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

UNCLAS STATE 088538 SIPDIS MANILA FOR GRAZNYA COFFIN AND DHS/ICE FOR JULIUS ARAMBULO JUSMAG E.O. 12958: N/A TAGS: ETTC KOMC RP SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON APPLICATION 050185253 REF: 2006 BLUE LANTERN GUIDEBOOK ¶1. This is an Action Request. See paragraph 4. ¶2. The Department's Office of Defense Trade Controls Compliance (PM/DTCC) requests Post's assistance in conducting a pre-license check on application 050185253 for the export of night vision devices (NVDs) to the Philippines. 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. Reason for request: Sensitive commodity and unfamiliar foreign intermediate consignee, Jerub Trading. The company has appeared in previous licenses but its bona fides have not been verified by a Blue Lantern check. ¶4. ACTION: Post is requested to make inquiries with appropriate host government officials to determine if the Armed Forces of the Philippines ordered the NVDs from Jerub Trading; and if so, verify the amount, and that the items will only be used for the purpose stated on the license. JUSMAG may also weigh in on the legitimacy of the transaction and comment on the adequacy of security procedures for NVDs within the Armed Forces of the Philippines. PM/DTCC also requests that Post conducts a site visit to Jerub Trading in order to provide Department with an assessment of its business operations and on-site security, and 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: Jerub Trading: --Will the company take possession of these items or will they be conveyed directly to the Philippine Armed Forces? --Does the company have secure facilities and proper accounting and security procedures for handling sensitive USML items? --Will Jerub Trading retain positive control over the NVDs at all times? Will there be other consignees who will have possession of the items at any time before they are conveyed to the end-user? --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? Philippine Armed Forces: --Can you confirm your order of NVDs with Jerub Trading? --Do you have an established business relationship with this company? Have they previously procured USML on behalf of the Armed Forces of the Philippines? --Can you verify the end-use and end-users of these items, and that they will be stored in secure facilities and subject to inventory controls when not in use? END ACTION ¶5. Details of license application: DTC Case: 0501185253 QUANTITY/COMMODITY: 2351 M914 (AN-PVS14a) GEN III, 1X Night Vision Monocular with standard accessories 1 Spare parts for M914A as per contract 911 Otal classic with infrared aiming laser (835NM) and quick release throw level mount 1 Spare parts for Otal classic as per contract License Value: USD 8,045,737.00 SELLER: Nightline, Inc. 10705 SW 104 St. Miami, FL 33176 POC is Cris Bartolomeo, Tel. 423-727-5900 FOREIGN CONSIGNEE: Armed Forces of the Philippines Camp General Emilio Aguinaldo Quezon City - Manila 1110 Philippines POC is Chief of Staff, Armed Forces of the Philippines, General Victor S. Ibrado, No Tel. provided FOREIGN INTERMEDIATE CONSIGNEE Jerub Trading 7 Mahiyain - Teachers Village West Quezon City - Manila Philippines FOREIGN END-USER: Armed Forces of the Philippines Camp General Emilio Aguinaldo Quezon City - Manila 1110 Philippines POC is Chief of Staff, Armed Forces of the Philippines, General Victor S. Ibrado, No Tel. provided PURPOSE: Will be used in nighttime operations against terrorism throughout the Philippines. ¶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 the Armed Forces of the Philippines signed by Chief of Staff, Armed Forces of the Philippines, General Victor S. Ibrado on 27 June 2009, and Colonel Bernardio M. Ricafrente, Jr., Commander Armed Forces of the Philippines Procurement Service on 24 June 2009, and by Jerub Trading President, Eugene Cobarrubias on 19 June 2009. --End Use / User Statement submitted by the Armed Forces of the Philippines, signed by General Victor S. Ibrado, no date provided. ¶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 in the Bunche Library's E-Book Collection on the DOS Intranet: http://buncheelectroniclibrary.state.gov/eboo ks/ BlueLanternGuidebook2006%20 final .pdf ¶8. Department is grateful for post's assistance in this matter. CLINTON