[Federal Register Volume 77, Number 82 (Friday, April 27, 2012)]
[Notices]
[Pages 25133-25136]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-10190]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


 Order Temporarily Denying Export Privileges

Sayegh Group Aviation, P.O. Box 5822, Sharjah, United Arab Emirates;
Aban Air, No. 1267, Vali Asr Avenue, Tehran, Iran 157177 36511;
Sam Air Corporation Limited, P.O. Box 5822, Sharjah, United Arab 
Emirates, and
18th Hill Street, Banjul, The Gambia, West Africa;
Aviation Legacy (Gambia) Limited, c/o Mahmoud Khali Hamze, Flat 
2907, Almeriki Tower, Sheikh Zayed Road, Dubai, United Arab 
Emirates, and
G 15, Kanifing Housing Estate, The Gambia, West Africa;
Abdullah Khaled Ramadan, Managing Director, Sam Air Corporation 
Limited, P.O. Box 5822, Sharjah, United Arab Emirates;
Ali Mahdavi, Chairman, Aban Air, No. 1267, Vali Asr Avenue, Tehran, 
Iran 157177 36511;
Mahmoud Khali Hamze (a/k/a Mahmoud Khalil) a/k/a Mahmoud Hamza 
Khalil), Managing Director, Aviation Legacy (Gambia) Limited, Flat 
2907, Almeriki Tower, Sheikh Zayed Road, Dubai, United Arab 
Emirates;
Everex Global Cargo and Courier, Nos. 7 and 8, Opposite Terminal 2, 
Mahrabad International Airport, Tehran, Iran, and
No. 1267, Vali Asr Avenue, Tehran, Iran 157177 36511;

    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 CFRCFR parts 730-774 
(2011). The EAR are issued under the Export Administration Act of 
1979, as amended (50 U.S.C. app. 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 CFRCFR, 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'').

Sayegh Group Aviation, P.O. Box 5822, Sharjah, United Arab Emirates;
Aban Air, No. 1267, Vali Asr Avenue, Tehran, Iran 157177 36511;
Sam Air Corporation Limited, P.O. Box 5822, Sharjah, United Arab 
Emirates, and
18th Hill Street, Banjul, The Gambia, West Africa;
Aviation Legacy (Gambia) Limited, c/o Mahmoud Khali Hamze, Flat 
2907, Almeriki Tower, Sheikh Zayed Road, Dubai, United Arab 
Emirates, and
G 15, Kanifing Housing Estate, The Gambia, West Africa;
Abdullah Khaled Ramadan, Managing Director, Sam Air Corporation 
Limited;

[[Page 25134]]

P.O. Box 5822, Sharjah, United Arab Emirates;
Ali Mahdavi, Chairman Aban Air, No. 1267, Vali Asr Avenue, Tehran, 
Iran 157177 36511;
Mahmoud Khali Hamze a/k/a Mahmoud Khalil a/k/a Mahmoud Hamza Khalil, 
Managing Director, Aviation Legacy (Gambia) Limited, Flat 2907, 
Almeriki Tower, Sheikh Zayed Road, Dubai, United Arab Emirates.

    OEE also has requested pursuant to Sections 766.23 and 766.24 of 
the Regulations that the following party also be named to the TDO as a 
related person to Aban Air and Ali Mahdavi, in order to prevent evasion 
of the TDO:

Everex Global Cargo and Courier, Nos 7 and 8, Opposite Terminal 2, 
Mahrabad International Airport, Tehran, Iran, and
No. 1267, Vali Asr Avenue, Tehran, Iran.

