82_FR_30949 82 FR 30823 - Order Renewing Order Temporarily Denying Export Privileges

82 FR 30823 - Order Renewing Order Temporarily Denying Export Privileges

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 82, Issue 126 (July 3, 2017)

Page Range30823-30828
FR Document2017-13972

Federal Register, Volume 82 Issue 126 (Monday, July 3, 2017)
[Federal Register Volume 82, Number 126 (Monday, July 3, 2017)]
[Notices]
[Pages 30823-30828]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-13972]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Order Renewing Order Temporarily Denying Export Privileges

Mahan Airways, Mahan Tower, No. 21, Azadegan St., M.A. Jenah Exp. 
Way, Tehran, Iran
Pejman Mahmood Kosarayanifard a/k/a Kosarian Fard, P.O. Box 52404, 
Dubai, United Arab Emirates;
Mahmoud Amini, G#22 Dubai Airport Free Zone, P.O. Box 393754, Dubai, 
United Arab Emirates
    and
P.O. Box 52404, Dubai, United Arab Emirates
    and
Mohamed Abdulla Alqaz Building, Al Maktoum Street, Al Rigga, Dubai, 
United Arab Emirates;
Kerman Aviation a/k/a GIE Kerman Aviation, 42 Avenue Montaigne 
75008, Paris, France
Sirjanco Trading LLC, P.O. Box 8709, Dubai, United Arab Emirates
Ali Eslamian, 33 Cavendish Square, 4th Floor, London, W1G0PW, United 
Kingdom
    and
2 Bentinck Close, Prince Albert Road, St. Johns Wood, London NW87RY, 
United Kingdom
Mahan Air General Trading LLC, 19th Floor Al Moosa Tower One, Sheik 
Zayed Road, Dubai 40594, United Arab Emirates
Skyco (UK) Ltd., 33 Cavendish Square, 4th Floor, London, W1G 0PV, 
United Kingdom
Equipco (UK) Ltd., 2 Bentinck Close, Prince Albert Road, London, NW8 
7RY, United Kingdom
Mehdi Bahrami, Mahan Airways--Istanbul Office, Cumhuriye Cad. Sibil 
Apt No: 101 D:6, 34374 Emadad, Sisli Istanbul, Turkey
Al Naser Airlines a/k/a al-Naser Airlines a/k/a Alnaser Airlines and 
Air Freight Ltd., Home 46, Al-Karrada, Babil Region, District 929, 
St 21, Beside Al Jadirya Private Hospital, Baghdad, Iraq
    and
Al Amirat Street, Section 309, St. 3/H.20, Al Mansour, Baghdad, Iraq
    and
P.O. Box 28360, Dubai, United Arab Emirates
    and
P.O. Box 911399, Amman 11191, Jordan
Ali Abdullah Alhay, a/k/a Ali Alhay, a/k/a Ali Abdullah Ahmed Alhay, 
Home 46, Al-Karrada, Babil Region, District 929, St 21, Beside Al 
Jadirya Private Hospital, Baghdad, Iraq
    and
Anak Street, Qatif, Saudi Arabia 61177
Bahar Safwa General Trading, P.O. Box 113212, Citadel Tower, Floor-
5, Office #504, Business Bay, Dubai, United Arab Emirates
    and
P.O. Box 8709, Citadel Tower, Business Bay, Dubai, United Arab 
Emirates
Sky Blue Bird Group a/k/a Sky Blue Bird Aviation a/k/a Sky Blue Bird 
Ltd a/k/a Sky Blue Bird FZC, P.O. Box 16111, Ras Al Khaimah Trade 
Zone, United Arab Emirates
Issam Shammout a/k/a Muhammad Isam Muhammad Anwar Nur Shammout a/k/a 
Issam Anwar, Philips Building, 4th Floor, Al Fardous Street, 
Damascus, Syria
    and
Al Kolaa, Beirut, Lebanon 151515
    and
17-18 Margaret Street, 4th Floor, London, W1W 8RP, United Kingdom
    and
Cumhuriyet Mah. Kavakli San St. Fulya, Cad. Hazar Sok. No. 14/A 
Silivri, Istanbul, Turkey

    Pursuant to Section 766.24 of the Export Administration 
Regulations, 15 CFR parts 730-774 (2016) (``EAR'' or the 
``Regulations''),\1\ I hereby grant the request of the Office of Export 
Enforcement (``OEE'') to renew the December 30, 2016 Temporary Denial 
Order (the ``TDO''). The December 30, 2016 Order denied the export 
privileges of Mahan Airways, Pejman Mahmood Kosarayanifard, Mahmoud 
Amini, Kerman Aviation, Sirjanco Trading LLC, Ali Eslamian, Mahan Air 
General Trading LLC, Skyco (UK) Ltd., Equipco (UK) Ltd., Mehdi Bahrami, 
Al Naser Airlines, Ali Abdullah Alhay, Bahar Safwa General Trading, Sky 
Blue Bird Group, and Issam Shammout.\2\ I find that renewal of the TDO 
is necessary in the public interest to prevent an imminent violation of 
the EAR.
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    \1\ The Regulations, currently codified at 15 CFR parts 730-774 
(2017), originally issued pursuant to the Export Administration Act 
of 1979. Since August 21, 2001, the Act has been in lapse and the 
President, through Executive Order 13222 of August 17, 2001 (3 CFR, 
2001 Comp. 783 (2002)), which has been extended by successive 
Presidential Notices, the most recent being that of August 4, 2016 
(81 FR 52,58748,223 (Aug. 8, 2016)), has continued the Regulations 
in effect under the International Emergency Economic Powers Act (50 
U.S.C. 1701, et seq. (2006 & Supp. IV 2010)).
    \2\ See note 3, infra.
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I. Procedural History

    On March 17, 2008, Darryl W. Jackson, the then-Assistant Secretary 
of Commerce for Export Enforcement (``Assistant Secretary''), signed a 
TDO denying Mahan Airways' export privileges for a period of 180 days 
on the grounds that its issuance was necessary in the public interest 
to prevent an imminent violation of the Regulations. The TDO also named 
as denied persons Blue Airways, of Yerevan, Armenia (``Blue Airways of 
Armenia''), as well as the ``Balli Group Respondents,'' namely, Balli 
Group PLC, Balli Aviation, Balli Holdings, Vahid Alaghband, Hassan 
Alaghband, Blue Sky One Ltd., Blue Sky Two Ltd., Blue Sky Three Ltd., 
Blue Sky Four Ltd., Blue Sky Five Ltd., and Blue Sky Six Ltd., all of 
the United Kingdom. The TDO was issued ex parte pursuant to Section 
766.24(a), and went into effect on March 21, 2008, the date it was 
published in the Federal Register.
    The TDO subsequently has been renewed in accordance with Section 
766.24(d), including most recently on December 30, 2016.\3\ As of March 
9, 2010, the Balli Group Respondents and Blue Airways were no longer 
subject to the TDO. As part of the February 25, 2011 TDO renewal, 
Gatewick LLC (a/k/a Gatewick Freight and Cargo Services, a/k/a Gatewick 
Aviation Services), Mahmoud Amini, and Pejman Mahmood Kosarayanifard 
(``Kosarian Fard'') were added as related persons in accordance with 
Section 766.23 of the Regulations.\4\ On July 1, 2011, the TDO was 
modified by adding Zarand Aviation as a respondent in order to prevent 
an imminent violation.\5\ As part of the August 24, 2011 renewal, 
Kerman Aviation, Sirjanco Trading LLC, and Ali

[[Page 30824]]

Eslamian were added to the TDO as related persons. Mahan Air General 
Trading LLC, Skyco (UK) Ltd., and Equipco (UK) Ltd. were added as 
related persons on April 9, 2012. Mehdi Bahrami was added to the TDO as 
a related person as part of the February 4, 2013 renewal order.
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    \3\ The December 30, 2016 Order was published in the Federal 
Register on January 9, 2017 (82 FR 2312). July 13, 2016 (81 FR 
45276). The TDO previously had been renewed on September 17, 2008, 
March 16, 2009, September 11, 2009, March 9, 2010, September 3, 
2010, February 25, 2011, August 24, 2011, February 15, 2012, August 
9, 2012, February 4, 2013, July 31, 2013, January 24, 2014, July 22, 
2014, January 16, 2015, July 13, 2015, January 7, 2016, July 7, 
2016, and December 30, 2016. The August 24, 2011 renewal followed 
the modification of the TDO on July 1, 2011, which added Zarand 
Aviation as a respondent. The July 13, 2015 renewal followed the 
modification of the TDO on May 21, 2015, which added Al Naser 
Airlines, Ali Abdullah Alhay, and Bahar Safwa General Trading as 
respondents. Each renewal or modification order was published in the 
Federal Register.
    \4\ On August 13, 2014, BIS and Gatewick LLC resolved 
administrative charges against Gatewick, including a charge for 
acting contrary to the terms of a BIS denial order (15 CFR 
764.2(k)). In addition to the payment of a civil penalty, the 
settlement includes a seven-year denial order. The first two years 
of the denial period are active, with the remaining five years 
suspended on condition that Gatewick LLC pays the civil penalty in 
full and timely fashion and commits no further violation of the 
Regulations during the seven-year denial period. The Gatewick LLC 
Final Order was published in the Federal Register on August 20, 
2014. See 79 FR 49283 (Aug. 20, 2014).
    \5\ As of July 22, 2014, Zarand Aviation was no longer subject 
to the TDO.
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    On May 21, 2015, the TDO was modified to add Al Naser Airlines, Ali 
Abdullah Alhay, and Bahar Safwa General Trading as respondents. Sky 
Blue Bird Group and its chief executive officer Issam Shammout were 
added to the TDO as related persons as part of the July 13, 2015 
renewal order.\6\
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    \6\ The U.S. Department of the Treasury's Office of Foreign 
Assets Control (``OFAC'') designated Sky Blue Bird and Issam 
Shammout as Specially Designated Global Terrorists (``SDGTs'') on 
May 21, 2015, pursuant to Executive Order 13324, for ``providing 
support to Iran's Mahan Air.'' See 80 FR 30762 (May 29, 2015).
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    On June 5, 2017, BIS, through its Office of Export Enforcement 
(``OEE''), submitted a written request for renewal of the TDO. The 
written request was made more than 20 days before the scheduled 
expiration of the current TDO, which issued on December 30, 2016. 
Notice of the renewal request also was provided to Mahan Airways, Al 
Naser Airlines, Ali Abdullah Alhay, and Bahar Safwa General Trading in 
accordance with Sections 766.5 and 766.24(d) of the Regulations. No 
opposition to the renewal of the TDO has been received. Furthermore, no 
appeal of the related person determinations made as part of the 
September 3, 2010, February 25, 2011, August 24, 2011, April 9, 2012, 
February 4, 2013, and July 13, 2015 renewal or modification orders has 
been made by Kosarian Fard, Mahmoud Amini, Kerman Aviation, Sirjanco 
Trading LLC, Ali Eslamian, Mahan Air General Trading LLC, Skyco (UK) 
Ltd., Equipco (UK) Ltd., Mehdi Bahrami, Sky Blue Bird Group, or Issam 
Shammout.\7\
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    \7\ A party named or added as a related person may not oppose 
the issuance or renewal of the underlying temporary denial order, 
but may file an appeal of the related person determination in 
accordance with Section 766.23(c).
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II. Renewal of the TDO

A. Legal Standard

    Pursuant to Section 766.24, BIS may issue or renew an order 
temporarily denying a respondent's export privileges upon a showing 
that the order is necessary in the public interest to prevent an 
``imminent violation'' of the Regulations. 15 CFR 766.24(b)(1) and 
776.24(d). ``A violation may be `imminent' either in time or degree of 
likelihood.'' 15 CFR 766.24(b)(3). BIS may show ``either that a 
violation is about to occur, or that the general circumstances of the 
matter under investigation or case under criminal or administrative 
charges demonstrate a likelihood of future violations.'' Id. As to the 
likelihood of future violations, BIS may show that the violation under 
investigation or charge ``is significant, deliberate, covert and/or 
likely to occur again, rather than technical or negligent [.]'' Id. A 
``lack of information establishing the precise time a violation may 
occur does not preclude a finding that a violation is imminent, so long 
as there is sufficient reason to believe the likelihood of a 
violation.'' Id.

