Order Relating to AW-Tronics LLC, 62502-62504 [2019-24824]
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62502
Notices
Federal Register
Vol. 84, No. 221
Friday, November 15, 2019
This section of the FEDERAL REGISTER
contains documents other than rules or
proposed rules that are applicable to the
public. Notices of hearings and investigations,
committee meetings, agency decisions and
rulings, delegations of authority, filing of
petitions and applications and agency
statements of organization and functions are
examples of documents appearing in this
section.
DEPARTMENT OF AGRICULTURE
Submission for OMB Review;
Comment Request
November 12, 2019.
The Department of Agriculture will
submit the following information
collection requirement(s) to OMB for
review and clearance under the
Paperwork Reduction Act of 1995,
Public Law 104–13 on or after the date
of publication of this notice. Comments
are requested regarding: (1) Whether the
collection of information is necessary
for the proper performance of the
functions of the agency, including
whether the information will have
practical utility; (2) the accuracy of the
agency’s estimate of burden including
the validity of the methodology and
assumptions used; (3) ways to enhance
the quality, utility and clarity of the
information to be collected; and (4)
ways to minimize the burden of the
collection of information on those who
are to respond, including through the
use of appropriate automated,
electronic, mechanical, or other
technological collection techniques or
other forms of information technology
should be addressed to: Desk Officer for
Agriculture, Office of Information and
Regulatory Affairs, Office of
Management and Budget (OMB), New
Executive Office Building, Washington,
DC; New Executive Office Building, 725
17th Street NW, Washington, DC 20503.
Commenters are encouraged to submit
their comments to OMB via email to:
OIRA_Submission@omb.eop.gov or fax
(202) 395–5806 and to Departmental
Clearance Office, USDA, OCIO, Mail
Stop 7602, Washington, DC 20250–
7602.
Dates: Comments regarding these
information collections are best assured
of having their full effect if received by
December 16, 2019. Copies of the
submission(s) may be obtained by
calling (202) 720–8681. An agency may
not conduct or sponsor a collection of
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16:58 Nov 14, 2019
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information unless the collection of
information displays a currently valid
OMB control number and the agency
informs potential persons who are to
respond to the collection of information
that such persons are not required to
respond to the collection of information
unless it displays a currently valid OMB
control number.
National Agricultural Statistics Service
(NASS)
Title: Field Crops Production—
County Estimates Survey—Row Crops—
Substantive Change.
OMB Control Number: 0535–0002.
Summary of Collection: General
authority for these data collection
activities is granted under U.S. Code
Title 7, Section 2204 which specifies
that ‘‘The Secretary of Agriculture shall
procure and preserve all information
concerning agriculture which he can
obtain . . . by the collection of statistics
. . .’’. The primary objective of the
National Agricultural Statistics Service
(NASS) is to provide data users with
timely and reliable agricultural
production and economic statistics, as
well as environmental and specialty
agricultural related statistics. To
accomplish this objective, NASS relies
on the use of diverse surveys that show
changes within the farming industry
over time.
Numerous surveys included in the
Agricultural Surveys Program (0535–
0213) and the Field Crops Production
docket (0535–0002) are used to set State
and National estimates for numerous
commodities. In order to publish data
on a county level, much larger samples
are needed. Within the Field Crops
docket, are two surveys that collect
supplemental data for the purpose of
publishing county level data.
Historically, the data collection costs for
these two surveys has been partially
funded through a cooperative agreement
between NASS and the USDA Risk
Management Agency (RMA). Due to
program changes, RMA withdrew from
this cooperative agreement this year. As
a result, NASS is forced to reduce the
County Estimates program. In the first
step, NASS will reduce the number of
commodities for which county level
data will be made available. The
commodities for which county level
data will be discontinued are: Dry
edible beans, flaxseed, hay (alfalfa and
other), potatoes, sugarbeets, sugarcane,
sunflower (non-oil and oil varieties) and
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tobacco. In addition, NASS will
discontinue county estimates based on
irrigated/non-irrigated practices. In the
second step, in early 2020 NASS will
evaluate the need for potentially more
cost savings to the county estimate
programs. If additional savings are
needed, changes to small grain county
estimates will be published in the
Federal Register.
