Order Temporarily Denying Export Privileges, 4897-4899 [2018-02067]

Download as PDF Federal Register / Vol. 83, No. 23 / Friday, February 2, 2018 / Notices existing Sites 1, 2, 4 and 5 as ‘‘magnet’’ sites and existing Site 6 as a usagedriven site. No new subzones or usagedriven sites are being requested at this time. The application would have no impact on FTZ 81’s previously authorized subzones. In accordance with the FTZ Board’s regulations, Kathleen Boyce of the FTZ Staff is designated examiner to evaluate and analyze the facts and information presented in the application and case record and to report findings and recommendations to the FTZ Board. Public comment is invited from interested parties. Submissions shall be addressed to the FTZ Board’s Executive Secretary at the address below. The closing period for their receipt is April 3, 2018. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15-day period to April 18, 2018. A copy of the application will be available for public inspection at the Office of the Executive Secretary, Foreign-Trade Zones Board, Room 21013, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230–0002, and in the ‘‘Reading Room’’ section of the FTZ Board’s website, which is accessible via www.trade.gov/ftz. For further information, contact Kathleen Boyce at Kathleen.Boyce@trade.gov or (202) 482– 1346. Dated: January 30, 2018. Elizabeth Whiteman, Acting Executive Secretary. [FR Doc. 2018–02105 Filed 2–1–18; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE Bureau of Industry and Security sradovich on DSK3GMQ082PROD with NOTICES Order Temporarily Denying Export Privileges Gulnihal Yegane, Merkez Mah. Hasat Sok. No: 52/6, Sisli, Istanbul, Turkey; and Yanibosna Merkez Mah., Degirmenbahce ¸ Cad. No. 11, Airport Hill Sitesi Blok D.6, Bahcelievler, Istanbul, Turkey; and Egs ¸ Bloklari B–1 Blok K.1 No: 114, Yesilkoy Bakirkoy, Istanbul, Turkey; and Huzur mah, Ayazaga Oyak sitesi, 9. Blok, No: 19, Sisli, Istanbul, Turkey; and Turgut Reis Mh. Glyimkent Kath Is Merk., K:4 D:4412, Esenler/Istanbul, Turkey; and Onucreis Mah. Giyimkent Sitesi, 3. Sokak No: 118, Esenler/Istanbul, Turkey Trigron Lojistik Kargo Limited Sirketi, Yanibosna Merkez Mah., Degirmenbahce ¸ Cad. No. 11, Airport Hill Sitesi Blok D.6, Bahcelievler, Istanbul, Turkey; Ufuk Avia ¸ Lojistik Limited Sirketi, Merkez Mah. Hasat Sok., No: 52/6, Sisli, Istanbul, Turkey; RA Havacilik Lojistik Ve VerDate Sep<11>2014 18:03 Feb 01, 2018 Jkt 244001 Tasimacilik Ticaret Limited Sirketi, Yesilce Mah. Dalgic SK., 3/101 Kagithane, Istanbul, Turkey 34000, Respondents. Pursuant to Section 766.24 of the Export Administration Regulations (the ‘‘Regulations’’ or ‘‘EAR’’),1 the Bureau of Industry and Security (‘‘BIS’’), U.S. Department of Commerce, through its Office of Export Enforcement (‘‘OEE’’), has requested the issuance of an Order temporarily denying, for a period of 180 days, the export privileges under the Regulations of: Gulnihal Yegane, Trigron Lojistik Kargo Limited Sirketi (‘‘Trigron Lojistik Kargo’’ or ‘‘Trigron’’), Ufuk Avia Lojistik Limited Sirketi (‘‘Ufuk Avia Lojistik’’), and RA Havacilik Lojistik Ve Tasimacilik Ticaret Limited Sirketi (‘‘RA Havacilik’’). OEE’s request and related information indicates that these parties are located in Turkey, at the respective addresses listed on the caption page of this order and on page 8, infra, and that Ms. Yegane owns or controls or is otherwise affiliated with Trigron Lojistik Kargo and the other companies at issue. Pursuant to Section 766.24, BIS may issue an order temporarily denying a respondent’s export privileges upon a showing that the order is necessary in the public interest to prevent an ‘‘imminent violation’’ of the Regulations. 15 CFR 766.24(b)(1) and 766.24(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 ‘‘[l]ack 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. 1 The EAR are currently codified at 15 CFR parts 730–774 (2017). The EAR issued under the Export Administration Act of 1979, as amended 50 U.S.C. 4601–4623 (Supp. III 2015) (available at https:// uscode.house.gov) (‘‘EAA’’ or the ‘‘Act’’). 