In the Matter of: Gatewick LLC, a/k/a Gatewick Freight & Cargo Services a/k/a Gatewick Aviation Services, Mohamad Abdulla Algaz Building, Al Maktoum Street, Al Rigga, Dubai, United Arab Emirates and, G#22 Dubai Airport Free Zone, P.O. Box 393754, Dubai, United Arab Emirates and, P.O. Box 52404, Dubai, United Arab Emirates, Respondent, 49283-49285 [2014-19714]
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Federal Register / Vol. 79, No. 161 / Wednesday, August 20, 2014 / Notices
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
[14–BIS–002]
In the Matter of: Gatewick LLC, a/k/a
Gatewick Freight & Cargo Services
a/k/a Gatewick Aviation Services,
Mohamad Abdulla Algaz Building, Al
Maktoum Street, Al Rigga, Dubai,
United Arab Emirates and, G#22 Dubai
Airport Free Zone, P.O. Box 393754,
Dubai, United Arab Emirates and, P.O.
Box 52404, Dubai, United Arab
Emirates, Respondent
Order Relating to Gatewick LLC
The Bureau of Industry and Security,
U.S. Department of Commerce (‘‘BIS’’),
has notified Gatewick LLC, of Dubai,
United Arab Emirates, a/k/a Gatewick
Freight & Cargo Services, a/k/a Gatewick
Aviation Services (‘‘Gatewick’’), that it
has initiated an administrative
proceeding against Gatewick pursuant
to Section 766.3 of the Export
Administration Regulations (the
‘‘Regulations’’),1 and Section 13(c) of
the Export Administration Act of 1979,
as amended (the ‘‘Act’’),2 through the
issuance of a Charging Letter to
Gatewick that alleges that Gatewick
committed three violations of the
Regulations. Specifically, the charges
are:
emcdonald on DSK67QTVN1PROD with NOTICES
Charge 1: 15 CFR 764.2(d)—Conspiracy
In or about February 2009, Gatewick
LLC (‘‘Gatewick’’) conspired and acted
in concert with others, known and
unknown, to bring about an act that
constitutes a violation of the
Regulations. The purpose of the
conspiracy was to bring about the export
from the United States to Iran, via the
United Arab Emirates (‘‘UAE’’), of
approximately 2,300 computer
motherboards, items subject to the
Regulations 3 and valued at
approximately $130,000, without the
1 The Regulations are currently codified in the
Code of Federal Regulations at 15 CFR Parts 730–
774 (2014). The charged violations occurred in
2009. The Regulations governing the violations at
issue are found in the 2009 version of the Code of
Federal Regulations (15 CFR Parts 730–774) (2009).
The 2014 Regulations set forth the procedures that
apply to this matter.
2 50 U.S.C. app. §§ 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 46959 (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)).
3 The items are designated as EAR99, which is the
designation for items subject to the Regulations but
not included on the Commerce Control List. See 15
CFR 774.1 (2009).
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Jkt 232001
required U.S. Government
authorization. Pursuant to Section 746.7
of the Regulations, no person may
export or reexport an item subject to the
EAR if such transaction is prohibited by
the Iranian Transactions Regulations
(‘‘ITR’’), and has not been authorized by
the U.S. Department of the Treasury’s
Office of Foreign Assets Control
(‘‘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
was prohibited by the ITR 4 at all times
pertinent hereto, 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 were intended for
supply, transshipment, or reexportation,
directly or indirectly, to Iran.
Gatewick is a freight and cargo
services company in the UAE and at all
times pertinent hereto the sole booking
agent for air freight forwarding and
cargo services for Mahan Airways, an
Iranian airline. Gatewick entered into an
agreement with Seyed Mousavi Trading,
an Iranian trading company, in
connection with the export of the items
to Iran. Gatewick agreed to receive the
goods ordered by Seyed Mousavi
Trading from the United States using
Mahan Airways’ import code and to
then ship the goods from the UAE to
their destination in Iran. In furtherance
of the conspiracy, Seyed Mousavi
Trading, which identified itself to the
U.S. reseller as a UAE company, ordered
the 2,300 computer motherboards from
the reseller for shipment to the UAE.