B. The TDO and BIS's Request for Renewal

    OEE's request for renewal is based upon the facts underlying the 
issuance of the initial TDO and the TDO renewals in this matter and the 
evidence developed over the course of this investigation indicating a 
blatant disregard of U.S. export controls and the TDO. The initial TDO 
was issued as a result of evidence that showed that Mahan Airways and 
other parties engaged in conduct prohibited by the EAR by knowingly re-
exporting to Iran three U.S.-origin aircraft, specifically Boeing 747s 
(``Aircraft 1-3''), items subject to the EAR and classified under 
Export Control Classification Number (``ECCN'') 9A991.b, without the 
required U.S. Government authorization. Further evidence submitted by 
BIS indicated that Mahan Airways was involved in the attempted re-
export of three additional U.S.-origin Boeing 747s (``Aircraft 4-6'') 
to Iran.
    As discussed in the September 17, 2008 renewal order, evidence 
presented by BIS indicated that Aircraft 1-3 continued to be flown on 
Mahan Airways' routes after issuance of the TDO, in violation of the 
Regulations and the TDO itself.\8\ It also showed that Aircraft 1-3 had 
been flown in further violation of the Regulations and the TDO on the 
routes of Iran Air, an Iranian Government airline. Moreover, as 
discussed in the March 16, 2009, September 11, 2009 and March 9, 2010 
Renewal Orders, Mahan Airways registered Aircraft 1-3 in Iran, obtained 
Iranian tail numbers for them (EP-MNA, EP-MNB, and EP-MNE, 
respectively), and continued to operate at least two of them in 
violation of the Regulations and the TDO,\9\ while also committing an 
additional knowing and willful violation when it negotiated for and 
acquired an additional U.S.-origin aircraft. The additional acquired 
aircraft was an MD-82 aircraft, which subsequently was painted in Mahan 
Airways' livery and flown on multiple Mahan Airways' routes under tail 
number TC-TUA.
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    \8\ Engaging in conduct prohibited by a denial order violates 
the Regulations. 15 CFR 764.2(a) and (k).
    \9\ The third Boeing 747 appeared to have undergone significant 
service maintenance and may not have been operational at the time of 
the March 9, 2010 renewal order.
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    The March 9, 2010 Renewal Order also noted that a court in the 
United Kingdom (``U.K.'') had found Mahan Airways in contempt of court 
on February 1, 2010, for failing to comply with that court's December 
21, 2009 and January 12, 2010 orders compelling Mahan Airways to remove 
the Boeing 747s from Iran and ground them in the Netherlands. Mahan 
Airways and the Balli Group Respondents had been litigating before the 
U.K. court concerning ownership and control of Aircraft 1-3. In a 
letter to the U.K. court dated January 12, 2010, Mahan Airways' 
Chairman indicated, inter alia, that Mahan Airways opposes U.S. 
Government actions against Iran, that it continued to operate the 
aircraft on its routes in and out of Tehran (and had 158,000 ``forward 
bookings'' for these aircraft), and that it wished to continue to do so 
and would pay damages if required by that court, rather than ground the 
aircraft.
    The September 3, 2010 renewal order discussed the fact that Mahan 
Airways' violations of the TDO extended beyond operating U.S.-origin 
aircraft and attempting to acquire additional U.S.-origin aircraft. In 
February 2009, while subject to the TDO, Mahan Airways participated in 
the export of computer motherboards, items subject to the Regulations 
and designated as EAR99, from the United States to Iran, via the United 
Arab Emirates (``UAE''), in violation of both the TDO and the 
Regulations, by transporting and/or forwarding the computer 
motherboards from the UAE to Iran. Mahan Airways' violations were 
facilitated by Gatewick LLC, which not only participated in the 
transaction, but also has stated to BIS that it acted as Mahan Airways' 
sole booking agent for cargo and freight forwarding services in the 
UAE.
    Moreover, in a January 24, 2011 filing in the U.K. court, Mahan 
Airways asserted that Aircraft 1-3 were not being used, but stated in 
pertinent part that the aircraft were being maintained in Iran 
especially ``in an airworthy condition'' and that, depending on the 
outcome of its U.K. court appeal, the aircraft ``could immediately go 
back into service . . . on international routes into and out of Iran.'' 
Mahan Airways' January 24, 2011 submission to U.K. Court of Appeal, at 
p. 25, ]] 108, 110.

[[Page 30825]]

This clearly stated intent, both on its own and in conjunction with 
Mahan Airways' prior misconduct and statements, demonstrated the need 
to renew the TDO in order to prevent imminent future violations. Two of 
these three 747s subsequently were removed from Iran and are no longer 
in Mahan Airways' possession. The third of these 747s, with 
Manufacturer's Serial Number (``MSN'') 23480 and Iranian tail number 
EP-MNE, remained in Iran under Mahan's control. Pursuant to Executive 
Order 13324, it was designated a Specially Designated Global Terrorist 
(``SDGT'') by the U.S. Department of the Treasury's Office of Foreign 
Assets Control (``OFAC'') on September 19, 2012.\10\ Furthermore, as 
discussed in the February 4, 2013 Order, open source information 
indicated that this 747, painted in the livery and logo of Mahan 
Airways, had been flown between Iran and Syria, and was suspected of 
ferrying weapons and/or other equipment to the Syrian Government from 
Iran's Islamic Revolutionary Guard Corps. Open source information 
showed that this aircraft had flown from Iran to Syria as recently as 
June 30, 2013, and continues to show that it remains in active 
operation in Mahan Airways' fleet.
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    \10\ See http://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/pages/20120919.aspx.
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    In addition, as first detailed in the July 1, 2011 and August 24, 
2011 orders, and discussed in subsequent renewal orders in this matter, 
Mahan Airways also continued to evade U.S. export control laws by 
operating two Airbus A310 aircraft, bearing Mahan Airways' livery and 
logo, on flights into and out of Iran.\11\ At the time of the July 1, 
2011 and August 24, 2011 Orders, these Airbus A310s were registered in 
France, with tail numbers F-OJHH and F-OJHI, respectively.\12\
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    \11\ The Airbus A310s are powered with U.S.-origin engines. The 
engines are subject to the EAR and classified under Export Control 
Classification (``ECCN'') 9A991.d. The Airbus A310s contain 
controlled U.S.-origin items valued at more than 10 percent of the 
total value of the aircraft and as a result are subject to the EAR. 
They are classified under ECCN 9A991.b. The export or reexport of 
these aircraft to Iran requires U.S. Government authorization 
pursuant to Sections 742.8 and 746.7 of the Regulations.
    \12\ OEE subsequently presented evidence that after the August 
24, 2011 renewal, Mahan Airways worked along with Kerman Aviation 
and others to de-register the two Airbus A310 aircraft in France and 
to register both aircraft in Iran (with, respectively, Iranian tail 
numbers EP-MHH and EP-MHI). It was determined subsequent to the 
February 15, 2012 renewal order that the registration switch for 
these A310s was cancelled and that Mahan Airways then continued to 
fly the aircraft under the original French tail numbers (F-OJHH and 
F-OJHI, respectively). Both aircraft apparently remain in Mahan 
Airways' possession.
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    The August 2012 renewal order also found that Mahan Airways had 
acquired another Airbus A310 aircraft subject to the Regulations, with 
MSN 499 and Iranian tail number EP-VIP, in violation of the TDO and the 
Regulations.\13\ On September 19, 2012, all three Airbus A310 aircraft 
(tail numbers F-OJHH, F-OJHI, and EP-VIP) were designated as SDGTs.\14\
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    \13\ See note 12, supra.
    \14\ See http://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/pages/20120919.aspx. Mahan Airways was previously 
designated by OFAC as a SDGT on October 18, 2011. 77 FR 64,427 
(October 18, 2011).
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    The February 4, 2013 Order laid out further evidence of continued 
and additional efforts by Mahan Airways and other persons acting in 
concert with Mahan, including Kral Aviation and another Turkish 
company, to procure U.S.-origin engines--two GE CF6-50C2 engines, with 
MSNs 517621 and 517738, respectively--and other aircraft parts in 
violation of the TDO and the Regulations.\15\ The February 4, 2013 
renewal order also added Mehdi Bahrami as a related person in 
accordance with Section 766.23 of the Regulations. Bahrami, a Mahan 
Vice-President and the head of Mahan's Istanbul Office, also was 
involved in Mahan's acquisition of the original three Boeing 747s 
(Aircraft 1-3) that resulted in the original TDO, and has had a 
business relationship with Mahan dating back to 1997.
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    \15\ Kral Aviation was referenced in the February 4, 2013 Order 
as ``Turkish Company No. 1.'' Kral Aviation purchased a GE CF6-50C2 
aircraft engine (MSN 517621) from the United States in July 2012, on 
behalf of Mahan Airways. OEE was able to prevent this engine from 
reaching Mahan by issuing a redelivery order to the freight 
forwarder in accordance with Section 758.8 of the Regulations. OEE 
also issued Kral Aviation a redelivery order for the second CF6-50C2 
engine (MSN 517738) on July 30, 2012. The owner of the second engine 
subsequently cancelled the item's sale to Kral Aviation. In 
September 2012, OEE was alerted by a U.S. exporter that another 
Turkish company (``Turkish Company No. 2'') was attempting to 
purchase aircraft spare parts intended for re-export by Turkish 
Company No. 2 to Mahan Airways. See February 4, 2013 Order.
    On December 31, 2013, Kral Aviation was added to BIS's Entity 
List, Supplement No. 4 to Part 744 of the Regulations. See 78 FR 
75458 (Dec. 12, 2013). Companies and individuals are added to the 
Entity List for engaging in activities contrary to the national 
security or foreign policy interests of the United States. See 15 
CFR 744.11.
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    The July 31, 2013 Order detailed additional evidence obtained by 
OEE showing efforts by Mahan Airways to obtain another GE CF6-50C2 
aircraft engine (MSN 528350) from the United States via Turkey. 
Multiple Mahan employees, including Mehdi Bahrami, were involved in or 
aware of matters related to the engine's arrival in Turkey from the 
United States, plans to visually inspect the engine, and prepare it for 
shipment from Turkey.
    Mahan sought to obtain this U.S.-origin engine through Pioneer 
Logistics Havacilik Turizm Yonetim Danismanlik (``Pioneer Logistics''), 
an aircraft parts supplier located in Turkey, and its director/
operator, Gulnihal Yegane, a Turkish national who previously had 
conducted Mahan related business with Mehdi Bahrami and Ali Eslamian. 
Moreover, as referenced in the July 31, 2013 Order, a sworn affidavit 
by Kosol Surinanda, also known as Kosol Surinandha, Managing Director 
of Mahan's General Sales Agent in Thailand, stated that the shares of 
Pioneer Logistics for which he was the listed owner were ``actually the 
property of and owned by Mahan.'' He further stated that he held 
``legal title to the shares until otherwise required by Mahan'' but 
would ``exercise the rights granted to [him] exactly and only as 
instructed by Mahan and [his] vote and/or decisions [would] only and 
exclusively reflect the wills and demands of Mahan[.]'' \16\
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    \16\ Pioneer Logistics, Gulnihal Yegane, and Kosol Surinanda 
also were added to the Entity List on December 12, 2013. See 78 FR 
75458 (Dec. 12, 2013).
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    The January 24, 2014 Order outlined OEE's continued investigation 
of Mahan Airways' activities and detailed an attempt by Mahan, which 
OEE thwarted, to obtain, via an Indonesian aircraft parts supplier, two 
U.S.-origin Honeywell ALF-502R-5 aircraft engines (MSNs LF5660 and 
LF5325), items subject to the Regulations, from a U.S. company located 
in Texas. An invoice of the Indonesian aircraft parts supplier dated 
March 27, 2013, listed Mahan Airways as the purchaser of the engines 
and included a Mahan ship-to address. OEE also obtained a Mahan air 
waybill dated March 12, 2013, listing numerous U.S.-origin aircraft 
parts subject to the Regulations--including, among other items, a 
vertical navigation gyroscope, a transmitter, and a power control 
unit--being transported by Mahan from Turkey to Iran in violation of 
the TDO.
    The July 22, 2014 Order discussed open source evidence from the 
March-June 2014 time period regarding two BAE regional jets, items 
subject to the Regulations, that were painted in the livery and logo of 
Mahan Airways and operating under Iranian tail numbers EP-MOK and EP-
MOI, respectively.\17\

[[Page 30826]]

