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

UNCLAS SECTION 01 OF 03 STATE 078318 SIPDIS OTTAWA FOR LORI BALBI AND RYAN STONER E.O. 12958: N/A TAGS: ETTC KOMC CA SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSE 050020298 AND 050068921 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 post's assistance in conducting a post-shipment check on licenses 050020298 and 050068921 for the export of night vision devices (NVDs) to Canada. 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: Unfamiliar foreign consignee and end-user, Stars Aviation Canada, Inc. The company has appeared on previous licenses but the company's bona fides have not been verified by a Blue Lantern check. Moreover, due to the sensitivity of the equipment and the potential for their diversion or misuse, the Department of State and the Department of Defense have policies of carefully scrutinizing NVD export licenses and taking steps to ensure proper end-use. Provisos attached to these licenses obligate the end-user to secure the NVDs from loss, theft, or unauthorized access, and to perform routine inventory checks by serial number. Provisos also obligate the end-user to immediately notify DDTC upon the loss, theft, and/or destruction of these articles. These records are to be made available for review upon US Government request. ¶4. Action Request: Post is requested to confirm continued possession by Stars Aviation Canada, Inc. of the NVDs, to determine the serial numbers of the NVDs, and to verify that all NVDs are secure and being used only for the purpose stated on the license. Department requests that post conduct a site visit, if possible, in order to gather and verify this information and establish the bona fides of unfamiliar foreign end-user, Stars Aviation Canada, Inc. If a site visit is not possible, please obtain official written confirmation of receipt and possession and inform PM/DTCC case officer. The following questions are provided as suggested guidance: --Does the company have secure facilities and proper accounting and security procedures for handling sensitive USML items? --What is the exact end-use and who are the end-users for this USML item? --When was the company established and who are its principals? --What is the nature of the company's business? --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. For background, the following details of the license in question are provided: DTC Case: 050020298 QUANTITY/COMMODITY: 3 ITT F4949F AN/AVS-9 Night Vision Goggle, with FOM of 1600 or less including accessories License Value: USD 31,500.00 COMMENT: According to U.S. Customs data, 3 NVDs were STATE 00078318 002 OF 003 exported to Canada on 27 June 2007 END COMMENT SELLER: Aviation Specialties Unlimited, Inc. 4632 W. Aeronca St. Boise, ID 83705 POC is Chris Atwood, Tel. 208-287-5389 FOREIGN CONSIGNEE: Stars Aviation Canada, Inc. 1441 Aviation Park NE Calgery Alberta T2E 8M7 Canada POC is Operations Manager, Phil Haworth, Tel. (403) 275-4242 FOREIGN END-USER: Stars Aviation Canada, Inc. 1441 Aviation Park NE Calgery Alberta T2E 8M7 Canada POC is Operations Manager, Phil Haworth, Tel. (403) 275-4242 PURPOSE: Night vision equipment to be used to improve safety during night air operations missions for emergency medical and air ambulance operations conducted through established government contracts. ¶6. Submitted in support of the license application were the following documents (PM/DTCC can fax documentation to post upon request): --Submitted documents are irretrievable in their current format. See DSP-83 and purchase order below for POCs. ¶7. For background, the following details of the license in question are provided: DTC Case: 050068921 QUANTITY/COMMODITY: 3 Night vision goggle image inensifier tubes with FOM 1600 or less 1 Night vision goggle spare parts License Value: USD 10,461.00 COMMENT: According to U.S. Customs data, 3 NVDs and related component parts were exported to Canada on 5 September 2008 END COMMENT SELLER: Aviation Specialties Unlimited, Inc. 4632 W. Aeronca St. Boise, ID 83705 POC is Chris Atwood, Tel. 208-287-5389 FOREIGN CONSIGNEE: Stars Aviation Canada, Inc. 1441 Aviation Park NE Calgery Alberta T2E 8M7 Canada POC is Operations Manager, Phil Haworth, Tel. (403) 275-4242 FOREIGN END-USER: Stars Aviation Canada, Inc. 1441 Aviation Park NE Calgery Alberta T2E 8M7 Canada POC is Operations Manager, Phil Haworth, Tel. (403) 275-4242 PURPOSE: Night vision equipment spare parts to be used to repair and maintain existing night vision equipment currently in use and previously approved by the U.S. Department of State. STATE 00078318 003 OF 003 ¶8. Submitted in support of the license application were the following documents (PM/DTCC can fax documentation to post upon request): --Nontransfer and Use Certificate (Form DSP-83),submitted by Stars Aviation Canada, Inc., signed by Operations Manager, Phil Haworth on 9 February 2007. --Purchase Order No. 701020 submitted by Stars Aviation Canada, Inc. on 16 January 2007, no signature. ¶9. 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 in the Bunche Library's E-Book Collection on the DOS Intranet: http://buncheelectroniclibrary.state.gov/eboo ks/ BlueLanternGuidebook2006%20 final .pdf ¶10. Department is grateful for post's assistance in this matter. CLINTON