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

UNCLAS STATE 092051 SIPDIS ASTANA FOR JENNIFER BACHUS CARLETON SOFIA FOR JOSH HUCK E.O. 12958: N/A TAGS: ETTC KOMC KZ BU SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON LICENSE 050187693 REF: BLUE LANTERN GUIDEBOOK ¶1. This is an Action Request. See paragraphs 4 - 5. ¶2. The Department's Office of Defense Trade Controls Compliance (PM/DTCC) requests Post's assistance in conducting a pre-license check on license 050187693 for the export of rifles and ammunition to Kazakhstan. 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: The rifles and ammunition in this transaction are of a heavy caliber used by snipers. This request is to establish the bona fides of the transaction and determine the role of Bulgarian company Samros Group. ¶4. Action Astana: Post is requested to establish the bona fides of this transaction by making inquiries to representatives of R.S.E. Kazspetsexport and appropriate authorities of the Government of Kazakhstan. The following points are included for guidance: (To MOD of Kazakhstan ) --Can the MOD confirm the order of the firearms and ammunition listed on this license application? (To R.S.E. Kazspetsexport) --What role is Bulgarian company Samros Group playing in this transaction? Please describe any fees or commissions Samros Group is receiving for its services in this transaction. In its reply, Post may also comment on any other information pertinent to these transactions such as security of facilities, end-use, and concerns about the entities involved. ¶5. Action Sofia: Post is requested to establish the bona fides of foreign intermediate consignee Samros Group by making inquiries to representatives of the company and appropriate authorities of the Government of Bulgaria. The following points are included for guidance: (To Samros Group) --When was your company established and who are its principals? Does your company have offices located in other countries? --What products and services does your company provide? Who are your regular customers and where do they reside? --Will your company ever have physical possession of the firearms and ammunition listed on this export license? If so, what inventory procedures are in place to assure the proper security and safe delivery of these firearms? --From whom will you receive the defense articles and to whom will you ship them? Please provide a brief chain of custody for these defense articles. --What role is your company playing in this transaction? Please describe the fees or commissions you will receive for your services in this transaction. --Are you familiar with the regulations governing the import of U.S.-origin defense articles, including restrictions on re-transfer or re-export? --Are you familiar with the regulations governing the brokering of U.S.-origin defense articles and services, including the requirement of all foreign brokers to register with the U.S. Department of State? In its reply, Post may also comment on any other information pertinent to these transactions such as security of facilities, end-use, and concerns about the entities involved. ¶6. Details of license application: DTC Case: 050187693 QUANTITY/COMMODITY: 2 McMillan TAC-50 Bolt Action Rifles, .50 Caliber 4,000 Rounds of Ammunition, .50 Caliber License Value: USD $48,280 SELLER: Falcon Defense Group 3940 Bardstown Road, Suite 2C Louisville, KY 40218-2657 FOREIGN INTERMEDIATE CONSIGNEE: R.S.E. Kazspetsexport #3 Shashkin Street Almaty 050040 Kazakhstan FOREIGN INTERMEDIATE CONSIGNEE: Samros Group LTD Chaika 64/20 Varna 9005 Bulgaria Tel: 359 52 711 452 Email: info@samrosgroup.com FOREIGN END-USER: Kazakhstan Ministry of Defense Left Side, Sez #2 010000 Astana Kazakhstan PURPOSE: For official use by the Ministry of Defense/Armed Forces of Kazakhstan. For national defense purposes. ¶7. Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Posts upon request): DSP-83 signed by Steven Herberth (Falcon Defense) dated 08/29/2009; B. Ertaev (MOD) dated 06/02/2009; and K. Arzykulov (Kazspetsexport) dated 06/26/2009. Purchase Order issued by Kazspetsexport to Samros Group signed by K. Arzykulov. Purchase Order Ref. 1282-27-09 issued by Samros Group to Falcon Defense signed by Samat Bakhtigaliev dated 08/29/2009. End-Use Certificate issued by Samros Group signed by R. Komratov dated 08/10/2009. ¶8. 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 ¶9. Department is grateful for Post's assistance in this matter. CLINTON