In addition, aviation industry resources indicated that these aircraft 
were obtained by Mahan Airways in late November 2013 and June 2014, 
from Ukrainian Mediterranean Airline, a Ukrainian airline that was 
added to BIS's Entity List (Supplement No. 4 to Part 744 of the 
Regulations) on August 15, 2011, for acting contrary to the national 
security and foreign policy interests of the United States.\18\ OEE's 
on-going investigation indicates that both BAE regional jets remain 
active in Mahan's fleet, with open source information showing EP-MOI 
being used on flights into and out of Iran as recently as January 12, 
2015. The continued operation of these aircraft by Mahan Airways 
violates the TDO.
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    \17\ The BAE regional jets are powered with U.S.-origin engines. 
The engines are subject to the EAR and classified under ECCN 
9A991.d. These aircraft contain controlled U.S.-origin items valued 
at more than 10 percent of the total value of the aircraft and as a 
result are subject to the EAR. They are classified under ECCN 
9A991.b. The export or reexport of these aircraft to Iran requires 
U.S. Government authorization pursuant to Sections 742.8 and 746.7 
of the Regulations.
    \18\ See 76 FR 50407 (Aug. 15, 2011). The July 22, 2014 TDO 
renewal order also referenced two Airbus A320 aircraft painted in 
the livery and logo of Mahan Airways and operating under Iranian 
tail numbers EP-MMK and EP-MML, respectively. OEE's investigation 
also showed that Mahan obtained these aircraft in November 2013, 
from Khors Air Company, another Ukrainian airline that, like 
Ukrainian Mediterranean Airlines, was added to BIS's Entity List on 
August 15, 2011. Open source evidence indicates the two Airbus A320 
aircraft may be been transferred by Mahan Airways to another Iranian 
airline in October 2014, and issued Iranian tail numbers EP-APE and 
EP-APF, respectively.
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    The January 16, 2015 Order detailed evidence of additional attempts 
by Mahan Airways to acquire items subject the Regulations in further 
violation of the TDO. Specifically, in March 2014, OEE became aware of 
an inertial reference unit bearing serial number 1231 (``the IRU'') 
that had been sent to the United States for repair. The IRU is subject 
to the Regulations, classified under ECCN 7A103, and controlled for 
missile technology reasons. Upon closer inspection, it was determined 
that IRU came from or had been installed on an Airbus A340 aircraft 
bearing MSN 056. Further investigation revealed that as of 
approximately February 2014, this aircraft was registered under Iranian 
tail number EP-MMB and had been painted in the livery and logo of Mahan 
Airways.
    The January 16, 2015 Order also described related efforts by the 
Departments of Justice and Treasury to further thwart Mahan's illicit 
procurement efforts. Specifically, on August 14, 2014, the United 
States Attorney's Office for the District of Maryland filed a civil 
forfeiture complaint for the IRU pursuant to 22 U.S.C. 401(b) that 
resulted in the court issuing an Order of Forfeiture on December 2, 
2014. EP-MMB remains listed as active in Mahan Airways' fleet.
    Additionally, on August 29, 2014, OFAC blocked the property and 
interests in property of Asian Aviation Logistics of Thailand, a Mahan 
Airways affiliate or front company, pursuant to Executive Order 13224. 
In doing so, OFAC described Mahan Airways' use of Asian Aviation 
Logistics to evade sanctions by making payments on behalf of Mahan for 
the purchase of engines and other equipment.\19\
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    \19\  See http://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20140829.aspx. See 79 FR 55073 (Sep. 15, 
2014). OFAC also blocked the property and property interests of 
Pioneer Logistics of Turkey on August 29, 2014. Id. Mahan Airways' 
use of Pioneer Logistics in an effort to evade the TDO and the 
Regulations was discussed in a prior renewal order, as summarized, 
supra, at 13-14. BIS added both Asian Aviation Logistics and Pioneer 
Logistics to the Entity List on December 12, 2013. See 78 FR 75458 
(Dec. 12, 2013).
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    The May 21, 2015 modification order detailed the acquisition of two 
aircraft, specifically an Airbus A340 bearing MSN 164 and an Airbus 
A321 bearing MSN 550, that were purchased by Al Naser Airlines in late 
2014/early 2015 and are currently located in Iran under the possession, 
control, and/or ownership of Mahan Airways.\20\ The sales agreements 
for these two aircraft were signed by Ali Abdullah Alhay for Al Naser 
Airlines.\21\ Payment information reveals that multiple electronic 
funds transfers (``EFT'') were made by Ali Abdullah Alhay and Bahar 
Safwa General Trading in order to acquire MSNs 164 and 550.
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    \20\ Both of these aircraft are powered by U.S.-origin engines 
that are subject to the Regulations and classified under ECCN 
9A991.d. Both aircraft contain controlled U.S.-origin items valued 
at more than 10 percent of the total value of the aircraft and as a 
result are subject to the EAR regardless of their location. The 
aircraft are classified under ECCN 9A991.b. The export or re-export 
of these aircraft to Iran requires U.S. Government authorization 
pursuant to Sections 742.8 and 746.7 of the Regulations.
    \21\ Ali Abdullah Alhay is a 25% owner of Al Naser Airlines.
---------------------------------------------------------------------------

    The May 21, 2015 modification order also laid out evidence showing 
the respondents' attempts to obtain other controlled aircraft, 
including aircraft physically located in the United States in 
similarly-patterned transactions during the same recent time period. 
Transactional documents involving two Airbus A320s bearing MSNs 82 and 
99, respectively, again showed Ali Abdullah Alhay signing sales 
agreements for Al Naser Airlines.\22\ A review of the payment 
information for these aircraft similarly revealed EFTs from Ali 
Abdullah Alhay and Bahar Safwa General Trading that follow the pattern 
described for MSNs 164 and 550, supra. MSNs 82 and 99 were detained by 
OEE Special Agents prior to their planned export from the United 
States.
---------------------------------------------------------------------------

    \22\ Both aircraft were physically located in the United States 
and therefore are subject to the Regulations pursuant to Section 
734.3(a)(1). Moreover, these Airbus A320s are powered by U.S.-origin 
engines that are subject to the Regulations and classified under 
Export Control Classification Number ECCN 9A991.d. The Airbus A320s 
contain controlled U.S.-origin items valued at more than 10 percent 
of the total value of the aircraft and as a result are subject to 
the EAR regardless of their location. The aircraft are classified 
under ECCN 9A991.b. The export or re-export of these aircraft to 
Iran requires U.S. Government authorization pursuant to Sections 
742.8 and 746.7 of the Regulations.
---------------------------------------------------------------------------

    The July 13, 2015 Order outlined evidence showing that Al Naser 
Airlines' attempts to acquire aircraft on behalf of Mahan Airways 
extended beyond MSNs 164 and 550 to include a total of nine 
aircraft.\23\ Four of the aircraft, all of which are subject to the 
Regulations and were obtained by Mahan from Al Naser Airlines, had been 
issued the following Iranian tail numbers: EP-MMD (MSN 164), EP-MMG 
(MSN 383), EP-MMH (MSN 391) and EP-MMR (MSN 416), respectively.\24\ 
Publicly available flight tracking information provided evidence that 
at the time of the July 13, 2015 renewal, both EP-MMH and EP-MMR were 
being actively flown on routes into and out of Iran in violation of the 
TDO and Regulations.\25\
---------------------------------------------------------------------------

    \23\ This evidence included a press release dated May 9, 2015, 
that appeared on Mahan Airways' Web site and stated that Mahan 
``added 9 modern aircraft to its air fleet [,]'' and that the newly 
acquired aircraft included eight Airbus A340s and one Airbus A321. 
See http://www.mahan.aero/en/mahan-air/press-room/44. The press 
release was subsequently removed from Mahan Airways' Web site. 
Publicly available aviation databases similarly showed that Mahan 
had obtained nine additional aircraft from Al Naser Airlines in May 
2015, including MSNs 164 and 550. As also discussed in the July 13, 
2015 renewal order, Sky Blue Bird Group, via Issam Shammout, was 
actively involved in Al Naser Airlines' acquisition of MSNs 164 and 
550, and the attempted acquisition of MSNs 82 and 99 (which were 
detained by OEE).
    \24\ The Airbus A340s are powered by U.S.-origin engines that 
are subject to the Regulations and classified under ECCN 9A991.d. 
The Airbus A340s contain controlled U.S.-origin items valued at more 
than 10 percent of the total value of the aircraft and as a result 
are subject to the EAR regardless of their location. The aircraft 
are classified under ECCN 9A991.b. The export or re-export of these 
aircraft to Iran requires U.S. Government authorization pursuant to 
Sections 742.8 and 746.7 of the Regulations.
    \25\ There is some publicly available information indicating 
that the aircraft Mahan Airways is flying under Iranian tail number 
EP-MMR is now MSN 615, rather than MSN 416. Both aircraft are Airbus 
A340 aircraft that Mahan acquired from Al Naser Airlines in 
violation of the TDO and the Regulations. Moreover, both aircraft 
were designated as SDGTs by OFAC on May 21, 2015, pursuant to 
Executive Order 13324. See 80 FR 30762 (May 29, 2015).
---------------------------------------------------------------------------

    The January 7, 2016 Order discussed evidence that Mahan Airways had 
begun actively flying EP-MMD, another

[[Page 30827]]

of the aircraft Mahan had obtained from Al Naser Airlines (as discussed 
in the July 13, 2015 renewal order), on international routes into and 
out of Iran, including from/to Bangkok, Thailand. Additionally, the 
January 7, 2016 Order described publicly available aviation database 
and flight tracking information indicating that Mahan Airways was 
continuing its efforts to acquire Iranian tail numbers and press into 
active service under Mahan's livery and logo at least two more of the 
Airbus A340 aircraft it had obtained from or through Al Naser Airlines: 
EP-MME (MSN 371) and EP-MMF (MSN 376), respectively. Since January 
2016, EP-MME has logged flights to and from Tehran, Iran involving 
various destinations, including Guangzhou, China, and Dubai, United 
Arab Emirates in further violation of the TDO and the Regulations.
    The July 7, 2016 Order described Mahan Airways' acquisition of a 
BAE Avro RJ-85 aircraft (MSN E2392) in violation of the TDO and its 
subsequent registration under Iranian tail number EP-MOR.\26\ This 
information was corroborated by publicly available information on the 
Web site of Iran's civil aviation authority. The July 7, 2016 Order 
also outlined Mahan's continued operation of EP-MMF in violation of the 
TDO on routes from Tehran Iran to Beijing, China and Shanghai, China, 
respectively.
---------------------------------------------------------------------------

    \26\ The BAE Avro RJ-85 is powered by U.S.-origin engines that 
are subject to the Regulations and classified under ECCN 9A991.d. 
The BAE Avro RJ-85 contains controlled U.S.-origin items valued at 
more than 10 percent of the total value of the aircraft and as a 
result is subject to the EAR regardless of its location. The 
aircraft is classified under ECCN 9A991.b, and its export or re-
export to Iran requires U.S. Government authorization pursuant to 
Sections 742.8 and 746.7 of the Regulations.
---------------------------------------------------------------------------

    The December 30, 2016 Order outlined Mahan's continued operation of 
multiple Airbus aircraft, including EP-MMD (MSN 164), EP-MMF (MSN 376), 
and EP-MMH (MSN 391), which were acquired from or through Al Naser 
Airlines in violation of the TDO as previously detailed in the July 13, 
2015 and January 7, 2016 renewal orders, respectively. Publicly 
available flight tracking information showed that the aircraft were 
operated on flights into and out of Iran, including from/to Beijing, 
China, Kuala Lumpur, Malaysia, and Istanbul, Turkey.\27\
---------------------------------------------------------------------------

    \27\ Specifically, on December 22, 2016, EP-MMD (MSN 164) flew 
from Dubai, UAE to Tehran, Iran. Between December 20 and December 
22, 2016, EP-MMF (MSN 376) flew on routes from Tehran, Iran to 
Beijing, China and Istanbul, Turkey, respectively. Between December 
26 and December 28, 2016, EP-MMH (MSN 391) flew on routes from 
Tehran, Iran to Kuala Lumpur, Malaysia.
---------------------------------------------------------------------------

    OEE's June 5, 2017 renewal request includes similar evidence 
regarding Mahan's continuing violation of the TDO by operating multiple 
Airbus aircraft subject to the Regulations, including, but not limited 
to, aircraft procured from or through Al Naser Airlines, on flights 
into and out of Iran, including from/to Moscow, Russia, Shanghai, China 
and Kabul, Afghanistan.\28\
---------------------------------------------------------------------------

    \28\ Publicly available flight tracking information shows that 
on June 22, 2017, EP-MME (MSN 371) flew from Moscow, Russia to 
Tehran, Iran. Additionally, between June 19, 2017, and June 20, 
2017, EP-MMQ (MSN 449), an Airbus A430 also obtained from or through 
Al Naser Airlines, flew on routes between Shanghai, China and 
Tehran, Iran. Similar flight tracking information shows that on June 
20, 2017, EP-MNK (MSN 618), an Airbus A300 originally acquired by 
Mahan via a Ukrainian company, flew between Kabul, Afghanistan and 
Mashhad, Iran.
---------------------------------------------------------------------------

    OEE has also obtained additional information regarding the 
suspected diversion of an Airbus A340 that was first mentioned in its 
December 13, 2016 renewal request. This aircraft had been located and 
registered in the United States under tail number N278TA and was 
subject to the Regulations. At the time the December 30, 2016 renewal 
order was issued, this aircraft had been exported from the United 
States to Indonesia contrary to filings made with the U.S. Federal 
Aviation Administration (``FAA''). These filings with the FAA 
inaccurately indicated, first, that the aircraft was being flown to 
Almaty, Kazakhstan, and then indicated that the aircraft should be de-
registered in the United States because it was being exported to, and 
going to be registered in, Ukraine. Additional documents obtained by 
OEE included a copy of the sales agreement relating to this aircraft, 
which listed a UAE company as the purchaser. Moreover, an industry 
database indicated that the aircraft was being transferred or sold to 
Mahan Airways. After multiple attempts by OEE to contact the UAE 
company regarding OEE's concerns about any sale or other diversion to 
Mahan Airways, the same industry database was revised so as to indicate 
that the sale/transfer to Mahan had been cancelled. The timing of this 
revision is suspicious. Moreover, as discussed in prior renewal orders, 
Mahan Airways has used a broad network of agents and affiliates to 
unlawfully procure and attempt to procure aircraft and other items 
subject to the Regulations via third countries and sham or masked 
transactions, including via the UAE and Indonesia.

