[Federal Register Volume 80, Number 102 (Thursday, May 28, 2015)]
[Notices]
[Pages 30435-30438]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-12851]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security




    In the matter of:

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, 4th Floor, 33 Cavendish Square, 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., 4th Floor, 33 Cavendish Square, 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, PO Box 113212, Citadel Tower, Floor-5, 
Office #504, Business Bay, Dubai, United Arab Emirates
and

PO Box 8709, Citadel Tower, Business Bay, Dubai, United Arab 
Emirates

Modification of Temporary Denial Order To Add Additional Respondents

    Pursuant to Section 766.24 of the Export Administration 
Regulations, 15 CFR parts 730-774 (2015) (``EAR'' or the 
``Regulations''),\1\ I hereby grant the request of the Office of Export 
Enforcement (``OEE'') to modify the January 16, 2015 Order Temporarily 
Denying 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., and Mehdi Bahrami.\2\ I find that modification of the 
Temporary Denial Order (``TDO'') is necessary in the public interest to 
prevent an imminent violation of the EAR. Specifically, I find it 
necessary to add the following persons as additional Respondents:
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    \1\ The Regulations, currently codified at 15 CFR parts 730-774 
(2015), originally issued pursuant to the Export Administration Act 
of 1979, as amended (50 U.S.C. app. Sec. Sec.  2401-2420 (2000)). 
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 7, 2014 (79 FR 46,959 
(Aug. 11, 2014)), 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\ The January 16, 2015 Renewal Order was published in the 
Federal Register on January 23, 2015 (80 Fed Reg. 3552, Jan. 23, 
2015).

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, Saudia Arabia 61177

Bahar Safwa General Trading, PO 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

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 January 16, 2015.\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

[[Page 30436]]

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 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 TDO was renewed or modified in accordance with Section 
766.24 of the Regulations on September 17, 2008, March 16, 2009, 
September 11, 2009, March 9, 2010, September 3, 2010, February 25, 
2011, July 1, 2014, August 24, 2011, February 15, 2012, August 9, 
2012, February 4, 2013, July 31, 2013, January 24, 2014, July 22, 
2014, and most recently on January 16, 2015. Each renewal or 
modification order was published in the Federal Register.
    \4\ As of January 16, 2015, Gatewick LLC was no longer subject 
to the TDO. 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 13, 2015, OEE submitted a written request seeking to modify 
the January 16, 2015 Renewal Order. OEE is specifically requesting that 
Al Naser Airlines (a/k/a al-Naser Airlines a/k/a Alnaser Airlines and 
Air Freight Ltd.), Ali Abdullah Alhay (a/k/a Ali Alhay a/k/a Ali 
Abdullah Ahmed Alhay), and Bahar Safwa General Trading be added to the 
TDO.

II. Modification of the January 16, 2015 Renewal Order

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. OEE's Request To Add Additional Respondents to TDO

    In support of its request to modify the January 16, 2015 Renewal 
Order, OEE has presented evidence detailing apparent efforts by Al 
Naser Airlines and one of its principals, Ali Abdullah Alhay, acting 
together with Bahar Safwa General Trading, to obtain aircraft subject 
to the Regulations for export or reexport directly or indirectly to 
Mahan Airways or to facilitate or support such activities in violation 
of the TDO and the Regulations. The January 16, 2015 Renewal Order, 
like the July 22, 2014 Renewal Order (and the prior renewal order and 
original TDO), provides inter alia, that no person may, directly or 
indirectly, export or reexport to or on behalf of Mahan Airways any 
item subject to the EAR, or take any action that facilitates the 
acquisition or attempted acquisition by Mahan 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 Mahan acquires or 
attempts to acquire such ownership, possession or control. In addition, 
the export or reexport of the aircraft at issue and discussed further 
below requires U.S. Government authorization, including pursuant to 
Sections 742.8 and 746.7 of the Regulations.
    OEE's investigation indicates that at least two aircraft, 
specifically an Airbus A321 bearing manufacturer's serial number 
(``MSN'') 550 and an Airbus A340 bearing MSN 164, 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.\6\
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    \6\ Both of these aircraft are powered by U.S.-origin engines 
that are subject to the Regulations and classified under Export 
Control Classification Number (``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.
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    OEE has presented evidence that Ali Abdullah Alhay is a twenty-five 
percent owner of Al Naser Airlines, and has presented copies of sales 
agreements for the aircraft that have been obtained from the seller and 
show that Ali Abdullah Alhay signed both agreements for Al Naser 
Airlines.
    The sales agreement for Airbus A321 (MSN 550) is dated November 24, 
2014, and lists a ``Final Sale Date'' of January 30, 2015. Payment 
information for the aircraft reveals that between November 2014 and 
January 2015, Ali Abdullah Alhay made two electronic funds transfers 
(``EFT'') in the amounts of $815,000 and $600,000 respectively. The 
majority of the purchase price for this aircraft was then paid via a 
January 20, 2015 EFT made by Bahar Safwa General Trading in the amount 
of $2.5 million.
    The sales agreement for the Airbus A340 (MSN 164) is dated December 
17, 2014, and lists a ``Final Sale Date'' of December 23, 2014. Payment 
information also reveals a November 28, 2014 EFT from Bahar Safwa 
General Trading in the amount of $650,000.
    Aviation industry databases indicate that in or about May 2015, 
Mahan Airways acquired at least possession and/or control of MSNs 550 
and 164, and that both aircraft are now physically located in Tehran, 
Iran.
    The proposed respondents also have been attempting to obtain other 
controlled aircraft, including aircraft physically located in the 
United States in similarly-patterned transactions during the same 
recent time period involving two Airbus A320s bearing MSNs 82 and 99, 
respectively.\7\ Transactional documents OEE has obtained from the 
seller again show Ali Abdullah Alhay signing all documents for Al Naser 
Airlines. Ali Abdullah Alhay signed an October 19, 2014 Letter of 
Intent for MSNs 82 and 99, as well as subsequent sales agreements each 
dated February 19, 2015.\8\ Both sales agreements list a ``Final Sale 
Date'' of March 6, 2015. A review of the payment information for these 
aircraft reveal three EFTs that follow the pattern