This substantive change resulted in an
overall decrease in response burden of
approximately 13,940 hours. The target
sample size for enumerated
questionnaires will be reduced by
approximately 51,000.
Need and Use of the Information:
County estimates for field crops are
used by the Farm Service Agency (FSA)
to carry out their legislative mandates.
The primary use of the data is to
determine average yields by county,
used in determining participating
farmers’ compensation payments. The
information is useful to the Natural
Resources Conservation Service (NRCS)
for administering programs. The
information will also benefit the
agricultural sector more generally by
enabling the rental market for cropland
to operate more competitively.
Description of Respondents: Farms
sampled for the County Estimates—Row
Crops.
Number of Respondents: 124,000.
Frequency of Responses: Reporting:
Once.
Total Burden Hours: 33,894.
Ruth Brown,
Departmental Information Collection
Clearance Officer.
[FR Doc. 2019–24789 Filed 11–14–19; 8:45 am]
BILLING CODE 3410–20–P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
[Case No. 18–BIS–0002]
Order Relating to AW-Tronics LLC
In the Matter of:
AW-Tronics LLC, 7405 SW 79CT, Miami, FL
33143, et al.,
Respondents
The Bureau of Industry and Security,
U.S. Department of Commerce (‘‘BIS’’),
has notified AW-Tronics LLC, of Miami,
Florida, (‘‘AW-Tronics’’) that it has
initiated an administrative proceeding
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Federal Register / Vol. 84, No. 221 / Friday, November 15, 2019 / Notices
against it pursuant to Section 766.3 of
the Export Administration Regulations
(the ‘‘Regulations’’),1 through the
issuance of a Charging Letter alleging
that AW-Tronics, Ali Caby, Arash Caby,
Marjan Caby, and Arrowtronic, LLC
(‘‘Arrowtronic’’) (collectively,
‘‘Respondents’’) violated the
Regulations as follows:
Charge 1 15 CFR 764.2(d)—Conspiracy
Beginning as early as in or about
September 2013, and continuing through in
or about March 2014, Respondents conspired
and acted in concert with others, known and
unknown, to bring about one or more acts
that constitute a violation of the Regulations.
The purpose and object of the conspiracy was
to unlawfully export goods from the United
States through transshipment points to Syria,
including to Syrian Arab Airlines (‘‘Syrian
Air’’), the flag carrier airline of Syria and a
Specially Designated Global Terrorist
(‘‘SDGT’’), and in doing so evade the
prohibitions and licensing requirements of
the Regulations and avoid detection by U.S.
law enforcement.
Pursuant to Section 746.9 of the
Regulations, a license is required for the
export or reexport to Syria of all items subject
to the Regulations, except food and medicine
classified as EAR99. Furthermore, pursuant
to Section 744.12 of the Regulations, a
license is required to export or reexport items
subject to the Regulations to SDGTs. Syrian
Air was designated as an SDGT on May 16,
2013 (see 78 FR 32304, May 29, 2013), under
authority granted to the Department of the
Treasury by Executive Order 13,224, and was
at all times pertinent hereto (and remains)
listed as an SDGT.