C. Findings

    Under the applicable standard set forth in Section 766.24 of the 
Regulations and my review of the entire record, I find that the 
evidence presented by BIS convincingly demonstrates that the denied 
persons have acted in violation of the Regulations and the TDO; that 
such violations have been significant, deliberate and covert; and that 
given the foregoing and the nature of the matters under investigation, 
there is a likelihood of future violations. Therefore, renewal of the 
TDO is necessary to prevent imminent violation of the Regulations and 
to give notice to companies and individuals in the United States and 
abroad that they should continue to cease dealing with Mahan Airways, 
Al Naser Airlines, and the other denied persons under the TDO in 
connection with export and reexport transactions involving items 
subject to the Regulations.

IV. Order

    It is therefore ordered:
    First, that MAHAN AIRWAYS, Mahan Tower, No. 21, Azadegan St., M.A. 
Jenah Exp. Way, Tehran, Iran; PEJMAN MAHMOOD KOSARAYANIFARD A/K/A 
KOSARIAN FARD, P.O. Box 52404, Dubai, United Arab Emirates; MAHMOUD 
AMINI, G#22 Dubai Airport Free Zone, P.O. Box 393754, Dubai, United 
Arab Emirates, and P.O. Box 52404, Dubai, United Arab Emirates, and 
Mohamed Abdulla Alqaz Building, Al Maktoum Street, Al Rigga, Dubai, 
United Arab Emirates; KERMAN AVIATION A/K/A GIE KERMAN AVIATION, 42 
Avenue Montaigne 75008, Paris, France; SIRJANCO TRADING LLC, P.O. Box 
8709, Dubai, United Arab Emirates; ALI ESLAMIAN, 33 Cavendish Square, 
4th Floor, London W1G0PW, United Kingdom, and 2 Bentinck Close, Prince 
Albert Road St. Johns Wood, London NW87RY, United Kingdom; MAHAN AIR 
GENERAL TRADING LLC, 19th Floor Al Moosa Tower One, Sheik Zayed Road, 
Dubai 40594, United Arab Emirates; SKYCO (UK) LTD., 33 Cavendish 
Square, 4th Floor, London, W1G 0PV, United Kingdom; EQUIPCO (UK) LTD., 
2 Bentinck Close, Prince Albert Road, London, NW8 7RY, United Kingdom; 
and MEHDI BAHRAMI, Mahan Airways- Istanbul Office, Cumhuriye Cad. Sibil 
Apt No: 101 D:6, 34374 Emadad, Sisli Istanbul, Turkey; AL NASER 
AIRLINES A/K/A AL-NASER AIRLINES A/K/A ALNASER AIRLINES AND AIR FREIGHT 
LTD., Home 46, Al-Karrada, Babil Region, District 929, St 21, Beside Al 
Jadirya Private Hospital, Baghdad, Iraq, and Al Amirat Street, Section 
309, St. 3/H.20, Al Mansour, Baghdad, Iraq, and P.O. Box 28360, Dubai, 
United Arab Emirates, and P.O.

[[Page 30828]]

Box 911399, Amman 11191, Jordan; ALI ABDULLAH ALHAY A/K/A ALI ALHAY A/
K/A ALI ABDULLAH AHMED ALHAY, Home 46, Al-Karrada, Babil Region, 
District 929, St 21, Beside Al Jadirya Private Hospital, Baghdad, Iraq, 
and Anak Street, Qatif, Saudi Arabia 61177; BAHAR SAFWA GENERAL 
TRADING, P.O. Box 113212, Citadel Tower, Floor-5, Office #504, Business 
Bay, Dubai, United Arab Emirates, and P.O. Box 8709, Citadel Tower, 
Business Bay, Dubai, United Arab Emirates; SKY BLUE BIRD GROUP A/K/A 
SKY BLUE BIRD AVIATION A/K/A SKY BLUE BIRD LTD A/K/A SKY BLUE BIRD FZC, 
P.O. Box 16111, Ras Al Khaimah Trade Zone, United Arab Emirates; and 
ISSAM SHAMMOUT A/K/A MUHAMMAD ISAM MUHAMMAD ANWAR NUR SHAMMOUT A/K/A 
ISSAM ANWAR, Philips Building, 4th Floor, Al Fardous Street, Damascus, 
Syria, and Al Kolaa, Beirut, Lebanon 151515, and 17-18 Margaret Street, 
4th Floor, London, W1W 8RP, United Kingdom, and Cumhuriyet Mah. Kavakli 
San St. Fulya, Cad. Hazar Sok. No.14/A Silivri, Istanbul, Turkey, and 
when acting for or on their behalf, any successors or assigns, agents, 
or employees (each a ``Denied Person'' and collectively the ``Denied 
Persons'') may not, directly or indirectly, participate in any way in 
any transaction involving any commodity, software or technology 
(hereinafter collectively referred to as ``item'') exported or to be 
exported from the United States that is subject to the Export 
Administration Regulations (``EAR''), or in any other activity subject 
to the EAR including, but not limited to:
    A. Applying for, obtaining, or using any license, License 
Exception, or export control document;
    B. Carrying on negotiations concerning, or ordering, buying, 
receiving, using, selling, delivering, storing, disposing of, 
forwarding, transporting, financing, or otherwise servicing in any way, 
any transaction involving any item exported or to be exported from the 
United States that is subject to the EAR, or in any other activity 
subject to the EAR; or
    C. Benefitting in any way from any transaction involving any item 
exported or to be exported from the United States that is subject to 
the EAR, or in any other activity subject to the EAR.
    Second, that no person may, directly or indirectly, do any of the 
following:
    A. Export or reexport to or on behalf of a Denied Person any item 
subject to the EAR;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by a Denied Person of the ownership, possession, or control 
of any item subject to the EAR that has been or will be exported from 
the United States, including financing or other support activities 
related to a transaction whereby a Denied Person acquires or attempts 
to acquire such ownership, possession or control;
    C. Take any action to acquire from or to facilitate the acquisition 
or attempted acquisition from a Denied Person of any item subject to 
the EAR that has been exported from the United States;
    D. Obtain from a Denied Person in the United States any item 
subject to the EAR with knowledge or reason to know that the item will 
be, or is intended to be, exported from the United States; or
    E. Engage in any transaction to service any item subject to the EAR 
that has been or will be exported from the United States and which is 
owned, possessed or controlled by a Denied Person, or service any item, 
of whatever origin, that is owned, possessed or controlled by a Denied 
Person if such service involves the use of any item subject to the EAR 
that has been or will be exported from the United States. For purposes 
of this paragraph, servicing means installation, maintenance, repair, 
modification or testing.
    Third, that, after notice and opportunity for comment as provided 
in Section 766.23 of the EAR, any other person, firm, corporation, or 
business organization related to a Denied Person by affiliation, 
ownership, control, or position of responsibility in the conduct of 
trade or related services may also be made subject to the provisions of 
this Order.
    Fourth, that this Order does not prohibit any export, reexport, or 
other transaction subject to the EAR where the only items involved that 
are subject to the EAR are the foreign-produced direct product of U.S.-
origin technology.
    In accordance with the provisions of Section 766.24(e) of the EAR, 
Mahan Airways, Al Naser Airlines, Ali Abdullah Alhay, and/or Bahar 
Safwa General Trading may, at any time, appeal this Order by filing a 
full written statement in support of the appeal with the Office of the 
Administrative Law Judge, U.S. Coast Guard ALJ Docketing Center, 40 
South Gay Street, Baltimore, Maryland 21202-4022. In accordance with 
the provisions of Sections 766.23(c)(2) and 766.24(e)(3) of the EAR, 
Pejman Mahmood Kosarayanifard, Mahmoud Amini, Kerman Aviation, Sirjanco 
Trading LLC, Ali Eslamian, Mahan Air General Trading LLC, Skyco (UK) 
Ltd., Equipco (UK) Ltd., Mehdi Bahrami, Sky Blue Bird Group, and/or 
Issam Shammout may, at any time, appeal their inclusion as a related 
person by filing a full written statement in support of the appeal with 
the Office of the Administrative Law Judge, U.S. Coast Guard ALJ 
Docketing Center, 40 South Gay Street, Baltimore, Maryland 21202-4022.
    In accordance with the provisions of Section 766.24(d) of the EAR, 
BIS may seek renewal of this Order by filing a written request not 
later than 20 days before the expiration date. A renewal request may be 
opposed by Mahan Airways, Al Naser Airlines, Ali Abdullah Alhay, and/or 
Bahar Safwa General Trading as provided in Section 766.24(d), by filing 
a written submission with the Assistant Secretary of Commerce for 
Export Enforcement, which must be received not later than seven days 
before the expiration date of the Order.
    A copy of this Order shall be provided to Mahan Airways, Al Naser 
Airlines, Ali Abdullah Alhay, and Bahar Safwa General Trading and each 
related person, and shall be published in the Federal Register. This 
Order is effective immediately and shall remain in effect for 180 days.

    Dated: June 27, 2017.
Richard R. Majauskas,
Acting Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2017-13972 Filed 6-30-17; 8:45 am]
BILLING CODE P



                                                                                Federal Register / Vol. 82, No. 126 / Monday, July 3, 2017 / Notices                                                     30823

