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

UNCLAS STATE 073433 SIPDIS AIT TAIPEI FOR MATTHEW O'CONNOR E.O. 12958: N/A TAGS: ETTC KOMC TW SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON APPLICATION 050179265 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 AIT Taipei's assistance in conducting a pre-license check on application 050179265 for the export of inertial measurement units (IMUs) to Taiwan. AIT Taipei 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: sensitive commodity and unfamiliar foreign consignee, Lamar-tex Co., Ltd. The company has appeared on previous licenses but the company's bona fides have not been verified by a Blue Lantern check. ¶4. ACTION AIT TAIPEI: AIT Taipei is requested to make inquiries with appropriate authorities to determine if Chung Shan Institute of Science and Technology (CSIST) ordered the IMUs from Lamar-tex Co., Ltd. and if so, verify the amount and that the item will be used for the purpose stated on the license. PM/DTCC also requests that post conduct a site visit to Lamar-tex Co., Ltd. in order to provide Department with an assessment of its business operations and on-site security. Finally, post is asked to assess whether the company appears to be a reliable recipient of USML items. If a site visit is not possible, please inform the PM/DTCC officer. The following questions are provided as suggested guidance: --Does the company have supporting documentation for this proposed transaction? --Does the company have secure facilities and proper accounting and security procedures for handling sensitive USML items? --What is the exact end-use for this USML item? --When was the company established and who are its principals? --What is the nature of its business -- what type of items does it handle, does it serve as a broker? --What type of organizations are among its typical customers and where are the customers located? --Does the company understand the restrictions on United States Munitions List (USML) items, especially the prohibition against unauthorized re-transfer and re-export? END ACTION ¶5. Details of license application: DTC Case: 050179265 QUANTITY/COMMODITY: 140 Measurement System Angular Rate (P/N: RG02-0104-1) License Value: USD 504,000.00 SELLER: Eugenix Systems, Inc. 6707 Convoy Ct. San Diego, CA 92111 POC is Ji Kim, Tel. 858-278-4951 FOREIGN CONSIGNEE: Lamar-tex Co., Ltd. Room #9, 6F No. 270, Sec. 5, Chung Xiao E. Road Taipei Taiwan POC is General Manager, William Mar, Tel. 886-2-2345-6647 FOREIGN END-USER: Chung Shan Institute of Science and Technology No. 481, Chia-An Sec., Chung-Chen Road Chia-An Village Lung-Tan Taiwan POC is Director of Seeker Section ES Research Division, Tseng, Yau Hwa, No Tel. provided PURPOSE: The RG02-0104-1 Measurement System Angular Rate will be used in the Hsiung Feng 2B sub-sonic speed ship to ship missile, this missile has been set up on DD class ships of R.O.C. Taiwan Navy. ¶6. Submitted in support of the license application were the following documents (PM/DTCC can fax documentation to post upon request): --DSP-83 Nontransfer and Use Certificate submitted by Chun Shan Institute of Science and Technology, signed by Director of Seeker Section ES Research Division, Tseng, Yau Hwa on 26 June 2009 and by Lamar-tex Co., Ltd., General Manager, William Mar on 02 July 2009. --Purchase Order No. XU97P03P186PE submitted by Lamar-tex Co., Ltd. signed by General Manager, William Mar on 02 July ¶2009. --End Use Statement submitted by Chung Shan Institute of Science and Technology, signed by Director of Seeker Section ES Research Division, Tseng, Yau Hwa on 26 June 2009. ¶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 Tim Mazzarelli, Phone: 202-663-3867; Email: MazzarelliTP@state.gov; SIPRNET: MazzarelliTP@state.sgov.gov. The Blue Lantern Guidebook (ref) is available as a PDF file on the DOS Intranet Intellipedia: http://www.intelink.gov/wiki/Department of State%27s Blue Latern End-Use Monitoring Program or on SIPRNET: http://www.intelink. sgov.gov/wiki/Department of State%27s Blue Latern End-Use Monitoring Program ¶8. Department is grateful for post's assistance in this matter. CLINTON