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 15, 2017 (82 FR 39,005 (Aug. 16, 2017)), has continued the Regulations in effect under the International Emergency Economic Powers Act (50 U.S.C. 1701, et seq. (2006 & Supp. IV 2010)). PO 00000 Frm 00004 Fmt 4703 Sfmt 4703 4897 As referenced in OEE’s request, Gulnihal Yegane was placed on BIS’s Entity List, Supplement No. 4 to Part 744 of the Regulations, on December 12, 2013 (see 78 FR 75,463), for engaging in activities contrary to the national security or foreign policy interests of the United States. See 15 CFR 744.11. Ms. Yegane was, namely, one of 19 persons engaged in the development and operation of a procurement scheme that directly supported the operation of Iranian airline Mahan Airways. See 78 FR 75,463 (Dec. 12, 2013). Mahan Airways has been on BIS’s Denied Persons List since March 2008, due to numerous significant, continuing, deliberate, and covert violations of the Regulations.2 In addition, since October 2011, it has been designated as a Specially Designated Global Terrorist (‘‘SDGT’’) by the Treasury Department’s Office of Foreign Assets Control (‘‘OFAC’’) pursuant to Executive Order 13224 for providing financial, material and technological support to Iran’s Islamic Revolutionary Guard CorpsQods Force (IRGC–QF). See 77 FR 64,427 (October 18, 2011). As discussed in the temporary denial renewal orders issued by BIS against Mahan Airways in July 2013, and February 2014, OEE obtained evidence during 2013 indicating that Mahan Airways had been involved in efforts to unlawfully obtain a U.S.-origin GE CF6– 50C2 aircraft engine via transshipment through Turkey. The evidence indicated that Mahan sought to obtain this U.S.origin engine through Pioneer Logistics Havacilik Turizm Yonetim Danismanlik (‘‘Pioneer Logistics’’), a Turkish company involved in procuring and supplying aircraft parts, and its director/ operator, Gulnihal Yegane. See Mahan Airways, et al., TDO Renewal Order dated January 24, 2014, (79 FR 4871 (Jan. 30, 2014)); Mahan Airways, et al., TDO Renewal Order dated July 31, 2013 (78 FR 48,138 (Aug. 72013)).3 2 Mahan Airways’ status as a denied person was most recently renewed by BIS through a temporary denial order issued on December 20, 2017. See 82 FR 61,745 (Dec. 29, 2017). The December 20, 2017 renewal order summarizes the initial TDO issued against Mahan in March 2008, and the other renewal orders prior to December 20, 2017. See id. 3 OFAC subsequently designated Pioneer Logistics as a SDGT, in doing so describing Pioneer Logistics as a key Mahan Airways front company that served as an intermediary for Mahan Airways, acting for or on behalf of Mahan by purchasing and receiving aviation-related materials. OFAC also stated that in an effort to help Mahan evade U.S. Government sanctions, Pioneer Logistics shipped aircraft parts to another U.S.-designated Mahan front company for onward delivery to Mahan, and that Mahan used Pioneer Logistics as a cutout for the repair and overhaul of aircraft parts and as a cutout to evade sanctions in order to purchase aircraft tires for its aircraft. See OFAC Press Release E:\FR\FM\02FEN1.SGM Continued 02FEN1 4898 Federal Register / Vol. 83, No. 23 / Friday, February 2, 2018 / Notices sradovich on DSK3GMQ082PROD with NOTICES Ms. Yegane remains on the Entity List, and as a result of that listing, no item subject to the Regulations may be exported, reexported, or transferred (incountry) to her without prior license authorization from BIS. See 15 CFR 744.11; Supp No. 4 to 15 CFR part 744. Moreover, BIS’s review policy regarding such applications involving Ms. Yegane is a presumption of denial. Id. In its request, OEE has presented evidence indicating that Ms. Yegane and the other respondents are engaged in procurement activities relating to U.S.origin aircraft engines and parts for or on behalf of one or more Iranian airlines, operating as transaction parties and/or facilitating transactions that are structured to evade the Regulations (as well as the Iranian Transactions and Sanctions Regulations (‘‘ITSR’’), 31 CFR part 560, administered by OFAC) 4 by routing unlicensed exports or reexports through Turkey to Iran. The evidence presented relates to transactions that occurred between at least September 2016, through at least December 2017. Specifically, in September 2016, Ufuk Avia Lojistik, with Ms. Yegane listed as its contact person, was identified in the consignee field on an air waybill for an unlicensed shipment of a CFM56–3C1 jet aircraft engine, engine serial number (‘‘ESN’’) 857203, from the United States to Turkey.5 The engine is used on Boeing 737 aircraft, and is subject to the Regulations and controlled for antiterrorism reasons when exported to Iran, as described in Export Control Classification Number (‘‘ECCN’’) 9A991.d and pursuant to Section 742.8 of the EAR. Documentation and correspondence relating to the transaction indicate that the engine was destined for sale or lease to an Iranian airline, contrary to what appeared on export paperwork. The U.S. Government was able to prevent this engine from being transshipped from Turkey on to Iran by returning the engine to the United States pursuant to a redelivery order issued by OEE under Section 758.8 of the Regulations on September 23, 2016. dated Aug. 29, 2014, copy at https:// www.treasury.gov/press-center/press-releases/ Pages/jl2618.aspx; 79 FR 55072 (Sept. 15, 2014)). 