                                                matters the premature disclosure of                     Ali Abdullah Alhay, a/k/a Ali Alhay, a/k/a             privileges for a period of 180 days on
                                                which would be likely to frustrate                         Ali Abdullah Ahmed Alhay, Home 46, Al-              the grounds that its issuance was
                                                significantly implementation of a                          Karrada, Babil Region, District 929, St 21,         necessary in the public interest to
                                                                                                           Beside Al Jadirya Private Hospital,
                                                proposed agency action as described in                     Baghdad, Iraq
                                                                                                                                                               prevent an imminent violation of the
                                                5 U.S.C. 552b(c)(9)(B) shall be exempt                     and                                                 Regulations. The TDO also named as
                                                from the provisions relating to public                  Anak Street, Qatif, Saudi Arabia 61177                 denied persons Blue Airways, of
                                                meetings found in 5 U.S.C. app. 2                       Bahar Safwa General Trading, P.O. Box                  Yerevan, Armenia (‘‘Blue Airways of
                                                §§ 10(a)(1) and 10(a)(3). The remaining                    113212, Citadel Tower, Floor-5, Office              Armenia’’), as well as the ‘‘Balli Group
                                                portions of the meeting will be open to                    #504, Business Bay, Dubai, United Arab              Respondents,’’ namely, Balli Group
                                                the public.                                                Emirates                                            PLC, Balli Aviation, Balli Holdings,
                                                                                                           and                                                 Vahid Alaghband, Hassan Alaghband,
                                                   For more information, call Yvette                    P.O. Box 8709, Citadel Tower, Business Bay,
                                                Springer at (202) 482–2813.                                                                                    Blue Sky One Ltd., Blue Sky Two Ltd.,
                                                                                                           Dubai, United Arab Emirates
                                                                                                        Sky Blue Bird Group a/k/a Sky Blue Bird                Blue Sky Three Ltd., Blue Sky Four Ltd.,
                                                Yvette Springer,                                                                                               Blue Sky Five Ltd., and Blue Sky Six
                                                                                                           Aviation a/k/a Sky Blue Bird Ltd a/k/a Sky
                                                Committee Liaison Officer.                                 Blue Bird FZC, P.O. Box 16111, Ras Al               Ltd., all of the United Kingdom. The
                                                [FR Doc. 2017–13874 Filed 6–30–17; 8:45 am]                Khaimah Trade Zone, United Arab                     TDO was issued ex parte pursuant to
                                                BILLING CODE 3510–JT–P                                     Emirates                                            Section 766.24(a), and went into effect
                                                                                                        Issam Shammout a/k/a Muhammad Isam                     on March 21, 2008, the date it was
                                                                                                           Muhammad Anwar Nur Shammout a/k/a                   published in the Federal Register.
                                                DEPARTMENT OF COMMERCE                                     Issam Anwar, Philips Building, 4th Floor,             The TDO subsequently has been
                                                                                                           Al Fardous Street, Damascus, Syria
                                                                                                           and
                                                                                                                                                               renewed in accordance with Section
                                                Bureau of Industry and Security                                                                                766.24(d), including most recently on
                                                                                                        Al Kolaa, Beirut, Lebanon 151515
                                                                                                           and                                                 December 30, 2016.3 As of March 9,
                                                Order Renewing Order Temporarily
                                                Denying Export Privileges                               17–18 Margaret Street, 4th Floor, London,              2010, the Balli Group Respondents and
                                                                                                           W1W 8RP, United Kingdom                             Blue Airways were no longer subject to
                                                Mahan Airways, Mahan Tower, No. 21,                        and                                                 the TDO. As part of the February 25,
                                                  Azadegan St., M.A. Jenah Exp. Way,                    Cumhuriyet Mah. Kavakli San St. Fulya, Cad.            2011 TDO renewal, Gatewick LLC (a/k/
                                                  Tehran, Iran                                             Hazar Sok. No. 14/A Silivri, Istanbul,              a Gatewick Freight and Cargo Services,
                                                Pejman Mahmood Kosarayanifard a/k/a                        Turkey
                                                                                                                                                               a/k/a Gatewick Aviation Services),
                                                  Kosarian Fard, P.O. Box 52404, Dubai,                    Pursuant to Section 766.24 of the                   Mahmoud Amini, and Pejman
                                                  United Arab Emirates;                                 Export Administration Regulations, 15                  Mahmood Kosarayanifard (‘‘Kosarian
                                                Mahmoud Amini, G#22 Dubai Airport Free
                                                                                                        CFR parts 730–774 (2016) (‘‘EAR’’ or the               Fard’’) were added as related persons in
                                                  Zone, P.O. Box 393754, Dubai, United Arab
                                                  Emirates                                              ‘‘Regulations’’),1 I hereby grant the                  accordance with Section 766.23 of the
                                                  and                                                   request of the Office of Export                        Regulations.4 On July 1, 2011, the TDO
                                                P.O. Box 52404, Dubai, United Arab Emirates             Enforcement (‘‘OEE’’) to renew the                     was modified by adding Zarand
                                                  and                                                   December 30, 2016 Temporary Denial                     Aviation as a respondent in order to
                                                Mohamed Abdulla Alqaz Building, Al                      Order (the ‘‘TDO’’). The December 30,                  prevent an imminent violation.5 As part
                                                  Maktoum Street, Al Rigga, Dubai, United               2016 Order denied the export privileges                of the August 24, 2011 renewal, Kerman
                                                  Arab Emirates;                                        of Mahan Airways, Pejman Mahmood                       Aviation, Sirjanco Trading LLC, and Ali
                                                Kerman Aviation a/k/a GIE Kerman Aviation,              Kosarayanifard, Mahmoud Amini,
                                                  42 Avenue Montaigne 75008, Paris, France
                                                                                                        Kerman Aviation, Sirjanco Trading LLC,                    3 The December 30, 2016 Order was published in
                                                Sirjanco Trading LLC, P.O. Box 8709, Dubai,
                                                  United Arab Emirates                                  Ali Eslamian, Mahan Air General                        the Federal Register on January 9, 2017 (82 FR
                                                                                                        Trading LLC, Skyco (UK) Ltd., Equipco                  2312). July 13, 2016 (81 FR 45276). The TDO
                                                Ali Eslamian, 33 Cavendish Square, 4th                                                                         previously had been renewed on September 17,
                                                  Floor, London, W1G0PW, United Kingdom                 (UK) Ltd., Mehdi Bahrami, Al Naser                     2008, March 16, 2009, September 11, 2009, March
                                                  and                                                   Airlines, Ali Abdullah Alhay, Bahar                    9, 2010, September 3, 2010, February 25, 2011,
                                                2 Bentinck Close, Prince Albert Road, St.               Safwa General Trading, Sky Blue Bird                   August 24, 2011, February 15, 2012, August 9, 2012,
                                                  Johns Wood, London NW87RY, United                     Group, and Issam Shammout.2 I find                     February 4, 2013, July 31, 2013, January 24, 2014,
                                                  Kingdom                                                                                                      July 22, 2014, January 16, 2015, July 13, 2015,
                                                                                                        that renewal of the TDO is necessary in                January 7, 2016, July 7, 2016, and December 30,
                                                Mahan Air General Trading LLC, 19th Floor               the public interest to prevent an                      2016. The August 24, 2011 renewal followed the
                                                  Al Moosa Tower One, Sheik Zayed Road,
                                                                                                        imminent violation of the EAR.                         modification of the TDO on July 1, 2011, which
                                                  Dubai 40594, United Arab Emirates                                                                            added Zarand Aviation as a respondent. The July
                                                Skyco (UK) Ltd., 33 Cavendish Square, 4th               I. Procedural History                                  13, 2015 renewal followed the modification of the
                                                  Floor, London, W1G 0PV, United Kingdom                                                                       TDO on May 21, 2015, which added Al Naser
                                                Equipco (UK) Ltd., 2 Bentinck Close, Prince                On March 17, 2008, Darryl W.                        Airlines, Ali Abdullah Alhay, and Bahar Safwa
                                                  Albert Road, London, NW8 7RY, United                  Jackson, the then-Assistant Secretary of               General Trading as respondents. Each renewal or
                                                  Kingdom                                               Commerce for Export Enforcement                        modification order was published in the Federal
                                                                                                                                                               Register.
                                                Mehdi Bahrami, Mahan Airways—Istanbul                   (‘‘Assistant Secretary’’), signed a TDO                   4 On August 13, 2014, BIS and Gatewick LLC
                                                  Office, Cumhuriye Cad. Sibil Apt No: 101              denying Mahan Airways’ export                          resolved administrative charges against Gatewick,
                                                  D:6, 34374 Emadad, Sisli Istanbul, Turkey                                                                    including a charge for acting contrary to the terms
                                                Al Naser Airlines a/k/a al-Naser Airlines a/              1 The Regulations, currently codified at 15 CFR      of a BIS denial order (15 CFR 764.2(k)). In addition
                                                  k/a Alnaser Airlines and Air Freight Ltd.,            parts 730–774 (2017), originally issued pursuant to    to the payment of a civil penalty, the settlement
                                                  Home 46, Al-Karrada, Babil Region,                    the Export Administration Act of 1979. Since           includes a seven-year denial order. The first two
                                                  District 929, St 21, Beside Al Jadirya                August 21, 2001, the Act has been in lapse and the     years of the denial period are active, with the
sradovich on DSK3GMQ082PROD with NOTICES




                                                  Private Hospital, Baghdad, Iraq                       President, through Executive Order 13222 of August     remaining five years suspended on condition that
                                                  and                                                   17, 2001 (3 CFR, 2001 Comp. 783 (2002)), which         Gatewick LLC pays the civil penalty in full and
                                                                                                        has been extended by successive Presidential           timely fashion and commits no further violation of
                                                Al Amirat Street, Section 309, St. 3/H.20, Al           Notices, the most recent being that of August 4,       the Regulations during the seven-year denial
                                                  Mansour, Baghdad, Iraq                                2016 (81 FR 52,58748,223 (Aug. 8, 2016)), has          period. The Gatewick LLC Final Order was
                                                  and                                                   continued the Regulations in effect under the          published in the Federal Register on August 20,
                                                P.O. Box 28360, Dubai, United Arab Emirates             International Emergency Economic Powers Act (50        2014. See 79 FR 49283 (Aug. 20, 2014).
                                                  and                                                   U.S.C. 1701, et seq. (2006 & Supp. IV 2010)).             5 As of July 22, 2014, Zarand Aviation was no

                                                P.O. Box 911399, Amman 11191, Jordan                      2 See note 3, infra.                                 longer subject to the TDO.



                                           VerDate Sep<11>2014   17:53 Jun 30, 2017   Jkt 241001   PO 00000   Frm 00008   Fmt 4703   Sfmt 4703   E:\FR\FM\03JYN1.SGM   03JYN1


                                                30824                           Federal Register / Vol. 82, No. 126 / Monday, July 3, 2017 / Notices

                                                Eslamian were added to the TDO as                       about to occur, or that the general                    additional knowing and willful
                                                related persons. Mahan Air General                      circumstances of the matter under                      violation when it negotiated for and
                                                Trading LLC, Skyco (UK) Ltd., and                       investigation or case under criminal or                acquired an additional U.S.-origin
                                                Equipco (UK) Ltd. were added as related                 administrative charges demonstrate a                   aircraft. The additional acquired aircraft
                                                persons on April 9, 2012. Mehdi                         likelihood of future violations.’’ Id. As              was an MD–82 aircraft, which
                                                Bahrami was added to the TDO as a                       to the likelihood of future violations,                subsequently was painted in Mahan
                                                related person as part of the February 4,               BIS may show that the violation under                  Airways’ livery and flown on multiple
                                                2013 renewal order.                                     investigation or charge ‘‘is significant,              Mahan Airways’ routes under tail
                                                  On May 21, 2015, the TDO was                          deliberate, covert and/or likely to occur              number TC–TUA.
                                                modified to add Al Naser Airlines, Ali                  again, rather than technical or negligent                 The March 9, 2010 Renewal Order
                                                Abdullah Alhay, and Bahar Safwa                         [.]’’ Id. A ‘‘lack of information                      also noted that a court in the United
                                                General Trading as respondents. Sky                     establishing the precise time a violation              Kingdom (‘‘U.K.’’) had found Mahan
                                                Blue Bird Group and its chief executive                 may occur does not preclude a finding                  Airways in contempt of court on
                                                officer Issam Shammout were added to                    that a violation is imminent, so long as               February 1, 2010, for failing to comply
                                                the TDO as related persons as part of the               there is sufficient reason to believe the              with that court’s December 21, 2009 and
                                                July 13, 2015 renewal order.6                           likelihood of a violation.’’ Id.                       January 12, 2010 orders compelling
                                                  On June 5, 2017, BIS, through its                                                                            Mahan Airways to remove the Boeing
                                                                                                        B. The TDO and BIS’s Request for                       747s from Iran and ground them in the
                                                Office of Export Enforcement (‘‘OEE’’),                 Renewal
                                                submitted a written request for renewal                                                                        Netherlands. Mahan Airways and the
                                                of the TDO. The written request was                        OEE’s request for renewal is based                  Balli Group Respondents had been
                                                made more than 20 days before the                       upon the facts underlying the issuance                 litigating before the U.K. court
                                                scheduled expiration of the current                     of the initial TDO and the TDO renewals                concerning ownership and control of
                                                TDO, which issued on December 30,                       in this matter and the evidence                        Aircraft 1–3. In a letter to the U.K. court
                                                2016. Notice of the renewal request also                developed over the course of this                      dated January 12, 2010, Mahan Airways’
                                                was provided to Mahan Airways, Al                       investigation indicating a blatant                     Chairman indicated, inter alia, that
                                                Naser Airlines, Ali Abdullah Alhay, and                 disregard of U.S. export controls and the              Mahan Airways opposes U.S.
                                                Bahar Safwa General Trading in                          TDO. The initial TDO was issued as a                   Government actions against Iran, that it
                                                accordance with Sections 766.5 and                      result of evidence that showed that                    continued to operate the aircraft on its
                                                766.24(d) of the Regulations. No                        Mahan Airways and other parties                        routes in and out of Tehran (and had
                                                                                                        engaged in conduct prohibited by the                   158,000 ‘‘forward bookings’’ for these
                                                opposition to the renewal of the TDO
                                                                                                        EAR by knowingly re-exporting to Iran                  aircraft), and that it wished to continue
                                                has been received. Furthermore, no
                                                                                                        three U.S.-origin aircraft, specifically               to do so and would pay damages if
                                                appeal of the related person
                                                                                                        Boeing 747s (‘‘Aircraft 1–3’’), items                  required by that court, rather than
                                                determinations made as part of the
                                                                                                        subject to the EAR and classified under                ground the aircraft.
                                                September 3, 2010, February 25, 2011,
                                                                                                        Export Control Classification Number                      The September 3, 2010 renewal order
                                                August 24, 2011, April 9, 2012,
                                                                                                        (‘‘ECCN’’) 9A991.b, without the required               discussed the fact that Mahan Airways’
                                                February 4, 2013, and July 13, 2015
                                                                                                        U.S. Government authorization. Further                 violations of the TDO extended beyond
                                                renewal or modification orders has been
                                                                                                        evidence submitted by BIS indicated                    operating U.S.-origin aircraft and
                                                made by Kosarian Fard, Mahmoud
                                                                                                        that Mahan Airways was involved in the                 attempting to acquire additional U.S.-
                                                Amini, Kerman Aviation, Sirjanco                        attempted re-export of three additional                origin aircraft. In February 2009, while
                                                Trading LLC, Ali Eslamian, Mahan Air                    U.S.-origin Boeing 747s (‘‘Aircraft 4–6’’)             subject to the TDO, Mahan Airways
                                                General Trading LLC, Skyco (UK) Ltd.,                   to Iran.                                               participated in the export of computer
                                                Equipco (UK) Ltd., Mehdi Bahrami, Sky                      As discussed in the September 17,                   motherboards, items subject to the
                                                Blue Bird Group, or Issam Shammout.7                    2008 renewal order, evidence presented                 Regulations and designated as EAR99,
                                                II. Renewal of the TDO                                  by BIS indicated that Aircraft 1–3                     from the United States to Iran, via the
                                                                                                        continued to be flown on Mahan                         United Arab Emirates (‘‘UAE’’), in
                                                A. Legal Standard                                       Airways’ routes after issuance of the                  violation of both the TDO and the
                                                   Pursuant to Section 766.24, BIS may                  TDO, in violation of the Regulations and               Regulations, by transporting and/or
                                                issue or renew an order temporarily                     the TDO itself.8 It also showed that                   forwarding the computer motherboards
                                                denying a respondent’s export privileges                Aircraft 1–3 had been flown in further                 from the UAE to Iran. Mahan Airways’
                                                upon a showing that the order is                        violation of the Regulations and the                   violations were facilitated by Gatewick
                                                necessary in the public interest to                     TDO on the routes of Iran Air, an                      LLC, which not only participated in the
                                                prevent an ‘‘imminent violation’’ of the                Iranian Government airline. Moreover,                  transaction, but also has stated to BIS
                                                Regulations. 15 CFR 766.24(b)(1) and                    as discussed in the March 16, 2009,                    that it acted as Mahan Airways’ sole
                                                776.24(d). ‘‘A violation may be                         September 11, 2009 and March 9, 2010                   booking agent for cargo and freight
                                                ‘imminent’ either in time or degree of                  Renewal Orders, Mahan Airways                          forwarding services in the UAE.
                                                likelihood.’’ 15 CFR 766.24(b)(3). BIS                  registered Aircraft 1–3 in Iran, obtained                 Moreover, in a January 24, 2011 filing
                                                may show ‘‘either that a violation is                   Iranian tail numbers for them (EP–MNA,                 in the U.K. court, Mahan Airways
                                                                                                        EP–MNB, and EP–MNE, respectively),                     asserted that Aircraft 1–3 were not being
                                                   6 The U.S. Department of the Treasury’s Office of
                                                                                                        and continued to operate at least two of               used, but stated in pertinent part that
                                                Foreign Assets Control (‘‘OFAC’’) designated Sky        them in violation of the Regulations and               the aircraft were being maintained in
                                                Blue Bird and Issam Shammout as Specially                                                                      Iran especially ‘‘in an airworthy
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                                                Designated Global Terrorists (‘‘SDGTs’’) on May 21,     the TDO,9 while also committing an
                                                2015, pursuant to Executive Order 13324, for                                                                   condition’’ and that, depending on the
                                                ‘‘providing support to Iran’s Mahan Air.’’ See 80 FR       8 Engaging in conduct prohibited by a denial        outcome of its U.K. court appeal, the
                                                30762 (May 29, 2015).                                   order violates the Regulations. 15 CFR 764.2(a) and    aircraft ‘‘could immediately go back into
                                                   7 A party named or added as a related person may     (k).                                                   service . . . on international routes into
                                                not oppose the issuance or renewal of the                  9 The third Boeing 747 appeared to have

