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

UNCLAS STATE 006242 SIPDIS SINGAPORE FOR MATT EASTER ECON E.O. 12958: N/A TAGS: ETTC KOMC SN SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSES 050059552, 050127774, AND 050188290 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 050059552, 050127774, and 050188290 for the export of International Traffic in Arms (ITAR)-controlled aircraft refueling nozzles to Singapore. 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 U.S. applicant, Carter Ground Fueling (CGF),recently submitted license 050207766 for the export of refueling nozzles to foreign consignee Haneflex (S) Pte. Ltd. of Singapore. However, said license was Returned Without Action (RWA) due to the fact that the end user is an entity located in the PRC. Prior to the submission of 050207766, the subject licenses were approved for the same commodity (refueling nozzles) and foreign consignee (Haneflex) as 050207766, except the listed end user on the licenses is the Singapore Air Force (SAF) / Defense Science & Technology Agency (DSTA). The subject license applications did not include any supporting documentation from the end user. The circumstances suggest the possibility the items may have been diverted. ¶4. ACTION: The Department requests that Post confirm that the foreign end user, SAF/DSTA has received all items listed on the license applications (see para 5). In addition, the Department requests that Post make inquiries with appropriate officials to establish the bona fides of Haneflex 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 Haneflex provide documentation that verifies the end-use of the refueling nozzles, such as a contract or purchase order from the SAF or DSTA --When was Haneflex 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 Haneflex 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: 050059552 ******************** QUANTITY/COMMODITY: 3 - CCR Nozzle P/N 64017C 1 - Repair Kit P/N KD64017-7 License Value: 2875.00 USD (COMMENT: According to US Customs data, items were exported on 17 November 2007. END COMMENT) ******************** DTC CASE: 050127774 ******************** QUANTITY/COMMODITY: 18 - CCR Nozzle P/N 64017C 2 - Repair Kit P/N KD64017-7 License Value: 48,110.00 USD (COMMENT: According to US Customs data, items were exported on 11 January 2009. END COMMENT) ******************** DTC CASE: 050188290 ******************** QUANTITY/COMMODITY: 6 - CCR Nozzle P/N 64017E License Value: 18,611.00 USD (COMMENT: According to US Customs data, items were exported on 27 September 2009. END COMMENT) SELLER: Eaton Corporation via Carter Ground Fueling 9650 Jeronimo Rd. Irvine, CA 92618 Tel: 949-452-9910 POC: Elizabeth Canfield FOREIGN CONSIGNEE: Haneflex (S) Pte. Ltd. 174, Tagore Lane Singapore 787577 Tel: 65-64552188 Fax: 65-64550488 POC: Tan Wee Chuan FOREIGN END-USER (050059552) Singapore Air Force Sembawang Air Base AFPN 8073, 303 Sembawang Road #02-01 Singapore 757754 Tel: 65-67508051 Fax: 65-67508052 POC: Cpt. Seah Seow Nou FOREIGN END-USER (050188290 and 050127774): Defense Science & Technology Agency DSTA DTTB Financial Services Center #15-01 Des. 5, Depot Road, DTT Tower B Singapore 1096681 Tel: 63736224 POC: Mr. Daniel Wong Wei Xiang PURPOSE: 050059522 - Material required for fueling of helicopter - Super Puma 050127774 - Material for fueling of helicopter - Super Puma 050188290 - Material for naval ship ¶6. Submitted in support of the license applications were the following documents (PM/DTCC will email documentation to Post upon request): --050059522 - Purchase Order No. 6287, dated 19 July 2007. --050127774 - Purchase Order No. 6672, dated 10 October 2008. --050188290 - Purchase Order No. 6886, dated 7 July 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