BLUE LANTERN LEVEL 3: POST-LICENSE/PRE-SHIPMENT

UNCLAS STATE 074357

SIPDIS
LUSAKA FOR SCOTT JUDAH

E.O. 12958: N/A
TAGS: ETTC KOMC ZA
SUBJECT: BLUE LANTERN LEVEL 3: POST-LICENSE/PRE-SHIPMENT
END-USE CHECK ON LICENSES 050098764 AND 050157209


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-license/pre-shipment check on licenses 050098764 and
050157209 for the export of ammunition to Zambia. 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: Zambian company Rashid Store was
authorized to import 500,000 rounds of ammunition on license

050098764. The company then sought authorization for 500,000
more rounds of ammunition with license 050157209 despite the
fact that exports against 050098764 have not been exhausted
(NOTE: No shipment has yet been made against 050157209).
According to the import authorizations issued by the
Government of Zambia and submitted in support of these
PM/DDTC licenses, Rashid Store is authorized to import a
total of 1 million rounds of ammunition. This check is to
establish the bona fides of Rashid Store. Also, the invoice
provided by the U.S. applicant on license 050157209 indicates
that the shipment of ammunition will be sent to Yuyi Lishomwa
"c/o Spectra Oil Corp." This check is also to establish the
bona fides of Yuyi Lishomwa and determine what role, if any,
Spectra Oil Corp plays in this transaction.


4. Action Request: Post is requested to establish the bona
fides of Rashid Store, Yuyi Lishowma, and Spectra Oil Corp by
making inquiries to representatives of the company and
appropriate authorities of the Zambian government. (NOTE:
Export license 050098764 has not been exhausted and no/no
shipment has yet been made against 050157209). The following
points are included for guidance:

(To Rashid Store)

--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 your annual sales of firearms and ammunition?
Where are your usual suppliers located?

--Why did your company seek another authorization for Yuyi
Lishowma's ammunition when you have an outstanding
authorization for 500,000 rounds?

--What role does Spectra Oil Corp play in your transaction
with Yuyi Lishowma (050157209)? What role does Rashid Store
play in this transaction (050157209)? Will Rashid Store or
Spectra Oil ever have possession of the ammunition?

--Are you familiar with the regulations governing the import
of U.S.-origin defense articles, including restrictions on
re-transfer or re-export?

(To Yuyi Lishowma / Spectra Oil Corp)

--For what purpose will the ammunition you are receiving via
Rashid Store going to be used?

--Are you in the business of selling firearms and/or
ammunition? If so, when was this business 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 your annual sales of firearms and
ammunition? Where are your usual suppliers located?

--What is your relationship to Spectra Oil Corp? What role
does Spectra Oil Corp play in this transaction? Will the
ammunition in this transaction be shipped to Spectra Oil
Corp? Will the ammunition be used pursuant to the business
operations of the company?

--Are you familiar with the regulations governing the import
of U.S.-origin defense articles, including restrictions on
re-transfer or re-export?

(To Appropriate Authorities)

--Is Rashid Store properly authorized to import and sell
defense articles in Zambia?

--Do you have any information on Rashid Store or Rashid
Randera that would question their reliability as a recipient
of U.S. defense articles?

--Is Yuyi Lishowma properly authorized to import and sell
defense articles in Zambia?

--Do you have any information on Yuyi Lishowma or Spectra Oil
Corp that would question their reliability as a recipient of
U.S. defense articles?

--Are there any limitations on the type and quantity of
firearms and ammunition an individual or company is able to
import into Zambia? For how long is a general firearms
import permit valid in Zambia?

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:


A.

DTC Case: 050098764

QUANTITY/COMMODITY:

200,000 Rounds of Centerfire Ammunition, Calibers .17-.458
(NOTE: It is unclear what has been exported but according to
Automated Export System (AES) data, not all of the ammunition
has been exported)

300,000 Rounds of Rimfire Ammunition, Calibers .17 & .22
(NOTE: It is unclear what has been exported but according to
AES data, not all of the ammunition has been exported)

License Value: USD $120,000 (NOTE: According to AES data,
actual exports are only valued at aprox. $18,684)

SELLER:

RACI Holdings Inc
Remington Arms Company
870 Remington Drive
PO Box 700
Madison, NC 27025

FOREIGN END-USER:

Rashid Store Ltd
Plog 133 Freedom Way, Town Center
Lusaka, Zambia

and

PO Box 34272
Lusaka, Zambia

Tel: 223542/226702/221598
Email: baobab@zamtel.zm; rashidst@coppernet.zm

PURPOSE:

For commercial resale in Zambia


B.

DTC Case: 050157209

QUANTITY/COMMODITY:

30 Boxes Federal Premium Ammunition, .222 REM Caliber

30 Boxes Federal Premium Ammunition, .223 REM Caliber

40 Boxes Federal Premium Ammunition, .22-250 Caliber

20 Boxes Federal Premium Ammunition, .30-06 Caliber

20 Boxes Federal Premium Ammunition, .338 WIN Caliber

10 Boxes Federal Premium Ammunition, .416 Caliber

5 Boxes Federal Premium Ammunition, .458 Caliber

10 Boxes Federal Premium Ammunition, .460 Caliber

License Value: USD $9,685 (NOTE: No shipment has yet been
made)

SELLER:

Griffin & Howe, Inc.
33 Claremont Road
Bernardsville, NJ 07924

FOREIGN INTERMEDIATE CONSIGNEE:

Rashid Store Ltd
Plog 133 Freedom Way, Town Center
Lusaka, Zambia

and

PO Box 34272
Lusaka, Zambia
Tel: 223542/226702/221598
Email: baobab@zamtel.zm; rashidst@coppernet.zm

FOREIGN END-USER:

Yuyi Mubita Lishomwa
Plot 1691 Lumumba Road
PO Box 35402
Lusaka, Zambia
Tel: None provided

PURPOSE:

For use by Yuyi Lishomwa for sporting use only.


6. Submitted in support of the license application were the
following documents (PM/DTCC will fax documentation to Posts
upon request):


A.

Signed DSP-83 Nontransfer and Use Certificate signed by Tonya
Frederick (RACI/Remington) dated 9 Apr 2008, J. Tilimboyi
(Inspector General of Police) dated 31 Mar 2008, and Rashid
Randera (Rashid Store) dated 31 Mar 2008

Purchase Order No. issued by Rashid Store not/not dated

Import Permit No. 861 issued by the Republic of Zambia signed
by J. Tilimboyi dated 31 Jan 2008


B.

Signed DSP-83 Nontransfer and Use Certificate signed by Erin
Weeks (Griffin & Howe) dated 30 Apr 2009, Charles Kimueho
(Inspector General of Police) dated 29 Apr 2009, Rashid
Randera (Rashid Store) dated 29 Apr 2009, and Yuyi Lishomwa
dated 20 Arp 2009

Purchase Order issued by Yuyi Mubita Lishomwa dated 28 Apr
2009

Import Permit No. 873 issued by the Republic of Zambia signed
by Charles Kimueho dated 13 Jan 2009

Invoice No. 149464 issued by Griffin & Howe dated 3 Apr 2009
(NOTE: The shipping address for Yuyi Lishomwa includes "c/o
Spectra Oil Corp" but lists the same address for Mr. Lishomwa
as in para 5)


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