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RUETIAA/DIRNSA FT GEORGE G MEADE MD
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UNCLAS STATE 099473 
 
SIPDIS 
AIT TAIPEI FOR MATTHEW E. O'CONNOR 
ECON 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC TW
SUBJECT: BLUE LANTERN: VERIFYING BONA FIDES OF REGISTERED 
BROKER SAMUEL S.S. LIAO - CASE NO. K-2304 
 
REF: A. SECTION 38(B)(1)(A)(II) OF THE ARMS EXPORT CONTROL 
     ¶B. ACT (AECA)(22 U.S.C. 2778) 
 
¶1. This is an Action Request.  See paragraphs 3-4. 
 
¶2.  U.S. embassies have frequently inquired about the 
legitimacy of arms export transactions involving U.S. 
contractors and host-country partners in support of U.S. 
efforts in Iraq and Afghanistan, or other U.S. government 
programs.  The Department's Office of Defense Trade Controls 
Compliance (PM/DTCC) wishes to inform AIT Taipei that U.S. or 
foreign persons who are involved in brokering U.S. defense 
articles or services, or any defense articles or services 
pursuant to U.S. procurement contracts for Iraq and 
Afghanistan or other destinations under USG auspices, must be 
registered with PM/DTCC and obtain Department's approval for 
their brokering activities. 
 
¶3.  ACTION:  PM/DTCC requests AIT Taipei's assistance in 
conducting an inquiry into the brokering activities of the 
U.S. registered broker listed below to substantiate its bona 
fides.  Department requests that AIT Taipei conduct a site 
visit to the company in order to assess its business 
operations, on-site security, and reliability as a 
broker/recipient of United States Munitions List (USML) 
items.  If a site visit is not possible, please inform the 
PM/DTCC case officer.  AIT Taipei is requested to complete 
this inquiry within 60 days: 
 
   SAMUEL S.S. LIAO, PRESIDENT 
   EVERGO INSTRUMENTS, INC. 
   5F., NO. 495, CHUNG CHENG ROAD 
   HSIEN TIEN CITY, TAIPEI COUNTY 
   TAIWAN 
   REPUBLIC OF CHINA 
   TEL: 886286671993 
   FAX: 886286671980 
 
¶4.  The following points are provided for guidance: 
 
-- Confirm that this entity is in the business of brokering 
defense articles and defense services at the location(s) 
indicated under its legal name(s); 
 
-- Determine whether this entity is authorized to conduct 
such activities in its home country, whether the entity has 
any criminal or other derogatory background, and whether Post 
has any information on its brokering or arms export 
activities that may involve proscribed entities such as 
countries under U.S. or international sanctions, or 
designated state sponsors of terrorism; 
 
-- Will the brokering firm be handling or storing USML items 
on behalf of its clients?  If so, does it have secure 
facilities and proper accounting and security procedures for 
handling sensitive USML items? 
 
-- When was the company established and who are its 
principals?  How many employees? 
 
-- What is the nature of its business and what other types of 
items does it handle? 
 
-- What types of organizations are among its typical clients 
and in what countries are they located? 
 
-- Does the company understand the restrictions on USML 
items, especially the prohibition against unauthorized 
re-transfers and re-exports? 
 
END ACTION. 
 
--------------------------------------------- --------- 
BACKGROUND ON BROKERING REGISTRATION AND AUTHORIZATION 
--------------------------------------------- --------- 
 
¶5. PM/DTCC provides the following background information on 
the requirements for registration and obtaining prior 
approvals for brokering activities: 
 
The requirements for Registration and Obtaining Prior 
Approvals for Brokering Activities are based in the Arms 
Export Control Act (AECA).  The Brokering Requirements are 
administered by PM/DTCC. 
 
Section 38(b)(1)(A)(II) of the AECA requires registration for 
any person "who engages in the business of brokering 
activities with respect to the manufacture, export, import, 
or transfer of any defense article or defense service". 
 
According to the International Traffic in Arms Regulations 
(ITAR) Section 129.2(a), a broker is defined as: 
 
"any agent for others in negotiating or arranging contracts, 
purchases, sales or transfers of defense articles or defense 
services in return for a fee, commission, or other 
consideration." 
 
Additionally, ITAR Section 129.2(b) states that "brokering 
activities means acting as a broker as defined (above), and 
includes financing, transportation, freight forwarding, or 
taking of any other action that facilitates the manufacture, 
export or import of a defense article or defense service, 
irrespective of its origin." 
 
Authorization is typically required for brokering activity. 
However, some activities are exempt from these requirements 
depending on the commodity, the countries involved, and the 
existence of previous authorizations.  Any questions about 
specific cases may be directed to this office to the 
attention of Deborah Carroll, Chief, Compliance & 
Registration.  Phone: 202-663-2809; SIPRNET 
carrolld@state.sgov.gov. 
 
End background on brokering registration and authorization. 
 
¶6. Please slug reply for PM/DTCC and include the words "Blue 
Lantern Broker Inquiry" and the case number in the Subject 
line.  POC is Rachael-Therese S. Joubert-Lin, Phone: 
202-663-2950; Email: JoubertLinRS@state.gov; 
SIPRNET:JoubertLinRS@state.sgov.gov.  The Blue Lantern 
Guidebook is available as a PDF file at 
http://www.intelink.sgov.gov/wiki/ 
Blue Lantern 
End-Use Monitoring Program. 
 
¶7.  Department is grateful for AIT Taipei's assistance in 
this matter. 
CLINTON