I. Issuance of Temporary Denial Order

A. 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.

B. Background and Findings

    OEE submits that three U.S.-origin Boeing 747 planes, Manufacturer 
Serial Number (``MSN'') 23408 (Tail Number C5-SAM), MSN 23224 (Tail 
Number C5-AKR), and MSN 23823 (Tail Number C5-SAG), items subject to 
the Regulations, classified under Export Control Classification Number 
9A991.b, and controlled for Anti-Terrorism reasons, have been 
reexported or are intended for reexport to Iran, without the required 
U.S. Government authorization, as a result of a series of related 
transactions involving Sayegh Group Aviation, Sam Air Corporation 
Limited (``Sam Air''), Aviation Legacy (Gambia) Limited (``Aviation 
Legacy''), and Aban Air. Sayegh Group Aviation and Sam Air are located 
in the United Arab Emirates (``U.A.E.''), and are subsidiaries or 
affiliates of National Paints Factories Company Limited and the Sayegh 
Group, also located in the U.A.E. Aviation Legacy has addresses in the 
U.A.E. and Gambia, West Africa, and was, as discussed further below, 
created as a ``clean'' company for the purpose of facilitating the 
lease of the 747s to an Iranian airline or airlines. Aban Air is based 
in and operates out of Tehran, Iran.
    On April 16, 2012, Abdullah Khaled Ramadan (``Ramadan''), Managing 
Director of both Sayegh Group Aviation and Sam Air, informed BIS and 
provided transaction documents indicating that three 747s at issue were 
obtained by Sayegh Group Aviation from Qantas Airlines in the United 
States in August 2010, sold to Sam Air in July 2011, and then sold yet 
again to Aviation Legacy on December 20, 2011. Less than ten days 
later, on or about December 29, 2011, Aviation Legacy leased one of the 
747s for reexport to Aban Air in Iran. Ramadan also stated that this 
747 aircraft, MSN 23408, is currently in Iran and is scheduled to be 
reexported again on or about April 30, 2012.
    The lease was signed for Aviation Legacy by its chairman, Mahmoud 
Khalil Hamze (a/k/a Mahmoud Khalil, a/k/a Mahmoud Hamza Khalil), and 
for Aban Air by its chairman, Ali Mahdavi. Hamze was present when 
Ramadan made these statements to BIS, and did not contradict or seek to 
contradict any statements made by Ramadan.
    Ramadan provided details about the transactions and the parties and 
aircraft involved. He was in possession of all of the pertinent Bills 
of Sale for the three aircraft as well as the subsequent leasing 
agreement to Aban Air. He admitted that the transactions were 
structured so that the lease to Aban Air would appear to be through a 
``clean'' company, Aviation Legacy, created for reasons he vaguely 
described as having to do with an administrative dispute. He also 
indicated that Sam Air had been created at the order of Saleem Al 
Sayegh, the chief executive officer of Sam Air's parent company, the 
National Paints Factories Company Limited, but declined to explain the 
reasons why that had been necessary.
    Under the terms of the lease, Aban Air's operations under the lease 
began on or about March 15, 2012, with the leased 747 (MSN 23408) to be 
reexported back and forth between Tehran, Iran, and Bangkok, Thailand. 
Ramadan denied that any of the Tehran-Bangkok flights had occurred, but 
indicated that this aircraft currently is located in Iran with Aban 
Air, and is expected to be flown out of Iran by on or about April 30, 
2012.
    Ramadan also indicated that the other two 747s have been flown in 
and out of various countries in the Middle East, including Syria, and 
that at least one of these 747s is currently located in the U.A.E.
    OEE submits, in sum, that future violations of the EAR are imminent 
as defined in Section 766.24 of the Regulations. I agree. As provided 
in Section 746.7 of the Regulations, no person may export or reexport 
any item that is subject to the EAR, if such transaction is prohibited 
by the Iranian Transactions Regulations (31 CFR part 560) and has not 
been authorized by the Treasury Department's Office of Foreign Assets 
Control (``OFAC''). The evidence shows that the respondents have 
already reexported one Boeing 747 aircraft (MSN 23408) to Iran without 
having received the required OFAC authorization. Ramadan, Managing 
Director of both Sayegh Group Aviation and Sam Air, admitted this 
unauthorized reexport and admitted another such reexport of this 
aircraft was imminent in time. As noted above, these statements were 
made in the presence of Hamze, Aviation Legacy's chairman, who did not 
contradict the statements in any way. Moreover, Aviation Legacy was 
created by Sam Air/Ramadan in an attempt to make the lease to Aban Air 
appear to be by a ``clean'' company, and as discussed above, two other 
747 aircraft are owned and intended for lease through Aviation Legacy.
    Thus, 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 Sayegh Group Aviation Sam Air Corporation Limited, 
Abdullah Khaled Ramadan, Aviation Legacy (Gambia) Limited, Mahmoud 
Khali Hamze (a/k/a Mahmoud Khalil a/k/a Mahmoud Hamza Khalil), Aban 
Air, and Ali Mahdavi 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.

