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

UNCLAS SECTION 01 OF 03 STATE 085078 SIPDIS WELLINGTON FOR ADAM SMITH E.O. 12958: N/A TAGS: ETTC KOMC NZ SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSES 050130278 AND 050181912 ¶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 050130278 and 050181912 for the export of firearms to New Zealand. 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: End-user Outdoor Brands first appeared on U.S. export licenses in October 2008 on license 050130278 for firearms. Since then, the company has been approved for over $2 million in firearms and ammunition exports. License 050181912 is the largest to date valued at over $719,000. This check is to establish the bona fides of the company and its annual sales. ¶4. Action Request: Post is requested to establish the bona fides of Outdoor Brands by making inquiries to representatives of the company and appropriate local authorities. The following points are included for guidance: (To Outdoor Brands) --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 you annual sales of U.S.-origin firearms? --Do you sell firearms to customers that reside outside New Zealand? --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 Import/Export and/or Law Enforcement Authorities) --Is Outdoor Brands properly authorized to import and sell defense articles in New Zealand? --Do you have any information on Outdoor Brands that would question their reliability as a recipient of U.S. defense articles? 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: 050130278 (NOTE: Shipments against this license have not/not yet been completed) QUANTITY/COMMODITY: 100 Model XL7 Bolt Action Rifles 
 200 Model 336 Lever Action Rifles 75 Model 917 Rifles 100 Model 925 Rifles 50 Model 795 Rifles 50 Model 982 Rifles 350 Model 700 Rifles 30 Model 715 Rifles 30 Model Seven Rifles STATE 00085078 002 OF 003 150 Model 597 Rifles License Value: USD $507,002 (NOTE: Actual exports are valued at approx. $257,300) SELLER: American Heritage Arms Remington Arms Company 870 Remington Drive PO Box 700 Madison, NC 27025 FOREIGN END-USER: Outdoor Brands 6 Botha Road Penrose 1061 Auckland New Zealand Tel: 64 9 582 0818 PURPOSE: For commercial resale in New Zealand ¶B. DTC Case: 050181912 (NOTE: No shipments have yet been made against this license) QUANTITY/COMMODITY: 300 Model 700 Rifles 100 Model Seven Rifles 50 Model 750 Rifles 50 Model 7600 Rifles 100 Model 597 Rifles 300 Model XL7 Rifles 300 Model XS7 Rifles 10 Model 308 Rifles 10 Model 338 Rifles License Value: USD $*** SELLER: American Heritage Arms Remington Arms Company 870 Remington Drive PO Box 700 Madison, NC 27025 FOREIGN END-USER: Outdoor Brands 6 Botha Road Penrose 1061 Auckland New Zealand Tel: 64 9 582 0818 PURPOSE: For commercial resale in New Zealand ¶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 Shirley Conner dated 10/30/2008 and A.D. Mercer dated 10/2008 (stamp obscures the day). Import Permit No. 105510 issued by the New Zealand Police to Andrew David Mercer dated 10/20/2008 Purchase Order No. SD001 issued by Outdoor Brands dated STATE 00085078 003 OF 003 10/17/2008 Purchase Order No. SD002 issued by Outdoor Brands dated 10/17/2008 ¶B. Signed DSP-83 Nontransfer and Use Certificate signed by Shirley Conner dated 07/28/2009 and Andrew David Mercer (stamp obscures the date). Import Permit No. 111069 issued by the New Zealand Police to Andrew David Mercer dated 07/07/2009 Import Permit No. 111070 issued by the New Zealand Police to Andrew David Mercer dated 07/07/2009 Import Permit No. 111071 issued by the New Zealand Police to Andrew David Mercer dated 07/07/2009 Purchase Order No. SD016 issued by Outdoor Brands dated 07/19/2009 Purchase Order No. SD017 issued by Outdoor Brands dated 07/19/2009 Purchase Order No. SD018 issued by Outdoor Brands dated 07/19/2009 Purchase Order No. SD019 issued by Outdoor Brands dated 07/19/2009 ¶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 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