BLUE LANTERN LEVEL 3: POST SHIPMENT END-USE CHECK

UNCLAS PRAGUE 000058 SENSITIVE SIPDIS DEPARTMENT FOR PM/DDTC AND EUR/CE E.O. 12958: N/A TAGS: ETTC EZ KOMC SUBJECT: BLUE LANTERN LEVEL 3: POST SHIPMENT END-USE CHECK ON LICENSE 050085481 REF: STATE 08 90813 ¶1. (SBU) Summary and Comment: In response to reftel, Political officers conducted a site visit at Kozap uh. Brod on January 14 to establish the bona fides of the firm as a legitimate recipient of 150 NAA revolvers (.22 , .22M, and 224 M caliber pistols). During their visit, the team met with Petr Hauerland, Kozap's commercial director. (Note: Jan Petran, the head of the company, was away on business in Slovakia. End Note) Kozap appears to be a generally reliable recipient of U.S.-origin defense articles under the United States Munitions List (USML). End Summary and Comment. 2.(SBU) Kozap began the discussion with a short history of the company. Kozap began operations in 1991 and now serves as a wholesaler of hunting weapons and gear to 230 stores in the Czech Republic and around 70 in Slovakia. Hauerland said Kozap imports most of their rifles and ammunition from Germany and Italy. They also have a small internet business that sells within the European Union. The firm also manufactures brackets to mount rifle scopes and hunting backpacks at a separate facility near Brno. 3.(SBU) Hauerland said Kozap's customers are primarily from the Czech Republic and Slovakia. They do occasionally receive orders from Germany and other EU countries via the internet. He assured the Embassy staff that his firm complies with all EU and Czech laws and regulations, as well as U.S. re-export requirements for USML items under ITAR. The Embassy team,s overall impression was that the company's staff appeared organized and generally knowledgeable regarding ITAR regulations/restrictions. 4.(SBU) Kozap's physical location consists of an office building. Kozap's general security level appeared adequate. The 22m pistols and other arms are kept in a secure vault in the basement. The room is alarmed, has iron bars on windows, and only few employees have access. Hauerland told the Embassy staff that Kozap has never had any attempted break-ins or theft of their products. Thompson-Jones