[[Page 30437]]

described for MSNs 550 and 164 as discussed supra. The first EFT was a 
$450,000 commitment fee payment made by Ali Abdullah Alhay pursuant to 
the October 19, 2014 Letter of Intent. Subsequent EFTs in the amounts 
of $2 million and $986,000, respectively, were wired by Bahar Safwa 
General Trading in late February 2015, and specifically referenced MSNs 
82 and 99.
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    \7\ 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 the 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.
    \8\ The October 19, 2014 Letter of Intent signed by Ali Abdullah 
Alhay also indicated that Al Naser Airlines intended to purchase a 
third Airbus A320 (MSN 317). This aircraft is not part of the sales 
agreements that have been obtained.
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    Based on the risk of diversion to Iran, including specifically to 
Mahan Airways, both Airbus A320s were detained by OEE Special Agents 
prior to their planned export from the United States. This risk of 
diversion presented by these intended exports has been corroborated by 
the evidence presented in connection with the Airbus aircraft bearing 
MSNs 164 and 550 discussed, supra. In addition, recent reputable press 
reports have indicated that as many as seven other Airbus aircraft also 
were recently exported or reexported to Iran on behalf of or for the 
benefit of Mahan.

C. Findings

    I find that the evidence presented by OEE demonstrates continued 
efforts to evade the TDO and that additional violations are imminent. 
Adding Al Naser Airlines, Ali Abdullah Alhay, and Bahar Safwa General 
Trading to the TDO is necessary to give notice to persons and companies 
in the United States and abroad that they should cease dealing with 
these parties in export and re-export transactions involving items 
subject to the EAR or other activities prohibited by the TDO. Doing so 
is consistent with the public interest to preclude future violations of 
the EAR and prevent Mahan Airways' active efforts to evade the TDO.
    The export privileges of Al Naser Airlines, Ali Abdullah Alhay, and 
Bahar Safwa General Trading are being temporarily denied on an ex parte 
basis without a hearing based upon BIS's showing of an imminent 
violation in accordance with Section 766.24 of 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, 4th Floor, 33 
Cavendish Square, 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., 4th Floor, 33 
Cavendish Square, 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; 
and 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, 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 Sections 766.24(e) of the EAR, 
Al Naser Airlines, Bahar Safwa General Trading, and/or Ali Abdullah 
Alhay may, at any time, appeal this Order by filing a full written 
statement in support of the

[[Page 30438]]

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 Al Nasser Airlines, Ali Abdullah Alhay, 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 Al Naser Airlines, Ali 
Abdullah Alhay, and Bahar Safwa General Trading and shall be published 
in the Federal Register. This Order is effective immediately and shall 
remain in effect until July 14, 2015, unless renewed in accordance with 
Section 766.24(d) of the Regulations.

    Dated: May 21, 2015.
David W. Mills,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2015-12851 Filed 5-27-15; 8:45 am]
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