                                                underlying temporary denial order, but may file an      undergone significant service maintenance and may
                                                                                                                                                               and out of Iran.’’ Mahan Airways’
                                                appeal of the related person determination in           not have been operational at the time of the March     January 24, 2011 submission to U.K.
                                                accordance with Section 766.23(c).                      9, 2010 renewal order.                                 Court of Appeal, at p. 25, ¶¶ 108, 110.


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                                                                                Federal Register / Vol. 82, No. 126 / Monday, July 3, 2017 / Notices                                                       30825

                                                This clearly stated intent, both on its                    The August 2012 renewal order also                  inspect the engine, and prepare it for
                                                own and in conjunction with Mahan                       found that Mahan Airways had acquired                  shipment from Turkey.
                                                Airways’ prior misconduct and                           another Airbus A310 aircraft subject to                   Mahan sought to obtain this U.S.-
                                                statements, demonstrated the need to                    the Regulations, with MSN 499 and                      origin engine through Pioneer Logistics
                                                renew the TDO in order to prevent                       Iranian tail number EP–VIP, in violation               Havacilik Turizm Yonetim Danismanlik
                                                imminent future violations. Two of                      of the TDO and the Regulations.13 On                   (‘‘Pioneer Logistics’’), an aircraft parts
                                                these three 747s subsequently were                      September 19, 2012, all three Airbus                   supplier located in Turkey, and its
                                                removed from Iran and are no longer in                  A310 aircraft (tail numbers F–OJHH, F–                 director/operator, Gulnihal Yegane, a
                                                Mahan Airways’ possession. The third                    OJHI, and EP–VIP) were designated as                   Turkish national who previously had
                                                of these 747s, with Manufacturer’s                      SDGTs.14                                               conducted Mahan related business with
                                                Serial Number (‘‘MSN’’) 23480 and                          The February 4, 2013 Order laid out                 Mehdi Bahrami and Ali Eslamian.
                                                Iranian tail number EP–MNE, remained                    further evidence of continued and                      Moreover, as referenced in the July 31,
                                                in Iran under Mahan’s control. Pursuant                 additional efforts by Mahan Airways                    2013 Order, a sworn affidavit by Kosol
                                                to Executive Order 13324, it was                        and other persons acting in concert with               Surinanda, also known as Kosol
                                                designated a Specially Designated                       Mahan, including Kral Aviation and                     Surinandha, Managing Director of
                                                Global Terrorist (‘‘SDGT’’) by the U.S.                 another Turkish company, to procure                    Mahan’s General Sales Agent in
                                                Department of the Treasury’s Office of                  U.S.-origin engines—two GE CF6–50C2                    Thailand, stated that the shares of
                                                Foreign Assets Control (‘‘OFAC’’) on                    engines, with MSNs 517621 and                          Pioneer Logistics for which he was the
                                                September 19, 2012.10 Furthermore, as                   517738, respectively—and other aircraft                listed owner were ‘‘actually the property
                                                discussed in the February 4, 2013 Order,                parts in violation of the TDO and the                  of and owned by Mahan.’’ He further
                                                open source information indicated that                  Regulations.15 The February 4, 2013                    stated that he held ‘‘legal title to the
                                                this 747, painted in the livery and logo                renewal order also added Mehdi                         shares until otherwise required by
                                                of Mahan Airways, had been flown                        Bahrami as a related person in                         Mahan’’ but would ‘‘exercise the rights
                                                between Iran and Syria, and was                         accordance with Section 766.23 of the                  granted to [him] exactly and only as
                                                suspected of ferrying weapons and/or                    Regulations. Bahrami, a Mahan Vice-                    instructed by Mahan and [his] vote and/
                                                other equipment to the Syrian                           President and the head of Mahan’s                      or decisions [would] only and
                                                Government from Iran’s Islamic                          Istanbul Office, also was involved in                  exclusively reflect the wills and
                                                Revolutionary Guard Corps. Open                         Mahan’s acquisition of the original three              demands of Mahan[.]’’ 16
                                                source information showed that this                     Boeing 747s (Aircraft 1–3) that resulted                  The January 24, 2014 Order outlined
                                                aircraft had flown from Iran to Syria as                in the original TDO, and has had a                     OEE’s continued investigation of Mahan
                                                recently as June 30, 2013, and continues                business relationship with Mahan                       Airways’ activities and detailed an
                                                to show that it remains in active                       dating back to 1997.                                   attempt by Mahan, which OEE
                                                operation in Mahan Airways’ fleet.                                                                             thwarted, to obtain, via an Indonesian
                                                                                                           The July 31, 2013 Order detailed
                                                   In addition, as first detailed in the                                                                       aircraft parts supplier, two U.S.-origin
                                                                                                        additional evidence obtained by OEE
                                                July 1, 2011 and August 24, 2011 orders,                                                                       Honeywell ALF–502R–5 aircraft engines
                                                                                                        showing efforts by Mahan Airways to
                                                and discussed in subsequent renewal                                                                            (MSNs LF5660 and LF5325), items
                                                                                                        obtain another GE CF6–50C2 aircraft
                                                orders in this matter, Mahan Airways                                                                           subject to the Regulations, from a U.S.
                                                                                                        engine (MSN 528350) from the United
                                                also continued to evade U.S. export                                                                            company located in Texas. An invoice
                                                                                                        States via Turkey. Multiple Mahan
                                                control laws by operating two Airbus                                                                           of the Indonesian aircraft parts supplier
                                                                                                        employees, including Mehdi Bahrami,
                                                A310 aircraft, bearing Mahan Airways’                                                                          dated March 27, 2013, listed Mahan
                                                                                                        were involved in or aware of matters
                                                livery and logo, on flights into and out                                                                       Airways as the purchaser of the engines
                                                                                                        related to the engine’s arrival in Turkey
                                                of Iran.11 At the time of the July 1, 2011                                                                     and included a Mahan ship-to address.
                                                                                                        from the United States, plans to visually
                                                and August 24, 2011 Orders, these                                                                              OEE also obtained a Mahan air waybill
                                                Airbus A310s were registered in France,                   13 See  note 12, supra.
                                                                                                                                                               dated March 12, 2013, listing numerous
                                                with tail numbers F–OJHH and F–OJHI,                      14 See  http://www.treasury.gov/resource-center/     U.S.-origin aircraft parts subject to the
                                                respectively.12                                         sanctions/OFAC-Enforcement/pages/                      Regulations—including, among other
                                                                                                        20120919.aspx. Mahan Airways was previously            items, a vertical navigation gyroscope, a
                                                   10 See http://www.treasury.gov/resource-center/      designated by OFAC as a SDGT on October 18,            transmitter, and a power control unit—
                                                sanctions/OFAC-Enforcement/pages/                       2011. 77 FR 64,427 (October 18, 2011).
                                                                                                           15 Kral Aviation was referenced in the February
                                                                                                                                                               being transported by Mahan from
                                                20120919.aspx.
                                                   11 The Airbus A310s are powered with U.S.-origin     4, 2013 Order as ‘‘Turkish Company No. 1.’’ Kral       Turkey to Iran in violation of the TDO.
                                                engines. The engines are subject to the EAR and         Aviation purchased a GE CF6–50C2 aircraft engine          The July 22, 2014 Order discussed
                                                classified under Export Control Classification          (MSN 517621) from the United States in July 2012,      open source evidence from the March–
                                                (‘‘ECCN’’) 9A991.d. The Airbus A310s contain            on behalf of Mahan Airways. OEE was able to            June 2014 time period regarding two
                                                controlled U.S.-origin items valued at more than 10     prevent this engine from reaching Mahan by issuing
                                                percent of the total value of the aircraft and as a     a redelivery order to the freight forwarder in         BAE regional jets, items subject to the
                                                result are subject to the EAR. They are classified      accordance with Section 758.8 of the Regulations.      Regulations, that were painted in the
                                                under ECCN 9A991.b. The export or reexport of           OEE also issued Kral Aviation a redelivery order for   livery and logo of Mahan Airways and
                                                these aircraft to Iran requires U.S. Government         the second CF6–50C2 engine (MSN 517738) on July        operating under Iranian tail numbers
                                                authorization pursuant to Sections 742.8 and 746.7      30, 2012. The owner of the second engine
                                                of the Regulations.                                     subsequently cancelled the item’s sale to Kral         EP–MOK and EP–MOI, respectively.17
                                                   12 OEE subsequently presented evidence that after    Aviation. In September 2012, OEE was alerted by
                                                                                                        a U.S. exporter that another Turkish company             16 Pioneer Logistics, Gulnihal Yegane, and Kosol
                                                the August 24, 2011 renewal, Mahan Airways
                                                worked along with Kerman Aviation and others to         (‘‘Turkish Company No. 2’’) was attempting to          Surinanda also were added to the Entity List on
                                                de-register the two Airbus A310 aircraft in France      purchase aircraft spare parts intended for re-export   December 12, 2013. See 78 FR 75458 (Dec. 12,
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                                                and to register both aircraft in Iran (with,            by Turkish Company No. 2 to Mahan Airways. See         2013).
                                                respectively, Iranian tail numbers EP–MHH and           February 4, 2013 Order.                                  17 The BAE regional jets are powered with U.S.-

                                                EP–MHI). It was determined subsequent to the               On December 31, 2013, Kral Aviation was added       origin engines. The engines are subject to the EAR
                                                February 15, 2012 renewal order that the                to BIS’s Entity List, Supplement No. 4 to Part 744     and classified under ECCN 9A991.d. These aircraft
                                                registration switch for these A310s was cancelled       of the Regulations. See 78 FR 75458 (Dec. 12, 2013).   contain controlled U.S.-origin items valued at more
                                                and that Mahan Airways then continued to fly the        Companies and individuals are added to the Entity      than 10 percent of the total value of the aircraft and
                                                aircraft under the original French tail numbers (F–     List for engaging in activities contrary to the        as a result are subject to the EAR. They are
                                                OJHH and F–OJHI, respectively). Both aircraft           national security or foreign policy interests of the   classified under ECCN 9A991.b. The export or
                                                apparently remain in Mahan Airways’ possession.         United States. See 15 CFR 744.11.                                                                   Continued




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                                                30826                           Federal Register / Vol. 82, No. 126 / Monday, July 3, 2017 / Notices

