[Federal Register Volume 73, Number 143 (Thursday, July 24, 2008)]
[Notices]
[Pages 43208-43209]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-16935]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Action Affecting Export Privileges; Blue Airways FZE and Blue 
Airways: Balli Group PLC, 5 Stanhope Gate, London, UK, W1K 1AH; Balli 
Aviation, 5 Stanhope Gate, London, UK, W1K 1AH; Balli Holdings, 5 
Stanhope Gate, London, UK, W1K 1AH; Vahid Alaghband, 5 Stanhope Gate, 
London, UK, W1K 1AH; Hassan Alaghband, 5 Stanhope Gate, London, UK, W1K 
1AH; Blue Sky One Ltd., 5 Stanhope Gate, London, UK, W1K 1AH; Blue Sky 
Two Ltd., 5 Stanhope Gate, London, UK, W1K 1AH; Blue Sky Three Ltd, 5 
Stanhope Gate, London, UK, W1K 1AH; Blue Sky Four Ltd, 5 Stanhope Gate, 
London, UK, W1K 1AH; Blue Sky Five Ltd., 5 Stanhope Gate, London, UK, 
W1K 1AH; Blue Sky Six Ltd., 5 Stanhope Gate, London, UK, W1K 1AH; Blue 
Airways, 8/3 D Angaght Street, 376009 Yerevan, Armenia; Mahan Airways, 
Mahan Tower, No. 21, Azadegan St., M.A. Jenah Exp. Way, Tehran, Iran: 
Respondents; and Blue Airways FZE, a/k/a Blue Airways, G22 
Dubai Airport Free Zone, P.O. Box 393754 DAFZA, Dubai, UAE; Blue 
Airways, Riqa Road, Dubai 52404, UAE, Related Persons

Order Making Temporary Denial of Export Privileges Applicable to 
Related Persons

    Pursuant to Section 766.23 of the Export Administration Regulations 
(``EAR'' or ``Regulations''), the Bureau of Industry and Security 
(``BIS''), U.S. Department of Commerce, through its Office of Export 
Enforcement (``OEE''), has requested that I make the Temporary Denial 
Order (``TDO'') that was issued against the above-named Respondents on 
March 17, 2008, and published in the Federal Register on March 21, 2008 
(73 Fed.Reg. 15130), applicable to the following entities, as persons 
related to Respondent Blue Airways, of Yerevan, Armenia (hereinafter 
``Blue Airways of Armenia''):

Blue Airways FZE, a/k/a Blue Airways, G22 Dubai Airport Free 
Zone, P.O. Box 393754 DAFZA, Dubai, United Arab Emirates, (hereinafter 
``Blue Airways FZE UAE'');
Blue Airways, Riqa Road, Dubai 52404, United Arab Emirates, 
(hereinafter ``Blue Airways UAE'').

    Section 766.23 of the Regulations provides that ``[i]n order to 
prevent evasion, certain types of orders under this part may be made 
applicable not only to the respondent, but also to other persons then 
or thereafter related to the respondent by ownership, control, position 
of responsibility, affiliation, or other connection in the conduct of 
trade or business. Orders that may be made applicable to related 
persons include those that deny or affect export privileges, including 
temporary denial orders. * * *'' 15 CFR 766.23(a).
    The TDO was issued based on a showing, inter alia, that the 
Respondents knowingly engaged in conduct prohibited by the EAR by re-
exporting three U.S. origin aircraft to Iran and were attempting to 
divert an additional three U.S. origin aircraft to Iran.
    The TDO imposed is an order that may be made applicable to related 
persons pursuant to Section 766.23 upon evidence indicating that the 
person is related to one or more of the Respondents by ownership, 
control, position of responsibility, affiliation, or other connection 
in the conduct of trade or business, and that it is necessary to add 
this entity to the Order imposed against Respondents in order to avoid 
evasion of that Order.
    BIS has presented evidence that Blue Airways FZE UAE and Blue 
Airways UAE, are related to Respondent Blue Airways of Armenia by 
ownership, control, position of responsibility, affiliation, or other 
connection in the conduct of trade or business. Pursuant to Section 
766.23, related persons may be added to this TDO upon a finding by me, 
as the official authorized to issue such orders, that the TDO should be 
made applicable to the related persons in order to prevent evasion of 
the TDO. 15 CFR 766.23(b).
    BIS notified Blue Airways FZE UAE and Blue Airways UAE of its 
intent to take this action through letters dated June 4, 2008, in 
accordance with Sections 766.5(b) and 766.23 of the Regulations. BIS 
received a response dated June 17, 2008, asserting that Blue Airways 
FZE UAE and Blue Airways UAE are not owned or controlled by Blue 
Airways of Armenia. No supporting documentation or other evidence was 
provided to BIS, nor did the response deny any affiliation, position of 
responsibility or other connection in the conduct of trade or business 
with Blue Airways of Armenia.
    It is my belief based on all the evidence presented in this matter 
that Blue Airways FZE UAE and Blue Airways UAE meet the requirements of 
Section 766.23 of the Regulations. Accordingly, I find that it is 
necessary to make the Order imposed against the above named Respondents 
applicable to Blue Airways FZE UAE and Blue Airways UAE in order to 
prevent the evasion of that Order.