The motherboards were actually
destined for Seyed Mousavi Trading’s
customer in Iran. Pursuant to Seyed
Mousavi Trading’s instructions, the U.S.
reseller shipped the motherboards, from
the United States to Gatewick’s location
in the UAE. Consistent with the agreedupon scheme, Gatewick received the
items on February 8, 2009. Gatewick
shipped the items the following day,
February 9, 2009, from the UAE to Iran
via Mahan Airways. No U.S.
Government authorization was received
for the export of the computer
motherboards to Iran.
In so doing, Gatewick committed one
violation of Section 764.2(d) of the
Regulations.
4 31 CFR Part 560 (2009). Administered by the
Treasury Department’s Office of Foreign Assets
Control (‘‘OFAC’’), the ITR were renamed the
Iranian Transactions and Sanctions Regulations
(‘‘ITSR’’) and reissued in their entirety by OFAC on
October 22, 2012. See 77 Fed.Reg. 64,664 (Oct. 22,
2012). Section 560.204 remains unchanged in
pertinent part. See 31 CFR 560.204 (2009 and 2014).
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49283
Charge 2: 15 CFR 764.2(b)—Causing,
Aiding or Abetting an Unlicensed
Export
On or about February 8 and February
9, 2009, Gatewick caused, aided, or
abetted a violation of the Regulations.
Specifically, Gatewick facilitated the
export from the United States to Iran,
via the UAE, of approximately 2,300
computer motherboards, items subject
to the Regulations 5 and valued at
approximately $130,000, without the
required U.S. Government
authorization. Gatewick received the
items in the UAE from the United
States, and, upon receiving the items,
Gatewick shipped them from the UAE to
Iran.
Pursuant to Section 746.7 of the
Regulations, no person may export or
reexport an item subject to the EAR if
such transaction is prohibited by the
Iranian Transactions Regulations
(‘‘ITR’’), and has not been authorized by
the U.S. Department of the Treasury’s
Office of Foreign Assets Control
(‘‘OFAC’’). Under Section 560.204 of the
ITR,6 the exportation, reexportation,
sale or supply, directly or indirectly,
from the United States of any goods to
Iran was prohibited by the ITR at all
times pertinent hereto, 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 were intended for
supply, transshipment, or reexportation,
directly or indirectly, to Iran. No OFAC
authorization was sought or obtained for
the export of the computer
motherboards to Iran.
In so doing, Gatewick committed one
violation of Section 764.2(b) of the
Regulations.
Charge 3: 15 CFR 764.2(k)—Acting
Contrary to the Terms of a Denial Order
On or about February 8 and February
9, 2009, Gatewick took actions
prohibited by a BIS denial order.
Specifically, Gatewick took actions that,
contrary to the terms of a BIS denial
order, facilitated the acquisition by
Mahan Airways, an Iranian airline and
a denied person since March 21, 2008,
of the ownership, possession or control
of approximately 2,300 computer
5 The items are designated as EAR99, which is the
designation for items subject to the Regulations but
not included on the Commerce Control List. See 15
CFR 774.1 (2009).
6 31 CFR Part 560 (2009). Administered by the
Treasury Department’s Office of Foreign Assets
Control (‘‘OFAC’’), the ITR were renamed the
Iranian Transactions and Sanctions. Regulations
(‘‘ITSR’’) and reissued in their entirety by OFAC on
October 22, 2012. See 77 Fed.Reg. 64,664 (Oct. 22,
2012). Section 560.204 remains unchanged in
pertinent part. See 31 CFR 560.204 (2009 and 2014).
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49284
Federal Register / Vol. 79, No. 161 / Wednesday, August 20, 2014 / Notices
emcdonald on DSK67QTVN1PROD with NOTICES
motherboards, items subject to the
Regulations 7 and valued at
approximately $130,000. The items
were exported from the United States to
Gatewick’s location in the UAE.
