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INFO RUETIAA/DIRNSA FT GEORGE G MEADE MD 0000
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UNCLAS STATE 071177 
 
SIPDIS 
PRETORIA FOR MADELINE SEIDENSTRICKER 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC SF
SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK 
ON LICENSES 050094533 AND 050091122 
 
¶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 050094533 and 050091122 for 
the export of ammunition to South Africa.  Post is requested 
to complete this Blue Lantern check within 45 days. Lack of 
response to a Blue Lantern check will affect pending and 
future licenses involving parties to this license. 
 
¶3. Reason for Request:  The end-user, Digital Image 
Warehouse, has been party to several licenses but has never 
been subject to a Blue Lantern end-use monitoring check.  The 
same import permit on International Trade Administration 
Commission of South Africa (ITAC) letterhead was used for 
both transactions but lacks a signature or seal from the 
import authorities.  This request is to establish the bona 
fides of the company and these transactions. 
 
¶4. Action Request:  Post is requested to verify that the 
ammunition listed below was received by Digital Image 
Warehouse (NOTE: These export licenses and import 
authorizations expired before the company could import all 
the ammunition listed on the licenses).  Post is also 
requested to establish the bona fides of the end-user by 
making inquiries to representatives of the company and 
appropriate GOA authorities.  The following points are 
included for guidance: 
 
(To Digital Image Warehouse) 
 
--When was your company established and who are its 
principals?  What products and services does your company 
provide? 
 
--How long have you been in the business of importing and 
selling defense articles?  Who are your regular customers and 
where do they reside?  What specific calibers of bullets did 
you import on these licenses?  What is the finished 
ammunition generally used for in South Africa? 
 
--What are your annual sales of U.S.-origin defense articles? 
 
--Are you familiar with the regulations governing the import 
of U.S.-origin defense articles, including restrictions on 
re-transfer or re-export? 
 
(To GOA Export/Import Authorities) 
 
--Is Digital Image Warehouse properly authorized to import 
and sell defense articles in South Africa? 
 
--Do you have any information on Digital Image Warehouse that 
would question their reliability as a recipient of U.S. 
defense articles? 
 
In its reply, Post is encouraged to comment on any 
information pertinent to this transaction such as security of 
facilities, end-use, and concerns about the entities involved. 
 
¶5. Details of license applications: 
 
¶A. 
 
DTC Case: 050094533 
 
QUANTITY/COMMODITY: 
 
251,000 Bullets, Calibers .177 to .474 
 
118,500 Brass Casings, Calibers .177 to .474 
 
License Value: USD $199,595 (NOTE:  License was not exhausted 
before expiration.  Actual exports are valued at approx. 
$29,000) 
 
SELLER: 
 
Midway Arms Inc 
5875 W Van Horn Tavern Road 
Columbia, MO 65203 
 
FOREIGN END-USER: 
 
Digital Image Warehouse 
Mill Street 
Stellenbosch 
South Africa 
Tel: 021 8873364 
Email: ters3@mweb.co.za 
 
Postal Address: 
 
PO Box 24 
Kuilsrivier, 7579 
 
PURPOSE: 
 
For commercial resale in South Africa 
 
¶B. 
 
DTC Case: 050091122 
 
QUANTITY/COMMODITY: 
 
300,000 Nosler Bullets, Calibers .204 to .505 
 
100,000 Nosler Brass Cases, Calibers .204 to .505 
 
License Value: USD $210,000 (NOTE:  License was not exhausted 
before expiration.  Actual exports are valued at approx. 
$43,000) 
 
SELLER: 
 
Caliber Inc 
89 Broad Street 
Middletown, CT 06457 
 
FOREIGN END-USER: 
 
Digital Image Warehouse 
Mill Street 
Stellenbosch 
South Africa 
Tel: 021 8873364 
Email: ters3@mweb.co.za 
 
Postal Address: 
 
PO Box 24 
Kuilsrivier, 7579 
 
PURPOSE: 
 
For commercial resale in South Africa 
 
 
¶6. Submitted in support of the license application were the 
following documents (PM/DTCC will fax documentation to Posts 
upon request): 
 
¶A. 
 
Purchase Order issued by Digital Image Warehouse signed by 
Tertius Roux dated 20 Feb 2008 
 
Import Permit No. IMP2008/01889 issued by the International 
Trade Administration Commission of South Africa (unsigned) 
dated 14 Feb 2008 
 
¶B. 
 
Signed DSP-83 Nontransfer and Use Certificate signed by 
Phyllis Sheridan (Caliber) dated 26 Feb 2008 and Tertius le 
Roux (Digital Image) dated 25 Feb 2008. 
 
Purchase Order issued by Digital Image Warehouse signed by 
Tertius Roux dated 25 Feb 2008 
 
Import Permit No. IMP2008/01889 issued by the International 
Trade Administration Commission of South Africa (unsigned) 
dated 14 Feb 2008 
 
¶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 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: 
http://www.intelink.gov/wiki/ 
Blue Lantern End-Use Monitoring Program 
 
¶8. Department is grateful for Post's assistance in this 
matter. 
CLINTON