It is now therefore ordered,

    First, that having been provided notice and opportunity for comment 
as provided in Section 766.23 of the Regulations, Blue Airways FZE, a/
k/a Blue Airways, G22 Dubai Airport Free Zone, P.O. Box 393754 
DAFZA, Dubai, United Arab Emirates, and Blue Airways, Riqa Road, Dubai 
52404, United Arab Emirates (each a ``Related Person'' and collectively 
the ``Related Persons''), have been determined to be related to 
Respondent Blue Airways, 8/3 D Angaght Street, 376009, Yerevan, 
Armenia, by affiliation, ownership, control, or position of 
responsibility in the conduct of trade or related services, and it has 
been deemed necessary to make the Order temporarily denying the export 
privileges of the Respondents applicable to these Related Persons in 
order to prevent evasion of the Order.
    Second, that the denial of export privileges described in the Order 
against Respondents, which was published in the Federal Register on 
March 21, 2008, at 73 FR 15130, shall be made applicable to each 
Related Person, as follows:
    I. The Related Person, its successors or assigns, and when acting 
for or on behalf of the Related Person, its officers, representatives, 
agents, or employees (collectively, ``Denied Person'') may not 
participate, directly or indirectly, in any way in any transaction 
involving any commodity, software or technology (hereinafter 
collectively referred to as ``item'') exported or to be exported from

[[Page 43209]]

the United States that is subject to the Regulations, or in any other 
activity subject to the Regulations, 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 Regulations, or in any other 
activity subject to the Regulations; or
    C. Benefiting in any way from any transaction involving any item 
exported or to be exported from the United States that is subject to 
the Regulations, or in any other activity subject to the Regulations.
    II. No person may, directly or indirectly, do any of the following:
    A. Export or reexport to or on behalf of the Denied Person any item 
subject to the Regulations;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by the Denied Person of the ownership, possession, or 
control of any item subject to the Regulations that has been or will be 
exported from the United States, including financing or other support 
activities related to a transaction whereby the 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 the Denied Person of any item subject to 
the Regulations that has been exported from the United States;
    D. Obtain from the Denied Person in the United States any item 
subject to the Regulations 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 
Regulations that has been or will be exported from the United States 
and which is owned, possessed or controlled by the Denied Person, or 
service any item, of whatever origin, that is owned, possessed or 
controlled by the Denied Person if such service involves the use of any 
item subject to the Regulations 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 this Order does not prohibit any export, reexport, or 
other transaction subject to the Regulations where the only items 
involved that are subject to the Regulations are the foreign-produced 
direct product of U.S.-origin technology.
    Fourth, that in accordance with the provisions of Section 766.23(c) 
of the Regulations, the Related Persons may, at any time, make an 
appeal related to 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.
    This Order shall be published in the Federal Register and a copy 
provided to each Related Person.
    This Order is effective upon publication in the Federal Register 
and shall remain in effect until the expiration of the TDO on September 
17, 2008, unless renewed in accordance with the Regulations.

    Entered this 18th day of July, 2008.
Darryl W. Jackson,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. E8-16935 Filed 7-23-08; 8:45 am]
BILLING CODE 3510-DT-P