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

UNCLAS STATE 072791 SIPDIS SEOUL FOR HEATHER GRELL E.O. 12958: N/A TAGS: ETTC KOMC KS SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSE 050025373 REF: BLUE LANTERN GUIDEBOOK 2006 ¶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 end-use check on license number 050025373 for the export of International Traffic in Arms (ITAR)-controlled defense hardware to South Korea. 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 this license. ¶3. Reason for request: To verify the bona fides of Foreign Consignee Bosung Industry Co. Ltd. in the licensed transaction; no documentation from End-user was submitted with the License application. ¶4. Action: The Department requests that Post make inquiries to verify that Foreign Consignee Bosung Industry Co. Ltd. entered into a contract with the United States Government to procure USML items required to repair the AN/USQ-70. Conduct a site visit in order to assess the company's operations, reliability, and on-site security. Determine whether the company is a responsible recipient of United States Munitions List (USML) items, and emphasize that the unauthorized re-export or retransfer of USML items is strictly prohibited. Department further requests that Post determine whether or not the U.S. Army 2nd Infantry Division received the USML items and that they are being used for the purpose stated on the license. End Action Request. (COMMENT: According to U.S. export data, the USML items were shipped in full to Bosung Industry Co. Ltd. on 28 December ¶2006. END COMMENT.) ¶5. Details of license application: DTC Case: 050025373 QUANTITY/COMMODITY: 103 Thermostatic Switches, Ind. Faults, Fans, Transistors, Microcircuits, Filters, Module Displays, Clamps, Ring Assemblies, Transolvers, Pitch Cart Transolvers, and other assorted hardware (41 line items). License Value: USD $133.411.00 SELLER: Pacific Trans Inc. Attn: Soon Kim 179-22 149th Road Jamaica, NY 11434 Tel: 718-656-0900 FOREIGN CONSIGNEE: Bosung Industry Co. Ltd. Kofomo Tower, Room 704 #16-3 Sunae-Dong Bundang-Gu Sungnam City, Gyunggi-Do South Korea Tel: 02 464-8311; 031 719-8307-9 FOREIGN END-USER: U.S. Army 2nd Infantry Division 702nd MSB, Unit #15080 APO AP 96224-0351 South Korea PURPOSE: The parts will be used for the repair of the Position and Azimuth Determining System (PADS) (AN/USQ-70) for the U.S. Army in South Korea. ¶6. Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Post upon request): -- Department of State License for Permanent Export of Unclassified Defense Articles and Related Unclassified Technical Data signed 21 December 2006; -- Bosung Industry Statement of End-User dated 8 November 2006 (Ref: TNR Quote #TBSC-102 & Bosung Purchase Order Number BSC6158 dated 31 August 2006)) signed by Chang, Sang-Hui, Executive Director. ¶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