BLUE LANTERN LEVEL 3: END-USE CHECKS ON

UNCLAS STATE 052703 SIPDIS KUALA LUMPUR FOR WYNN PINKSTON ECON KUALA LUMPUR FOR MATT MATTHEWS ECON E.O. 12958: N/A TAGS: ETTC KOMC MY SUBJECT: BLUE LANTERN LEVEL 3: END-USE CHECKS ON APPLICATION 050169578 AND LICENSES 050014102, 05-991017 AND 05-998006 REF: BLUE LANTERN GUIDEBOOK 2006 ¶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 050169578 and post-shipment checks on licenses 050014102, 05-991017, 05-998006, and for the export of aircraft parts to Malaysia. 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 applications involving parties to this license. ¶3. Reason for request: unfamiliar foreign consignee TZ Glory. The company, whose website is "under construction," has appeared on previous export licenses but its bona fides have never been verified by a Blue Lantern check. Post should make appropriate inquiries to verify the bona fides of TZ Glory, to confirm the legitimacy of the proposed transaction, and to verify receipt and proper end-use of the items listed on the three previously approved licenses. The following questions are provided as suggested guidance: For the Malaysian MOD: --Are you familiar with TZ Glory? --Did you order from TZ Glory the exact type and quantity of items listed on this application and on the three previously approved licenses? --Did you receive the exact type and quantity of items listed on the three previously approved licenses? --Is TZ Glory an official supplier/contractor for the Malaysian MOD? Does the Malaysian MOD have any other contracts with the company? For TZ Glory: --Does the company have proper supporting documentation, including purchase orders from the Malaysian MOD, for this proposed transaction and the three previously authorized exports? --Will Millennium Freight (M) Sdn Bhd be involved at all in the proposed transaction? If so, how? If not, why was it listed as a foreign freight forwarder on the end-use statement submitted in support of the pending application? --How many addresses/facilities does the company have? Why is the company's registered address in Serlangor Darul Ehsan while its mailing address is in Kuala Lumpur? --Will the company be handling or storing the items listed on the application? If so, does it have secure facilities and proper accounting and security procedures for handling these sensitive USML items? --When was the company established and who are its principals? --What is the nature of its business -- what types of items does it handle, does it serve as a broker? --What types 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? ¶4. Department requests that post conduct a site visit to TZ Glory in order to provide Department with an assessment of its business operations and on-site security. If a site visit is not possible, please inform PM/DTCC case officer. Finally, post is asked to assess whether the company appears to be a reliable recipient of USML items. End action. ¶5. For background, the following details of the license in question are provided: ¶A. DTC Case: 050169578 QUANTITY/COMMODITY: 1 NSN: 5980-01-471-9636 P/N: 35008-308 Control-Display, Optoelectronic (ODS) Control Unit License Value: USD 58,235.00 SELLER: ISO Group, Inc. 7700 Technology Drive West Melbourne, FL 32904 Company contact: Jason Nunn, tel.: 877-330-1580, ext. 4101 FOREIGN CONSIGNEE: TZ Glory 332A, Lot 2, 10, 2nd Floor Plaza Ampang City Ampang 50450 Kuala Lumpur Malaysia POC: Maj (R) Khairul Anuar, Sales Director Email: ex majkhairulanuar@tz-glory-sdnbhd.com Tel.: 603-42526562 Fax: 603-42526563 Email: tzglory@streamyx.com FOREIGN END-USER: Royal Malaysian Air Force (RMAF) SO1 Purchasing Air Logistics HQ RMAF MATRA 2 Pangkalan Udara Subang 4000 Sham Alam Kuala Lumpur, 50450 Malaysia POC: Lt Col Zainal Abdul Manaf PURPOSE: TZ Glory is a parts supplier to the Malaysian MOD. These parts will be used to repair a C-130 aircraft owned by the Royal Malaysian Air Force. The EUS supplied by TZ Glory has a foreign foreign forwarder listed. The order is being shipped directly to the foreign end-user, there, Millenium Freight (M) Sdn Bhd will not be used and has no function associated with this DSP-5. ¶B. DTC Case: 050014102 QUANTITY/COMMODITY: 1 P/N: 337300-02 NSN: 1650-01-178-8617 Servo Vales Assy License Value: USD 199,000.00 (COMMENT: According to U.S. Customs data, this item was exported to Malaysia on 5/27/2007. END COMMENT.) SELLER: ISO Group, Inc. 7700 Technology Drive West Melbourne, FL 32904 Company contact: Jason Nunn, tel.: 877-330-1580, ext. 4101 FOREIGN CONSIGNEE: TZ Glory 332A, Lot 2, 10, 2nd Floor Plaza Ampang City Ampang 50450 Kuala Lumpur Malaysia POC: Maj (R) Khairul Anuar, Sales Director Email: ex majkhairulanuar@tz-glory-sdnbhd.com Tel.: 603-42526562 Fax: 603-42526563 Email: tzglory@streamyx.com FOREIGN END-USER: Royal Malaysian Air Force (RMAF) Air Logistics Head Quarters c/o Kuala Lumpur Air Base Kuala Lumpur Malaysia POCs: Maj Johari B. Ismail, SO2 System Fight GP Lt Colonel Mohd Zahari B. Jamaluddin SO1 Purchasing Department PURPOSE: Used to repair unserviceable units of the end user F/A-18D aircraft hydraulic systems. ¶C. DTC Case: 05-991017 QUANTITY/COMMODITY: 1 Heat Exchanger (P/N UA539139-1) 1 Heat Exchanger (P/N UA539132-3) License Value: USD 10,900.00 (COMMENT: According to U.S. Customs data, both of these items were exported to Malaysia on 3/6/2006. END COMMENT.) SELLER: Air Shunt Instruments, Inc. 9101 Winnetka Ave. Chatsworth, CA 91311 POC: Paul Nakkashian, tel.: 818-700-1616 FOREIGN CONSIGNEE: TZ Glory 332A, Lot 2, 10, 2nd Floor Plaza Ampang City Ampang 50450 Kuala Lumpur Malaysia POC: Maj (R) Khairul Anuar, Sales Director Email: ex majkhairulanuar@tz-glory-sdnbhd.com Tel.: 603-42526562 Fax: 603-42526563 Email: tzglory@streamyx.com FOREIGN END-USER: Royal Malaysian Air Force (RMAF) Air Logistics Head Quarters c/o Kuala Lumpur Air Base Kuala Lumpur Malaysia POCs: Maj Johari B. Ismail, SO2 System Fight GP Lt Colonel Mohd Zahari B. Jamaluddin SO1 Purchaseing Department PURPOSE: Spare parts installed in the F/A-18D for the No. 18 Sqn of the RMAF ¶D. DTC Case: 05-998006 QUANTITY/COMMODITY: 1 P/N: 837942-1 Test Set, Flight License Value: USD 26,000.00 (COMMENT: According to U.S. Customs data, this item was exported to Malaysia on 7/23/2006. END COMMENT.) SELLER: Associated Aircraft Mfg. & Sales 784 N.W. 57th Court Fort Lauderdale, FL 33309 POC: Mimi Laporte, Tel.: 954-772-6606, ext. 333 FOREIGN CONSIGNEE: TZ Glory 332A, Lot 2, 10, 2nd Floor Plaza Ampang City Ampang 50450 Kuala Lumpur Malaysia POC: Maj (R) Khairul Anuar, Sales Director Email: ex majkhairulanuar@tz-glory-sdnbhd.com Tel.: 603-42526562 Fax: 603-42526563 Email: tzglory@streamyx.com FOREIGN END-USER: Royal Malaysian Air Force (RMAF) Air Logistics Head Quarters c/o Kuala Lumpur Air Base Kuala Lumpur Malaysia POCs: Maj Johari B. Ismail, SO2 System Fight GP Lt Colonel Mohd Zahari B. Jamaluddin SO1 Purchaseing Department PURPOSE: For maintenance and repair of F5E and F5F aircraft already in the RMAF inventory. ¶6. Submitted in support of license application 050169578 were the following documents (PM/DTCC can fax documentation to post upon request): --Purchase order # ARFQ/RO/M30/090048 from TZ Glory to ISO Group Inc., signed by Maj (R) Khairul Anuar, Sales Director, dated 23 April 2009 --Technical data and specifications (1 page) --End User Certificate # TZQ096433V7003M2, signed by Maj (R) Khairul Anuar bin Endud, Sales Director, undated --Nontransfer and Use Certificate (Form DSP-83),signed by Maj (R) Khairul Anuar bin Endud, Sales Director, TZ Glory; by Maj Sharani bin Kamaruddin RMAF (SO2 Purchasing RMAF Air Logistics HQ); and by Lt Col Kainal bin Manaf RMAF (SO1 Purchasing RMAF Air Logistics HQ),undated ¶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 Judd Stitziel, PM/DTCC, Phone: 202-663-3455; email: StitzielJD@state.gov; SIPRNET: StitzielJD@state.sgov.gov. The Blue Lantern Guidebook (ref) is available as a PDF file in the Bunche Library's Electronic Library collection on the DOS Intranet: http://virtuallibrary.state.gov/ BlueLanternGuidebook2006%2520 final .pdf ¶8. Department is grateful for post's assistance in this matter. CLINTON