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

UNCLAS STATE 048504 SIPDIS AIT TAIPEI E.O. 12958: N/A TAGS: ETTC KOMC TW SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON APPLICATION 050169368 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 AIT Taipei's assistance in conducting a pre-license check on application 050169368 for the export of an Advanced Weapon Boresight System and a Compact Field Tester to Taiwan. AIT Taipei 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: Lack of documentation from the Taiwan MND and unfamiliar foreign intermediate consignee, EZO Corporation. The company has not appeared previous licenses nor have the company's bona fides been verified by a Blue Lantern check. ¶4. ACTION AIT TAIPEI: AIT Taipei is requested to make inquiries with appropriate authorities to determine if the Taiwan MND ordered the articles from unfamiliar foreign intermediate consignee, EZO Corporation and if so, verify the amounts that were ordered and that the items will be used for the purpose stated on the license. PM/DTCC also requests that post conducts a site visit to EZO Corporation in order to provide the 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 EZO Corporation have supporting documentation for this proposed transaction? --Does the company have secure facilities and proper accounting and security procedures for handling sensitive USML items? --What is the exact end-use for this USML item? Will EZO Corporation retain positive control over the articles 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-transfer and re-export? END ACTION ¶5. Details of license application: DTC Case: 050169368 QUANTITY/COMMODITY: 1 Advanced Weapon Boresight System 1 Compact Field Tester License Value: USD 37,738.00 SELLER: CI Systems, Inc. 90 W. Cochran St., Ste. D Simi Valley, CA 93065 POC is Garrick Matheson, Tel. 805-520-2233 ext. 108 FOREIGN CONSIGNEE: 202 Arsenal Military of National Defense No. 165 Kun-Yang St., Nan-Kang Taipei 115 Taiwan No POC provided FOREIGN INTERMEDIATE CONSIGNEE EZO Corporation 17 Gaoyang South Rd., Longtan Taoyuan Taiwan POC is CEO, Sophia Chang, Tel. 886 (03) 411-6681 FOREIGN END-USER: 202 Arsenal Military of National Defense No. 165 Kun-Yang St., Nan-Kang Taipei 115 Taiwan No POC provided PURPOSE: The Advanced Weapon Boresight System will be used for aligning remote operated weapons to the gunner's sight. The Compact Field Tester will be used as a go, no-go tester for proper functioning of thermal imagers. ¶6. Submitted in support of the license application was the following document (PM/DTCC can fax documentation to post upon request): --Purchase Order No. EZO-072908-01 submitted by EZO Corporation on 29 July 2008, signed by CEO, Sophia Chang. ¶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. CLINTON