BLUE LANTERN LEVEL 3: END-USE CHECK ON UNLICENSED

UNCLAS STATE 107940 SIPDIS HONG KONG FOR JOHN J. VERSOSKY POL E.O. 12958: N/A TAGS: ETTC KOMC HK SUBJECT: BLUE LANTERN LEVEL 3: END-USE CHECK ON UNLICENSED EXPORT TO ELECTRO COMPANY REF: BLUE LANTERN GUIDEBOOK 2006 ¶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 end-use check on the unlicensed export of International Traffic in Arms Regulations (ITAR)-controlled annunciators to Hong Kong. Post is requested to complete this Blue Lantern check within 45 days. ¶3. Reason for request: The Department has received information that in June 2009, a US company, Space Coast IC, exported annunciators to Electro Company (EC) in Hong Kong without the required export license from the Directorate of Defense Trade Controls (DDTC). Furthermore, it is believed that said export of annunciators was then re-exported by Electro Company to an unknown foreign consignee. (COMMENT: Annunciators are position symbol indicators that are electro-mechanical instruments, typically used in the cockpit of an aircraft, which indicate specific functions occurring, as per the symbol or word, for example, that is displayed on the indicator. END COMMENT) ¶4. ACTION: The Department requests that Post contact Electro Company officials to make inquiries into the subject export transaction and the ultimate end-use of the annunciators. Post should also conduct a site visit, if possible, to assess the company's reliability as a recipient of United States Munitions List (USML) articles as well as an assessment of the company's on-site security and operations. If a site visit is not possible, please inform the PM/DTCC case officer. The following points are provided for guidance: --Can EC confirm that it received a shipment of annunciators from Space Coast IC, a company in the United States, on or around June 2009? --For what purpose were the annunciators purchased? --Who is the ultimate end-user of the annunciators and what is their ultimate end-use? Can EC provide documentation that verifies the end-use/end-user, such as a contract or purchase order? --Where are the annunciators currently located? --Does EC understand the restrictions on USML items, especially the prohibition against unauthorized re-transfer and re-export? --When was the company established and who are its principals? --What is the nature of its business -- what type of items do they handle, does the company serve as a broker? --What type of organizations are among its typical customers and where are they located? ¶5. Details of the transaction: Electro Company Purchase Order No. EC0311-SCI QUANTITY/COMMODITY: 58 - Annunciator, Part No. 924066-1C, Alternate Part No. 6250043, NSN 6350010222657. Serial Nos: 1495, 1885, 2218, 2251, 2357, 2362, 2451, 2658, 2675, 2687, 2711, 2859, 3253, 3260, 3274, 3319, 3340, 3352, 3430, 3628, 3873, 3881, 3908, 3916, 3929, 3931, 3943, 3947, 3950, 3954, 3965, 3969, 3972, 3974, 3975, 3994, 3996, 3997, 4011, 4113, 4155, 4165, 4930, 4932, 4976, 5009, 5027, 5039, 5059, 5065, 5070, 5079, 5082, 5089, 5096, 5449. VALUE: 14,500 USD SELLER: Space Coast IC, Inc. 1221 Admiralty Boulevard Rockledge, FL 32955 Tel: 321-574-0488 Fax: 321-574-0443 POC: Klaus Negele FOREIGN CONSIGNEE: Electro Company DD-114, Lot 362, Kam Tin Road Kam Tin Pat Hueng N.T. Kowloon, Hong Kong POC: Sharon Kwong FOREIGN END-USER: Unknown ¶6. 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 Meredith Sundlof. Phone: 202-663-3455; Email: SundlofME@state.gov; SIPRNET: SundlofME@state.sgov.gov. The Blue Lantern Guidebook (ref) is available as a PDF file at http://www.intelink.sgov.gov/wiki/Blue Lantern End-Use Monitoring Program. ¶7. Department is grateful for post's assistance in this matter. CLINTON