                                                In addition, aviation industry resources                   Additionally, on August 29, 2014,                     review of the payment information for
                                                indicated that these aircraft were                      OFAC blocked the property and                            these aircraft similarly revealed EFTs
                                                obtained by Mahan Airways in late                       interests in property of Asian Aviation                  from Ali Abdullah Alhay and Bahar
                                                November 2013 and June 2014, from                       Logistics of Thailand, a Mahan Airways                   Safwa General Trading that follow the
                                                Ukrainian Mediterranean Airline, a                      affiliate or front company, pursuant to                  pattern described for MSNs 164 and
                                                Ukrainian airline that was added to                     Executive Order 13224. In doing so,                      550, supra. MSNs 82 and 99 were
                                                BIS’s Entity List (Supplement No. 4 to                  OFAC described Mahan Airways’ use of                     detained by OEE Special Agents prior to
                                                Part 744 of the Regulations) on August                  Asian Aviation Logistics to evade                        their planned export from the United
                                                15, 2011, for acting contrary to the                    sanctions by making payments on behalf                   States.
                                                national security and foreign policy                    of Mahan for the purchase of engines                        The July 13, 2015 Order outlined
                                                interests of the United States.18 OEE’s                 and other equipment.19                                   evidence showing that Al Naser
                                                on-going investigation indicates that                      The May 21, 2015 modification order                   Airlines’ attempts to acquire aircraft on
                                                both BAE regional jets remain active in                 detailed the acquisition of two aircraft,                behalf of Mahan Airways extended
                                                Mahan’s fleet, with open source                         specifically an Airbus A340 bearing                      beyond MSNs 164 and 550 to include a
                                                information showing EP–MOI being                        MSN 164 and an Airbus A321 bearing                       total of nine aircraft.23 Four of the
                                                used on flights into and out of Iran as                 MSN 550, that were purchased by Al                       aircraft, all of which are subject to the
                                                recently as January 12, 2015. The                       Naser Airlines in late 2014/early 2015                   Regulations and were obtained by
                                                continued operation of these aircraft by                and are currently located in Iran under                  Mahan from Al Naser Airlines, had been
                                                Mahan Airways violates the TDO.                         the possession, control, and/or                          issued the following Iranian tail
                                                   The January 16, 2015 Order detailed                  ownership of Mahan Airways.20 The                        numbers: EP–MMD (MSN 164), EP–
                                                evidence of additional attempts by                      sales agreements for these two aircraft                  MMG (MSN 383), EP–MMH (MSN 391)
                                                Mahan Airways to acquire items subject                  were signed by Ali Abdullah Alhay for                    and EP–MMR (MSN 416),
                                                the Regulations in further violation of                 Al Naser Airlines.21 Payment                             respectively.24 Publicly available flight
                                                the TDO. Specifically, in March 2014,                   information reveals that multiple                        tracking information provided evidence
                                                OEE became aware of an inertial                         electronic funds transfers (‘‘EFT’’) were                that at the time of the July 13, 2015
                                                reference unit bearing serial number                    made by Ali Abdullah Alhay and Bahar                     renewal, both EP–MMH and EP–MMR
                                                1231 (‘‘the IRU’’) that had been sent to                Safwa General Trading in order to                        were being actively flown on routes into
                                                the United States for repair. The IRU is                acquire MSNs 164 and 550.                                and out of Iran in violation of the TDO
                                                subject to the Regulations, classified                    The May 21, 2015 modification order                    and Regulations.25
                                                under ECCN 7A103, and controlled for                    also laid out evidence showing the                          The January 7, 2016 Order discussed
                                                missile technology reasons. Upon closer                 respondents’ attempts to obtain other                    evidence that Mahan Airways had
                                                inspection, it was determined that IRU                  controlled aircraft, including aircraft                  begun actively flying EP–MMD, another
                                                came from or had been installed on an                   physically located in the United States
                                                Airbus A340 aircraft bearing MSN 056.                   in similarly-patterned transactions                      result are subject to the EAR regardless of their
                                                Further investigation revealed that as of               during the same recent time period.                      location. The aircraft are classified under ECCN
                                                                                                                                                                 9A991.b. The export or re-export of these aircraft to
                                                approximately February 2014, this                       Transactional documents involving two                    Iran requires U.S. Government authorization
                                                aircraft was registered under Iranian tail              Airbus A320s bearing MSNs 82 and 99,                     pursuant to Sections 742.8 and 746.7 of the
                                                number EP–MMB and had been painted                      respectively, again showed Ali                           Regulations.
                                                                                                                                                                    23 This evidence included a press release dated
                                                in the livery and logo of Mahan                         Abdullah Alhay signing sales
                                                                                                                                                                 May 9, 2015, that appeared on Mahan Airways’
                                                Airways.                                                agreements for Al Naser Airlines.22 A                    Web site and stated that Mahan ‘‘added 9 modern
                                                   The January 16, 2015 Order also                                                                               aircraft to its air fleet [,]’’ and that the newly
                                                described related efforts by the                           19 See http://www.treasury.gov/resource-center/
                                                                                                                                                                 acquired aircraft included eight Airbus A340s and
                                                Departments of Justice and Treasury to                  sanctions/OFAC-Enforcement/Pages/                        one Airbus A321. See http://www.mahan.aero/en/
                                                                                                        20140829.aspx. See 79 FR 55073 (Sep. 15, 2014).          mahan-air/press-room/44. The press release was
                                                further thwart Mahan’s illicit                          OFAC also blocked the property and property              subsequently removed from Mahan Airways’ Web
                                                procurement efforts. Specifically, on                   interests of Pioneer Logistics of Turkey on August       site. Publicly available aviation databases similarly
                                                August 14, 2014, the United States                      29, 2014. Id. Mahan Airways’ use of Pioneer              showed that Mahan had obtained nine additional
                                                Attorney’s Office for the District of                   Logistics in an effort to evade the TDO and the          aircraft from Al Naser Airlines in May 2015,
                                                                                                        Regulations was discussed in a prior renewal order,      including MSNs 164 and 550. As also discussed in
                                                Maryland filed a civil forfeiture                       as summarized, supra, at 13–14. BIS added both           the July 13, 2015 renewal order, Sky Blue Bird
                                                complaint for the IRU pursuant to 22                    Asian Aviation Logistics and Pioneer Logistics to        Group, via Issam Shammout, was actively involved
                                                U.S.C. 401(b) that resulted in the court                the Entity List on December 12, 2013. See 78 FR          in Al Naser Airlines’ acquisition of MSNs 164 and
                                                issuing an Order of Forfeiture on                       75458 (Dec. 12, 2013).                                   550, and the attempted acquisition of MSNs 82 and
                                                                                                           20 Both of these aircraft are powered by U.S.-        99 (which were detained by OEE).
                                                December 2, 2014. EP–MMB remains                        origin engines that are subject to the Regulations          24 The Airbus A340s are powered by U.S.-origin
                                                listed as active in Mahan Airways’ fleet.               and classified under ECCN 9A991.d. Both aircraft         engines that are subject to the Regulations and
                                                                                                        contain controlled U.S.-origin items valued at more      classified under ECCN 9A991.d. The Airbus A340s
                                                reexport of these aircraft to Iran requires U.S.        than 10 percent of the total value of the aircraft and   contain controlled U.S.-origin items valued at more
                                                Government authorization pursuant to Sections           as a result are subject to the EAR regardless of their   than 10 percent of the total value of the aircraft and
                                                742.8 and 746.7 of the Regulations.                     location. The aircraft are classified under ECCN         as a result are subject to the EAR regardless of their
                                                   18 See 76 FR 50407 (Aug. 15, 2011). The July 22,     9A991.b. The export or re-export of these aircraft to    location. The aircraft are classified under ECCN
                                                2014 TDO renewal order also referenced two Airbus       Iran requires U.S. Government authorization              9A991.b. The export or re-export of these aircraft to
                                                A320 aircraft painted in the livery and logo of         pursuant to Sections 742.8 and 746.7 of the              Iran requires U.S. Government authorization
                                                Mahan Airways and operating under Iranian tail          Regulations.                                             pursuant to Sections 742.8 and 746.7 of the
                                                                                                           21 Ali Abdullah Alhay is a 25% owner of Al Naser      Regulations.
                                                numbers EP–MMK and EP–MML, respectively.
                                                OEE’s investigation also showed that Mahan              Airlines.                                                   25 There is some publicly available information
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                                                obtained these aircraft in November 2013, from             22 Both aircraft were physically located in the       indicating that the aircraft Mahan Airways is flying
                                                Khors Air Company, another Ukrainian airline that,      United States and therefore are subject to the           under Iranian tail number EP–MMR is now MSN
                                                like Ukrainian Mediterranean Airlines, was added        Regulations pursuant to Section 734.3(a)(1).             615, rather than MSN 416. Both aircraft are Airbus
                                                to BIS’s Entity List on August 15, 2011. Open           Moreover, these Airbus A320s are powered by U.S.-        A340 aircraft that Mahan acquired from Al Naser
                                                source evidence indicates the two Airbus A320           origin engines that are subject to the Regulations       Airlines in violation of the TDO and the
                                                aircraft may be been transferred by Mahan Airways       and classified under Export Control Classification       Regulations. Moreover, both aircraft were
                                                to another Iranian airline in October 2014, and         Number ECCN 9A991.d. The Airbus A320s contain            designated as SDGTs by OFAC on May 21, 2015,
                                                issued Iranian tail numbers EP–APE and EP–APF,          controlled U.S.-origin items valued at more than 10      pursuant to Executive Order 13324. See 80 FR
                                                respectively.                                           percent of the total value of the aircraft and as a      30762 (May 29, 2015).



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                                                                                 Federal Register / Vol. 82, No. 126 / Monday, July 3, 2017 / Notices                                             30827