Gatewick used Mahan Airways import
code to receive the items in the UAE
and then shipped the items from the
UAE to Iran via Mahan Airways.
Mahan Airways was named as a
Denied Person in a temporary denial
order (‘‘TDO’’) issued by BIS effective
on March 21, 2008, and was
subsequently renewed by BIS and in
force and effect at all pertinent times
hereto.8 Under the TDO, all persons,
including Gatewick, were prohibited
from ‘‘taking any action that facilitates
the acquisition or attempted acquisition
by the Denied Person [Mahan Airways]
of the ownership, possession, or control
of any item subject to the EAR that has
been or will be exported from the
United States. . . .’’
In acting contrary to the terms of a BIS
denial order, as alleged above, Gatewick
committed one violation of Section
764.2(k) of the Regulations.
Whereas, BIS and Gatewick have
entered into a Settlement Agreement
pursuant to Section 766.18(b) of the
Regulations, whereby they agreed to
settle this matter in accordance with the
terms and conditions set forth therein; 9
and
Whereas, I have approved of the terms
of such Settlement Agreement;
It is therefore ordered:
First, Gatewick shall be assessed a
civil penalty in the amount of $40,000.
Gatewick shall pay the U.S. Department
of Commerce in two installments of:
$20,000 not later than September 1,
2014; and $20,000 not later than
December 1, 2014. If either of the two
installment payments is not fully and
timely made, any remaining scheduled
installment payments may become due
and owing immediately.
Second, that, pursuant to the Debt
Collection Act of 1982, as amended (31
U.S.C. 3701–3720E (2000)), the civil
penalty owed under this Order accrues
interest as more fully described in the
7 The items are designated as EAR99, which is the
designation for items subject to the Regulations but
not included on the Commerce Control List. See 15
CFR 774.l (2009).
8 The initial TDO was issued by BIS on March 17,
2008, and effective upon publication in the Federal
Register on March 21, 2008. 73 FR 15,130. The TDO
was renewed for 180 days on September 17, 2008,
by order effective upon issuance on that date. 73 FR
57,051 (Oct. 1, 2008). The TDO remains in effect
today against Mahan Airways, having been renewed
most recently on July 22, 2014. 79 FR 44,002 (Jul.
29, 2014).
9 The citation dates in footnotes 1, 2, 4, 6 and 8
of the Charging Letter have been updated, as
applicable, from 2013 to 2014 for purposes of the
Settlement Agreement and this Order.
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16:44 Aug 19, 2014
Jkt 232001
attached Notice, and if payment is not
made by the due date specified herein,
Gatewick will be assessed, in addition
to the full amount of the civil penalty
and interest, a penalty charge and an
administrative charge, as more fully
described in the attached Notice.
Third, that for a period of seven (7)
years from the date of this Order,
Gatewick LLC, also known as Gatewick
Freight & Cargo Services, also known as
Gatewick Aviation Services, with last
known addresses of Mohamad Abdulla
Algaz Building, Al Maktoum Street, Al
Rigga, Dubai, United Arab Emirates and
G#22 Dubai Airport Free Zone, P.O. Box
393754, Dubai, United Arab Emirates
and P.O. Box 52404, Dubai, United Arab
Emirates, and when acting for or on its
behalf, its successors, assigns,
representatives, directors, officers,
employees, or agents (hereinafter
collectively referred to as ‘‘Denied
Person’’), 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
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. Benefitting 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.
Fourth, that 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;
PO 00000
Frm 00006
Fmt 4703
Sfmt 4703
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.
Fifth, that, after notice and
opportunity for comment as provided in
Section 766.23 of the Regulations, any
person, firm, corporation, or business
organization related to the 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 the Order.
