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

UNCLAS SECTION 01 OF 02 STATE 122385 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 a transaction citing the Canadian exemption for the export of displacement gyroscopes 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 VIII - which includes displacement gyroscopes - may be subject to Missile Technology Control Regime (MTCR) restrictions and 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. ¶4. ACTION OTTAWA: Mission Canada is requested to make inquiries with appropriate MHD International Aviation Parts (MHD) officials to obtain all relevant details regarding the export of displacement gyroscopes to Canada citing the Canadian exemption, including exact commodity description and technical parameters for performance and capability, number, type, dollar value, and serial number of items. (See paragraph 5 for details of export, including filer identification and shipping reference numbers). The following questions are provided as suggested guidance: --What were the exact United States Munitions List (USML) articles exported to you on February 21st 2007? (Automated Export System (AES) filing data provides the following information, "displacement gyroscope".) Please provide detail on model, type and technical specifications. --What is the exact end-use for these USML items? Will MHD be the sole end-user and retain positive control over the displacement gyroscopes 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, "displacement gyroscope" Stated Value: USD 5,580.00 Export Date - 21 February 2007 ITAR Exemption Number - 126.5B Filer Identification Number - 521893632 Shipping Reference Number - 42021116 Export Identification Code - 95309106200 U.S. EXPORTER: Lockheed Martin 244 Terminal Rd. Bldg. 1051 Greenville, SC 29605 POC is Mr. Cureton, Tel. 864-236-3281 ULTIMATE CONSIGNEE STATE 00122385 002 OF 002 MHD International Aviation Parts 1830 Marie Victorin St. Bruno, Quebec Canada J3V6B9 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