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

UNCLAS STATE 004982 SIPDIS AIT-T FOR MATTHEW O'CONNOR AND MI-YONG KIM E.O. 12958: N/A TAGS: ETTC KOMC AIT SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON APPLICATION 050208291 REF: 2006 BLUE LANTERN GUIDEBOOK This is an Action Request. See paragraphs 2-4. ¶2. The Department's Office of Defense Trade Controls Compliance (PM/DTCC) requests AIT-Taipei's assistance in conducting a pre-license check on application 050208291 for the export of International Traffic in Arms Regulations (ITAR) - controlled rotary joints to Taiwan. AIT-Taipei is requested to complete this Blue Lantern within 30 days. Lack of response to a Blue Lantern inquiry will affect pending and future licenses involving parties to this license. ¶3. Reason for request: Unfamiliar End-User Seng-Feng Corp. Ltd.; No documentation from Foreign Consignee or End-User; Vague purpose for which the rotary joints are required. ¶4. ACTION: Department requests that AIT-Taipei make inquiries to establish the bona fides of Seng-Feng Corp. Conduct a site visit to assess the company's reliability as a recipient of United States Munitions List (USML) articles as well as its operations and on-site security. Emphasize that the unauthorized re-export or retransfer of USML items is strictly prohibited. Also, confirm with Step Electronics that it ordered the items listed on the end-user's behalf. Inquire about the specific purpose of the rotary joints; information on the application is vague. Determine whether any other Taiwanese-based firms are involved in the procurement of the items. The following questions are provided as guidance: (To Step Electronics) - Can Step Electronics provide documentation (e.g. purchase order, contract, or letter of intent) from Seng-Feng Corp. firmly establishing it as the end user of the items? - What is Step Electronics' exact role in this transaction? - How long has your company been in the business of importing and selling defense articles for this end-user? - Are you familiar with the restrictions against the unauthorized re-export or retransfer of U.S.-origin defense articles? (To Seng-Feng Corp.) - Please confirm an order for the listed items on license application 050208291. - How long has Seng-Feng Corp. been involved in business operations requiring the use of USML articles? - Does Seng-Feng Corp. serve as a broker of USML articles? If so, with what other countries besides Taiwan? - If your company has offices abroad, where are they located? - Has this company ever used any other names? - What other products are sold by your company? - How long has Seng-Feng Corp. been involved in business operations with the Government of Taiwan? Do you have a regular business relationship with the Government of Taiwan? - Does Seng-Feng Corp. understand the restrictions against the unauthorized re-export or retransfer of U.S.-origin defense articles? End Action Request. ¶5. Details of license application: DTC Case: 050208291 QUANTITY/COMMODITY: 10 Model 345C Rotary Joints P/N P3-5196G3 License Value: USD $2,940. SELLER: Ceralta Technologies Sage Laboratories Attn: Brenda S. Wheeler 245 Lynnfield Street Peabody, MA 01960 Tel:(603)459-1617 FOREIGN CONSIGNEE: Albert Huang Step Electronics 6th Floor 176 Nan King East Road Section 2 Taipei Taiwan 10410 Republic of China Fax: 886-2-22506 4436 or 7451 Email: stepspkw@ms3.hinet.net FOREIGN END-USER: Seng-Feng Corp. Ltd. No. 391 Chung Shan Road Hsinchu City Taiwan Republic of China Tel: 886 3 6020955 Fax: 886 3 5257031 PURPOSE: Antenna Pedestal Application: Commercial Project: Dual Axia Antenna Pedestal ¶6. Submitted in support of the license application was the following document (PM/DTCC will fax documentation to AIT Taipei upon request): -- Sage Laboratories, Inc. End-User Certificate: Document No. DIV-005 ¶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 Rachael-Therese S. Joubert-Lin, Phone: 202-663-2950; Email: JoubertLinRS@state.gov; SIPRNET: JoubertLinRS@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 AIT Taipei's assistance in this matter. CLINTON