Sixth, that the seven-year denial
period set forth above shall be active for
a period of two years from the date of
this Order. As authorized by Section
766.18(c) of the Regulations, the
remaining five years of the denial period
shall be suspended during a
probationary period of five years under
this Order, and shall thereafter be
waived, provided that Gatewick has
made full and timely payment as set
forth above and has committed no other
violation of the Act or the Regulations
or any order, license or authorization
issued thereunder. If Gatewick does not
make full and timely payment as set
forth above, or commits another
violation of the Act or the Regulations
or any order, license or authorization
issued thereunder during the seven-year
denial period under this Order, the fiveyear suspended portion of this Order
may be modified or revoked by BIS. If
the suspension is modified or revoked,
BIS may extend the active denial period
up to seven years from the date of this
Order if the failure to pay or other
violation and the activation occur
during the first two years from the date
of this Order, or otherwise until up to
five years from the date of the activation
if the violation occurs or BIS discovers
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Federal Register / Vol. 79, No. 161 / Wednesday, August 20, 2014 / Notices
the violation more than two years from
the date of this Order.
Seventh, Gatewick shall not take any
action or make or permit to be made any
public statement, directly or indirectly,
denying the allegations in the Charging
Letter or this Order. The foregoing does
not affect Gatewick’s testimonial
obligations in any proceeding, nor does
it affect its right to take legal or factual
positions in civil litigation or other civil
proceedings in which the U.S.
Department of Commerce is not a party.
Eighth, that the Charging Letter, the
Settlement Agreement, and this Order
shall be made available to the public.
Ninth, that this Order shall be served
on Gatewick, and shall be published in
the Federal Register.
This Order, which constitutes the
final agency action in this matter, is
effective immediately.
Issued this 13th day of August 2014.
David W. Mills,
Assistant Secretary of Commerce for Export
Enforcement.
[FR Doc. 2014–19714 Filed 8–19–14; 8:45 am]
BILLING CODE P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–580–839]
Certain Polyester Staple Fiber From
the Republic of Korea: Initiation of
Changed Circumstances Review
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(the Department) received information
sufficient to warrant initiation of a
changed circumstances review of the
antidumping duty order on certain
polyester staple fiber (PSF) from the
Republic of Korea. Based upon a request
filed by Toray Chemical Korea Inc.
(Toray), the Department intends to
determine in this review whether Toray
is the successor-in-interest of Woongjin
Chemical Co., Ltd. (Woongjin), a
producer/exporter examined in prior
administrative reviews of the order.1
DATES: Effective Date: August 20, 2014.
FOR FURTHER INFORMATION CONTACT:
Austin Redington at (202) 482–1664 or
Nancy Decker at (202) 482–0196, AD/
CVD Operations, Office I, Enforcement
and Compliance, International Trade
emcdonald on DSK67QTVN1PROD with NOTICES
AGENCY:
1 See Notice of Amended Final Determination of
Sales at Less Than Fair Value: Certain Polyester
Staple Fiber From the Republic of Korea and
Antidumping Duty Orders: Certain Polyester Staple
Fiber From the Republic of Korea and Taiwan, 65
FR 33807 (May 25, 2000) (Order).
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16:44 Aug 19, 2014
Jkt 232001
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue NW., Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Background
On May 25, 2000, the Department
published notice of the Order in the
Federal Register.2 On July 2, 2014,
Toray requested that the Department
conduct a changed circumstances
review pursuant to section 751(b)(1) of
the Tariff Act of 1930, as amended (the
Act) and 19 CFR 351.216(b) to
determine that it is the successor-ininterest to Woongjin for purposes of the
antidumping duty order. We received
no comments from other interested
parties.
Scope of the Order
The product covered by the order is
certain PSF. Certain PSF is defined as
synthetic staple fibers, not carded,
combed or otherwise processed for
spinning, of polyesters measuring 3.3
decitex (3 denier, inclusive) or more in
diameter. This merchandise is cut to
lengths varying from one inch (25 mm)
to five inches (127 mm). The
merchandise subject to the order may be
coated, usually with a silicon or other
finish, or not coated. PSF is generally
used as stuffing in sleeping bags,
mattresses, ski jackets, comforters,
cushions, pillows, and furniture.
