BLUE LANTERN: VERIFYING BONA FIDES OF REGISTERED

UNCLAS STATE 092948

SIPDIS
VILNIUS FOR REBECCA DUNHAM
POL-MIL

E.O. 12958: N/A
TAGS: ETTC KOMC LH
SUBJECT: BLUE LANTERN: VERIFYING BONA FIDES OF REGISTERED
BROKER AMDZELIKA SKUZINSKIENE - CASE NO. K-2499

REF: A. SECTION 38(B)(1)(A)(II) OF THE ARMS

B. EXPORT CONTROL ACT (AECA)(22 U.S.C. 2778)


1. This is an Action Request. See paragraphs 3-4.


2. U.S. embassies have frequently inquired about the
legitimacy of arms export transactions involving U.S.
contractors and host-country partners in support of
U.S. efforts in Iraq and Afghanistan, or other U.S.
government programs. The Department's Office of
Defense Trade Controls Compliance (PM/DTCC) wishes
to inform Post that U.S. or foreign persons who are
involved in brokering U.S. defense articles or
services, or any defense articles or services pursuant
to U.S. procurement contracts for Iraq and Afghanistan
or other destinations under USG auspices, must be
registered with PM/DTCC and obtain Department's
approval for their brokering activities.


3. ACTION: PM/DTCC requests Post's assistance in
conducting an inquiry into the brokering activities
of the U.S. registered broker listed below to
substantiate its bona fides. Department requests
that Post conduct a site visit to the company in
order to assess its business operations, on-site
security, and reliability as a broker/recipient of
United States Munitions List (USML) items. If a
site visit is not possible, please inform the
PM/DTCC case officer. Post is requested to
complete this inquiry within 60 days:

AMDZELIKA SKUZINSKIENE, DIRECTOR
DEFENSA UAB (LLC)

L. ST. GUCEVICIAUS 9-2, LT-01122
VILNIUS, LITHUANIA
TEL: 37052655555


4. The following points are provided for guidance:

-- Confirm that this entity is in the business of
brokering defense articles and defense services at
the location(s) indicated under its legal name(s);

-- Determine whether this entity is authorized to
conduct such activities in its home country, whether
the entity has any criminal or other derogatory
background, and whether Post has any information on
its brokering or arms export activities that may
involve proscribed entities such as countries
under U.S. or international sanctions, or designated
state sponsors of terrorism;

-- Will the brokering firm be handling or storing
USML items on behalf of its clients? If so, does it
have secure facilities and proper accounting and
security procedures for handling sensitive USML
items?

-- When was the company established and who are its
principals? How many employees?

-- What is the nature of its business and what other
types of items does it handle?

-- What types of organizations are among its typical
clients and in what countries are they located?

-- Does the company understand the restrictions on
USML items, especially the prohibition against
unauthorized re-transfers and re-exports?


END ACTION.

-------------- --------------
BACKGROUND ON BROKERING REGISTRATION AND AUTHORIZATION
-------------- --------------


5. PM/DTCC provides the following background
information on the requirements for registration and
obtaining prior approvals for brokering activities:

The requirements for Registration and Obtaining Prior
Approvals or Brokering Activities are based in the Arms
Export Control Act (AECA). The Brokering Requirements
are administered by PM/DTCC.

Section 38(b)(1)(A)(II) of the AECA requires
registration for any person "who engages in the business
of brokering activities with respect to the manufacture,
export, import, or transfer of any defense article or
defense service".

According to the International Traffic in Arms
Regulations (ITAR) Section 129.2(a),a broker is
defined as:

"any agent for others in negotiating or arranging
contracts, purchases, sales or transfers of defense
articles or defense services in return for a fee,
commission, or other consideration."

Additionally, ITAR Section 129.2(b) states that
"brokering activities means acting as a broker as defined
(above),and includes financing, transportation, freight
forwarding, or taking of any other action that facilitates
the manufacture, export or import of a defense article or
defense service, irrespective of its origin."

Authorization is typically required for brokering activity.
However, some activities are exempt from these requirements
depending on the commodity, the countries involved, and the
existence of previous authorization. Any questions about
specific cases may be directed to this Office to the
attention of Deborah Carroll, Chief, Compliance &
Registration. Phone: 202-663-2809;
SIPRNET: carrolld@state.sgov.gov.

End background on brokering registration and authorization.


6. Please slug reply for PM/DTCC and include the words
"Blue Lantern Broker Inquiry" and the case number in
the Subject line. POC is Rachael-Therese S. Joubert-Lin,
Phone: 202-663-2950; Email:JoubertLinRS@state.gov;
SIPRNET: JoubertLinRS@state.sgov.gov. The Blue Lantern
Guidebook is available as a PDF file at http://www.
intelink.sgov.gov/wiki/Blue Lantern End-Use Monitoring
Program.


7. Department is grateful for Post's assistance in this
matter.
CLINTON