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

UNCLAS STATE 001513 SIPDIS COPENHAGEN FOR PATRICK ARMSTRONG E.O. 12958: N/A TAGS: ETTC KOMC DA SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSE 050095115 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 post-shipment check on license 050095115 for the export of International Traffic in Arms (ITAR)-controlled switches to Algeria. Post is requested to complete this Blue Lantern inquiry within 45 days. Lack of response to a Blue Lantern inquiry will affect pending and future licenses involving parties to this transaction. ¶3. Reason for request: In May 2008, the Department received export license application number 050095115 for the export of helicopter engine switches for end-use in the EH-101 (aka AW-101) helicopter by the Algerian Ministry of Defense (AMOD). However, it appears that the AW-101, which has been ordered by the AMOD, is not yet in its inventory. Open source news reports indicate that flight tests of the AW-101 for Algeria were only initiated in November of 2009 by the manufacturer, Augusta Westland (AW),in the UK. AW was not listed on the subject license as a party to the export transaction. Given this information, the Department has reason to believe that the switches may not have been delivered directly to the AMOD as indicated on the export license. ¶4. ACTION: The Department requests that Post contact foreign consignee, Danish Aerotech AS (DA),to inquire into the disposition of the switches. Post is requested to verify how the switches were used and to whom they were delivered. Finally, Post is requested to remind DA of the restrictions on United States Munitions List (USML) items, especially the prohibition against unauthorized retransfer and re-export. The following points are provided as suggested guidance: --To whom did you deliver the helicopter engine switches? What is their current disposition, to your knowledge? (as needed) --Were the switches re-exported to the United Kingdom for integration by Augusta Westland prior to final end-use in Algeria? --If yes, is DA aware of the prohibition against unauthorized retransfer of USML? The license application did not list AW, nor any other foreign consignee, as a recipient of USML after DA, as required under ITAR 126.13(b). When supplying transaction information to US companies in the future, please be sure to provide the names of all entities that will receive USML prior to delivery to the ultimate end-user. END ACTION. ¶5. Details of transaction: DTC CASE: 050095115 QUANTITY/COMMODITY: 18 - Engine Switch, Part No. 24411 Value: 44,692.000 USD SELLER: Esterline Technologies Corporation via subsidiary Mason Electric Company 500 108th Ave. NE, Suite 1500 Bellevue, WA 98004 Tel: 425-453-9400 POC: Frank Houston FOREIGN INTERMEDIATE CONSIGNEE International Precision Products B.V. Van Dalenlaan 398 2082 VR Santpoort Zuid Netherlands Tel: 31 (0) 23 538 46 44 FOREIGN CONSIGNEE Danish Aerotech AS Industrieparken 39-43 DK 2750 Ballerup Denmark Tel: 45 9962 6262 FOREIGN END-USER: Ministere de la Defense Nationale Department des Approvisionnments Alger-Gare Alger Algeria PURPOSE: Engine condition switches to be installed on the EH-101 helicopter. ¶6. Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Post upon request): --Purchase Order No. 27000764 submitted by IPP to Mason Electric, dated 20 December 2007. --End User Certificate submitted by IPP to Mason Electric, dated 21 December 2007. --Department of State License for Permanent Export of Unclassified Defense Articles and Related Unclassified Technical Data, submitted 20 March 2008, approved 6 May 2008. ¶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 Meredith Sundlof. Phone: 202-663-3455; Email: SundlofME@state.gov; SIPRNET: SundlofME@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