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

UNCLAS STATE 005592 SIPDIS AIT TAIPEI FOR MATTHEW O'CONNOR ECON MI-YONG KIM REBECCA HESTER E.O. 12958: N/A TAGS: ETTC KOMC TW SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSE 050196112 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 050196122 for the export of International Traffic in Arms (ITAR)-controlled AH-1W helicopter parts and components to Taiwan. 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: Unfamiliar consignee, Dali Sin Ya Co. Ltd. (DSY) (no licensing history); no documentation from foreign end-user, Taiwan Ministry of National Defense (TMND); commodities with risk of diversion. ¶4. ACTION: The Department requests that Post confirm that the Foreign End User, TMND, ordered the items listed for the purpose stated on the license application. In addition, the Department requests that Post make inquiries with appropriate officials to establish the bona fides of DSY in the transaction. Conduct a site visit to assess the company's reliability as a recipient of United States Munitions List (USML) articles as well as an assessment of the company's on-site security and operations. If a site visit is not possible, please inform the PM/DTCC case officer. The following points are included for guidance: --Can DSY provide documentation that verifies the end-use of the helicopter components, such as a contract or purchase order from the TMND? --When was DSY established and who are its principals? --What is the nature of the company's businesses -- what type of items does it handle? Does the company serve as a broker? --What type of organizations are among its typical customers and where are they located? --Does DSY 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: 050196122 QUANTITY/COMMODITY: 5 - Oil Relief Valve, P/N 5009528 3 - Chute Section Solid, P/N 1212B15724 7 - Aircraft Support, P/N 209-030-139-37 1 - Annular Ball Bearing, P/N 406-040-339-101 30 - Quick Disconnect Coupling Half, P/N H3F 1 - Check Value, P/N 205-076-413-1 100 - Spring Pin, P/N X41-S-094-0185 30 - Gasket, P/N 60-011-1 30 - Gasket, P/N BACG10AD32 30 - O-Ring, P/N M83248/1-232 30 - O-Ring, P/N J228P011 30 - O-Ring, P/N SR822A60-241 30 - O-Ring, P/N J228P013 30 - O-Ring, P/N 2-116-N116-7 5 - O-Ring, P/N 214-010-180-3 30 - O-Ring, P/N J228P041 7 - O-Ring, P/N 1698AS525 5 - Electrical Plug Connector, P/N MS3456W22-14S 1 - Electrical Plug Connector, P/N MS3456W14S-2S License Value: 14,682.00 USD (COMMENT: According to US Customs data, all items, except the ball bearing and 2 chutes, were exported on 2 December ¶2009. END COMMENT) SELLER: ISO Group, Inc. 7700 Technology Drive West Melbourne, FL 32904 Tel: 877-330-1580, ext. 4101 POC: Jason Nunn FOREIGN CONSIGNEE: Dali Sin Ya Co. Ltd. No. 1, Lane 159, Futan 3 Street Taichung 40241 Taiwan Tel: 886-4-22365272 Cell: 886-0972-357896 Unified Business No. 24297072 POC: Charge Chiu Email: Charge@charge-kircheis.com FOREIGN END-USER: Taiwan Ministry of National Defense No. 172 Bo-ai Rd. Jhongjheng District Taipei City 100 Taiwan PURPOSE: Parts for the repair and maintenance of the engine and hydraulic systems on AH-1W Cobra aircraft owned by the TMND. ¶6. Submitted in support of license application 050183769 were the following documents (PM/DTCC will fax documentation to Post upon request): --Purchase Order Number Oct13-2009 submitted by DSY to ISO Group, dated 13 October 2009. --End User Statement signed by Charge Chiu of DSY, undated. --Department of State License for Permanent Export of Unclassified Defense Articles and Related Unclassified Technical Data, signed 22 October 2009, approved 2 November 2009. ¶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