4 Pursuant to Section 746.7(e) of the EAR, 15 CFR 746.7(e), no person may export or reexport any item that is subject to the EAR if such transaction is prohibited by the ITSR and has not been authorized by OFAC. The prohibition found in Section 746.7(e) applies whether or not the EAR require a license for the export or reexport in question. Id. 5 Yegane’s full or precise role at Ufuk Avia Lojistik is not entirely clear from the evidence, but there is some information indicating that she served as its general manager. VerDate Sep<11>2014 18:03 Feb 01, 2018 Jkt 244001 OEE’s investigation also shows that, having been prevented from obtaining ESN 857203 for transshipment to Iran, Ms. Yegane was involved in efforts to obtain other CFM56–3C1 engines (ESNs 856772 and 857999) from the United States for that purpose between September 2016 and November 2016, with the transactions being re-structured and re-routed so that neither Ufuk Avia Lojistik nor Ms. Yegane would be listed in the transaction documents and another company listed as the consignee. The U.S. Government was able to thwart one of these intended transshipments to Iran, with BIS issuing a redelivery order on November 4, 2016, as to ESN 857999. Moreover, in January 2017, Ms. Yegane, Trigron Lojistik Kargo, and RA Havacilik were involved in the transshipment of a CFM56–3C1 jet aircraft engine of unknown serial number, but believed to be subject to the EAR, to Iran. BIS’s investigation has also showed that Trigron Lojistik Kargo is owned and operated by Ms. Yegane and has more recently been used, in conjunction with RA Havacilik, in the routing and attempted routing of shipments from the United States destined for transshipment to Iran via Turkey. The evidence presented by OEE indicates that RA Havacilik was formed on September 26, 2016, three days after BIS ordered the redelivery of ESN 857023. The evidence also suggests that Yegane and/or Trigron may own or control RA Havacilik; at the very least, the evidence indicates that they have been acting in concert to procure aircraft parts from the United States, items subject to the EAR (and the ITSR), for transshipment to Iran. BIS has uncovered several intended exports of such aircraft parts from the United States to RA Havacilik in December 2017, including, for example, gaskets and isolators used on Boeing aircraft. The evidence presented by OEE indicated that at least one of these December 2017 shipments from the United States was, in fact, transshipped on to Iran, contrary to the consignee and buyer information listed on the transaction paperwork. BIS detained other shipments. In sum, the facts and circumstances here and related evidence indicate a high likelihood of future violations of the Regulations and U.S. export control laws, including Ms. Yegane’s previously-identified involvement in an aviation procurement network facilitating trade to Iran for or on behalf of Mahan Airways, a denied person (and SDGT); the repeated attempts to evade the long-standing and well-known U.S. embargo against Iran by obtaining and facilitating the acquisition of controlled PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 jet aircraft engines and other aircraft parts from the United States for transshipment to Iran from at least September 2016, through at least December 2017; and the deliberate, covert, and determined nature of the misconduct and clear disregard for complying with U.S. export control laws. Accordingly, I find that the evidence presented by BIS demonstrates that a violation of the Regulations is imminent. As such, a temporary denial order (‘‘TDO’’) is needed to give notice to persons and companies in the United States and abroad that they should cease dealing with Gulnihal Yegane, Trigron Lojistik Kargo Limited Sirketi, Ufuk Avia Lojistik Limited Sirketi, and RA Havacilik Lojistik Ve Tasimacilik Ticaret Limited Sirketi in export or reexport transactions involving items subject to the EAR. Such a TDO is consistent with the public interest to preclude future violations of the Regulations. Accordingly, I find that an Order denying the export privileges of Gulnihal Yegane, Trigron Lojistik Kargo Limited Sirketi, Ufuk Avia Lojistik Limited Sirketi, and RA Havacilik Lojistik Ve Tasimacilik Ticaret Limited Sirketi is necessary, in the public interest, to prevent imminent violation of the Regulations. This Order is being issued 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. It is therefore ordered: First, that GULNIHAL YEGANE, with an address at Merkez Mah. Hasat Sok., No: 52/6, Sisli, Istanbul, Turkey, and at Yanibosna Merkez Mah., Degirmenbahce Cad. No. 11, Airport ¸ Hill Sitesi Blok D.6, Bahcelievler, ¸ Istanbul, Turkey, and