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

S E C R E T STATE 007832 SIPDIS KUALA LUMPUR FOR WYNN S. PINKSTON ECON JAKARTA FOR PABLO VALDEZ ECON E.O. 12958: DECL: 01/31/2020 TAGS: ETTC KOMC MY ID SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON LICENSE 050210189 REF: A. 2006 BLUE LANTERN GUIDEBOOK ¶B. CIA TD-314/070468-09 Classified By: PM/DTCC Director Lisa Studtmann for reasons 1.4 (b) and (d) 1.(U) This is an Action Request. See paragraphs 2-4. 2.(U) The Department's Office of Defense Trade Controls Compliance (PM/DTCC) requests Post's assistance in conducting a pre-license check on license 050210189 for the export of thirteen (13) International Traffic in Arms (ITAR)-controlled C-130 aircraft wheel tires to Indonesia. Post is requested to complete this Blue Lantern inquiry within 30 days. Lack of response to a Blue Lantern inquiry will affect pending and future licenses involving parties to this license. 3.(S) Reason for request: Foreign intermediate consignee/freight forwarder, Hexmann Logistics (M) Sdn Bhd (Hexmann),is an entity of concern due to derogatory intelligence reporting (see ref B); the website of foreign consignee, Namida Holdings (M) Sdn Bhd (Namida),indicates it is in the herbal tea sales business (see www.namidaholdings.com); unusual routing (part purchaser, PT Prakarsa Mandiri Abadi (PMA),is located in Indonesia and the "SHIP TO" address is located in Malaysia, while the foreign end-user is the Indonesian Air Force); freight forwarder (Hexmann) and foreign consignee (Namida) are located at the same address. 4.(U) ACTION JAKARTA: The Department requests that Post confirm that the foreign end-user, Indonesian Air Force (IAF) ordered all items listed for the purpose stated on the application. ACTION KUALA LUMPUR: The Department requests that Post make inquiries with appropriate officials to establish the bona fides of Namida 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 Namida provide documentation that verifies the end-use of the aircraft parts, such as a contract or purchase order with the IAF? --When was Namida established and who are its principals? --What is the nature of the company's businesses -- does the company normally trade in defense articles? (COMMENT: Namida's website indicates that it has an aircraft/railway parts supplier subsidiary named Vas Aero Malaysia Sdn Bhd. with web address http://vasaero.com. Vas Aero is not listed on the license application. END COMMENT.) --What type of organizations are among its typical customers and where are they located? --Does Namida understand the restrictions on USML items, especially the prohibition against unauthorized re-transfer and re-export? END ACTION. 5.(U) Details of license application: DTC CASE: 050210189 QUANTITY/COMMODITY: 13 - Wheel Tire, P/N 250A200 License Value: 152,490 USD SELLER: Wesco Manufacturing Inc. 299 Duffy Avenue Hicksville, NY 11801 Tel: 516-933-1900 POC: Rita Vitali FOREIGN CONSIGNEES: PT Prakarsa Mandiri Abadi Jl. Pasundan I No. 28 Bogor 16967 Indonesia Tel: (62-22) 7806958 Fax: (62-22) 7837652 POC: Taufan, Director Namida Holdings (M) Sdn Bhd No. 100 Jalan Kapar 27/89 Megah Indah Industrial Taman Alam Megah 40000 Shah Alam Selangor Malaysia FOREIGN INTERMEDIATE CONSIGNEE: Hexmann Logistics (M) Sdn Bhd No. 100 Jalan Kapar 27/89 Megah Indah Industrial Taman Alam Megah 40000 Shah Alam Selangor Malaysia Tel: 603-5191 1333 Fax: 603-5191 0842 FOREIGN END-USER: Indonesian Air Force Mabes Au Cilangkap Jakarta 13870 Indonesia PURPOSE: Repair and maintenance of C-130 aircraft for Indonesia Air Force. 6.(U) Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Post upon request): --Purchase Order No. PMA-077/09-Rev1 submitted by PMA to Wesco, dated 23 December 2009. --Letter of Intent submitted by PMA to Wesco, dated 11 January 2010. --Department of State License for Permanent Export of Unclassified Defense Articles and Related Unclassified Technical Data, submitted 19 January 2010. 7.(U) 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.(U) Department is grateful for Post's assistance in this matter. CLINTON