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

UNCLAS STATE 066234 SIPDIS MOSCOW FOR NICKOLAS KATSAKIS E.O. 12958: N/A TAGS: ETTC KOMC RS SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSE 050083308 ¶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 license 050083308 for the export of rifles to Russia. Post 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: The Department's Bureau of Democracy, Human Rights, and Labor requested that PM/DTCC establish the bona fides of end-user, MXM Hunting Club. ¶4. Action Request: Post is requested to verify that the rifles listed below were received by the MXM Hunting Club (NOTE: This export license expired before the company could export all the firearms listed on the license, so only 99 rifles should have been exported). Post is also requested to establish the bona fides of the end-user by making inquiries to representatives of the company and appropriate local authorities. The following points are included for guidance: (To MXM Hunting Club) --When was your company established and who are its principals? --What products and services does your company provide? Who are your regular customers and where do they reside? --What are you annual sales of U.S.-origin firearms? --Are you familiar with the regulations governing the import of U.S.-origin defense articles, including restrictions on re-transfer or re-export? (To Local Authorities) --Is MXM Hunting Club properly authorized to import and sell defense articles in Russia? --Do you have any information on MXM Hunting Club that would question their reliability as a recipient of U.S. defense articles? In its reply, Post is encouraged to comment on any information pertinent to this transaction such as security of facilities, end-use, and concerns about the entities involved. ¶5. Details of license applications: DTC Case: 050083308 QUANTITY/COMMODITY: 26 Model 798 Bolt Action Rifles (NOTE: Only 18 Model 798s actually exported) 40 Model 750 Bolt Action Rifles (NOTE: Only 20 Model 750s actually exported) 62 Model 700 Bolt Action Rifles (NOTE: Only 49 Model 700s actually exported) 5 Model Seven Bolt Action Rifles (NOTE: No/no Model Sevens were actually exported) 17 Model 770 Bolt Action Rifles (NOTE: Only 12 Model 770s actually exported) License Value: USD $72,740 (NOTE: Actual exports are valued at aprox. $46,000) SELLER: RACI Holdings Inc Remington Arms Company 870 Remington Drive PO Box 700 Madison, NC 27025 FOREIGN END-USER: MXM Hunting Club Stromynka Street, 19/2 Moscow Russia Tel: 7-495-291-6550 PURPOSE: For commercial resale in Russia ¶6. Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Posts upon request): Signed DSP-83 Nontransfer and Use Certificate signed by Karen Johnson (Remington) dated 9 January 2008 and Olga Chernozipinnikova dated 29 August 2007 Purchase Order No. 4326-2 issued by MXM Hunting Club dated 5 December 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 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