at Egs Bloklari B–1 Blok K.1 No: 114, Yesilkoy Bakirkoy, Istanbul, Turkey, and at Huzur mah, Ayazaga Oyak sitesi, 9. Blok, No: 19, Sisli, Istanbul, Turkey, and at Turgut Reis Mh. Glyimkent Kath Is Merk. K:4 D:4412 Esenler/Istanbul, Turkey, and at Onucreis Mah. Giyimkent Sitesi 3. Sokak No:118 Esenler/Istanbul, Turkey; TRIGRON LOJISTIK KARGO LIMITED SIRKETI, with an address at Yanibosna Merkez Mah., Degirmenbahce Cad. No. 11, ¸ Airport Hill Sitesi Blok D.6, Bahcelievler, Istanbul, Turkey; UFUK ¸ AVIA LOJISTIK LIMITED SIRKETI, with an address at Merkez Mah. Hasat Sok., No: 52/6, Sisli, Istanbul, Turkey; and RA HAVACILIK LOJISTIK VE TASIMACILIK TICARET LIMITED SIRKETI, with an address at Yesilce Mah. Dalgic SK., 3/101 Kagithane, E:\FR\FM\02FEN1.SGM 02FEN1 sradovich on DSK3GMQ082PROD with NOTICES Federal Register / Vol. 83, No. 23 / Friday, February 2, 2018 / Notices Istanbul, Turkey 34000, 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 VerDate Sep<11>2014 18:03 Feb 01, 2018 Jkt 244001 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. In accordance with the provisions of Section 766.24(e) of the EAR, Respondents Gulnihal Yegane, Trigron Lojistik Kargo Limited Sirketi, Ufuk Avia Lojistik Limited Sirketi, or RA Havacilik Lojistik Ve Tasimacilik Ticaret Limited Sirketi 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. 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. Respondents Gulnihal Yegane, Trigron Lojistik Kargo Limited Sirketi, Ufuk Avia Lojistik Limited Sirketi, and RA Havacilik Lojistik Ve Tasimacilik Ticaret Limited Sirketi may oppose a request to renew this Order by filing a written submission with the Assistant Secretary 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 served on Respondents and shall be published in the Federal Register. This Order is effective immediately and shall remain in effect for 180 days. Dated: January 26, 2018. Kevin J. Kurland, Acting Deputy Assistant Secretary of Commerce for Export Enforcement. [FR Doc. 2018–02067 Filed 2–1–18; 8:45 am] BILLING CODE P DEPARTMENT OF COMMERCE International Trade Administration [A–570–067, A–475–839, and A–583–863] Forged Steel Fittings From the People’s Republic of China, Italy, and Taiwan: Postponement of Preliminary Determinations in the Less-Than-FairValue Investigations Enforcement and Compliance, International Trade Administration, Department of Commerce. AGENCY: PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 DATES: 4899 Applicable February 2, 2018. FOR FURTHER INFORMATION CONTACT: Katherine Johnson at (202) 482–4929 or Renato Barreda at (202) 482–0317 (the People’s Republic of China (China)), and Denisa Ursu at (202) 482–2285 or Michael Bowen at (202) 482–0768 (Italy), Robert Palmer at (202) 482–9068 (Taiwan), AD/CVD Operations, Office VIII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230. SUPPLEMENTARY INFORMATION: Background On October 25, 2017, the Department of Commerce (Commerce) initiated lessthan-fair-value (LTFV) investigations of imports of forged steel fittings from China, Italy and Taiwan.1 Currently, the preliminary determinations are due no later than March 14, 2018. Postponement of Preliminary Determinations Section 733(b)(1)(A) of the Tariff Act of 1930, as amended (the Act), requires Commerce to issue the preliminary determination in an LTFV investigation within 140 days after the date on which Commerce initiated the investigation. However, section 733(c)(1) of the Act permits Commerce to postpone the preliminary determination until no later than 190 days after the date on which Commerce initiated the investigation if: (A) The petitioner makes a timely request for a postponement; or (B) Commerce concludes that the parties concerned are cooperating, that the investigation is extraordinarily complicated, and that additional time is necessary to make a preliminary determination. Under 19 CFR 351.205(e), the petitioner must submit a request for postponement 25 days or more before the scheduled date of the preliminary determination and must state the reasons for the request. Commerce will grant the request unless it finds compelling reasons to deny the request. See 19 CFR 351.205(e). On January 10, 2018, the petitioners 2 submitted a timely request that Commerce postpone the preliminary determinations in these LTFV investigations. The petitioners stated that they request postponement because under the current issue date for the 1 See Forged Steel Fittings from the People’s Republic of China, Italy, and Taiwan: Initiation of Less-Than-Fair-Value Investigations, 82 FR 50614 (November 1, 2017) (Initiation Notice). 2 The petitioners are Bonney Forge Corporation and United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW). E:\FR\FM\02FEN1.SGM 02FEN1

