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

UNCLAS STATE 083456 SENSITIVE SIPDIS SAN JOSE FOR ROBERT ANDREW E.O. 12958: N/A TAGS: ETTC KOMC CS SUBJECT: BLUE LANTERN LEVEL 3: POST-LICENSE/PRE-SHIPMENT END-USE CHECK ON LICENSES 050134369, 050175886, 050175888, AND 050175889 ¶1. (U) This is an Action Request. See paragraphs 2 - 4. ¶2. (U) 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 050134369, 050175886, 050175888, and 050175889 for the export of firearms to Costa Rica. Post 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. (SBU) Reason for Request: A Blue Lantern check in 2000 found that El Hispano S.A. may import firearms and ammunition on behalf of other retail dealers. Rather than importing larger quantities of firearms a few times a year to stock its inventory, El Hispano imports smaller quantities of firearms more frequently. This is often done before existing export licenses are exhausted. This check is to obtain more information on El Hispano S.A.'s customer base and to determine that the company does not/not sell U.S.-origin firearms to end-users outside Costa Rica. ¶4. (SBU) Action Request: Export license 050134369 has already been shipped to El Hispano S.A. whereas 050175886, 050175888, and 050175889 have not yet been shipped. This request is for post to review El Hispano's sales records for the firearms exported under licenses 050134369 to determine if the company is importing on behalf of other firearms dealers and to verify that El Hispano's customers are based in Costa Rica. Post is also requested to establish the bona fides of the transactions under 050175886, 050175888, and 050175889 by making inquiries to representatives of the company and appropriate authorities of the Government of Costa Rica. The following points are included for guidance: (To El Hispano S.A.) --What products and services does your company provide? Who are your regular customers and where do they reside? --What are your annual sales of U.S.-origin firearms? --To whom will you sell the firearms received under U.S. export licenses 050175886, 050175888, and 050175889? --Please provide sales records for firearms received via U.S. export licenses 050134369. Were any of these firearms re-exported to end-users outside Costa Rica? Have you ever re-exported U.S.-origin firearme or other U.S.-origin defense articles to end-users outside Costa Rica? (To Import/Export Authorities and/or Appropriate Law Enforcement Officials) --Is El Hispano S.A. properly authorized to import and sell defense articles in Costa Rica? -- Do you have any records of El Hispano S.A. exporting U.S.-origin firearme or other U.S.-origin defense articles to end-users outside Costa Rica? --Do you have any information on El Hispano S.A. that would question their reliability as a recipient of U.S. defense articles? In its reply, Post is requested to comment on any other information pertinent to these transactions such as security of facilities, end-use, and concerns about the entities involved. ¶5. (U) Details of license applications: ¶A. DTC Case: 050134369 (NOTE: This license has already been shipped) QUANTITY/COMMODITY: 10 Springfield XDM Pistols, .40 Caliber 10 Springfield XD9 Pistols, 9mm 10 Springfield XD45 Pistols, .45 Caliber 5 Springfield 1911A1 Pistols, .45 Caliber License Value: USD $25,250 SELLER: Lou's Police Distributors 7815 West 4 Avenue Hialeah, FL 33014 FOREIGN END-USER: El Hispano S.A. Calle 21 Av Central Frente a Bomba la Primavera (NOTE: Purchase order lists PO Box 4143-1000) San Jose, Costa Rica Tel: (506) 22551974 PURPOSE: For commercial resale in Costa Rica ¶B. DTC Case: 050175886 (NOTE: This license has not/not been shipped) QUANTITY/COMMODITY: 10 Springfield XDM Pistols, .40 Caliber 21 Springfield XD9 Pistols, 9mm 11 Springfield XD45 Pistols, .45 Caliber 