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

UNCLAS SECTION 01 OF 02 STATE 061455

SIPDIS
OTTAWA FOR LORI BALBI

E.O. 12958: N/A
TAGS: ETTC KOMC CA
SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK
ON THE EXPORT OF U.S. DEFENSE ARTICLES CITING THE CANADIAN
EXEMPTION

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 a transaction citing the
Canadian exemption for the export of electronic component
parts to Canada. 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: end-user Unisource Technology appears
on the DTCC Watchlist; also vague/incomplete description of
commodity and end-use in export filing. The company has not
previously been the subject of a Blue Lantern.


4. ACTION OTTAWA: Mission Canada is requested to make
inquiries with appropriate officials to establish the bona
fides of end-user Unisource Technology and to obtain all
relevant details of the export of electronic component parts
to Canada citing the Canadian exemption, including the exact
description, number, type, dollar value, and serial number of
items. 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:

--What were the exact United States Munitions List (USML)
articles exported to you? (Automated Export System (AES)
filing data provides the following information, "electronic
parts".)

--What is the exact end-use for these USML items? Will
Unisource Technology retain positive control over the
electronic component parts at all times? Will they be
transferred to other end-users in Canada or re-exported?

--Does the company have secure facilities and proper
accounting and security procedures for handling sensitive
USML items?

--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 USML items,
especially the prohibition against unauthorized re-transfer
and re-export?

END ACTION.


5. Details of the AES filing:

QUANTITY/COMMODITY:

Quantity not provided

Commodity - vague description cited as, "electronic parts"

Stated Value: USD 14,289.00

Export Date - 28 June 2007

ITAR Exemption Number - 126.5B

Filer Identification Number - 26877188

Shipping Reference Number - 330942


STATE 00061455 002 OF 002


U.S. EXPORTER:

Aeroflex Wichita
10200 West York St.
Wichita, KS 67215
POC is Cromwell, Tel. 316-529-5466

ULTIMATE CONSIGNEE

Unisource Technology
9010 Ryan Avenue
Montreal, Canada H9P2M8
POC is Jones, Tel. 514-748-8888


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