Aviastar-TU, 5 b. 7 Leningradsky prospekt g. Moskva, 125040, Moscow, Russia; Order Renewing Temporary Denial of Export Privileges, 63760-63762 [2022-22815]
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63760
Notices
Federal Register
Vol. 87, No. 202
Thursday, October 20, 2022
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.
On September 13, 2022, BIS, through
OEE, submitted a written request for
renewal of the TDO that issued on April
21, 2022. The written request was made
more than 20 days before the TDO’s
scheduled expiration. A copy of the
renewal request was sent to Aviastar in
accordance with sections 766.5 and
766.24(d) of the Regulations. No
opposition to the renewal of the TDO
has been received.
DEPARTMENT OF COMMERCE
II. Renewal of the TDO
Bureau of Industry and Security
A. Legal Standard
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, or any order, license or
authorization issued thereunder. 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 ‘‘lack of
information establishing the precise
time a violation may occur does not
preclude a finding that a violation is
imminent, so long as there is sufficient
reason to believe the likelihood of a
violation.’’ Id.
Aviastar—TU, 5 b. 7 Leningradsky
prospekt g. Moskva, 125040, Moscow,
Russia; Order Renewing Temporary
Denial of Export Privileges
Pursuant to section 766.24 of the
Export Administration Regulations, 15
CRR parts 730–774 (2021) (‘‘EAR’’ or
‘‘the Regulations’’),1 I hereby grant the
request of the Office of Export
Enforcement (‘‘OEE’’) to renew the
temporary denial order (‘‘TDO’’) issued
in this matter on April 21, 2022. I find
that renewal of this order is necessary
in the public interest to prevent an
imminent violation of the Regulations.
lotter on DSK11XQN23PROD with NOTICES1
I. Procedural History
On April 21, 2022, I signed an order
denying Aviastar—TU’s (‘‘Aviastar’’)
export privileges for a period of 180
days on the ground that issuance of the
order was necessary in the public
interest to prevent an imminent
violation of the Regulations. The order
was issued ex parte pursuant to section
766.24(a) of the Regulations and was
effective upon issuance.2
1 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 Export
Administration Act, 50 U.S.C. app. 2401 et seq.
(‘‘EAA’’), (except for three sections which are
inapplicable here), Section 1768 of ECRA provides,
in pertinent part, that all orders, rules, regulations,
and other forms of administrative action that were
made or issued under the EAA, including as
continued in effect pursuant to to the International
Emergency Economic Powers Act, 50 U.S.C. 1701
et seq. (‘‘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. Moreover, Section 1761(a)(5) of ECRA
authorizes the issuance of temporary denial orders.
50 U.S.C. 4820(a)(5).
2 The TDO was published in the Federal Register
on April 26, 2022 (87 FR 24514).
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B. The TDO and BIS’s Request for
Renewal
The U.S. Commerce Department,
through BIS, responded to the Russian
Federation’s (‘‘Russia’s’’) further
invasion of Ukraine by implementing a
sweeping series of stringent export
controls that severely restrict Russia’s
access to technologies and other items
that it needs to sustain its aggressive
military capabilities. These controls
primarily target Russia’s defense,
aerospace, and maritime sectors and are
intended to cut off Russia’s access to
vital technological inputs, atrophy key
sectors of its industrial base, and
undercut Russia’s strategic ambitions to
exert influence on the world stage.
PO 00000
Frm 00001
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Effective February 24, 2022, BIS
imposed expansive controls on aviationrelated (e.g., Commerce Control List
Categories 7 and 9) items to Russia,
including a license requirement for the
export, reexport or transfer (in-country)
to Russia of any aircraft or aircraft parts
specified in Export Control
Classification Number (ECCN) 9A991
(section 746.8(a)(1) of the EAR).3 BIS
will review any export or reexport
license applications for such items
under a policy of denial. See section
746.8(b). Effective March 2, 2022, BIS
excluded any aircraft registered in,
owned, or controlled by, or under
charter or lease by Russia or a national
of Russia from being eligible for license
exception Aircraft, Vessels, and
Spacecraft (AVS) (section 740.15 of the
EAR).4 Accordingly, any U.S.-origin
aircraft or foreign aircraft that includes
more than 25% controlled U.S.-origin
content, and that is registered in,
owned, or controlled by, or under
charter or lease by Russia or a national
of Russia, is subject to a license
requirement before it can travel to
Russia.
