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

UNCLAS STATE 018223 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 05994677 AND 050092421 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 licenses 05994677 and 050092421 for the export of International Traffic in Arms (ITAR)-controlled UH-1 and AH-1S helicopter parts and components 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: Atypically few foreign consignees listed on a license for Japan, suspicion that additional unlisted entities may be involved in this transaction; stockpiling concerns (licenses total $25 million). ¶4. ACTION: The Department requests that Post make inquiries into the supply chain relationship between the foreign consignee, Mitsui Bussan Aerospace Co. Ltd. (MBAC) and the JMOD. Given the high dollar value, Post is also requested to verify whether MBAC is engaged in stockpiling. The following points are included for guidance: --Can MBAC provide documentation that verifies the end-use of the helicopter components, such as a contract or purchase order? --Does MBAC supply the licensed items exclusively and directly to the JMOD? Are any other companies involved in the procurement process? If so, please provide a list of companies that have received parts under licenses 05994677 and 050092421. --Does MBAC have a secure facility to store USML items? Does it have a organized system for the proper handling and tracking of USML items? --Who are MBAC's typical customers? Are any located outside of Japan? --Does MBAC understand the restrictions on USML items, especially the prohibition against unauthorized re-transfer and re-export? END ACTION. ¶5. Details of license application: ****************** DTC CASE: 05994677 ****************** QUANTITY/COMMODITY: 1 Lot - Spare parts and components for Bell Model UH-1 and AH-1S helicopters. LICENSE VALUE: 20,000,000 USD (COMMENT: According to US Customs data, 17.8 million USD in parts were exported between June 2006 and April 2008. END COMMENT) SELLER: Mitsui Bussan Aerospace Corporation 600 E. Las Colinas Blvd. Suite 1230 Irving, TX 95037 Tel: 972-869-7500 FOREIGN CONSIGNEE: Mitsui Bussan Aerospace Co. Ltd. Shuwa-Shiba Park, Bldg A-12F 4-1 Shiba-Koen 2-Chome Minato-Ku, Tokyo 105-0011 Japan POC: Nobuo Yoneyama, Director & General Manager, Defense Systems Business Unit Website: http://aerospace.mitsui.co.jp FOREIGN END-USER: Japan Defense Agency 5-1 Honmura-Cho, Ichigaya, Shinjuku-ku Tokyo 162-8802 Japan FOREIGN INTERMEDIATE CONSIGNEES (Freight Forwarders): MOL Logistics Co. Ltd. 12-5, Uchikanda 2-Chome Chiyoda-Ku Tokyo 101-8527 Japan Mitsui O.S.K. Lines Ltd. 2-1, Toranomon 2-Chome, Minato-Ku Tokyo Japan PURPOSE: Spare parts for Bell Models UH-1, and AH-1S helicopters. ******************** DTC CASE: 050092421 ******************** QUANTITY/COMMODITY: 1 Lot - Spare parts and components for Bell Model UH-1 and AH-1S helicopters. LICENSE VALUE: 5,000,000 USD (COMMENT: According to US Customs data, 9 shipments totaling 5,109,117 USD have been exported under this license (109,117 USD over the licensed value). END COMMENT) SELLER: Mitsui Bussan Aerospace Corporation 600 E. Las Colinas Blvd. Suite 1230 Irving, TX 75039 Tel: 972-869-7500 POC: Steve D. White, SVP/Export Control Manager FOREIGN CONSIGNEE: Mitsui Bussan Aerospace Co. Ltd. 4-1, Shiba-koen, 2-chome, Minato-ku Tokyo Japan POC: Nobuo Yoneyama, Director & General Manager, Defense Systems Business Unit Website: http://aerospace.mitsui.co.jp FOREIGN INTERMEDIATE CONSIGNEES (Freight Forwarder / Logistics): MOL Logistics Co. Ltd. 12-5, Uchikanda 2-Chome Chiyoda-Ku Tokyo 101-8527 Japan Mitsui Bussan Aerospace Co. Ltd. Da Vinci Shiba Park A-12F, Shiba-Koen 2-Chome, Minato-Ku Tokyo 105-0011 Japan FOREIGN END-USER: Japan Ministry of Defense 5-1 Honmura-Cho, Ichigaya Shinjuku-ku Tokyo 162-8802 Japan PURPOSE: Spare parts for Bell Model 204B(UH-1H),205B(UH-1J),and AH-1S helicopters. ¶6. Submitted in support of license application 05994677 were the following documents (PM/DTCC will email documentation to Post upon request): --Sample List of Spare Parts --List of Parties Involved in Transaction --Department of State License for Permanent Export of Unclassified Defense Articles and Related Unclassified Technical Data, signed approved 11 May 2006. Submitted in support of license application 050092421 were the following documents (PM/DTCC will email documentation to Post upon request): --Letter of Intent submitted by MBAC, dated 5 February 2008, signed by Nobuo Yoneyama, Director & General Manager. --Sample Purchase Order/Parts List --Department of State License for Permanent Export of Unclassified Defense Articles and Related Unclassified Technical Data, signed 5 March 2008, approved 17 March 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