Agencies

[Federal Register Volume 83, Number 23 (Friday, February 2, 2018)]
[Notices]
[Pages 4897-4899]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-02067]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

Order Temporarily Denying Export Privileges

Gulnihal Yegane, Merkez Mah. Hasat Sok. No: 52/6, Sisli, Istanbul,
Turkey; and Yanibosna Merkez Mah., Degirmenbah[ccedil]e Cad. No. 11,
Airport Hill Sitesi Blok D.6, Bah[ccedil]elievler, Istanbul, Turkey;
and Egs Bloklari B-1 Blok K.1 No: 114, Yesilkoy Bakirkoy, Istanbul,
Turkey; and Huzur mah, Ayazaga Oyak sitesi, 9. Blok, No: 19, Sisli,
Istanbul, Turkey; and Turgut Reis Mh. Glyimkent Kath Is Merk., K:4
D:4412, Esenler/Istanbul, Turkey; and Onucreis Mah. Giyimkent
Sitesi, 3. Sokak No: 118, Esenler/Istanbul, Turkey
Trigron Lojistik Kargo Limited Sirketi, Yanibosna Merkez Mah.,
Degirmenbah[ccedil]e Cad. No. 11, Airport Hill Sitesi Blok D.6,
Bah[ccedil]elievler, Istanbul, Turkey; Ufuk Avia Lojistik Limited
Sirketi, Merkez Mah. Hasat Sok., No: 52/6, Sisli, Istanbul, Turkey;
RA Havacilik Lojistik Ve Tasimacilik Ticaret Limited Sirketi,
Yesilce Mah. Dalgic SK., 3/101 Kagithane, Istanbul, Turkey 34000,
Respondents.

