UNCLAS STATE 001592
HONG KONG FOR JOHN VERSOSKY
E.O. 12958: N/A
TAGS: ETTC, KOMC, HK
SUBJECT: BLUE LANTERN LEVEL 3: POST-LICENSE/PRE-SHIPMENT
END-USE CHECK ON LICENSE 050207857
This is an Action Request. See paragraph 4.
The Department's Office of Defense Trade Controls
Compliance (PM/DTCC) requests Post's assistance in conducting
a post-license/pre-shipment check on license 050207857 for
the export of grenade and grenade launchers to Hong Kong.
Post is requested to complete this Blue Lantern check within
30 days. Lack of response to a Blue Lantern check will
affect pending and future licenses involving parties to this
Reason for Request: Foreign consignee Props Co. Ltd. has
appeared on several past licenses but has never been subject
to a Blue Lantern check. This request is for Post to
establish the bona fides of this transaction and the parties
Action Request: Post is requested to establish the bona
fides of this transaction and Props Co. Ltd. by making
inquiries to representatives of the company and appropriate
authorities of the Government of Hong Kong. The following
points are included for guidance:
(To Props Co. Ltd.)
--When was your company established and who are its
--What products and services does your company provide? Who
are your regular customers and where do they reside?
--What are your annual sales of U.S.-origin defense articles?
--Do you sell defense articles to customers that reside
outside Honk Kong? If so, who are these customers and where
do they reside?
--What is your role in this transaction? Please describe the
exact services you are providing. How are you being
compensated for these services?
--Please provide all documentation you received from the
ultimate end-user of these items (e.g. purchase order and/or
--Will you ever have physical possession of these items? If
so, please describe your security facilities and procedures.
--Are you familiar with the regulations governing the import
and brokering of U.S.-origin defense articles, including
restrictions on unauthorized re-transfer or re-export and the
requirement for brokers to register with the U.S. Department
(To Hong Kong SAR Immigration Department)
--Can you confirm that your agency ordered the defense
articles listed on this license? Please provide all
documentation you issued for this transaction.
--Can you verify the exact types and quantities of defense
articles your agency ordered in this transaction? For what
will these items be used?
--What role is Props Co. Ltd. playing in this transaction?
Will your agency compensate the company in any way? If so,
please describe the services the company provides and the
terms under which they will be compensated.
--Will Props Co. Ltd. ever have physical possession of these
(To Appropriate Import/Export and/or Law Enforcement
--Is Props Co. Ltd. properly authorized to import, broker,
and/or sell defense articles in Hong Kong?
--Do you have any information on Props Co. Ltd. that would
call in to question their reliability as a recipient of U.S.
In its reply, Post may also comment on any other information
pertinent to these transactions such as security of
facilities, end-use, and concerns about the entities
Details of license applications:
DTC Case: 050207564
4 Single Shot 37mm Grenade Launchers
40 Foam Baton Cartridges, 37mm
40 Muzzle Blast Cartridges, 37mm
40 Flameless Expulsion CS Grenades
License Value: USD $3,700
Combined Systems Inc.
98 Cuttermill Road, Suite 231
Great Neck, NY 11021
FOREIGN INTERMEDIATE CONSIGNEE:
Props Co. Ltd.
Unit 7, Lower G/F, Full Wing Building 436-450 Chatham Road
Tel: (852) 2765-8266 / 2764-9930
Hong Kong SAR Immigration Department
7 Gloucester Road
Wan Chai, Hong Kong
For Riot and Crowd Control
Submitted in support of the license application were the
following documents (PM/DTCC will fax documentation to Posts
DSP-83 Nontransfer and Use Certificate signed by Jacob Kravel
(Combined Systems) dated 01/05/2010; Ho Ying Hang (Props)
dated 12/04/2009; and Yu Mei-kow (Immigration Department)
Purchase Order issued by Props Co. Ltd. signed by Eddie Ho
International Import Certificate No. 9053 issued by
Government of Hong Kong Special Administrative Region signed
by L. L. Chau dated 11/19/2009
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 Kyle M. Ballard, Phone:
202-663-1929; Email: BallardKM@state.gov; SIPRNET:
BallardKM@state.sgov.gov. The Blue Lantern Guidebook (ref)
is available as a PDF file on Intellipedia:
Blue Lantern End-Use Monitoring Program
Department is grateful for Post's assistance in this