[Federal Register Volume 77, Number 43 (Monday, March 5, 2012)]
[Notices]
[Pages 13077-13079]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-5221]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Order Temporarily Denying Export Privileges

    Delfin Group USA LLC, 4950 Virginia Avenue, North Charleston, 
South Carolina 29405. 650 Saint Regis Lane, Alpharetta, Georgia 
30022. Marcos Baghdasarian, 4950 Virginia Avenue, North Charleston, 
South Carolina 29405. 650 Saint Regis Lane, Alpharetta, Georgia 
30022. Bagdel Corporation, 4950 Virginia Avenue, North Charleston, 
South Carolina 29405. 650 Saint Regis Lane, Alpharetta, Georgia 
30022. Naren Sachanandani, P.O. Box 9645, Q4-280, Sharjah Airport 
International Free Zone, Sharjah, United Arab Emirates. Do-It FZC, 
P.O. Box 9645, Q4-280, Sharjah Airport International Free Zone, 
Sharjah, United Arab Emirates. Respondents.

    Pursuant to Section 766.24 of the Export Administration Regulations 
(``EAR'' or the ``Regulations''),\1\ the Bureau of Industry and 
Security (``BIS''), U.S. Department of Commerce, through its Office of 
Export Enforcement (``OEE''), has requested that I issue an Order 
temporarily denying, for a period of 180 days, the export privileges 
under the EAR of:
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    \1\ The EAR is currently codified at 15 CFR parts 730-774 
(2011). The EAR are issued under the Export Administration Act of 
1979, as amended (50 U.S.C. app. Sec. Sec.  2401-2420 (2000)) 
(``EAA''). 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 12, 2011 
(76 FR 50661 (Aug. 16, 2011)), has continued the Regulations in 
effect under the International Emergency Economic Powers Act (50 
U.S.C. 1701, et seq.) (``IEEPA'').

1. Delfin Group USA LLC, 4950 Virginia Avenue, North Charleston, South 
Carolina 29405.
    650 Saint Regis Lane, Alpharetta, Georgia 30022.
2. Marcos Baghdasarian, 4950 Virginia Avenue, North Charleston, South 
Carolina 29405.
    650 Saint Regis Lane, Alpharetta, Georgia 30022.
3. Bagdel Corporation, 4950 Virginia Avenue, North Charleston, South 
Carolina 29405.
    650 Saint Regis Lane, Alpharetta, Georgia 30022.
4. Naren Sachanandani, P.O. Box 9645, Q4-280, Sharjah Airport 
International Free Zone, Sharjah, United Arab Emirates.
5. Do-It FZC, P.O. Box 9645, Q4-280, Sharjah Airport International Free 
Zone, Sharjah, United Arab Emirates.

Legal Standard

    Pursuant to Section 766.24(b) of the Regulations, BIS may issue a 
TDO 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.

[[Page 13078]]

