BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK

UNCLAS STATE 003638 SIPDIS BRASILIA FOR JOHN ERATH AND SAO PAULO FOR JIMMY STORY E.O. 12958: N/A TAGS: ETTC KOMC BR SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON APPLICATION 050139731 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 post's assistance in conducting a pre-license check on application 050139731 for the export of C-130 aircraft component parts to Brazil. Post is requested to complete this Blue Lantern check within 30 days. Lack of response to a Blue Lantern check will affect pending and future licenses involving parties to this license. ¶3. Reason for request: Verify the Brazilian Air Force's relationship unfamiliar foreign intermediate consignee, Digex. The company has appeared on previous licenses but the company's bona fides have not yet been verified by a Blue Lantern check. ¶4. ACTION BRASILIA: Embassy is requested to make inquiries with appropriate host government officials to determine if the Brazilian Air Force ordered the C-130 aircraft component parts from Digex and if so, confirm that the articles will be used for the purpose stated on the license. PM/DTCC also requests that post conducts a site visit to Digex in order to provide Department with an assessment of its business operations and on-site security. Finally, post is asked to assess whether the company appears to be a reliable recipient of USML items. If a site visit is not possible, please inform the PM/DTCC officer. END ACTION The following questions are provided as suggested guidance: --Does the company have supporting documentation for this transaction? Are all of the USML parts going to the Brazilian Air Force? --Does the company have proper accounting and security procedures for handling USML items? --Will Digex retain positive control over the C-130 aircraft component parts at all times? --When was the company established and who are its principals? --What is the nature of its business -- what type of items does it handle, does it serve as a broker? --What type of organizations are among its typical customers and where are the customers located? --Does the company understand the restrictions on United States Munitions List (USML) items, especially the prohibition against unauthorized re-transfers and re-exports? --Does the company understand the prohibition against the unauthorized stockpiling of USML items? END ACTION ¶5. Details of license application: DTC Case: 050139731 QUANTITY/COMMODITY: 1 Major and minor components, accessories and attachments for C-130 aircraft including spares for the T-56 engine License Value: USD 2,000,000.00 SELLER: Defense Technology Equipment, Inc. 45681 Oakbrook Court #107 Sterling, VA 20166 POC is Maria Badillo, Tel. 703-766-1700 FOREIGN CONSIGNEE: Brazilian Air Force Galeao Depot Rio de Janeiro Brazil POC is Cel Int, Ordenador de Despesas, Antonio Pinhero Dorea Jr., No Tel. provided FOREIGN INTERMEDIATE CONSIGNEE DIGEX Av. Brigadeiro Faria Lima Sn Aeroporto de San Jose Dos Campos Sao Paulo Brazil POC is Executive Director, Renato Cianflone, Tel. (12) 3904-3507 FOREIGN END-USER: Brazilian Air Force Galeao Depot Rio de Janeiro Brazil POC is Cel Int, Ordenador de Despesas, Antonio Pinhero Dorea Jr., No Tel. provided PURPOSE: Spare parts for the repair and maintenance of the Brazilian Air Force's C-130 fleet ¶6. Submitted in support of the license application were the following documents (PM/DTCC can fax documentation to post upon request): --DSP-83 Non-transfer and Use Certificate submitted by the Brazilian Air Force, signed by Comandoda Aeronautica, Gilberio de Almeida Candido, no date provided; signed by Ordenador de Despesas, Antonio Pinheiro Dorea Jr. on 22 December 2008; and signed by Digex Executive Director, Renato Cianflone on 18 December 2008 --Letter of Intent submitted by Digex Executive Director, Renato Cianflone, signed on 18 December 2008 ¶7. 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 in the Bunche Library's E-Book Collection on the DOS Intranet: http://buncheelectroniclibrary.state.gov/eboo ks/ BlueLanternGuidebook2006%20 final .pdf ¶8. Department is grateful for post's assistance in this matter. RICE