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