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