At all pertinent times, AW-Tronics and
Arrowtronic were active limited liability
companies incorporated in the State of
1 The Regulations originally issued under the
Export Administration Act of 1979, as amended, 50
U.S.C. 4601–4623 (Supp. III 2015) (‘‘the EAA’’),
which lapsed on August 21, 2001. The President,
through Executive Order 13,222 of August 17, 2001
(3 CFR, 2001 Comp. 783 (2002)), which was
extended by successive Presidential Notices,
continued the Regulations in full force and effect
under the International Emergency Economic
Powers Act, 50 U.S.C. 1701, et seq. (2012)
(‘‘IEEPA’’). On August 13, 2018, the President
signed into law the John S. McCain National
Defense Authorization Act for Fiscal Year 2019,
which includes the Export Control Reform Act of
2018, 50 U.S.C. 4801–4852 (‘‘ECRA’’). While
Section 1766 of ECRA repeals the provisions of the
EAA (except for three sections which are
inapplicable here), Section 1768 of ECRA provides,
in pertinent part, that all rules and regulations that
were made or issued under the EAA, including as
continued in effect pursuant to IEEPA, and were in
effect as of ECRA’s date of enactment (August 13,
2018), shall continue in effect according to their
terms until modified, superseded, set aside, or
revoked through action undertaken pursuant to the
authority provided under ECRA. The Regulations
are currently codified in the Code of Federal
Regulations at 15 CFR parts 730–774 (2018). The
charged violation occurred in 2013–2014. The
Regulations governing the violation at issue are
found in the 2013–2014 versions of the Code of
Federal Regulations (15 CFR parts 730–774 (2013–
2014)). The 2019 Regulations set forth the
procedures that apply to this matter.
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Florida. Documentary evidence and email
correspondence shows that AW-Tronics
personnel represented to various transaction
parties that AW-Tronics and Arrowtronic
(collectively, ‘‘AW-Tronics/Arrowtronic’’)
were the same company. Arash Caby was
listed on Florida corporate records as a
Managing Member of AW-Tronics at the time
of the violations. From January 2014 until its
most recent annual report in January 2017,
Ali Caby was listed on Florida corporate
records as the registered agent of AWTronics. AW-Tronics/Arrowtronic has
maintained offices in Miami, Florida and
Sofia, Bulgaria, as well as other locations.
As part of the conspiracy, the coconspirators used electronic mail (email) and
other forms of communication to
communicate with each other between the
United States, Bulgaria, United Arab
Emirates (UAE), and Syria. Under their
scheme, co-conspirators would purchase
from U.S. suppliers or vendors items subject
to the Regulations for export to Syrian Air in
Syria, including aircraft parts and equipment,
and would provide materially false or
misleading documents and information to
conceal the illegal exports. In furtherance of
the conspiracy, they also would arrange for
payment for the illegal exports to be made
using third-party companies to transfer
payments between the co-conspirators.
Overall, between in or about September 2013
and in or about March 2014, Respondents
engaged in multiple transactions with Syrian
Air involving the export of aircraft parts and
equipment subject to the Regulations from
the Miami office of AW-Tronics/Arrowtronic
to Syrian Air’s transshipment point in Dubai,
United Arab Emirates. These items were
actually intended for, and some or all were
ultimately delivered to, Syrian Air in Syria.
During the conspiracy, Ali Caby managed
the Bulgaria office of AW-Tronics/
Arrowtronic, while Arash Caby managed its
Miami office, and Marjan Caby was its
internal auditor. In furtherance of the
conspiracy, each of these respondents
exchanged numerous emails with other AWTronics/Arrowtronic employees authorizing
or otherwise discussing the above-described
exports to Syrian Air. These email
communications included, for example,
instructions that were designed to prevent
U.S. law enforcement from detecting the
unlawful exports to Syria and to allow them
to continue by changing the routing of
exports from AW-Tronics/Arrowtronic’s
Miami, Florida office. In March 2014, United
States Customs and Border Protection seized
a shipment of micro switches that, according
to Electronic Export Information (EEI) filed in
the Automated Export System, was destined
for Syrian Air in the UAE, when, in fact, the
ultimate destination was Syria. On March 5,
2014, Marjan Caby sent an email to AWTronics/Arrowtronic logistics employees,
copying Alex Caby, that explained, ‘‘We will
. . . have packages stopped by the US
Customs and Border Control [and] have a
case file like this for the same client[,]’’ and
provided instructions stating, ‘‘NOTHING
WILL BE SHIPPED TO CLIENTS IN THE
MIDDLE EAST FROM THE USA OFFICE. WE
HAVE TO SEND TO BG [Bulgaria] THEN TO
CLIENT.’’ (Emphasis in original). ‘‘SYRIA’’
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62503
was specifically listed as one country for
which Respondents would use Bulgaria as a
transshipment point. (Same).