13 Springfield XD Pistols, .357 Caliber 7 Springfield XD40 Pistols, .40 Caliber 10 Savage 936 Rifles, .22 Caliber License Value: USD $48,500 SELLER: Lou's Police Distributors 7815 West 4 Avenue Hialeah, FL 33014 FOREIGN END-USER: El Hispano S.A. Calle 21 Av Central Frente a Bomba la Primavera (NOTE: Purchase order lists PO Box 4143-1000) San Jose, Costa Rica Tel: (506) 22551974 PURPOSE: For commercial resale in Costa Rica ¶C. DTC Case: 050175888 (NOTE: This license has not/not been shipped) QUANTITY/COMMODITY: 3 Magnum Research Model BFR Revolvers, 45 - 70 Caliber 3 Smith & Wesson M329 Revolvers, .44 Caliber 3 Smith & Wesson M351PD Revolvers, .22 Caliber 4 Smith & Wesson M327PD Revolvers, .357 Caliber 3 Smith & Wesson M327PD Revolvers, .357 Caliber 5 Springfield 1911A1 Pistols, .45 Caliber License Value: USD $14,601 SELLER: Lou's Police Distributors 7815 West 4 Avenue Hialeah, FL 33014 FOREIGN END-USER: El Hispano S.A. Calle 21 Av Central Frente a Bomba la Primavera (NOTE: Purchase order lists PO Box 4143-1000) San Jose, Costa Rica Tel: (506) 22551974 PURPOSE: For commercial resale in Costa Rica ¶D. DTC Case: 050175889 (NOTE: This license has not/not been shipped) QUANTITY/COMMODITY: 5 H&K USP9 Pistols, 9mm 5 H&K USP40 Pistols, .40 Caliber 20 Taurus M25BP Pistols, .25 Caliber 20 Taurus M229BPP Pistols, .25 Caliber 3 Taurus M4510TKP-3B Revolvers, .410/45 Caliber License Value: USD $17,700 SELLER: Lou's Police Distributors 7815 West 4 Avenue Hialeah, FL 33014 FOREIGN END-USER: El Hispano S.A. Calle 21 Av Central Frente a Bomba la Primavera (NOTE: Purchase order lists PO Box 4143-1000) San Jose, Costa Rica Tel: (506) 22551974 PURPOSE: For commercial resale in Costa Rica ¶6. (U) Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Posts upon request): ¶A. DSP-83 signed by Linda Riccobono (Lou's Police) dated 11/22/2008 and Randall Gazel Faith (El Hispano) dated 09/23/2008 Import Permit Oficio No. 2603-2008-DGA-OT issued by the Ministry of Public Security signed by William Hidalgo Echavarria dated 10/03/2008 Purchase Order from El Hispano signed by Randall Gazel Faith dated 09/23/2008 ¶B. DSP-83 signed by Linda Riccobono (Lou's Police) dated 06/17/2009 and Randall Gazel Faith (El Hispano) dated 06/01/2009 Import Permit Oficio No. 2400-2008-DGA-OT issued by the Ministry of Public Security signed by William Hidalgo Echavarria dated 10/10/2008 Import Permit Oficio No. 2136-2008-DGA-OT issued by the Ministry of Public Security signed by William Hidalgo Echavarria dated 09/14/2008 Purchase Order from El Hispano signed by Randall Gazel Faith dated 06/01/2009 ¶C. DSP-83 signed by Linda Riccobono (Lou's Police) dated 06/13/2009 and Randall Gazel Faith (El Hispano) dated 06/03/2009 Import Permit Oficio No. 2462-2008-DGA-OT issued by the Ministry of Public Security signed by William Hidalgo Echavarria dated 09/17/2008 Import Permit Oficio No. 2668-2008-DGA-OT issued by the Ministry of Public Security signed by William Hidalgo Echavarria dated 10/09/2008 Import Permit Oficio No. 3257-2008-DGA-OT issued by the Ministry of Public Security signed by William Hidalgo Echavarria dated 12/09/2008 Purchase Order from El Hispano signed by Randall Gazel Faith dated 06/03/2009 ¶D. DSP-83 signed by Linda Riccobono (Lou's Police) dated 06/14/2009 and Randall Gazel Faith (El Hispano) dated 06/07/2009 Import Permit Oficio No. 166-2009-DGA-OT issued by the Ministry of Public Security signed by William Hidalgo Echavarria dated 01/22/2009 Import Permit Oficio No. 158-2009-DGA-OT issued by the Ministry of Public Security signed by William Hidalgo Echavarria dated 01/21/2009 Purchase Order from El Hispano signed by Randall Gazel Faith dated 06/07/2009 ¶7. (U) 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. (U) Department is grateful for Post's assistance in this matter. CLINTON