II. Related Person

A. Legal Standard

    Section 766.24(c) of the Regulations provides that a temporary 
denial order may be made applicable to related persons in accordance 
with Section 766.23. 15 CFR 766.24(c). Section

[[Page 25135]]

766.23 provides, in turn, that ``[i]n order to prevent evasion, 
[temporary denial 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.'' 15 CFR 766.23(a). Pursuant to Section 766.23(b), a 
temporary denial order may be made applicable to a related person on an 
ex parte basis under Section 766.24(a) without need to provide prior 
notice. 15 CFR 766.23(a).

B. Analysis and Findings

    Everex Global Cargo and Courier (``Everex'') has a significant 
corporate relationship with Aban Air and Ali Mahdavi. OEE has presented 
evidence that Ali Mahdavi, who is chairman of Aban Air and signed the 
lease discussed above that resulted in the unlawful reexport of a 747, 
also is the chairman of Everex. The two entities have the same offices 
at the Tehran, Iran Airport. Everex also lists its branch office in 
Tehran as the same location as Aban Air's Iranian headquarters. 
Finally, according to open source information obtained by OEE, Everex 
acts as the General Sales Agent for Aban Air in several countries, 
including Iran and the U.A.E.
    I find pursuant to Section 766.23 that Everex Global Cargo and 
Courier is a related person to Aban Air and Ali Mahdavi, and that 
adding Everex Global Cargo and Courier to the TDO is necessary to 
prevent evasion of the TDO.

III. Order

    It is therefore ordered: FIRST, that the Respondents, SAYEGH GROUP 
AVIATION, P.O. Box 5822, Sharjah, United Arab Emirates; ABAN AIR, No. 
1267, Vali Asr Avenue, Tehran, Iran 157177 36511; SAM AIR CORPORATION 
LIMITED, P.O. Box 5822, Sharjah, United Arab Emirates, and 18th Hill 
Street, Banjul, The Gambia, West Africa; AVIATION LEGACY (GAMBIA) 
LIMITED, c/o Mahmoud Khali Hamze, Flat 2907, Almeriki Tower, Sheikh 
Zayed Road, Dubai, United Arab Emirates, and G 15, Kanifing Housing 
Estate, The Gambia, West Africa; ABDULLAH KHALED RAMADAN, Managing 
Director, Sam Air Corporation Limited, P.O. Box 5822, Sharjah, United 
Arab Emirates; ALI MAHDAVI, Chairman Aban Air, No. 1267, Vali Asr 
Avenue, Tehran, Iran 157177 36511; MAHMOUD KHALI HAMZE (a/k/a MAHMOUD 
KHALIL a/k/a MAHMOUD HAMZA KHALIL), Managing Director, Aviation Legacy 
(Gambia) Limited, Flat 2907, Almeriki Tower, Sheikh Zayed Road, Dubai, 
United Arab Emirates; and EVEREX GLOBAL CARGO AND COURIER, Nos. 7 and 
8, Opposite Terminal 2, Mahrabad International Airport, Tehran, Iran, 
and No. 1267, Vali Asr Avenue, Tehran, Iran 157177 36511, 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.
    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.


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    Dated: Issued this 23rd day, of April 2012.
Donald G. Salo, Jr.,
Acting Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2012-10190 Filed 4-26-12; 8:45 am]
BILLING CODE P