Merchandise of less than 3.3 decitex
(less than 3 denier) currently classifiable
in the Harmonized Tariff Schedule of
the United States (HTSUS) at
subheading 5503.20.00.20 is specifically
excluded from the order. Also
specifically excluded from the order are
PSF of 10 to 18 denier that are cut to
lengths of 6 to 8 inches (fibers used in
the manufacture of carpeting). In
addition, low-melt PSF is excluded from
the order. Low-melt PSF is defined as a
bi-component fiber with an outer sheath
that melts at a significantly lower
temperature than its inner core.
The merchandise subject to this order
is classified in the HTSUS at
subheadings 5503.20.00.40 and
5503.20.00.60. Although the HTSUS
subheadings are provided for
convenience and customs purposes, the
written description of these orders is
dispositive.
Initiation of Changed Circumstances
Review
Pursuant to section 751(b)(1) of the
Act, the Department will conduct a
changed circumstances review upon
receipt of information concerning, or a
request from, an interested party for a
2 See
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id.
Frm 00007
Fmt 4703
Sfmt 4703
49285
review of an antidumping duty order
which shows changed circumstances
sufficient to warrant a review of the
order. In accordance with 19 CFR
351.216(d), the Department determines
that the information submitted by Toray
constitutes sufficient evidence to
conduct a changed circumstances
review of the Order.
In a changed circumstances review
involving a successor-in-interest
determination, the Department typically
examines several factors including, but
not limited to, changes in: (1)
Management; (2) production facilities;
(3) supplier relationships; and (4)
customer base.3 While no single factor
or combination of factors will
necessarily be dispositive, the
Department generally will consider the
new company to be the successor to the
predecessor if the resulting operations
are essentially the same as those of the
predecessor company.4 Thus, if the
record demonstrates that, with respect
to the production and sale of the subject
merchandise, the new company
operates as the same business entity as
the predecessor company, the
Department may assign the new
company the cash deposit rate of its
predecessor.5
Based on the information provided in
its submission, Toray provided
sufficient evidence to warrant a review
to determine if it is the successor-ininterest to Woongjin. Therefore,
pursuant to section 751(b)(1) of the Act
and 19 CFR 351.216(d), we are initiating
a changed circumstances review.
However, the Department finds it is
necessary to issue a questionnaire
requesting additional information
regarding changes in management and
information regarding the company’s
customer base, as provided for by 19
CFR 351.221(b)(2). For that reason, the
Department is not conducting this
review on an expedited basis by
publishing preliminary results in
conjunction with this notice of
initiation. The Department will publish
in the Federal Register a notice of the
preliminary results of the changed
circumstances review in accordance
with 19 CFR 351.221(b)(4) and 19 CFR
351.221(c)(3)(i). That notice will set
forth the factual and legal conclusions
3 See, e.g., Certain Activated Carbon From the
People’s Republic of China: Notice of Initiation of
Changed Circumstances Review, 74 FR 19934,
19935 (April 30, 2009).
4 See, e.g., Notice of Initiation of Antidumping
Duty Changed Circumstances Review: Certain
Forged Stainless Steel Flanges from India, 71 FR
327 (January 4, 2006).
5 See, e.g., Fresh and Chilled Atlantic Salmon
From Norway; Final Results of Changed
Circumstances Antidumping Duty Administrative
Review, 64 FR 9979, 9980 (March 1, 1999).
