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

UNCLAS SECTION 01 OF 02 STATE 118567 SIPDIS OTTAWA FOR LORI BALBI E.O. 12958: N/A TAGS: ETTC KOMC CA SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON THE EXPORT OF U.S. DEFENSE ARTICLES CITING THE CANADIAN EXEMPTION 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 Embassy's assistance in conducting a post-shipment check on transactions citing the Canadian exemption for the export of satellite flight hardware to Canada. Embassy 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: Under ITAR 126.5 (Canadian Exemption), certain United States Munitions List (USML) items may be exported to Canada without a license. Some items on USML Category XV - which includes satellite flight hardware - may require a license depending on commodity specification and type. DDTC requests this check based on vague description of commodity and end-use in export filing. DDTC notes that end-user Macdonald, Dettwiler and Associates (MDA) has appeared on numerous DDTC licenses and is a bona fide recipient of USML items. ¶4. ACTION OTTAWA: Mission Canada is requested to make inquiries with appropriate MDA officials to obtain all relevant details regarding the export of satellite flight hardware to Canada citing the Canadian exemption, including the exact description, number, type, dollar value, and serial number of items. The following questions are provided as suggested guidance: --What were the exact United States Munitions List (USML) articles exported to you? (Automated Export System (AES) filing data provides the following information, "satellite flight hardware".) --What is the exact end-use for these USML items? Will MDA be the sole end-user and retain positive control over the satellite flight hardware at all times? Will they be transferred to other end-users in Canada or re-exported? --Does the company understand the restrictions on USML items, especially the prohibition against unauthorized re-transfer and re-export? END ACTION. ¶5. Details of the AES filings: --EXPORT 1 - QUANTITY/COMMODITY: Quantity not provided Commodity - Vague description cited as, "satellite flight hardware" Stated Value: USD 21,300.00 Export Date - 10 May 2007 ITAR Exemption Number - 126.5B Filer Identification Number - 752550831 Shipping Reference Number - 1424546 Export Identification Code - 06120956100 --EXPORT 2 - QUANTITY/COMMODITY: Quantity not provided Commodity - Vague description cited as, "satellite flight hardware" Stated Value: USD 70,150.00 Export Date - 11 May 2007 STATE 00118567 002 OF 002 ITAR Exemption Number - 126.5B Filer Identification Number - 752550831 Shipping Reference Number - 1424548 Export Identification Code - 06120956100 U.S. EXPORTER: Orbital Sciences Corporation 21830 Atlantic Blvd. Dulles, VA 20166 POC is Mr. Hatch, Tel. 703-948-8442 ULTIMATE CONSIGNEE Macdonald, Dettwiler and Associates 21025 Trans Canada Highway Ste. Anne De Bellevue Quebec Canada H9X3R2 No POC provided ¶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 Tim Mazzarelli, Phone: 202-663-3867; Email: MazzarelliTP@state.gov; SIPRNET: MazzarelliTP@state.sgov.gov. The Blue Lantern Guidebook (ref) is available as a PDF file on Intellipedia: http://www.intelink.gov/wiki/ Blue Lantern End-Use Monitoring Program. ¶7. Department is grateful for post's assistance in this matter. CLINTON