BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK

UNCLAS STATE 010966 SIPDIS BERLIN FOR SHANE PETERSEN E.O. 12958: N/A TAGS: GM KOMC ETTC SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSE 050076491 ¶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 post-shipment check on license 050076491 for the export of rifles and ammunition to Germany. Post is requested to complete this Blue Lantern check within 45 days. Lack of response to a Blue Lantern check will affect pending and future licenses involving parties to this license. ¶3. Reason for Request: End-user, Helmut Hofmann, is a major recipient of U.S. Munitions Listed (USML) ammunition and firearms for commercial resale in Germany. The company received well over $8 million in USML items in 2008. The company continues to seek large additional export authorizations despite that the fact that many authorizations for last year have not yet been exhausted. This request is to verify the receipt of the USML listed below and to confirm that it is sold within the German commercial market only. This inquiry also seeks information on the annual sales of Helmut Hofmann. ¶4. Action Request: Post is requested to make appropriate inquires to representatives of end-user, Helmut Hofmann, to verify receipt of the USML listed below and confirm that it is for commercial resale in Germany only. The following points are included for guidance: (To Helmut Hofmann) --Can you confirm that the ammunition and firearms listed below were purchased for commercial resale in Germany only? Who are your regular customers and where do they reside? --What quantities of the items authorized on this license did Helmut Hofmann actually receive thus far? --What are your annual sales of U.S.-origin firearms and ammunition? What quantity of firearms and ammunition did your company seek to import from the United States in 2008? 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? --Are you familiar with the regulations governing the import of U.S.-origin defense articles, including restrictions on re-transfer or re-export? In its reply, Post may also comment on any other information pertinent to these transactions such as security of facilities, end-use, and concerns about the entities involved. ¶5. Details of license applications: DTC Case: 050076491 QUANTITY/COMMODITY: 1,500,000 Rounds of Centerfire Ammunition, .17-.458 Caliber 500,000 Rounds of Rimfire Ammunition, .22 Caliber 45 Magazine Clips 50 Model 700 Bolt Action Rifles 15 Model 715 Bolt Action Rifles 5 Model SPR15 Break Action Rifles License Value: USD $523,156 SELLER: RACI Holding, Inc. Remington Arms Company 870 Remington Drive PO Box 700 Madison, NC 27025 FOREIGN END-USER: Helmut Hofmann GMBH Scheinbergweg 6-8 97638 Mellrichstadt Germany Tel: (0 97 76)6 06-0 Email: info@helmuthofmann.de PURPOSE: For commercial resale in Germany ¶6. Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Posts upon request): DSP-83 signed by Susanne Haid (Helmut Hofmann) dated 06/11/2007 and Karen Johnson dated 11/20/2007 Letter Confirming No Need for Import Certificate signed by Stephan Mock (Helmut Hofmann) dated 01/30/2006 Purchase Order No. 4021 from Helmut Hofmann by Susanne Haid dated 06/11/2007 ¶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 Kyle M. Ballard, Phone: 202-663-1929; Email: BallardKM@state.gov; SIPRNET: BallardKM@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://virtuallibrary.state.gov/ BlueLanternGuidebook2006%2520 final .pdf ¶8. Department is grateful for Post's assistance in this matter. CLINTON