC officer. The following questions for both companies are provided as suggested guidance: --Does the company have supporting documentation, including purchase orders, for this proposed transaction? --What role will Sense Tek play in the proposed transaction? Will Sense Tek be handling or storing the items listed on the application? If so, does it have secure facilities and proper accounting and security procedures for handling these sensitive USML items? --What is the exact end-use for this USML item? How exactly will the component be used as a "student training aid"? --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? END ACTION ¶5. Details of license application: DTC Case: 050112953 QUANTITY/COMMODITY: 1 Hamilton Sunstrand Constant Speed Drive, P/N: 698471C; S/N:901 License Value: USD 1,850.00 SELLER: Dakota Air Parts Intl., Inc. 1801 23rd Ave. N. Fargo, ND 58102 POC is Barbara J. Hemelstrand, Tel. 701-297-9999 ext. 122 FOREIGN CONSIGNEE: Sense Tek Co., LTD. 8-1 Liau-Ning 2nd Street 288 Lane, San Min Zone Kaohsiung 80744 Taiwan POC is K.L. Lin, Tel. 886-7-313-0711 FOREIGN END-USER: Air Force Institute of Technology No. 198, Jieshow W. Rd. Gangshan Township Kaohsiung Country 820 Taiwan No POC or Telephone Number Provided PURPOSE: The spare aircraft engine component parts will be used as a student training aids. ¶6. Submitted in support of the license application were the following documents (PM/DTCC can fax documentation to post upon request): --Purchase Order No. 8028-01 submitted by Sense Tek Co., Ltd., signed by Sales Manager K.L. Lin on 13 June 2008. --End User Statement submitted by Sense Tek Co., Ltd. (illegible signature) on 05 July 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 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 ¶8. Department is grateful for post's assistance in this matter. RICE