Pursuant to Section 766.24 of the Export Administration Regulations
(the ``Regulations'' or ``EAR''),\1\ the Bureau of Industry and
Security (``BIS''), U.S. Department of Commerce, through its Office of
Export Enforcement (``OEE''), has requested the issuance of an Order
temporarily denying, for a period of 180 days, the export privileges
under the Regulations of: Gulnihal Yegane, Trigron Lojistik Kargo
Limited Sirketi (``Trigron Lojistik Kargo'' or ``Trigron''), Ufuk Avia
Lojistik Limited Sirketi (``Ufuk Avia Lojistik''), and RA Havacilik
Lojistik Ve Tasimacilik Ticaret Limited Sirketi (``RA Havacilik'').
OEE's request and related information indicates that these parties are
located in Turkey, at the respective addresses listed on the caption
page of this order and on page 8, infra, and that Ms. Yegane owns or
controls or is otherwise affiliated with Trigron Lojistik Kargo and the
other companies at issue.
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\1\ The EAR are currently codified at 15 CFR parts 730-774
(2017). The EAR issued under the Export Administration Act of 1979,
as amended 50 U.S.C. 4601-4623 (Supp. III 2015) (available at https://uscode.house.gov) (``EAA'' or the ``Act''). 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 15, 2017 (82 FR 39,005 (Aug. 16, 2017)), has
continued the Regulations in effect under the International
Emergency Economic Powers Act (50 U.S.C. 1701, et seq. (2006 & Supp.
IV 2010)).
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Pursuant to Section 766.24, BIS may issue an order temporarily
denying a respondent's export privileges upon a showing that the order
is necessary in the public interest to prevent an ``imminent
violation'' of the Regulations. 15 CFR 766.24(b)(1) and 766.24(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
``[l]ack 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.
As referenced in OEE's request, Gulnihal Yegane was placed on BIS's
Entity List, Supplement No. 4 to Part 744 of the Regulations, on
December 12, 2013 (see 78 FR 75,463), for engaging in activities
contrary to the national security or foreign policy interests of the
United States. See 15 CFR 744.11. Ms. Yegane was, namely, one of 19
persons engaged in the development and operation of a procurement
scheme that directly supported the operation of Iranian airline Mahan
Airways. See 78 FR 75,463 (Dec. 12, 2013). Mahan Airways has been on
BIS's Denied Persons List since March 2008, due to numerous
significant, continuing, deliberate, and covert violations of the
Regulations.\2\ In addition, since October 2011, it has been designated
as a Specially Designated Global Terrorist (``SDGT'') by the Treasury
Department's Office of Foreign Assets Control (``OFAC'') pursuant to
Executive Order 13224 for providing financial, material and
technological support to Iran's Islamic Revolutionary Guard Corps-Qods
Force (IRGC-QF). See 77 FR 64,427 (October 18, 2011).
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\2\ Mahan Airways' status as a denied person was most recently
renewed by BIS through a temporary denial order issued on December
20, 2017. See 82 FR 61,745 (Dec. 29, 2017). The December 20, 2017
renewal order summarizes the initial TDO issued against Mahan in
March 2008, and the other renewal orders prior to December 20, 2017.
See id.
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As discussed in the temporary denial renewal orders issued by BIS
against Mahan Airways in July 2013, and February 2014, OEE obtained
evidence during 2013 indicating that Mahan Airways had been involved in
efforts to unlawfully obtain a U.S.-origin GE CF6-50C2 aircraft engine
via transshipment through Turkey. The evidence indicated that Mahan
sought to obtain this U.S.-origin engine through Pioneer Logistics
Havacilik Turizm Yonetim Danismanlik (``Pioneer Logistics''), a Turkish
company involved in procuring and supplying aircraft parts, and its
director/operator, Gulnihal Yegane. See Mahan Airways, et al., TDO
Renewal Order dated January 24, 2014, (79 FR 4871 (Jan. 30, 2014));
Mahan Airways, et al., TDO Renewal Order dated July 31, 2013 (78 FR
48,138 (Aug. 72013)).\3\
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\3\ OFAC subsequently designated Pioneer Logistics as a SDGT, in
doing so describing Pioneer Logistics as a key Mahan Airways front
company that served as an intermediary for Mahan Airways, acting for
or on behalf of Mahan by purchasing and receiving aviation-related
materials. OFAC also stated that in an effort to help Mahan evade
U.S. Government sanctions, Pioneer Logistics shipped aircraft parts
to another U.S.-designated Mahan front company for onward delivery
to Mahan, and that Mahan used Pioneer Logistics as a cutout for the
repair and overhaul of aircraft parts and as a cutout to evade
sanctions in order to purchase aircraft tires for its aircraft. See
OFAC Press Release dated Aug. 29, 2014, copy at https://www.treasury.gov/press-center/press-releases/Pages/jl2618.aspx; 79
FR 55072 (Sept. 15, 2014)).

