End-Use Monitoring of Defense Articles and Defense Services Commercial Exports FY 2018
(Source: US State Dept. Political-Military Affairs Office; issued May 20, 2019)
This report summarizes the Department of State’s administration of the Blue Lantern end-use monitoring program for fiscal year (FY) 2018.

The Blue Lantern program fulfills requirements stipulated in section 40A of the Arms Export Control Act (AECA) (22 U.S.C. 2785) and delegated to the Department of State in Executive Order 13637 (March 8, 2013).

The program monitors the end-use of defense articles, technical data, services, and brokering activities exported through commercial channels and subject to Department of State licenses or other approvals under section 38 of the AECA and the International Traffic in Arms Regulations (ITAR) (22 CFR Parts 120-130), which implement section 38 of the AECA.

The Blue Lantern program is managed by the Country and End-Use Analysis Division (CEA), Office of Defense Trade Controls Policy, Directorate of Defense Trade Controls (DDTC), Bureau of Political-Military Affairs.

Blue Lantern’s mission is to help ensure the security and integrity of U.S. defense trade. The program minimizes the risk of diversion and unauthorized use of U.S. defense articles, combats gray arms trafficking, uncovers violations of the AECA, and builds confidence and cooperation among defense trade partners.

Blue Lantern end-use monitoring includes pre-license, post-license/pre-shipment, and post-shipment checks to verify the bona fides of foreign consignees and end-users, confirm the legitimacy of proposed transactions, and, to the extent possible, provide “reasonable assurance that

(i) the recipient is complying with the requirements imposed by the United States Government with respect to use, transfers, and security of defense articles and defense services; and

(ii) such articles and services are being used for the purposes for which they are provided.”

In FY 2018, five State Department full-time employees and six contractors in CEA managed the Blue Lantern program, among other duties, at a total cost of $1,632,300. End-use checks are largely conducted by U.S. embassy personnel. CEA staff also conducted overseas outreach visits to meet with embassy personnel, and host government officials and foreign businesses engaged in defense trade of ITAR-controlled items.

These visits educated foreign defense trade partners about the Blue Lantern program and U.S. defense trade controls and policy as well as fostered cooperation with U.S. end-use monitoring and compliance with U.S. defense trade controls.

In FY 2018, CEA expended over $59,700 conducting outreach trips to Argentina, Brazil, Canada, the Republic of Korea, Singapore, and Ukraine. In FY 2018, CEA’s Blue Lantern Post Support Program, which facilitates end-use monitoring efforts by funding in-country travel costs associated with site visits, expended $11,443.

Click here for the full report (6 PDF pages) on the State Department website.


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