[Federal Register Volume 76, Number 136 (Friday, July 15, 2011)]
[Notices]
[Pages 41757-41759]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-17580]


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 DEPARTMENT OF COMMERCE

Bureau of Industry and Security


 Mahan Airways, et al.; Modification of Temporary Denial Order To 
Add Zarand Aviation as a Denied Person

    Mahan Airways, Mahan Tower, No. 21, Azadegan St., M.A. Jenah 
Exp. Way, Tehran, Iran; Zarand Aviation, a/k/a GIE Zarand Aviation, 
42 Avenue Montaigne, 75008 Paris, France; and 112 Avenue Kleber, 
75116 Paris, France; Gatewick LLC, a/k/a Gatewick Freight & Cargo 
Services, a/k/a/Gatewick Aviation Services, 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; 
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.

    Pursuant to Section 766.24 of the Export Administration 
Regulations, 15 CFR Parts 730-774 (2011) (``EAR'' or the 
``Regulations''), I hereby grant the request of the Office of Export 
Enforcement (``OEE'') to modify the February 25, 2011 Renewal Order 
Temporarily Denying the Export Privileges of Mahan Airways, Gatewick 
LLC, Pejman Mahmood Kosarayanifard, and Mahmoud Amini, as I find that 
modification of the Temporary Denial Order (``TDO'') is necessary in 
the public interest to prevent an imminent violation of the EAR.\1\ 
Specifically I find

[[Page 41758]]

it necessary to add the following person as an additional Respondent in 
order to prevent an imminent violation of the TDO:
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    \1\ The February 25, 2011 Order was published in the Federal 
Register on March 7, 2011. See 76 FR 112318.

    Zarand Aviation, a/k/a GIE Zarand Aviation, 42 Avenue Montaigne, 
75008 Paris France, and 12 rue Avenue Kleber, 75116 Paris, France.

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.\2\
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    \2\ The TDO was subsequently renewed in accordance with Section 
766.24(d) of the Regulations on September 17, 2008, March 16, 2009, 
September 11, 2009, March 9, 2010, September 3, 2010, and most 
recently on February 24, 2011. Prior to each renewal, each 
Respondent was given the opportunity to oppose renewal in accordance 
with Section 766.24(d)(3) of the Regulations. Each renewal order was 
published in the Federal Register. As of March 9, 2010, the Balli 
Group Respondents and Blue Airways were no longer subject to the 
TDO.
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II. Temporarily Denying Zarand Aviation's Export Privileges

A. Legal Standard

    Pursuant to Section 766.24(b) of the Regulations, BIS may issue 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).
    ``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 charges 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. BIS's Request To Add Zarand Aviation to the TDO

    OEE has presented evidence that a French registered Airbus A310 
aircraft (tail number F-OJHH) currently owned by Zarand Aviation has 
been temporarily grounded at Birmingham airport in the United Kingdom 
(``U.K.''). The aircraft is powered with U.S.-origin engines, items 
subject to the EAR and classified as Export Control Classification 
(``ECCN'') 9A991.d. Because the aircraft contains U.S.-origin items 
valued at more than 10 percent of the total value of the aircraft, it 
is also subject to the EAR if re-exported to Iran and classified as 
ECCN 9A991.b. Prior to its grounding by U.K. officials, this aircraft 
was scheduled to depart from the U.K. to Tehran, Iran. Publicly 
available evidence submitted by OEE shows the aircraft bearing the 
livery, colors and logo of Mahan Airways, a denied person under the TDO 
and, as discussed in the TDO, an Iranian airline that operates out of 
Tehran, Iran, a country group E:1 destination.\3\ Moreover, French 
Civil Aviation records show the aircraft is being leased to Mahan 
Airways. Additionally, Zarand Aviation's corporate registration 
documents list as a board member a related Mahan Airways entity, 
specifically Mahan Air General Trading.
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    \3\ See Supplement No. 1 to 15 CFR Part 740.
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    The re-export of the aircraft to or for the use or benefit of Mahan 
Airways would violate the TDO and the Regulations. The TDO prohibits 
Mahan Airways from, inter alia, receiving, using, or transporting any 
item that is subject to the Regulations and has been exported from the 
United States. It also prohibits Mahan Airways from benefitting in any 
way from any transaction involving any item exported from the United 
States that is subject to the Regulations, or any other activity that 
is subject to the Regulations.
    Moreover, under the TDO, no person may, directly or indirectly, 
export or reexport to or on behalf of Mahan Airways any item subject to 
the Regulations, or take any action that facilitates the acquisition or 
attempted acquisition by Mahan Airways of the ownership, possession, or 
control of any item that is subject to the Regulations and has been 
exported from the United States.
    Furthermore, the reexport of the aircraft at issue, as described 
supra, without the U.S. Government authorization required by Section 
746.7 of the Regulations would violate the Regulations.

C. Findings

    Under the applicable standard set forth in Section 766.24 of the 
Regulations and my review of the record here, I find that the evidence 
presented by OEE convincingly demonstrates that a violation of the TDO 
and Regulations is imminent in both time and degree of likelihood. 
Adding Zarand Aviation to the February 25, 2011 Order is needed to give 
notice to persons and companies in the United States and abroad that 
they should cease dealing with Zarand Aviation in export and re-export 
transactions involving items subject to the EAR.
    Accordingly, I find pursuant to Section 766.24 that the addition of 
Zarand Aviation as an additional Respondent to the TDO is necessary in 
the public interest to prevent an imminent violation of the EAR. Zarand 
Aviation's export privileges are being temporarily denied on an ex 
parte basis without a hearing based upon BIS's showing of an imminent 
violation.

IV. Order

    It Is Therefore Ordered:
    First, that Mahan Airways, Mahan Tower, No. 21, Azadegan St., M.A. 
Jenah Exp. Way, Tehran, Iran; Zarand Aviation, A/K/A Gie Zarand 
Aviation, 42 Avenue Montaigne, 75008 Paris, France, and 112 Avenue 
Kleber, 75116 Paris, France; Gatewick LLC, A/K/A Gatewick Freight & 
Cargo Services, A/K/A Gatewick Aviation Service, G22 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; 
Pejman Mahmood Kosarayanifard A/K/A Kosarian Fard, P.O. Box 52404, 
Dubai, United Arab Emirates; and Mahmoud Amini, G22 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; 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,

[[Page 41759]]

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. Benefiting 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 Sections 766.24(e) of the EAR, 
Zarand Aviation, at any time, may 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 AU Docketing Center, 40 
South Gay Street, Baltimore, Maryland 21202-4022.
    A copy of this Order shall be sent to Zarand Aviation and shall be 
published in the Federal Register. This Order is effective immediately 
and shall remain in effect until August 24, 2011, unless renewed in 
accordance with Section 766.24(d) of the Regulations.

     Dated: July 1, 2011.
David W. Mills,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2011-17580 Filed 7-14-11; 8:45 am]
BILLING CODE XXXX-XX-M