In so doing, Ali Caby, a/k/a Alex Caby,
Arash Caby, a/k/a ‘‘Axel’’ Caby, Marjan Caby,
AW-Tronics, LLC, and Arrowtronic, LLC
violated Section 764.2(d) of the Regulations,
for which they are jointly and severally
liable.
Whereas, BIS and AW-Tronics 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;
and
Whereas, I have approved of the terms
of the Settlement Agreement;
It is therefore ordered:
First, for the period of six (6) years
from the date of this Order AW-Tronics
LLC, with a last known address of 7405
SW 79CT, Miami, FL 33143, and when
acting for or on its behalf, its successors,
assigns, director, officers,
representatives, agents, or employees
(hereinafter collectively referred to as
the ‘‘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 to 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 engaging
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
from any other activity subject to the
Regulations.
Second, 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
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Federal Register / Vol. 84, No. 221 / Friday, November 15, 2019 / Notices
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.
Third, any licenses issued under the
Regulations in which AW-Tronics has
an interest as of the date of this Order
shall be revoked by BIS.
Fourth, 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 this Order.
Fifth, AW-Tronics 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.
Sixth, the Charging Letter, the
Settlement Agreement, and this Order
shall be made available to the public.
Seventh, this Order shall be served on
AW-Tronics and shall be published in
the Federal Register.
This Order, which constitutes the
final agency action in this matter related
to AW-Tronics, is effective immediately.
Dated: October 30, 2019.
Douglas R. Hassebrock,
Director, Office of Export Enforcement,
performing the non-exclusive functions and
duties of the Assistant Secretary of Commerce
for Export Enforcement.
[FR Doc. 2019–24824 Filed 11–14–19; 8:45 am]
BILLING CODE 3510–33–P
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DEPARTMENT OF COMMERCE
International Trade Administration
[A–552–817]
Certain Oil Country Tubular Goods
From the Socialist Republic of
Vietnam: Preliminary Results of
Antidumping Duty Administrative
Review
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(Commerce) preliminarily determines
that certain oil country tubular goods
(OCTG) from the Socialist Republic of
Vietnam (Vietnam) are being sold in the
United States at less than normal value
(NV) during the period of review (POR)
September 1, 2017 through October 31,
2018. Interested parties are invited to
comment on these preliminary results.
DATES: Applicable November 15, 2019.
FOR FURTHER INFORMATION CONTACT: Fred
Baker, AD/CVD Operations, Office VI,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–2924.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On November 15, 2018, Commerce
initiated an administrative review of the
antidumping order on OCTG from
Vietnam.1 The review covers SeAH
Steel VINA Corporation (SSV) and its
U.S. affiliate Pusan Pipe America, Inc.
(PPA).2 Commerce exercised its
discretion to toll all deadlines affected
by the partial federal government
closure from December 22, 2018 through
the resumption of operations on January
29, 2019.3 Commerce extended the
deadline for the preliminary results
until November 8, 2019.4
1 See Initiation of Antidumping and
Countervailing Duty Administrative Reviews, 83 FR
57411 (November 15, 2018) (Initiation Notice).
2 PPA is the importer of record for all of SSV’s
shipments of subject merchandise to the United
States during the POR. See SSV December 19, 2018
Section A Questionnaire Response at 1.
3 See Memorandum, ‘‘Deadlines Affected by the
Partial Shutdown of the Federal Government,’’
dated January 28, 2019. All deadlines in this
segment of the proceeding have been extended by
40 days.
