BLUE LANTERN REPONSE: POST-SHIPMENT END-USE CHECK

UNCLAS BERLIN 000284 SENSITIVE SIPDIS STATE FOR PM/DTCC - BLUE LANTERN COORDINATOR (BALLARD) STATE FOR EUR/CE PETER SCHROEDER E.O. 12958: N/A TAGS: KMOC ETTC GM SUBJECT: BLUE LANTERN REPONSE: POST-SHIPMENT END-USE CHECK ON LICENSE 050076491 REF: STATE 10966 ¶1. (SBU) Helmut Hofmann GmbH responded to all reftel inquiries with satisfactory answers and in a timely manner regarding Blue Lantern end-use check 050076491. EconOff posed the reftel questions to Helmut Hofmann GmbH via email and followed up with a phone conversation. Based on these responses, we assess that Helmut Hofmann GmbH is in compliance with USML controls. HELMUT HOFMANN GMBH RESPONSES TO DTCC INQUIRIES -------------- -- ¶2. (SBU) The reftel questions were answered by Stephan Mock, Purchasing Department - Helmut Hofmann GmbH. Begin text of responses: -- Can you confirm that the ammunition and firearms listed below were purchased for commercial resale in Germany only? RESPONSE: Yes, I can confirm that the ammunition and firearms are for resale in Germany only. -- Who are your regular customers and where do they reside? Our regular customers are dealers for hunting and sporting goods. They are all based in Germany. -- What quantities of the items authorized on this license did Helmut Hofmann actually receive thus far? RESPONSE: All but a few remaining orders for rimfire .22 ammunition. Those will be shipped later this month. -- What are your annual sales of U.S.-origin firearms and ammunition? RESPONSE: Sales vary with market demand and U.S. dollar / euro exchange rate. Ammunition sales can vary from 10 million rounds (including affordable rimfire) up to 30 million rounds. Firearms vary as well with our 2008 numbers exceeding 1000 units sold. -- What quantity of firearms and ammunition did your company seek to import from the United States in 2008? RESPONSE: This information is not immediately available. In order to accurately check the orders to U.S. suppliers, this would take weeks of work. -- Can you explain the discrepancy, if any, between that which was authorized for export from the United States and that which the company actually sold in 2008? RESPONSE: Naturally, the difference will equate to the product that we imported in 2008 versus how much product will be sold in 2009. That said, the 2008 product is sitting in our warehouse until we can sell it. A large quantity of from our 2008 orders from a particular U.S. supplier is still on backorder and will ship at some point in 2009. --Are you familiar with the regulations governing the import of U.S.-origin defense articles, including restrictions on re-transfer or re-export? RESPONSE: Yes, we are familiar with the regulations governing the import of U.S.-origin defense articles. Our last training seminar for the regulations was at in 2008 in Frankfurt. End text. COMMENT -------------- ¶3. (SBU) Stephan Mock of Helmut Hofmann GmbH was very responsive to the reftel inquiries and indicated a willingness to address any follow-up questions. Helmut Hofmann GmbH orders ammunition/firearms from U.S. suppliers based on their anticipated annual need. Therefore, it is not abnormal for them to requested a greater amount of imported product than is sold in a given year. Should they be left with excess (unsold) inventory, this would influence their request for import of ammunition/firearms for the following year. Koenig