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

UNCLAS STATE 089919 SIPDIS MOSCOW FOR NICKOLAS KATSAKIS E.O. 12958: N/A TAGS: ETTC KOMC RS SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON APPLICATION 050118911 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 050118911 for the export of a Forward Looking Infrared (FLIR) camera system to Russia. 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, Diagnost, and unfamiliar foreign consignee, Zenit. 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 Embassy make appropriate inquiries to verify the bona fides of foreign end-user Diagnost and foreign consignee Zenit 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 Zenit play in the proposed transaction? Will Zenit 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? --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: 050118911 QUANTITY/COMMODITY: 1 HOTSHOT HD-XT Predictive Maintenance Camera System (FLIR) License Value: USD 16,000.00 SELLER: Electrophysics Corp. 373 Route 46 West Fairfield, NJ 07004 POC is Michelle Intiso, Tel. 973-882-0211 ext. 212 FOREIGN CONSIGNEE: Electrolab 68/70 Str. Butyrskj Val Moscow Russia No POC or Telephone Number Provided Energy Kriosib 10 STR Arseneva OMSK Russia No POC or Telephone Number Provided Novoroscement 60 Suhumskoe Shosse Novorossjsk Russia No POC or Telephone Number Provided Zenit 8 STR Rechnaya Krasnogorsk Russia No POC or Telephone Number Provided Radiotechnik 10 Str Bazovaya Kirov Russia No POC or Telephone Number Provided FOREIGN END-USER: Diagnost Korp 2, 15 Okruznoy Proezd Moscow Russia POC is Deputy Director Cheredeev Dmitry, Tel. 7-495-365-47-88, Fax 7-495-366-62-83 PURPOSE: The FLIR camera system will be used to conduct infrared (electrical and mechanical) inspections at industrial plants. ¶6. Submitted in support of the license application were the following documents (PM/DTCC can fax documentation to post upon request): --Purchase Order No. 08073001 submitted by Diagnost, signed by Deputy Director Cheredeev Dmitry on 30 July 2008. --DSP-83 Nontransfer and Use Certificate submitted by Diagnost, signed by Deputy Director Cheredeev Dmitry on 15 August 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