4 See Memoranda, ‘‘Certain Oil Country Tubular
Goods from the Socialist Republic of Vietnam:
Extension of Time Limit for Preliminary Results of
Antidumping Duty Administrative Review,’’ dated
July 2, 2019; and ‘‘Certain Oil Country Tubular
Goods from the Socialist Republic of Vietnam:
Extension of Time Limit for Preliminary Results of
Antidumping Duty Administrative Review,’’ dated
October 9, 2019.
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For a full description of events that
have occurred since the Initiation
Notice, see the Preliminary Decision
Memorandum.5 A list of topics included
in the Preliminary Decision
Memorandum is included as an
appendix to this notice. The Preliminary
Decision Memorandum is a public
document and is on file electronically
via Enforcement and Compliance’s
Antidumping and Countervailing Duty
Centralized Electronic Service System
(ACCESS). ACCESS is available to
registered users at https://
access.trade.gov, and is available to all
parties in the Central Records Unit,
Room B8024 of the main Commerce
building. In addition, a complete
version of the Preliminary Decision
Memorandum can be accessed directly
at https://enforcement.trade.gov/frn/.
The signed and electronic versions of
the Preliminary Decision Memorandum
are identical in content.
Scope of the Order
The merchandise covered by the order
is certain OCTG. The merchandise
subject to the order is currently
classified in the Harmonized Tariff
Schedule of the United States (HTSUS)
under item numbers: 7304.29.10.10,
7304.29.10.20, 7304.29.10.30,
7304.29.10.40, 7304.29.10.50,
7304.29.10.60, 7304.29.10.80,
7304.29.20.10, 7304.29.20.20,
7304.29.20.30, 7304.29.20.40,
7304.29.20.50, 7304.29.20.60,
7304.29.20.80, 7304.29.31.10,
7304.29.31.20, 7304.29.31.30,
7304.29.31.40, 7304.29.31.50,
7304.29.31.60, 7304.29.31.80,
7304.29.41.10, 7304.29.41.20,
7304.29.41.30, 7304.29.41.40,
7304.29.41.50, 7304.29.41.60,
7304.29.41.80, 7304.29.50.15,
7304.29.50.30, 7304.29.50.45,
7304.29.50.60, 7304.29.50.75,
7304.29.61.15, 7304.29.61.30,
7304.29.61.45, 7304.29.61.60,
7304.29.61.75, 7305.20.20.00,
7305.20.40.00, 7305.20.60.00,
7305.20.80.00, 7306.29.10.30,
7306.29.10.90, 7306.29.20.00,
7306.29.31.00, 7306.29.41.00,
7306.29.60.10, 7306.29.60.50,
7306.29.81.10, and 7306.29.81.50.
The merchandise subject to the order
may also enter under the following
HTSUS item numbers: 7304.39.00.24,
7304.39.00.28, 7304.39.00.32,
7304.39.00.36, 7304.39.00.40,
5 See Memorandum, ‘‘Certain Oil Country
Tubular Goods from the Socialist Republic of
Vietnam: Decision Memorandum for the
Preliminary Results of Antidumping Duty
Administrative Review,’’ dated concurrently with,
and hereby adopted by, this notice (Preliminary
Decision Memorandum).
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]]>Agencies
[Federal Register Volume 84, Number 221 (Friday, November 15, 2019)]
[Notices]
[Pages 62502-62504]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-24824]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
[Case No. 18-BIS-0002]
Order Relating to AW-Tronics LLC
In the Matter of:
AW-Tronics LLC, 7405 SW 79CT, Miami, FL 33143, et al.,
Respondents
The Bureau of Industry and Security, U.S. Department of Commerce
(``BIS''), has notified AW-Tronics LLC, of Miami, Florida, (``AW-
Tronics'') that it has initiated an administrative proceeding
[[Page 62503]]
against it pursuant to Section 766.3 of the Export Administration
Regulations (the ``Regulations''),\1\ through the issuance of a
Charging Letter alleging that AW-Tronics, Ali Caby, Arash Caby, Marjan
Caby, and Arrowtronic, LLC (``Arrowtronic'') (collectively,
``Respondents'') violated the Regulations as follows:
---------------------------------------------------------------------------
\1\ The Regulations originally issued under the Export
Administration Act of 1979, as amended, 50 U.S.C. 4601-4623 (Supp.