E:\FR\FM\20AUN1.SGM
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]]>Agencies
[Federal Register Volume 79, Number 161 (Wednesday, August 20, 2014)]
[Notices]
[Pages 49283-49285]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-19714]
[[Page 49283]]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
[14-BIS-002]
In the Matter of: Gatewick LLC, a/k/a Gatewick Freight & Cargo
Services a/k/a Gatewick Aviation Services, Mohamad Abdulla Algaz
Building, Al Maktoum Street, Al Rigga, Dubai, United Arab Emirates and,
G22 Dubai Airport Free Zone, P.O. Box 393754, Dubai, United
Arab Emirates and, P.O. Box 52404, Dubai, United Arab Emirates,
Respondent
Order Relating to Gatewick LLC
The Bureau of Industry and Security, U.S. Department of Commerce
(``BIS''), has notified Gatewick LLC, of Dubai, United Arab Emirates,
a/k/a Gatewick Freight & Cargo Services, a/k/a Gatewick Aviation
Services (``Gatewick''), that it has initiated an administrative
proceeding against Gatewick pursuant to Section 766.3 of the Export
Administration Regulations (the ``Regulations''),\1\ and Section 13(c)
of the Export Administration Act of 1979, as amended (the ``Act''),\2\
through the issuance of a Charging Letter to Gatewick that alleges that
Gatewick committed three violations of the Regulations. Specifically,
the charges are:
---------------------------------------------------------------------------
\1\ The Regulations are currently codified in the Code of
Federal Regulations at 15 CFR Parts 730-774 (2014). The charged
violations occurred in 2009. The Regulations governing the
violations at issue are found in the 2009 version of the Code of
Federal Regulations (15 CFR Parts 730-774) (2009). The 2014
Regulations set forth the procedures that apply to this matter.
\2\ 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 46959 (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)).
---------------------------------------------------------------------------
Charge 1: 15 CFR 764.2(d)--Conspiracy
In or about February 2009, Gatewick LLC (``Gatewick'') conspired
and acted in concert with others, known and unknown, to bring about an
act that constitutes a violation of the Regulations. The purpose of the
conspiracy was to bring about the export from the United States to
Iran, via the United Arab Emirates (``UAE''), of approximately 2,300
computer motherboards, items subject to the Regulations \3\ and valued
at approximately $130,000, without the required U.S. Government
authorization. Pursuant to Section 746.7 of the Regulations, no person
may export or reexport an item subject to the EAR if such transaction
is prohibited by the Iranian Transactions Regulations (``ITR''), and
has not been authorized by the U.S. Department of the Treasury's Office
of Foreign Assets Control (``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 was prohibited by the ITR
\4\ at all times pertinent hereto, 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 were intended for supply, transshipment, or
reexportation, directly or indirectly, to Iran.
---------------------------------------------------------------------------
\3\ The items are designated as EAR99, which is the designation
for items subject to the Regulations but not included on the
Commerce Control List. See 15 CFR 774.1 (2009).
\4\ 31 CFR Part 560 (2009). Administered by the Treasury
Department's Office of Foreign Assets Control (``OFAC''), the ITR
were renamed the Iranian Transactions and Sanctions Regulations
(``ITSR'') and reissued in their entirety by OFAC on October 22,
2012. See 77 Fed.Reg. 64,664 (Oct. 22, 2012). Section 560.204
remains unchanged in pertinent part. See 31 CFR 560.204 (2009 and
2014).
---------------------------------------------------------------------------
Gatewick is a freight and cargo services company in the UAE and at
all times pertinent hereto the sole booking agent for air freight
forwarding and cargo services for Mahan Airways, an Iranian airline.
Gatewick entered into an agreement with Seyed Mousavi Trading, an
Iranian trading company, in connection with the export of the items to
Iran. Gatewick agreed to receive the goods ordered by Seyed Mousavi
Trading from the United States using Mahan Airways' import code and to
then ship the goods from the UAE to their destination in Iran. In
furtherance of the conspiracy, Seyed Mousavi Trading, which identified
itself to the U.S. reseller as a UAE company, ordered the 2,300
computer motherboards from the reseller for shipment to the UAE. The
motherboards were actually destined for Seyed Mousavi Trading's
customer in Iran. Pursuant to Seyed Mousavi Trading's instructions, the
U.S. reseller shipped the motherboards, from the United States to
Gatewick's location in the UAE. Consistent with the agreed-upon scheme,
Gatewick received the items on February 8, 2009. Gatewick shipped the
items the following day, February 9, 2009, from the UAE to Iran via
Mahan Airways. No U.S. Government authorization was received for the
export of the computer motherboards to Iran.
