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

UNCLAS STATE 002825 SENSITIVE SIPDIS MANILA FOR GRAZNYA COFFIN MANILA FOR JUAN ADAMES E.O. 12958: N/A TAGS: ETTC KOMC RP SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSE 050083978 REF: EMAIL ARAMBULO-COFFIN OF 15 DECEMBER 2008 ¶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 050083978 for the export of firearms to the Philippines. 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. (SBU) Reason for Request: Email from ICE liaison in Manila states that Crisostomo Aquino d/b/a Caliber Trading had diverted from the Philippines a significant quantity of Bushmaster Carbon Fiber carbines to unauthorized end-users in the region (REFTEL). Review of PM/DDTC license history suggests that this license represents the authorization under which Aquino may have exported Bushmaster carbines to the Philippines. Any subsequent re-export or retransfer is in violation of the International Traffic in Arms Regulation (ITAR). This request is to determine if the firearms listed below have, in fact, been diverted. ¶4. (SBU) Action Request: Post is requested to inquire with representatives of Caliber Trading and appropriate GOP officials to determine the final disposition of the firearms listed below. Post should also establish the bona fides of Caliber Trading as a reliable recipient of United States Munitions Listed items. The following points are included for guidance: (To Caliber Trading) -- Have all of the firearms on this order been received by the PCG? Have any been transferred elsewhere or sold to other end-users? Is so, where? How long has your company been in the business of importing and selling defense articles in the Philippines? What services and products are sold by your company? Who are your regular customers and where do they reside? Are you familiar with the regulations governing the import of U.S.-origin defense articles, including restrictions on retransfer or re-export? (To Philippines Coast Guard Headquarters) -- Did the Philippines Coast Guard order the firearms listed below? If so, have you received the firearms and in what quantity? Can you provide the purchase order or contract through which this procurement was made? Are all of the firearms currently being used by the PCG or have some been transferred elsewhere? Has the Philippines Coast Guard previously had a business relationship with Caliber Trading? If so, have there been any irregularities in your transactions with that company? In its reply, Post may also comment on any other information pertinent to these transactions such as security of facilities and concerns about the entities involved. ¶5. (U) Details of license application: DTC Case: 050083978 QUANTITY/COMMODITY: 130 Bushmaster C15 P21S 5.56mm Compact Carbines 50 Bushmaster C15 C15 11.5" Entry Type Carbines 1000 Bushmaster 30-Round Magazines License Value: USD $205,250 SELLER: Bushmaster Firearms International 999 Roosevelt Trail Windham, ME 04062 FOREIGN CONSIGNEE Caliber Trading POC Marlon B. Aquino 152 J. Arellano Street San Juan City 1500, Philippines Tel: (632) 722-4098/721-9293 FOREIGN END-USER: Philippine Coast Guard Headquarters 139 25th, Port Area Manila 1018, Philippines Tel: 63 0918 8555333 PURPOSE: To be used by PCG Sea Marshal Unit and not to be re-exported out of the Philippines ¶6. (U) Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Posts upon request): Import Authorization No PI-F165-07 dated 12/10/2007 signed by Avelino Trazon, Jr. DSP-83 signed by Marlon B. Aquino dated 07/27/2007, CAPT. Joel S. Garcia dated 07/27/2007, and Shannon Shuman dated 01/09/2008 End-Use Statement dated 07/23/2007 signed by CAPT. Joel S. Garcia End-Use Certificate issued by the Department of Transportation and Communication, Philippine Coast Guard signed by CAPT. Joel S. Garcia Purchase Order from Caliber Trading dated 12/13/2007 signed by Marlon B. Aquino ¶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. RICE