III 2015) (``the EAA''), which lapsed on August 21, 2001. The
President, through Executive Order 13,222 of August 17, 2001 (3 CFR,
2001 Comp. 783 (2002)), which was extended by successive
Presidential Notices, continued the Regulations in full force and
effect under the International Emergency Economic Powers Act, 50
U.S.C. 1701, et seq. (2012) (``IEEPA''). On August 13, 2018, the
President signed into law the John S. McCain National Defense
Authorization Act for Fiscal Year 2019, which includes the Export
Control Reform Act of 2018, 50 U.S.C. 4801-4852 (``ECRA''). While
Section 1766 of ECRA repeals the provisions of the EAA (except for
three sections which are inapplicable here), Section 1768 of ECRA
provides, in pertinent part, that all rules and regulations that
were made or issued under the EAA, including as continued in effect
pursuant to IEEPA, and were in effect as of ECRA's date of enactment
(August 13, 2018), shall continue in effect according to their terms
until modified, superseded, set aside, or revoked through action
undertaken pursuant to the authority provided under ECRA. The
Regulations are currently codified in the Code of Federal
Regulations at 15 CFR parts 730-774 (2018). The charged violation
occurred in 2013-2014. The Regulations governing the violation at
issue are found in the 2013-2014 versions of the Code of Federal
Regulations (15 CFR parts 730-774 (2013-2014)). The 2019 Regulations
set forth the procedures that apply to this matter.
---------------------------------------------------------------------------
Charge 1 15 CFR 764.2(d)--Conspiracy
Beginning as early as in or about September 2013, and continuing
through in or about March 2014, Respondents conspired and acted in
concert with others, known and unknown, to bring about one or more
acts that constitute a violation of the Regulations. The purpose and
object of the conspiracy was to unlawfully export goods from the
United States through transshipment points to Syria, including to
Syrian Arab Airlines (``Syrian Air''), the flag carrier airline of
Syria and a Specially Designated Global Terrorist (``SDGT''), and in
doing so evade the prohibitions and licensing requirements of the
Regulations and avoid detection by U.S. law enforcement.
Pursuant to Section 746.9 of the Regulations, a license is
required for the export or reexport to Syria of all items subject to
the Regulations, except food and medicine classified as EAR99.
Furthermore, pursuant to Section 744.12 of the Regulations, a
license is required to export or reexport items subject to the
Regulations to SDGTs. Syrian Air was designated as an SDGT on May
16, 2013 (see 78 FR 32304, May 29, 2013), under authority granted to
the Department of the Treasury by Executive Order 13,224, and was at
all times pertinent hereto (and remains) listed as an SDGT.
At all pertinent times, AW-Tronics and Arrowtronic were active
limited liability companies incorporated in the State of Florida.
Documentary evidence and email correspondence shows that AW-Tronics
personnel represented to various transaction parties that AW-Tronics
and Arrowtronic (collectively, ``AW-Tronics/Arrowtronic'') were the
same company. Arash Caby was listed on Florida corporate records as
a Managing Member of AW-Tronics at the time of the violations. From
January 2014 until its most recent annual report in January 2017,
Ali Caby was listed on Florida corporate records as the registered
agent of AW-Tronics. AW-Tronics/Arrowtronic has maintained offices
in Miami, Florida and Sofia, Bulgaria, as well as other locations.
