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

UNCLAS STATE 001514 SIPDIS TOKYO FOR JASON N. LAWRENCE E.O. 12958: N/A TAGS: ETTC KOMC JP SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSES 050102957 REF: A. A. 2006 BLUE LANTERN GUIDEBOOK ¶B. B. 08 STATE 20241 ¶C. C. 08 TOKYO 1710 ¶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 licenses 050102957 for the export of International Traffic in Arms (ITAR)-controlled aircraft spare parts to Japan. 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 license. ¶3. Reason for request: The foreign consignee, Sky Trading Co. Ltd. (Sky) was the subject of a previous unfavorable Blue Lantern check (see refs. B and C). The previous check indicated that Sky may have lacked the ability to properly account for United States Munitions List (USML) items. ¶4. ACTION: The Department requests that Post make inquiries to determine the bona fides of the transaction. In addition, the Department requests that Post make inquires into Sky's ability to account for USML received under this license and verify its disposition. The following questions are provided as suggested guidance: --Is Sky able to verify that is has existing contracts, purchase orders, or invoices with Trans-Pac Sales Corp. for the items listed in the subject license? --Does Sky have existing contracts or purchase orders with the Japan Ministry of Defense (JMOD) for the items listed in the subject licenses? --Have the articles exported thus far been transferred to the JMOD or do they remain in Sky's possession? --Does the company have secure facilities and proper accounting and security procedures for handling sensitive USML items? --Does the company understand the restrictions on the unauthorized stockpiling of USML items? END ACTION. ¶5. Details of license applications: DTC CASE: 050102957 QUANTITY/COMMODITY: 1 Lot - Minor component parts for the airframe and engines of the following aircraft: F-15J/DJ Fighter, F-4EJ Fighter, E-2C AWE Aircraft, E-767 AWACS, RF-4E Reconnaissance, YS-11 Transport, C-1 Transport, C-130H Transport, B-747-400 Transport, U-4 Transport, T-1A/B Trainer, T-2 Trainer, T-3 Trainer, T-7 Trainer, T-400 Trainer, U-125 Rescue, MU-2 Rescue, UH-60J Rescue Helicopter, V-107 Rescue Helicopter, CH-47 Rescue Helicopter. License Value: 2,500,000.00 USD (COMMENT: According to US Customs data, 8 shipments totaling 1,178,842.00 USD have been exported under this license. END COMMENT) SELLER: Trans-Pac Sales Corp. 1600 W. Redondo Beach Blvd. #400 Gardena CA 90247 Tel: 310-327-0101 POC: Yukio Kato FOREIGN CONSIGNEE: Sky Trading Co. Ltd. 1-10-11-1008, Higashigotanda, Shinagawa-ku Tokyo 141-0022 Japan Tel: 03-5789-3088 Fax: 03-5789-3868 POC: Tsuneo Takeda, President FOREIGN END-USER: Japan Ministry of Defense 5-1 Honmura-cho, Ichigaya Shinjuku-ku Tokyo Japan POC: Major Hiroyuki Suzuki, Chief of Import, 2nd Air Depot PURPOSE: Repair, maintenance, and overhaul of aircraft. ¶6. Submitted in support of the license applications were the following documents (PM/DTCC will fax documentation to Post upon request): --Letter of Intent from Sky signed by Tsuneo Takeda, dated 11 January 2008. --Non-Transfer and Use Certificate (DSP-83) signed by Tsuneo Takeda and Major Hiroyuki Suzuki, dated 16 January 2008. --Department of State License for Permanent Export of Unclassified Defense Articles and Related Unclassified Technical Data, signed 7 May 2008, approved 14 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