In so doing, Gatewick committed one violation of Section 764.2(d)
of the Regulations.
Charge 2: 15 CFR 764.2(b)--Causing, Aiding or Abetting an Unlicensed
Export
On or about February 8 and February 9, 2009, Gatewick caused,
aided, or abetted a violation of the Regulations. Specifically,
Gatewick facilitated the export from the United States to Iran, via the
UAE, of approximately 2,300 computer motherboards, items subject to the
Regulations \5\ and valued at approximately $130,000, without the
required U.S. Government authorization. Gatewick received the items in
the UAE from the United States, and, upon receiving the items, Gatewick
shipped them from the UAE to Iran.
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\5\ The items are designated as EAR99, which is the designation
for items subject to the Regulations but not included on the
Commerce Control List. See 15 CFR 774.1 (2009).
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Pursuant to Section 746.7 of the Regulations, no person may export
or reexport an item subject to the EAR if such transaction is
prohibited by the Iranian Transactions Regulations (``ITR''), and has
not been authorized by the U.S. Department of the Treasury's Office of
Foreign Assets Control (``OFAC''). Under Section 560.204 of the ITR,\6\
the exportation, reexportation, sale or supply, directly or indirectly,
from the United States of any goods to Iran was prohibited by the ITR
at all times pertinent hereto, 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 were intended for supply, transshipment, or
reexportation, directly or indirectly, to Iran. No OFAC authorization
was sought or obtained for the export of the computer motherboards to
Iran.
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\6\ 31 CFR Part 560 (2009). Administered by the Treasury
Department's Office of Foreign Assets Control (``OFAC''), the ITR
were renamed the Iranian Transactions and Sanctions. Regulations
(``ITSR'') and reissued in their entirety by OFAC on October 22,
2012. See 77 Fed.Reg. 64,664 (Oct. 22, 2012). Section 560.204
remains unchanged in pertinent part. See 31 CFR 560.204 (2009 and
2014).
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In so doing, Gatewick committed one violation of Section 764.2(b)
of the Regulations.
Charge 3: 15 CFR 764.2(k)--Acting Contrary to the Terms of a Denial
Order
On or about February 8 and February 9, 2009, Gatewick took actions
prohibited by a BIS denial order. Specifically, Gatewick took actions
that, contrary to the terms of a BIS denial order, facilitated the
acquisition by Mahan Airways, an Iranian airline and a denied person
since March 21, 2008, of the ownership, possession or control of
approximately 2,300 computer
[[Page 49284]]
motherboards, items subject to the Regulations \7\ and valued at
approximately $130,000. The items were exported from the United States
to Gatewick's location in the UAE. Gatewick used Mahan Airways import
code to receive the items in the UAE and then shipped the items from
the UAE to Iran via Mahan Airways.
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\7\ The items are designated as EAR99, which is the designation
for items subject to the Regulations but not included on the
Commerce Control List. See 15 CFR 774.l (2009).
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Mahan Airways was named as a Denied Person in a temporary denial
order (``TDO'') issued by BIS effective on March 21, 2008, and was
subsequently renewed by BIS and in force and effect at all pertinent
times hereto.\8\ Under the TDO, all persons, including Gatewick, were
prohibited from ``taking any action that facilitates the acquisition or
attempted acquisition by the Denied Person [Mahan Airways] of the
ownership, possession, or control of any item subject to the EAR that
has been or will be exported from the United States. . . .''
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\8\ The initial TDO was issued by BIS on March 17, 2008, and
effective upon publication in the Federal Register on March 21,
2008. 73 FR 15,130. The TDO was renewed for 180 days on September
17, 2008, by order effective upon issuance on that date. 73 FR
57,051 (Oct. 1, 2008). The TDO remains in effect today against Mahan
Airways, having been renewed most recently on July 22, 2014. 79 FR
44,002 (Jul. 29, 2014).