Background and Findings

    OEE has presented evidence that beginning in or about mid-2010, and 
continuing thereafter, Delfin Group USA LLC (``Delfin'') and its 
president, Markos Baghdasarian (``Baghdasarian''), have conspired with 
multiple entities and individuals, including entities and individuals 
located in the United Arab Emirates (``UAE''), to export U.S.-origin 
items subject to the Regulations from the United States to Iran, via 
transshipment through the UAE, without obtaining the required 
authorization from the U.S. Government. Delfin/Baghdasarian have used 
Bagdel Corporation (``Bagdel''), a freight forwarding company, to 
facilitate the export and attempted export of the items--polymers and 
lubricating oils or oil additives, including aviation engine 
lubricating oils--from the United States to Iran via the UAE. 
Baghdasarian is the chief executive officer of Bagdel.
    The evidence indicates that beginning in or about June 2010, 
Delfin/Baghdasarian conspired with Naren Sachanandani 
(``Sachanandani'') and his company Do-It FZC and others to develop a 
scheme to obtain U.S.-origin items for Iranian customers or potential 
customers, including Pars Oil & Gas Company (``Pars Oil''), a 
subsidiary of the Iranian-government owned National Iranian Oil 
Company. Do-It FZC is located at the Sharjah Airport International Free 
Zone in the UAE. Pursuant to this scheme, the items exported by Delfin 
and forwarded by Bagdel or others would be re-labeled or re-packaged 
after they arrived in the UAE and transshipped on to Iran.
    Delfin/Baghdasarian have filed at least 17 shipper's export 
declarations (``SEDs'') between February 3, 2011 and January 29, 2012, 
that relate to the export of the items in quantities valued in the 
millions of dollars in the aggregate and that identify Do-It FZC or 
another UAE general trading company as the ultimate consignee. Open 
source information indicates that Sachanandani is the owner of Do-It 
FZC, which is listed as the ultimate consignee on 15 of the 17 SEDs, 
and evidence also indicates that Do-It FZC and the other UAE general 
trading company are not end users of such items, especially in such 
large quantities.
    As provided in Section 746.7 of the Regulations, no person may 
export to Iran any item that is subject to the EAR, if such transaction 
is prohibited by the Iranian Transactions Regulations (``ITR'') \2\ and 
has not been authorized by OFAC. Under Section 560.204 of the ITR, the 
exportation, reexportation, sale or supply, directly or indirectly, 
from the United States of any goods to Iran is prohibited by the ITR, 
including the exportation, reexportation, sale or supply of items from 
the United States to a third country, such as the UAE, undertaken with 
knowledge or reason to know that the items are intended for supply, 
transshipment, or reexportation, directly or indirectly, to Iran. OFAC 
authorization was not obtained for any of the export transactions at 
issue. The evidence shows that Respondents were aware of the 
prohibitions on exporting U.S.-origin items to Iran and developed a 
scheme to evade these prohibitions.
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    \2\ 31 CFR Part 560.
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    When OEE sought documents from Delfin relating to an export 
transaction in or about late August 2011, those efforts were ignored by 
Delfin and no documents or other cooperation provided. More recently, 
U.S. law enforcement and customs agents have been able to 
administratively detain several recent Delfin exports or attempted 
exports at U.S. ports concerning which Do-It FZC was listed as the 
ultimate consignee. Additionally, OEE has issued redelivery orders in 
accordance with Section 758.8 of the Regulations for additional 
shipments that had left the United States, but had not reached Do-It 
FZC.
    These administrative measures, however, contain limitations and 
provide U.S. law enforcement and customs agents with an extremely short 
window in which to attempt to detect and then seek to stop a shipment 
once an SED has been filed. Moreover, administrative detentions by U.S. 
Customs and Border Patrol are not indefinite and OEE re-delivery orders 
rely on the cooperation of vessel owners or other carriers to turn 
shipments around and/or on foreign governments to timely intercept and 
detain shipments after they have arrived in their countries. The 
issuance of a TDO provides a more comprehensive and effective approach 
to preventing imminent violations before they occur, by giving notice 
to persons and companies in the United States and abroad that they 
should cease dealing with the Respondents in export transactions 
involving items subject to the EAR.
    OEE submits, in sum, that violations of the EAR are imminent as 
defined in Section 766.24 of the Regulations. I agree based on the 
evidence of Respondents' deliberate, significant, and deceptive conduct 
designed to procure and export U.S.-origin items from the United States 
to Iran, including via transshipment through the UAE, without the 
required U.S. Government authorization. I also find that the conduct in 
this case is deliberate, significant, and likely to occur again absent 
the issuance of a TDO. Therefore, I find that a TDO naming Delfin Group 
USA LLC, Marcos Baghdasarian, Bagdel Corporation, Naren Sachanandani, 
and Do-It FZC is necessary, in the public interest, to prevent an 
imminent violation of the EAR.
    This Order is being issued on an ex parte basis without a hearing 
based upon BIS's showing of an imminent violation.

I. Order

    It is therefore ordered:
    First, that the Respondents, DELFIN GROUP USA LLC, 4950 Virginia 
Avenue, North Charleston, South Carolina 29405 and 650 Saint Regis 
Lane, Alpharetta Georgia 30022; MARCOS BAGHDASARIAN, 4950 Virginia 
Avenue, North Charleston, South Carolina 29405 and 650 Saint Regis 
Lane, Alpharetta Georgia 30022; BAGDEL CORPORATION, 4950 Virginia 
Avenue, North Charleston, South Carolina 29405 and 650 Saint Regis 
Lane, Alpharetta Georgia 30022; NAREN SACHANANDANI, P.O. Box 9645, Q4-
280, Sharjah Airport International Free Zone, Sharjah, United Arab 
Emirates; and DO-IT FZC, P.O. Box 9645, Q4-280, Sharjah Airport 
International Free Zone, Sharjah, United Arab Emirates and each of 
their successors or assigns and, when acting for or on behalf of any of 
the foregoing, each of their officers, representatives, 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.

[[Page 13079]]

    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, 
the Respondents 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.
    BIS may seek renewal of this Order by filing a written request with 
the Assistant Secretary of Commerce for Export Enforcement in 
accordance with the provisions of Section 766.24(d) of the EAR, which 
currently provides that such a written request must be submitted not 
later than 20 days before the expiration date. A Respondent may oppose 
a request to renew this Order in accordance with Section 766.24(d), 
including by filing a written submission with the Assistant Secretary 
of Commerce for Export Enforcement, supported by appropriate evidence. 
Any opposition ordinarily must be received not later than seven days 
before the expiration date of the Order.
    Notice of the issuance of this Order shall be given to Respondents 
in accordance with Sections 766.5(b) and 766.24(b)(5) of the 
Regulations. This Order also shall be published in the Federal 
Register.

    This Order is effective immediately and shall remain in effect 
for 180 days.
    Issued this 25th day of February 2012.
Donald G. Salo,
Deputy Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2012-5221 Filed 3-2-12; 8:45 am]
BILLING CODE P