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

UNCLAS STATE 014417 SENSITIVE SIPDIS MEXICO FOR FRANK PENIRIAN E.O. 12958: N/A TAGS: ETTC KOMC MX SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSE 050135227 ¶1. (U) This is an Action Request. See paragraphs 2 - 4. ¶2. (U) The Department's Office of Defense Trade Controls Compliance (PM/DTCC) requests Post's assistance in conducting a post-shipment check on license 050135227 for the export of ballistic plates to Mexico. 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. (LES) Reason for Request: Information from Immigration and Customs Enforcement (ICE) indicates that the ballistic plates listed below were sold to Grupo Legus by foreign intermediate consignee Syspro Internacional despite the fact that Grupo Legus is not/not party to the approved license. Grupo Legus claims that they will sell the plates to Secretaria de Seguridad Publica Municipal de Ciudad Juarez, which is the approved end-user. Post is requested to determine the exact role Grupo Legus is playing and how the company got involved in this transaction. Post is also requested to establish the bona fides of this transaction and the parties involved. ¶4. (LES) Action Request: Post is requested to establish the bona fides of this transaction by making appropriate inquires to authorities at La Secretaria de Seguridad Publica Municipal de Ciudad Juarez, representatives of Syspro Internacional, and representatives of Grupo Legus. The following point are included for guidance: (To La Secretaria de Seguridad Publica Municipal de Ciudad Juarez) --Can you confirm the order of the ballistic plates listed on this license? What quantity of these ballistic plates did you order? Can you provide a purchase order and/or contract indicating the terms and parties involved in this transaction? --For what will these ballistic plates be used? How many police officers do you currently have in Municipal de Ciudad Juarez? What is the standard issue ballistic plate for police officers in Municipal de Ciudad Juarez? Can you provide detail on the quantity of ballistic plates needed by your police force? (To Syspro Internacional) --Can you explain your role in the purchase and sale of the ballistic plates listed below? From whom did you buy the ballistic plates and to whom are you going to sell them? Can you provide any documentation that supports this transaction? (NOTE: See the discrepancy in purchase orders listed in para ¶6. Please establish the format of a typical Syspro purchase order. END NOTE) --What other companies or individuals are involved in this transaction? Please explain your relationship with those companies and individuals. Is the U.S. applicant for this license aware of these companies and their role in this transaction? If applicable, please explain why the U.S. applicant was unaware of these companies. (To Grupo Legus) --Can you explain your role in the purchase and sale of the ballistic plates listed below? How did you first get involved in this transaction? From whom did you buy the ballistic plates and to whom are you going to sell them? Can you provide any documentation that supports this transaction? (NOTE: See the discrepancy in purchase orders listed in para ¶6. END NOTE) --What other companies or individuals are involved in this transaction? Please explain your relationship with those companies. Is the U.S. applicant for this license aware of these companies and their role in this transaction? If applicable, please explain why the U.S. applicant was unaware of these companies. 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. (U) Details of license applications: DTC Case: 050135227 QUANTITY/COMMODITY: 600 Ballistic Protection Plates Level IV License Value: USD $55,200 SELLER: HighCom Technology, LLC ATTN: Michael Brenner 27 Maiden Lane, Suite 590 San Francisco, CA 94108 FOREIGN INTERMEDIATE CONSIGNEE: Syspro Internacional SA de CV Sofocoles No 141 Palmas Polanco Miguel Hidalgo 11560 Mexico Mexico Tel: (52 55) 5580 0272 / 5395 3945 Email: sysproint@syspro.com.mx UNLISTED FOREIGN INTERMEDIATE CONSIGNEE: Grupo Legus Manuel E. Izaquirre No. 13-2 Naucalpan Estado de Mexico CP 53100 FOREIGN CONSIGNEE: Same as End-User FOREIGN END-USER: Secretaria de Seguridad Publica Municipal de Ciudad Juarez Henequen y Valle del Cedro 578 Col. Morelos III CP 32690 Juarez, Mexico Tel: 01 656 2 08 88 44 PURPOSE: Purchased for ongoing contracts for the Mexican military and State Government Anti-terrorism security including crime control and prevention ¶6. (LES) Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Posts upon request): Certificate of End Use issued by the Secretaria de Seguridad Publica signed by Roberto Orduna Cruz dated 09/23/2008 Purchase Order No 386/NOV issued by Syspro Internacional signed by Ronald J. Dorney, Michael W. Leopold, and Antonio Cortes dated 11/24/2008 (provided to PM/DDTC with license application) Purchase Order No. 8145 issued by Syspro Internacional not signed dated 11/21/2008 listing Grupo Legus as "cliente" (provided to PM/DDTC via ICE Liaison) Purchase Order No. 8258 issued by Syspro Internacional not signed dated 01/23/2009 listing Grupo Legus as "cliente"(provided to PM/DDTC via ICE Liaison) Purchase Order No. 8272 issued by Syspro Internacional not signed dated 01/23/2009 listing Grupo Legus as "cliente"(provided to PM/DDTC via ICE Liaison) (NOTE: The purchase order numbers for 8145, 8258, and 8272 are of a different format than that of 386/NOV. The purchase orders themselves appear different than 386/NOV, as well, including the fact that the former three are in Spanish while the latter is in English. END NOTE) ¶7. (U) 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. (U) Department is grateful for Post's assistance in this matter. CLINTON