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 Range		30823-30828
FR Document		2017-13972

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.
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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

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
sradovich on DSK3GMQ082PROD with NOTICES

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.

VerDate Sep<11>2014 17:53 Jun 30, 2017 Jkt 241001 PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 E:\FR\FM\03JYN1.SGM 03JYN1

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.
sradovich on DSK3GMQ082PROD with NOTICES

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

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		82 FR 30823

82 FR 30823 - Order Renewing Order Temporarily Denying Export Privileges

DEPARTMENT OF COMMERCEBureau of Industry and Security

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

DEPARTMENT OF COMMERCE
Bureau of Industry and Security