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

UNCLAS STATE 062847 SIPDIS BERLIN FOR SHANE PETERSON E.O. 12958: N/A TAGS: ETTC KOMC GM SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON LICENSE 050174850 ¶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 license 050174850 for the export of ammunition to Germany. 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: Wolfgang Grau of Grauwolf has been listed on four (4) previous licenses, none of which exceed $710 in value. This license is valued at $1.25 million. This check is to establish the bona fides of the end-user and to explain the significant increase in U.S. Munitions Listed items. ¶4. Action Request: Post is requested to establish the bona fides of end-user, Grauwolf, by making inquiries to representatives of the company and appropriate authorities in the German government. The following points are included for guidance: (To Grauwolf) --When was your company established and who are its principals? --How long has your company been in the business of importing and selling defense articles in Germany? What services and products does your company provide? --Who are your regular customers and where do they reside? --What are you annual sales of defense articles and services? Can you explain the significant increase in defense articles on this license as compared to previous export licenses issued by the United States Government? --Are you familiar with the regulations governing the import of U.S.-origin defense articles, including restrictions on re-transfer or re-export? (To German Authorities) --Is Grauwolf authorized to import and sell ammunition in Germany? Do you have any information on Grauwolf or Wolfgang Grau that would question their reliability as a recipient of U.S. defense articles? In its reply, Post may also comment on any other information pertinent to these transactions such as security of facilities, end-use, and concerns about the entities involved. ¶5. Details of license applications: DTC Case: 050174850 QUANTITY/COMMODITY: 80,000 Rifle and Pistol Brass Cases 200,000 Rifle and Pistol Bullets 25,000 Minor Rifle and Pistol Parts License Value: USD $1,250,000 SELLER: Graf & Sons Inc 4050 S. Clark Street Mexico, MO 65265 FOREIGN END-USER: Grauwolf / Wolfgang Grau IM Dunsbach 6 Ludwigsau 36251 Germany Tel: 0 66 21-7 16 29 PURPOSE: For resale to hunters and sport shooters ¶6. Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Posts upon request): DSP-83 Nontransfer and Use Certificate signed by Melissa Perkins (Graf & Sons) dated 15 June 2009 and Wolfgang Grau (Grauwolf) dated 6 June 2009 Purchase Order from Grauwolf dated 6 June 2009 Letter issued by Hauptzollamt GieBen - Zollamt Bad Hersfeld- dated 27 February 2007 stating that no import permit is required for these items. ¶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 Kyle M. Ballard, Phone: 202-663-1929; Email: BallardKM@state.gov; SIPRNET: BallardKM@state.sgov.gov. The Blue Lantern Guidebook (ref) is available as a PDF file on Intellipedia: http://www.intelink.gov/wiki/ Blue Lantern End-Use Monitoring Program ¶8. Department is grateful for Post's assistance in this matter. CLINTON