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

UNCLAS SECTION 01 OF 03 STATE 122389 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 Gyroscopic compasses 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 Categories XI and XII - which includes gyroscopic compasses - 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 Bell Helicopter Txtrn Ltd. (Bell) and Elcan Optical Technologies (Elcan) officials to obtain all relevant details regarding the export of gyroscopic compasses 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 (for Bell) June 21st 2007, and For Elcan on January 21st, March 17th and May 6th 2008? (Automated Export System (AES) filing data provides the following information, for Bell "gyroscopic compasses other than el", and for Elcan "gyroscopic compasses, electrical, except for".) Please provide detail on model, type and technical specifications. --What is the exact end-use for these USML items? Will Bell (or Elcan) be the sole end-user and retain positive control over the gyroscopic compasses 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, "gyroscopic compasses other than el" Stated Value: USD 35,336.00 Export Date - 21 June 2007 ITAR Exemption Number - 126.5B Filer Identification Number - 943083515 Shipping Reference Number - 5459215234717 Export Identification Code - 22264065000 U.S. EXPORTER: Honeywell, Inc. 23500 W. 105th St. STATE 00122389 002 OF 003 SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON THE EXPORT OF U.S. DEFENSE ARTICLES CITING THE CANADIAN EXEMPTI Olathe, KS 66061 POC is Ron Thorton, Tel. 913-712-2142 ULTIMATE CONSIGNEE Bell Helicopter Txtrn Ltd. 12 800 Rue De Lavenir Mirabel Canada J7J1R4 POC is Joseph Dakka, No Tel. provided --EXPORT 2 - QUANTITY/COMMODITY: Quantity not provided Commodity - Vague description cited as, "gyroscopic compasses, electrical, except for" Stated Value: USD 14,175.00 Export Date - 21 January 2008 ITAR Exemption Number - 126.5B Filer Identification Number - 30117050 Shipping Reference Number - 58911X Export Identification Code - 95247994200 U.S. EXPORTER: BAE Systems Inertial Products 250 Knotter Dr. Cheshire, CT 06410 POC is Mr. Gamanche, Tel. 203-250-3617 ULTIMATE CONSIGNEE Elcan Optical Technologies 450 Leitz Rd. Midland, Ontario Canada L4R5B8 POC is Mr. Beiers, Tel. 705-528-7107 --EXPORT 3 - QUANTITY/COMMODITY: Quantity not provided Commodity - Vague description cited as, "gyroscopic compasses, electrical, except for" Stated Value: USD 11,340.00 Export Date - 17 March 2008 ITAR Exemption Number - 126.5B Filer Identification Number - 30117050 Shipping Reference Number - 59243X Export Identification Code - 95247994200 U.S. EXPORTER: Atlantic Inertial Systems, Inc. 250 Knotter Dr. Cheshire, CT 06410 POC is Mr. Strazzeri, Tel. 203-250-3617 ULTIMATE CONSIGNEE Elcan Optical Technologies 450 Leitz Rd. Midland, Ontario Canada L4R5B8 POC is Mr. Beiers, Tel. 705-528-7107 --EXPORT 4 - QUANTITY/COMMODITY: Quantity not provided Commodity - Vague description cited as, "gyroscopic compasses, electrical, except for" STATE 00122389 003 OF 003 Export Date - 6 May 2008 ITAR Exemption Number - 126.5B Filer Identification Number - 30117050 Shipping Reference Number - 59611X Export Identification Code - 95247994200 U.S. EXPORTER: BAE Systems Inertial Products 250 Knotter Dr. Cheshire, CT 06410 POC is Mr. Strazzeri, Tel. 203-250-3617 ULTIMATE CONSIGNEE Elcan Optical Technologies 450 Leitz Rd. Midland, Ontario Canada L4R5B8 POC is Mr. Beiers, Tel. 705-528-7107 ¶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