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

UNCLAS STATE 114669 SIPDIS RIYADH FOR KRISTIN BONGIOVANNI LONDON FOR PAULA WIKLE E.O. 12958: N/A TAGS: ETTC KOMC UK SA SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSE 050176047 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 post-shipment check on license 050176047 for the export of International Traffic in Arms (ITAR)-controlled C-130 and L-100 aircraft parts and components to Saudi Arabia. Post is requested to complete this Blue Lantern inquiry within 45 days. Lack of response to a Blue Lantern inquiry will affect pending and future licenses involving parties to this license. ¶3. Reason for request: Airborne Product Support Ltd. (APS) has a record of unfavorable Blue Lantern checks; no checks have been conducted since 2001; no documentation from foreign end-user, Royal Saudi Air Force (RSAF); commodities with risk of diversion. ¶4. ACTION RIYADH: The Department requests that Post confirm that the Foreign End-User, RSAF, ordered the items listed for the purpose stated on the license application. In addition, the Department requests that Post confirm RSAF's relationship with APS (UK) or any other APS locations. ACTION LONDON: The Department requests that Post make inquiries with appropriate officials to establish the bona fides of APS in the transaction. Post is also requested to ask APS about its international subsidiaries. Conduct a site visit 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 included for guidance: --Can APS provide documentation that verifies the end-use of the aircraft components, such as a contract or purchase order? --What type of organizations are among its typical customers and where are they located? --Does APS have any subsidiaries or affiliates outside of the UK? If so, where are they located (please provide specific addresses)? When were these subsidiaries established? --Does APS understand the restrictions on USML items, especially the prohibition against unauthorized re-transfer and re-export? END ACTION. ¶5. Details of license application: DTC CASE: 050176047 QUANTITY/COMMODITY: 1 Lot - Minor parts and components for C-130 and L-100 aircraft operated by the RSAF. License Value: 800,000.00 USD (COMMENT: According to US Customs data, since 13 August 2009, there have been thirteen (13) shipments under this license. END COMMENT) SELLER: Arrow Dynamics LLC 1671 NW 144th Terrace Suite #105 Sunrise, FL 33323 Tel: 954-452-0699 POC: Nic Frucht FOREIGN CONSIGNEE: Airborne Product Support Ltd. Office Suite No. 1, Chatmohr Estate, Crawley Hill West Wellow, Romsey Hampshire, SO51 6AP United Kingdom Tel: 044 (0) 1794 519703 Fax: 044 (0) 1794 5197004 POC: Hatim Al-Khamash, Sr. Procurement Analyst Company Registration No.: 3488063 FOREIGN INTERMEDIATE CONSIGNEE: Al Salam Aircraft Co. KKIA Industrial Park East Private Aviation Riyadh Saudi Arabia (COMMENT: According to license application, Al Salam performs maintenance for the RSAF. END COMMENT) FOREIGN END-USER: Royal Saudi Air Force King Abdullah Airbase Jeddah Saudi Arabia Royal Saudi Air Force (Al Salam Co. Project) c/o Airborne Product Support Ltd. Bin-Homran Building, Suite 404A Thahliya Street Jeddah, 21352 Saudi Arabia PURPOSE: Maintenance and repair of C-130 and L-100 aircraft, T56 and 501D engines, QECs, and Hamilton Standard 54H60 series propellers operated by the RSAF. ¶6. Submitted in support of license application 050183769 were the following documents (PM/DTCC will fax documentation to Post upon request): --Letter of Intent submitted by APS, signed by Hatim Al-Khamash, dated 15 June 2009. --Department of State License for Permanent Export of Unclassified Defense Articles and Related Unclassified Technical Data, signed 22 June 2009, approved 13 July 2009. ¶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 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. ¶8. Department is grateful for Post's assistance in this matter. CLINTON