As part of the conspiracy, the co-conspirators used electronic
mail (email) and other forms of communication to communicate with
each other between the United States, Bulgaria, United Arab Emirates
(UAE), and Syria. Under their scheme, co-conspirators would purchase
from U.S. suppliers or vendors items subject to the Regulations for
export to Syrian Air in Syria, including aircraft parts and
equipment, and would provide materially false or misleading
documents and information to conceal the illegal exports. In
furtherance of the conspiracy, they also would arrange for payment
for the illegal exports to be made using third-party companies to
transfer payments between the co-conspirators. Overall, between in
or about September 2013 and in or about March 2014, Respondents
engaged in multiple transactions with Syrian Air involving the
export of aircraft parts and equipment subject to the Regulations
from the Miami office of AW-Tronics/Arrowtronic to Syrian Air's
transshipment point in Dubai, United Arab Emirates. These items were
actually intended for, and some or all were ultimately delivered to,
Syrian Air in Syria.
During the conspiracy, Ali Caby managed the Bulgaria office of
AW-Tronics/Arrowtronic, while Arash Caby managed its Miami office,
and Marjan Caby was its internal auditor. In furtherance of the
conspiracy, each of these respondents exchanged numerous emails with
other AW-Tronics/Arrowtronic employees authorizing or otherwise
discussing the above-described exports to Syrian Air. These email
communications included, for example, instructions that were
designed to prevent U.S. law enforcement from detecting the unlawful
exports to Syria and to allow them to continue by changing the
routing of exports from AW-Tronics/Arrowtronic's Miami, Florida
office. In March 2014, United States Customs and Border Protection
seized a shipment of micro switches that, according to Electronic
Export Information (EEI) filed in the Automated Export System, was
destined for Syrian Air in the UAE, when, in fact, the ultimate
destination was Syria. On March 5, 2014, Marjan Caby sent an email
to AW-Tronics/Arrowtronic logistics employees, copying Alex Caby,
that explained, ``We will . . . have packages stopped by the US
Customs and Border Control [and] have a case file like this for the
same client[,]'' and provided instructions stating, ``NOTHING WILL
BE SHIPPED TO CLIENTS IN THE MIDDLE EAST FROM THE USA OFFICE. WE
HAVE TO SEND TO BG [Bulgaria] THEN TO CLIENT.'' (Emphasis in
original). ``SYRIA'' was specifically listed as one country for
which Respondents would use Bulgaria as a transshipment point.
(Same).
In so doing, Ali Caby, a/k/a Alex Caby, Arash Caby, a/k/a
``Axel'' Caby, Marjan Caby, AW-Tronics, LLC, and Arrowtronic, LLC
violated Section 764.2(d) of the Regulations, for which they are
jointly and severally liable.
Whereas, BIS and AW-Tronics 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; and
Whereas, I have approved of the terms of the Settlement Agreement;
It is therefore ordered:
First, for the period of six (6) years from the date of this Order
AW-Tronics LLC, with a last known address of 7405 SW 79CT, Miami, FL
33143, and when acting for or on its behalf, its successors, assigns,
director, officers, representatives, agents, or employees (hereinafter
collectively referred to as the ``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 to 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 engaging 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 from any other activity subject to the Regulations.
Second, 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
[[Page 62504]]
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.
Third, any licenses issued under the Regulations in which AW-
Tronics has an interest as of the date of this Order shall be revoked
by BIS.
Fourth, 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
this Order.
Fifth, AW-Tronics 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.
Sixth, the Charging Letter, the Settlement Agreement, and this
Order shall be made available to the public.
Seventh, this Order shall be served on AW-Tronics and shall be
published in the Federal Register.
This Order, which constitutes the final agency action in this
matter related to AW-Tronics, is effective immediately.
Dated: October 30, 2019.
Douglas R. Hassebrock,
Director, Office of Export Enforcement, performing the non-exclusive
functions and duties of the Assistant Secretary of Commerce for Export
Enforcement.
[FR Doc. 2019-24824 Filed 11-14-19; 8:45 am]
BILLING CODE 3510-33-P