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[[Page 4898]]

Ms. Yegane remains on the Entity List, and as a result of that
listing, no item subject to the Regulations may be exported,
reexported, or transferred (in-country) to her without prior license
authorization from BIS. See 15 CFR 744.11; Supp No. 4 to 15 CFR part
744. Moreover, BIS's review policy regarding such applications
involving Ms. Yegane is a presumption of denial. Id.
In its request, OEE has presented evidence indicating that Ms.
Yegane and the other respondents are engaged in procurement activities
relating to U.S.-origin aircraft engines and parts for or on behalf of
one or more Iranian airlines, operating as transaction parties and/or
facilitating transactions that are structured to evade the Regulations
(as well as the Iranian Transactions and Sanctions Regulations
(``ITSR''), 31 CFR part 560, administered by OFAC) \4\ by routing
unlicensed exports or reexports through Turkey to Iran.
---------------------------------------------------------------------------

\4\ Pursuant to Section 746.7(e) of the EAR, 15 CFR 746.7(e), no
person may export or reexport any item that is subject to the EAR if
such transaction is prohibited by the ITSR and has not been
authorized by OFAC. The prohibition found in Section 746.7(e)
applies whether or not the EAR require a license for the export or
reexport in question. Id.
---------------------------------------------------------------------------

The evidence presented relates to transactions that occurred
between at least September 2016, through at least December 2017.
Specifically, in September 2016, Ufuk Avia Lojistik, with Ms. Yegane
listed as its contact person, was identified in the consignee field on
an air waybill for an unlicensed shipment of a CFM56-3C1 jet aircraft
engine, engine serial number (``ESN'') 857203, from the United States
to Turkey.\5\ The engine is used on Boeing 737 aircraft, and is subject
to the Regulations and controlled for anti-terrorism reasons when
exported to Iran, as described in Export Control Classification Number
(``ECCN'') 9A991.d and pursuant to Section 742.8 of the EAR.
---------------------------------------------------------------------------

\5\ Yegane's full or precise role at Ufuk Avia Lojistik is not
entirely clear from the evidence, but there is some information
indicating that she served as its general manager.
---------------------------------------------------------------------------

