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

UNCLAS STATE 064206 SIPDIS MADRID FOR E. STROTHER MURRAY POL-MIL E.O. 12958: N/A TAGS: ETTC KOMC SP SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSES 050097913 AND 050051555 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 Post's assistance in conducting a post-shipment check on licenses 050097913 and 050051555 for the export of International Traffic in Arms Regulations (ITAR) - controlled, aircraft spare parts to the Spanish Ministry of Defense (MOD). Post is requested to complete this Blue Lantern inquiry within 45 days. Lack of response to a Blue Lantern inquiry will affect pending and future licenses involving parties to a license. ¶3. Reason for request: Substantiate the bona fides of unfamiliar Foreign Consignee Europavia Espana in the two transactions, listed below. ¶4. Action: The Department requests that Post conduct a site visit to Europavia Espana in order to assess its business operations, on-site security, and general reliability as a recipient of United States Munitions List (USML) items. Post is also requested to make inquiries with the Spanish Ministry of Defense (MOD) and the Spanish Air Force to determine if they have received the aircraft and helicopter spare parts on the licenses listed below and that the articles are being used for the purpose stated on the licenses. The following questions for Europavia Espana are provided as suggested guidance: -- Can the company provide documentation from the Spanish Ministry of Defense (MOD) and/or the Spanish Air Force (e.g. purchase order, contract, or letter of intent) establishing it as the final end user of the USML items? -- Have all of the items ordered on these licenses been provided to the Spanish MOD? Does Europavia continue to hold any of the USML items? -- Is Europavia Espana an official supplier/contractor for the Spanish MOD? Does the company have any other contracts with the Spanish MOD that involve the procurement of USML items? -- Who are Europavia Espana's other customers, what is the nature of their business, and where are they located? -- Are you familiar with Freight Forwarder Integral Transport Service, S.A. (Madrid)'s exact role on License 050097913, below? -- Were there any additional foreign parties (e.g. consignees, freight forwarders, etc.) involved in this transaction? �00A;-- Does Europavia Espana understand the restrictions on USML items (especially the prohibition against unauthorized re-transfers, re-exports, or changes in end use)? End Action. ¶5. Details of license applications: ¶A. DTC Case: 050097913 QUANTITY/COMMODITY: 1 Helicopter Cargo Winch - P/N 4067-215 License Value: USD $5,386.00 SELLER: Goodrich Corporation 1550 S. Valley Vista Drive Diamond Bar, CA 91765 (909)569-0200 FOREIGN CONSIGNEE: Europavia Espana, S.A. C Jorge Juan 30-4,A 28001 Madrid Spain Tel: 34 91 431 82 53 Fax: 34 91 576 11 28 Website: www.europavia.es FOREIGN INTERMEDIATE CONSIGNEE: Integral Transportation Service, S.A. C Alcarria, 2, 28820 Coslada Madrid Spain FOREIGN END-USER: Spanish Air Force Avenida de la Aviacion S/N Madrid 28044 Cuatro Vientos Spain PURPOSE: Goodrich Corporation designs and manufactures cargo winches for use on the Boeing CH-47 helicopter. Europavia Espana is a maintenance activity contractor for the Spanish Air Force. Boeing and the U.S. military have sold CH-47 helicopters to numerous customers, including the Spanish Air Force. This cargo winch, as utilized on the CH-47 helicopter, is designed to assist in the transfer of cargo into and out of the helicopter. ¶B. DTC Case: 050051555 QUANTITY/COMMODITY: 1 Electronic, hydraulic, electro mechanical and structural components installed in the following aircraft/helicopters operated by the Spanish MOD; S-76, CH47, F-5, F-18, C-130, P-3, UH1-H. License Value: USD $4,000,000.00 SELLER: Ursula Cernuschi Caravan International Corp. 841 Lexington Avenue New York, NY 10022 212-223-7190 ext.2 FOREIGN CONSIGNEE: Europavia Espana, S.A. C Jorge Juan 30-4,A 28001 Madrid Spain Tel: 34 91 431 82 53 Fax: 34 91 576 11 28 Website: www.europavia.es FOREIGN END-USER: Spanish Ministry of Defense Paseo de la Castellana 109 Madrid Spain PURPOSE: Maintenance and repair of aircrafts/helicopters S-76-C, CH47, F-5, F-18, C-130, P3, and UH1-H. ¶6. Submitted in support of the license applications were the following documents (PM/DTCC will fax documentation to Post upon request): License #050097913 -- Undated Europavia Espana End Use/End User Statement signed by Rafael Garcia; -- Europavia Espana Repair Quote Acceptance No. 7/0214/M for Mounted Aircraft Winch (P/N 4067-215) dated 8 Nov 2007 License #050051555 -- Letter of Intent from Europavia Espana to Caravan International dated 13 June 2007 ¶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 Rachael-Therese S. Joubert-Lin, Phone: 202-663-2950; Email: JoubertLinRS@state.gov; SIPRNET: JoubertLinRS@state.sgov.gov. The Blue Lantern Guidebook (ref) is available as a PDF file at http://www.intelink.sgov.gov/wiki/Blue Lantern End-Use Monitoring Program. ¶8. Department is grateful for Post's assistance in this matter. CLINTON