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

UNCLAS STATE 091981 SIPDIS TOKYO FOR EDWARD P. LUCHESSI E.O. 12958: N/A TAGS: ETTC KOMC JA SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON APPLICATION 050187092 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 pre-license check on application 050187092 for the export of naval vessel component parts to Japan. 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: Lack of documentation from the Japan Ministry of Defense (JMOD) and unfamiliar foreign consignee Unitech Corporation. The company has not appeared on any previous license applications, nor have its bona fides been verified by a Blue Lantern check. ¶4. ACTION: Department requests that Embassy make appropriate inquiries with host government officials to verify the bona fides of unfamiliar foreign consignee, Unitech Corporation and to confirm the legitimacy of this proposed transaction. PM/DTCC also requests that post conducts a site visit to the company in order to provide Department with an assessment of its business operations and on-site security. Finally, post is asked to assess whether the company appears to be a reliable recipient of United States Munitions List (USML) items. If a site visit is not possible, please inform the PM/DTCC officer. The following questions are provided as suggested guidance: --Does the company have an existing contract with the JMOD for this proposed transaction? --Does the company have secure facilities and proper accounting and security procedures for handling sensitive USML items? --What is the exact end-use for this USML item? Will Unitech Corporation retain positive control over the naval vessel component parts at all times? --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 USML items, especially the prohibition against unauthorized re-transfers and re-exports? --Does the company understand the restrictions on the unauthorized stockpiling of USML items? END ACTION ¶5. Details of license application: DTC Case: 050187092 QUANTITY/COMMODITY: 1 Parts and accessories for various vessels License Value: USD 3,000,000.00 SELLER: Windward International, LLC 2459 Torrance Blvd. #1 Torrance, CA 90501 POC is Ken Hoshina, Tel. 310-869-3259 FOREIGN CONSIGNEE: Unitech Corporation 815-28 Sankyomachi Nagasaki Japan POC is President, Yuji Morishita, Tel. 095-850-7836 FOREIGN END-USER: Ministry of Defense Japan 5-1 Ichigaya Honmura, Shinjyuku Tokyo Japan No POC provided PURPOSE: Repair, Maintenance, replacement, and overhaul. ¶6. Submitted in support of the license application was the following document (PM/DTCC can fax documentation to post upon request): --Letter of Intent submitted by Unitech Corporation, signed by President, Yuji Morishita on 1 July 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 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 at http://www.intelink.sgov.gov/wiki/Blue Lantern End-Use Monitoring Program. ¶8. Department is grateful for post's assistance in this matter. CLINTON