                                                of the aircraft Mahan had obtained from                     OEE’s June 5, 2017 renewal request                  Regulations and my review of the entire
                                                Al Naser Airlines (as discussed in the                   includes similar evidence regarding                    record, I find that the evidence
                                                July 13, 2015 renewal order), on                         Mahan’s continuing violation of the                    presented by BIS convincingly
                                                international routes into and out of Iran,               TDO by operating multiple Airbus                       demonstrates that the denied persons
                                                including from/to Bangkok, Thailand.                     aircraft subject to the Regulations,                   have acted in violation of the
                                                Additionally, the January 7, 2016 Order                  including, but not limited to, aircraft                Regulations and the TDO; that such
                                                described publicly available aviation                    procured from or through Al Naser                      violations have been significant,
                                                database and flight tracking information                 Airlines, on flights into and out of Iran,             deliberate and covert; and that given the
                                                indicating that Mahan Airways was                        including from/to Moscow, Russia,                      foregoing and the nature of the matters
                                                continuing its efforts to acquire Iranian                Shanghai, China and Kabul,                             under investigation, there is a likelihood
                                                tail numbers and press into active                       Afghanistan.28                                         of future violations. Therefore, renewal
                                                service under Mahan’s livery and logo at                    OEE has also obtained additional                    of the TDO is necessary to prevent
                                                least two more of the Airbus A340                        information regarding the suspected                    imminent violation of the Regulations
                                                aircraft it had obtained from or through                 diversion of an Airbus A340 that was                   and to give notice to companies and
                                                Al Naser Airlines: EP–MME (MSN 371)                      first mentioned in its December 13, 2016               individuals in the United States and
                                                and EP–MMF (MSN 376), respectively.                      renewal request. This aircraft had been                abroad that they should continue to
                                                Since January 2016, EP–MME has                           located and registered in the United                   cease dealing with Mahan Airways, Al
                                                logged flights to and from Tehran, Iran                  States under tail number N278TA and                    Naser Airlines, and the other denied
                                                involving various destinations,                          was subject to the Regulations. At the                 persons under the TDO in connection
                                                including Guangzhou, China, and                          time the December 30, 2016 renewal                     with export and reexport transactions
                                                Dubai, United Arab Emirates in further                   order was issued, this aircraft had been               involving items subject to the
                                                violation of the TDO and the                             exported from the United States to                     Regulations.
                                                Regulations.                                             Indonesia contrary to filings made with
                                                                                                         the U.S. Federal Aviation                              IV. Order
                                                   The July 7, 2016 Order described
                                                Mahan Airways’ acquisition of a BAE                      Administration (‘‘FAA’’). These filings                  It is therefore ordered:
                                                Avro RJ–85 aircraft (MSN E2392) in                       with the FAA inaccurately indicated,                     First, that MAHAN AIRWAYS, Mahan
                                                violation of the TDO and its subsequent                  first, that the aircraft was being flown to            Tower, No. 21, Azadegan St., M.A.
                                                registration under Iranian tail number                   Almaty, Kazakhstan, and then indicated                 Jenah Exp. Way, Tehran, Iran; PEJMAN
                                                EP–MOR.26 This information was                           that the aircraft should be de-registered              MAHMOOD KOSARAYANIFARD A/K/
                                                corroborated by publicly available                       in the United States because it was                    A KOSARIAN FARD, P.O. Box 52404,
                                                information on the Web site of Iran’s                    being exported to, and going to be                     Dubai, United Arab Emirates;
                                                civil aviation authority. The July 7, 2016               registered in, Ukraine. Additional                     MAHMOUD AMINI, G#22 Dubai
                                                Order also outlined Mahan’s continued                    documents obtained by OEE included a                   Airport Free Zone, P.O. Box 393754,
                                                operation of EP–MMF in violation of the                  copy of the sales agreement relating to                Dubai, United Arab Emirates, and P.O.
                                                TDO on routes from Tehran Iran to                        this aircraft, which listed a UAE                      Box 52404, Dubai, United Arab
                                                Beijing, China and Shanghai, China,                      company as the purchaser. Moreover, an                 Emirates, and Mohamed Abdulla Alqaz
                                                respectively.                                            industry database indicated that the                   Building, Al Maktoum Street, Al Rigga,
                                                   The December 30, 2016 Order                           aircraft was being transferred or sold to              Dubai, United Arab Emirates; KERMAN
                                                outlined Mahan’s continued operation                     Mahan Airways. After multiple attempts                 AVIATION A/K/A GIE KERMAN
                                                of multiple Airbus aircraft, including                   by OEE to contact the UAE company                      AVIATION, 42 Avenue Montaigne
                                                EP–MMD (MSN 164), EP–MMF (MSN                            regarding OEE’s concerns about any sale                75008, Paris, France; SIRJANCO
                                                376), and EP–MMH (MSN 391), which                        or other diversion to Mahan Airways,                   TRADING LLC, P.O. Box 8709, Dubai,
                                                were acquired from or through Al Naser                   the same industry database was revised                 United Arab Emirates; ALI ESLAMIAN,
                                                Airlines in violation of the TDO as                      so as to indicate that the sale/transfer to            33 Cavendish Square, 4th Floor, London
                                                previously detailed in the July 13, 2015                 Mahan had been cancelled. The timing                   W1G0PW, United Kingdom, and 2
                                                and January 7, 2016 renewal orders,                      of this revision is suspicious. Moreover,              Bentinck Close, Prince Albert Road St.
                                                                                                         as discussed in prior renewal orders,                  Johns Wood, London NW87RY, United
                                                respectively. Publicly available flight
                                                                                                         Mahan Airways has used a broad                         Kingdom; MAHAN AIR GENERAL
                                                tracking information showed that the
                                                                                                         network of agents and affiliates to                    TRADING LLC, 19th Floor Al Moosa
                                                aircraft were operated on flights into
                                                                                                         unlawfully procure and attempt to                      Tower One, Sheik Zayed Road, Dubai
                                                and out of Iran, including from/to
                                                                                                         procure aircraft and other items subject               40594, United Arab Emirates; SKYCO
                                                Beijing, China, Kuala Lumpur, Malaysia,
                                                                                                         to the Regulations via third countries                 (UK) LTD., 33 Cavendish Square, 4th
                                                and Istanbul, Turkey.27
                                                                                                         and sham or masked transactions,                       Floor, London, W1G 0PV, United
                                                   26 The BAE Avro RJ–85 is powered by U.S.-origin       including via the UAE and Indonesia.                   Kingdom; EQUIPCO (UK) LTD., 2
                                                engines that are subject to the Regulations and                                                                 Bentinck Close, Prince Albert Road,
                                                classified under ECCN 9A991.d. The BAE Avro RJ–          C. Findings                                            London, NW8 7RY, United Kingdom;
                                                85 contains controlled U.S.-origin items valued at
                                                                                                           Under the applicable standard set                    and MEHDI BAHRAMI, Mahan
                                                more than 10 percent of the total value of the                                                                  Airways- Istanbul Office, Cumhuriye
                                                aircraft and as a result is subject to the EAR           forth in Section 766.24 of the
                                                regardless of its location. The aircraft is classified                                                          Cad. Sibil Apt No: 101 D:6, 34374
                                                under ECCN 9A991.b, and its export or re-export to          28 Publicly available flight tracking information   Emadad, Sisli Istanbul, Turkey; AL
                                                Iran requires U.S. Government authorization              shows that on June 22, 2017, EP–MME (MSN 371)          NASER AIRLINES A/K/A AL–NASER
                                                pursuant to Sections 742.8 and 746.7 of the              flew from Moscow, Russia to Tehran, Iran.              AIRLINES A/K/A ALNASER AIRLINES
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                                                Regulations.                                             Additionally, between June 19, 2017, and June 20,
                                                   27 Specifically, on December 22, 2016, EP–MMD         2017, EP–MMQ (MSN 449), an Airbus A430 also
                                                                                                                                                                AND AIR FREIGHT LTD., Home 46, Al-
                                                (MSN 164) flew from Dubai, UAE to Tehran, Iran.          obtained from or through Al Naser Airlines, flew on    Karrada, Babil Region, District 929, St
                                                Between December 20 and December 22, 2016, EP–           routes between Shanghai, China and Tehran, Iran.       21, Beside Al Jadirya Private Hospital,
                                                MMF (MSN 376) flew on routes from Tehran, Iran           Similar flight tracking information shows that on      Baghdad, Iraq, and Al Amirat Street,
                                                to Beijing, China and Istanbul, Turkey, respectively.    June 20, 2017, EP–MNK (MSN 618), an Airbus A300
                                                Between December 26 and December 28, 2016, EP–           originally acquired by Mahan via a Ukrainian
                                                                                                                                                                Section 309, St. 3/H.20, Al Mansour,
                                                MMH (MSN 391) flew on routes from Tehran, Iran           company, flew between Kabul, Afghanistan and           Baghdad, Iraq, and P.O. Box 28360,
                                                to Kuala Lumpur, Malaysia.                               Mashhad, Iran.                                         Dubai, United Arab Emirates, and P.O.


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                                                30828                           Federal Register / Vol. 82, No. 126 / Monday, July 3, 2017 / Notices

                                                Box 911399, Amman 11191, Jordan; ALI                    possession, or control of any item                     person by filing a full written statement
                                                ABDULLAH ALHAY A/K/A ALI                                subject to the EAR that has been or will               in support of the appeal with the Office
                                                ALHAY A/K/A ALI ABDULLAH                                be exported from the United States,                    of the Administrative Law Judge, U.S.
                                                AHMED ALHAY, Home 46, Al-Karrada,                       including financing or other support                   Coast Guard ALJ Docketing Center, 40
                                                Babil Region, District 929, St 21, Beside               activities related to a transaction                    South Gay Street, Baltimore, Maryland
                                                Al Jadirya Private Hospital, Baghdad,                   whereby a Denied Person acquires or                    21202–4022.
                                                Iraq, and Anak Street, Qatif, Saudi                     attempts to acquire such ownership,                      In accordance with the provisions of
                                                Arabia 61177; BAHAR SAFWA                               possession or control;                                 Section 766.24(d) of the EAR, BIS may
                                                GENERAL TRADING, P.O. Box 113212,                          C. Take any action to acquire from or               seek renewal of this Order by filing a
                                                Citadel Tower, Floor-5, Office #504,                    to facilitate the acquisition or attempted             written request not later than 20 days
                                                Business Bay, Dubai, United Arab                        acquisition from a Denied Person of any                before the expiration date. A renewal
                                                Emirates, and P.O. Box 8709, Citadel                    item subject to the EAR that has been                  request may be opposed by Mahan
                                                Tower, Business Bay, Dubai, United                      exported from the United States;                       Airways, Al Naser Airlines, Ali
                                                Arab Emirates; SKY BLUE BIRD GROUP                         D. Obtain from a Denied Person in the               Abdullah Alhay, and/or Bahar Safwa
                                                A/K/A SKY BLUE BIRD AVIATION A/                         United States any item subject to the                  General Trading as provided in Section
                                                K/A SKY BLUE BIRD LTD A/K/A SKY                         EAR with knowledge or reason to know                   766.24(d), by filing a written submission
                                                BLUE BIRD FZC, P.O. Box 16111, Ras                      that the item will be, or is intended to               with the Assistant Secretary of
                                                Al Khaimah Trade Zone, United Arab                      be, exported from the United States; or                Commerce for Export Enforcement,
                                                Emirates; and ISSAM SHAMMOUT A/                            E. Engage in any transaction to service             which must be received not later than
                                                K/A MUHAMMAD ISAM                                       any item subject to the EAR that has                   seven days before the expiration date of
                                                MUHAMMAD ANWAR NUR                                      been or will be exported from the                      the Order.
                                                SHAMMOUT A/K/A ISSAM ANWAR,                             United States and which is owned,
                                                                                                                                                                 A copy of this Order shall be provided
                                                Philips Building, 4th Floor, Al Fardous                 possessed or controlled by a Denied
                                                                                                                                                               to Mahan Airways, Al Naser Airlines,
                                                Street, Damascus, Syria, and Al Kolaa,                  Person, or service any item, of whatever
                                                                                                                                                               Ali Abdullah Alhay, and Bahar Safwa
                                                Beirut, Lebanon 151515, and 17–18                       origin, that is owned, possessed or
                                                                                                                                                               General Trading and each related
                                                Margaret Street, 4th Floor, London,                     controlled by a Denied Person if such
                                                                                                                                                               person, and shall be published in the
                                                W1W 8RP, United Kingdom, and                            service involves the use of any item
                                                                                                        subject to the EAR that has been or will               Federal Register. This Order is effective
                                                Cumhuriyet Mah. Kavakli San St. Fulya,                                                                         immediately and shall remain in effect
                                                Cad. Hazar Sok. No.14/A Silivri,                        be exported from the United States. For
                                                                                                        purposes of this paragraph, servicing                  for 180 days.
                                                Istanbul, Turkey, and when acting for or
                                                on their behalf, any successors or                      means installation, maintenance, repair,                 Dated: June 27, 2017.
                                                assigns, agents, or employees (each a                   modification or testing.                               Richard R. Majauskas,
                                                ‘‘Denied Person’’ and collectively the                     Third, that, after notice and                       Acting Assistant Secretary of Commerce for
                                                ‘‘Denied Persons’’) may not, directly or                opportunity for comment as provided in                 Export Enforcement.
                                                indirectly, participate in any way in any               Section 766.23 of the EAR, any other                   [FR Doc. 2017–13972 Filed 6–30–17; 8:45 am]
                                                transaction involving any commodity,                    person, firm, corporation, or business                 BILLING CODE P
                                                software or technology (hereinafter                     organization related to a Denied Person
                                                collectively referred to as ‘‘item’’)                   by affiliation, ownership, control, or
                                                exported or to be exported from the                     position of responsibility in the conduct              DEPARTMENT OF COMMERCE
                                                United States that is subject to the                    of trade or related services may also be
                                                Export Administration Regulations                       made subject to the provisions of this                 Bureau of Industry and Security
                                                (‘‘EAR’’), or in any other activity subject             Order.
                                                                                                           Fourth, that this Order does not                    Notice of Partially Closed Meeting of
                                                to the EAR including, but not limited to:                                                                      the Materials Technical Advisory
                                                   A. Applying for, obtaining, or using                 prohibit any export, reexport, or other
                                                                                                        transaction subject to the EAR where the               Committee
                                                any license, License Exception, or
                                                export control document;                                only items involved that are subject to
                                                                                                                                                                  The Materials Technical Advisory
                                                   B. Carrying on negotiations                          the EAR are the foreign-produced direct
                                                                                                                                                               Committee will meet on July 20, 2017,
                                                concerning, or ordering, buying,                        product of U.S.-origin technology.
                                                                                                                                                               10:00 a.m. (Mountain Daylight Time), at
                                                receiving, using, selling, delivering,                     In accordance with the provisions of
                                                                                                                                                               Sundyne, 14845 W. 64th Avenue,
                                                storing, disposing of, forwarding,                      Section 766.24(e) of the EAR, Mahan
                                                                                                                                                               Arvada, CO 80007. The Committee
                                                transporting, financing, or otherwise                   Airways, Al Naser Airlines, Ali
                                                                                                                                                               advises the Office of the Assistant
                                                servicing in any way, any transaction                   Abdullah Alhay, and/or Bahar Safwa
                                                                                                                                                               Secretary for Export Administration
                                                involving any item exported or to be                    General Trading may, at any time,
                                                                                                                                                               with respect to technical questions that
                                                exported from the United States that is                 appeal this Order by filing a full written
                                                                                                                                                               affect the level of export controls
                                                subject to the EAR, or in any other                     statement in support of the appeal with
                                                                                                                                                               applicable to materials and related
                                                activity subject to the EAR; or                         the Office of the Administrative Law
                                                                                                                                                               technology.
                                                   C. Benefitting in any way from any                   Judge, U.S. Coast Guard ALJ Docketing
                                                transaction involving any item exported                 Center, 40 South Gay Street, Baltimore,                Agenda
                                                or to be exported from the United States                Maryland 21202–4022. In accordance
                                                                                                                                                               Open Session
                                                that is subject to the EAR, or in any                   with the provisions of Sections
                                                other activity subject to the EAR.                      766.23(c)(2) and 766.24(e)(3) of the EAR,                1. Introductions and opening remarks
                                                                                                        Pejman Mahmood Kosarayanifard,                         by Sundyne Senior Management.
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                                                   Second, that no person may, directly
                                                or indirectly, do any of the following:                 Mahmoud Amini, Kerman Aviation,                        Remarks by Matthew Borman, Acting
                                                   A. Export or reexport to or on behalf                Sirjanco Trading LLC, Ali Eslamian,                    Assistant Secretary for Export
                                                of a Denied Person any item subject to                  Mahan Air General Trading LLC, Skyco                   Administration.
                                                the EAR;                                                (UK) Ltd., Equipco (UK) Ltd., Mehdi                      2. FBI Special Agent Justin Maenius
                                                   B. Take any action that facilitates the              Bahrami, Sky Blue Bird Group, and/or                   will present the economic espionage
                                                acquisition or attempted acquisition by                 Issam Shammout may, at any time,                       video ‘‘The Company Man’’ and
                                                a Denied Person of the ownership,                       appeal their inclusion as a related                    discussion will follow.


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Document Created: 2018-11-14 10:19:05
Document Modified: 2018-11-14 10:19:05
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 30823 

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