Documentation and correspondence relating to the transaction
indicate that the engine was destined for sale or lease to an Iranian
airline, contrary to what appeared on export paperwork. The U.S.
Government was able to prevent this engine from being transshipped from
Turkey on to Iran by returning the engine to the United States pursuant
to a redelivery order issued by OEE under Section 758.8 of the
Regulations on September 23, 2016.
OEE's investigation also shows that, having been prevented from
obtaining ESN 857203 for transshipment to Iran, Ms. Yegane was involved
in efforts to obtain other CFM56-3C1 engines (ESNs 856772 and 857999)
from the United States for that purpose between September 2016 and
November 2016, with the transactions being re-structured and re-routed
so that neither Ufuk Avia Lojistik nor Ms. Yegane would be listed in
the transaction documents and another company listed as the consignee.
The U.S. Government was able to thwart one of these intended
transshipments to Iran, with BIS issuing a redelivery order on November
4, 2016, as to ESN 857999. Moreover, in January 2017, Ms. Yegane,
Trigron Lojistik Kargo, and RA Havacilik were involved in the
transshipment of a CFM56-3C1 jet aircraft engine of unknown serial
number, but believed to be subject to the EAR, to Iran.
BIS's investigation has also showed that Trigron Lojistik Kargo is
owned and operated by Ms. Yegane and has more recently been used, in
conjunction with RA Havacilik, in the routing and attempted routing of
shipments from the United States destined for transshipment to Iran via
Turkey. The evidence presented by OEE indicates that RA Havacilik was
formed on September 26, 2016, three days after BIS ordered the
redelivery of ESN 857023. The evidence also suggests that Yegane and/or
Trigron may own or control RA Havacilik; at the very least, the
evidence indicates that they have been acting in concert to procure
aircraft parts from the United States, items subject to the EAR (and
the ITSR), for transshipment to Iran. BIS has uncovered several
intended exports of such aircraft parts from the United States to RA
Havacilik in December 2017, including, for example, gaskets and
isolators used on Boeing aircraft. The evidence presented by OEE
indicated that at least one of these December 2017 shipments from the
United States was, in fact, transshipped on to Iran, contrary to the
consignee and buyer information listed on the transaction paperwork.
BIS detained other shipments.
In sum, the facts and circumstances here and related evidence
indicate a high likelihood of future violations of the Regulations and
U.S. export control laws, including Ms. Yegane's previously-identified
involvement in an aviation procurement network facilitating trade to
Iran for or on behalf of Mahan Airways, a denied person (and SDGT); the
repeated attempts to evade the long-standing and well-known U.S.
embargo against Iran by obtaining and facilitating the acquisition of
controlled jet aircraft engines and other aircraft parts from the
United States for transshipment to Iran from at least September 2016,
through at least December 2017; and the deliberate, covert, and
determined nature of the misconduct and clear disregard for complying
with U.S. export control laws.
Accordingly, I find that the evidence presented by BIS demonstrates
that a violation of the Regulations is imminent. As such, a temporary
denial order (``TDO'') is needed to give notice to persons and
companies in the United States and abroad that they should cease
dealing with Gulnihal Yegane, Trigron Lojistik Kargo Limited Sirketi,
Ufuk Avia Lojistik Limited Sirketi, and RA Havacilik Lojistik Ve
Tasimacilik Ticaret Limited Sirketi in export or reexport transactions
involving items subject to the EAR. Such a TDO is consistent with the
public interest to preclude future violations of the Regulations.
Accordingly, I find that an Order denying the export privileges of
Gulnihal Yegane, Trigron Lojistik Kargo Limited Sirketi, Ufuk Avia
Lojistik Limited Sirketi, and RA Havacilik Lojistik Ve Tasimacilik
Ticaret Limited Sirketi is necessary, in the public interest, to
prevent imminent violation of the Regulations.
This Order is being issued 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.
It is therefore ordered:
First, that GULNIHAL YEGANE, with an address at Merkez Mah. Hasat
Sok., No: 52/6, Sisli, Istanbul, Turkey, and at Yanibosna Merkez Mah.,
Degirmenbah[ccedil]e Cad. No. 11, Airport Hill Sitesi Blok D.6,
Bah[ccedil]elievler, Istanbul, Turkey, and at Egs Bloklari B-1 Blok K.1
No: 114, Yesilkoy Bakirkoy, Istanbul, Turkey, and at Huzur mah, Ayazaga
Oyak sitesi, 9. Blok, No: 19, Sisli, Istanbul, Turkey, and at Turgut
Reis Mh. Glyimkent Kath Is Merk. K:4 D:4412 Esenler/Istanbul, Turkey,
and at Onucreis Mah. Giyimkent Sitesi 3. Sokak No:118 Esenler/Istanbul,
Turkey; TRIGRON LOJISTIK KARGO LIMITED SIRKETI, with an address at
Yanibosna Merkez Mah., Degirmenbah[ccedil]e Cad. No. 11, Airport Hill
Sitesi Blok D.6, Bah[ccedil]elievler, Istanbul, Turkey; UFUK AVIA
LOJISTIK LIMITED SIRKETI, with an address at Merkez Mah. Hasat Sok.,
No: 52/6, Sisli, Istanbul, Turkey; and RA HAVACILIK LOJISTIK VE
TASIMACILIK TICARET LIMITED SIRKETI, with an address at Yesilce Mah.
Dalgic SK., 3/101 Kagithane,

[[Page 4899]]

Istanbul, Turkey 34000, 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.
In accordance with the provisions of Section 766.24(e) of the EAR,
Respondents Gulnihal Yegane, Trigron Lojistik Kargo Limited Sirketi,
Ufuk Avia Lojistik Limited Sirketi, or RA Havacilik Lojistik Ve
Tasimacilik Ticaret Limited Sirketi 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.
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. Respondents Gulnihal
Yegane, Trigron Lojistik Kargo Limited Sirketi, Ufuk Avia Lojistik
Limited Sirketi, and RA Havacilik Lojistik Ve Tasimacilik Ticaret
Limited Sirketi may oppose a request to renew this Order by filing a
written submission with the Assistant Secretary 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 served on Respondents and shall be
published in the Federal Register.
This Order is effective immediately and shall remain in effect for
180 days.

Dated: January 26, 2018.
Kevin J. Kurland,
Acting Deputy Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2018-02067 Filed 2-1-18; 8:45 am]
BILLING CODE P

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