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

UNCLAS STATE 046706 SIPDIS MOSCOW FOR NICKOLAS KATSAKIS E.O. 12958: N/A TAGS: ETTC KOMC RS SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSE 050124935 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 license 050124935 for the export of gyroscopes to Russia. 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: unfamiliar foreign end-user Open Joint Stock Company (OJSC). The company has appeared on a previous license but the firm's bona fides have not been established by a Blue Lantern check. ¶4. ACTION MOSCOW: Embassy is requested to make inquiries with appropriate officials to establish the bona fides of unfamiliar foreign end-user OJSC and confirm that the gyroscopes will be used for the purpose stated on the license. PM/DTCC also requests that post conducts a site visit to the company 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. The following questions are provided as suggested guidance: --Does the company have secure facilities and proper accounting and security procedures for handling sensitive USML items? --What is the exact end-use for these USML items? Will OJSC retain positive control over the gyroscopes at all times? Will they be transferred or re-exported to any other users? --When was the company established and who are its principals? --What is the nature of the company's business? Have they previously sought defense articles on the USML? --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? END ACTION. ¶5. Details of license application: DTC Case: 050124935 QUANTITY/COMMODITY: 10 G2000 Gyroscopes Part No. 779980-0063 License Value: USD 52,000.00 SELLER: System Engineering GES, Inc. 14260 Garden Rd. Suite 18A Poway, CA 92064 POC is Gerard Hohner, Tel. 805-427-5857 FOREIGN CONSIGNEE System Etwicklungs Gesellschaft mbH Bahnhofstrasse 6 D-79359 Riegel Germany POC is Georg Treinies, Tel. 07642-90240 FOREIGN INTERMEDIATE CONSIGNEE Geis-SDV Offnadinger Strasse 2 79238 Ehrenkirchen-Kirchhofen Germany No POC provided FOREIGN END-USER Open Joint Stock Company (OJSC) Russian Federation, Tyumenskaya Oblast the City of Surget, ul. Kukuyevitskogo, 1 POC is Deputy General Director, Pogorelov A.V., Tel. 7 3462 42 59 25 PURPOSE: Oil and gas exploration ¶6. Submitted in support of the license application were the following documents (PM/DTCC can fax documentation to post upon request): --Purchase Order No. 2008-377 submitted by System Etwicklungs Gesellschaft mbH on 24 September 2008, signed by Managing Director, G. Treinies --DSP-83 Nontransfer and Use Certificate submitted by OJSC, signed by Deputy General Director, Pogorelov A.V. on 22 September 2008, and by Managing Director of System Etwicklungs Gesellschaft mbH, Georg Treinies on 22 September 2008 ¶6. Please slug reply for PM/DTCC - BLUE LANTERN COORDINATOR and include the words "Blue Lantern" and the case number in the subject line. PM/DTCC can fax documentation to post upon request. 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 ¶7. Department is grateful for post's assistance in this matter. CLINTON