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In acting contrary to the terms of a BIS denial order, as alleged
above, Gatewick committed one violation of Section 764.2(k) of the
Regulations.
Whereas, BIS and Gatewick have entered into a Settlement Agreement
pursuant to Section 766.18(b) of the Regulations, whereby they agreed
to settle this matter in accordance with the terms and conditions set
forth therein; \9\ and
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\9\ The citation dates in footnotes 1, 2, 4, 6 and 8 of the
Charging Letter have been updated, as applicable, from 2013 to 2014
for purposes of the Settlement Agreement and this Order.
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Whereas, I have approved of the terms of such Settlement Agreement;
It is therefore ordered:
First, Gatewick shall be assessed a civil penalty in the amount of
$40,000. Gatewick shall pay the U.S. Department of Commerce in two
installments of: $20,000 not later than September 1, 2014; and $20,000
not later than December 1, 2014. If either of the two installment
payments is not fully and timely made, any remaining scheduled
installment payments may become due and owing immediately.
Second, that, pursuant to the Debt Collection Act of 1982, as
amended (31 U.S.C. 3701-3720E (2000)), the civil penalty owed under
this Order accrues interest as more fully described in the attached
Notice, and if payment is not made by the due date specified herein,
Gatewick will be assessed, in addition to the full amount of the civil
penalty and interest, a penalty charge and an administrative charge, as
more fully described in the attached Notice.
Third, that for a period of seven (7) years from the date of this
Order, Gatewick LLC, also known as Gatewick Freight & Cargo Services,
also known as Gatewick Aviation Services, with last known addresses of
Mohamad Abdulla Algaz Building, Al Maktoum Street, Al Rigga, Dubai,
United Arab Emirates and G22 Dubai Airport Free Zone, P.O. Box
393754, Dubai, United Arab Emirates and P.O. Box 52404, Dubai, United
Arab Emirates, and when acting for or on its behalf, its successors,
assigns, representatives, directors, officers, employees, or agents
(hereinafter collectively referred to as ``Denied Person''), 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 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. Benefitting 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.
Fourth, that 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.
Fifth, that, after notice and opportunity for comment as provided
in Section 766.23 of the Regulations, any person, firm, corporation, or
business organization related to the 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
the Order.
Sixth, that the seven-year denial period set forth above shall be
active for a period of two years from the date of this Order. As
authorized by Section 766.18(c) of the Regulations, the remaining five
years of the denial period shall be suspended during a probationary
period of five years under this Order, and shall thereafter be waived,
provided that Gatewick has made full and timely payment as set forth
above and has committed no other violation of the Act or the
Regulations or any order, license or authorization issued thereunder.
If Gatewick does not make full and timely payment as set forth above,
or commits another violation of the Act or the Regulations or any
order, license or authorization issued thereunder during the seven-year
denial period under this Order, the five-year suspended portion of this
Order may be modified or revoked by BIS. If the suspension is modified
or revoked, BIS may extend the active denial period up to seven years
from the date of this Order if the failure to pay or other violation
and the activation occur during the first two years from the date of
this Order, or otherwise until up to five years from the date of the
activation if the violation occurs or BIS discovers
[[Page 49285]]
the violation more than two years from the date of this Order.
Seventh, Gatewick shall not take any action or make or permit to be
made any public statement, directly or indirectly, denying the
allegations in the Charging Letter or this Order. The foregoing does
not affect Gatewick's testimonial obligations in any proceeding, nor
does it affect its right to take legal or factual positions in civil
litigation or other civil proceedings in which the U.S. Department of
Commerce is not a party.
Eighth, that the Charging Letter, the Settlement Agreement, and
this Order shall be made available to the public.
Ninth, that this Order shall be served on Gatewick, and shall be
published in the Federal Register.
This Order, which constitutes the final agency action in this
matter, is effective immediately.
Issued this 13th day of August 2014.
David W. Mills,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2014-19714 Filed 8-19-14; 8:45 am]
BILLING CODE P