OEE’s request for renewal is based
upon the facts underlying the issuance
of the initial TDO and the evidence
developed over the course of this
investigation, which indicate a blatant
disregard for U.S. export controls, as
well as the TDO. Specifically, the initial
TDO, issued on April 21, 2022, was
based on evidence that Aviastar engaged
in conduct prohibited by the
Regulations by operating multiple
aircraft subject to the EAR and classified
under ECCN 9A991.b on flights into
Russia after March 2, 2022, from
destinations including Hangzhou,
China, Shenzhen, China, and
Zhengzhou, China, without the required
BIS authorization.5
3 87 FR 12226 (Mar. 3, 2022). Additionally, BIS
published a final rule effective April 8, 2022, which
imposed licensing requirements on items controlled
on the Commerce Control List (‘‘CCL’’) under
Categories 0–2 that are destined for Russia or
Belarus. Accordingly, now all CCL items require
export, reexport, and transfer (in-country) licenses
if destined for or within Russia or Belarus. 87 FR
22130 (Apr. 14, 2022).
4 87 FR 13048 (Mar. 8, 2022).
5 Publicly available flight tracking information
shows that on April 10, 2022, serial number (SN)
27054 flew from Hangzhou, China to Novosibirsk,
Russia and that on April 11, 2022 and April 14,
2022, respectively, SN 25696 and SN 25731 flew
from Hangzhou, China to Novosibirsk, Russia. In
addition, on April 12, 2022, SN 27053 flew from
Shenzhen, China to Abakan, Russia.
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Federal Register / Vol. 87, No. 202 / Thursday, October 20, 2022 / Notices
In its September 13, 2022, request for
renewal of the TDO, BIS has submitted
evidence that Aviastar continues to
operate in violation of the April 21,
2022 TDO and/or the Regulations by
operating aircraft subject to the EAR and
classified under ECCN 9A991.b on
Tail No.
RA–73355
RA–73355
RA–73355
RA–73355
RA–73351
RA–73351
RA–73351
RA–73351
RA–73352
RA–73352
RA–73352
RA–73352
RA–73354
RA–73354
RA–73354
RA–73354
Serial No.
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
27054
27054
27054
27054
25696
25696
25696
25696
25731
25731
25731
25731
27053
27053
27053
27053
Aircraft Type
757–223
757–223
757–223
757–223
757–223
757–223
757–223
757–223
757–223
757–223
757–223
757–223
757–223
757–223
757–223
757–223
(PCF)
(PCF)
(PCF)
(PCF)
(PCF)
(PCF)
(PCF)
(PCF)
(PCF)
(PCF)
(PCF)
(PCF)
(PCF)
(PCF)
(PCF)
(PCF)
on domestic flights within Russia
potentially in violation of section
736.2(b)(10) of the Regulations.6
Information about those flights includes,
but is not limited to, the following:
Departure/Arrival Cities
(B752)
(B752)
(B752)
(B752)
(B752)
(B752)
(B752)
(B752)
(B752)
(B752)
(B752)
(B752)
(B752)
(B752)
(B752)
(B752)
.......
.......
.......
.......
.......
.......
.......
.......
.......
.......
.......
.......
.......
.......
.......
.......
Zhengzhou, CN/Novosibirsk, RU .....................
Irkutsk, RU/Moscow, RU ..................................
Norilsk, RU/Novosibirsk, RU ............................
Moscow, RU/Mirny, RU ...................................
Zhengzhou, CN/Novosibirsk, RU .....................
Moscow, RU/Norilsk, RU .................................
Moscow, RU/Norilsk, RU .................................
Ulan-Ude, RU/Moscow, RU .............................
Hangzhou, CN/Novosibirsk, RU ......................
Irkutsk, RU/Moscow, RU ..................................
Moscow, RU/Norilsk, RU .................................
Moscow, RU/Norilsk, RU .................................
Hangzhou, CN/Novosibirsk, RU ......................
Moscow, RU/Norilsk, RU .................................
Moscow, RU/Novosibirsk, RU ..........................
Moscow, RU/Mirny, RU ...................................
Dates
May 22, 2022.
September 25, 2022.
September 30, 2022.
October 4, 2022.
May 24, 2022.
September 23, 2022.
September 27, 2022.
October 1, 2022.
May 25, 2022.
September 22, 2022.
October 1, 2022.
October 7, 2022.
May 25, 2022.
September 28, 2022.
September 30, 2022.
October 7, 2022.
It is therefore ordered:
First, Aviastar-TU, 5 b. 7
Leningradsky prospekt, g. Moskva,
125040, Moscow, Russia, when acting
for or on their behalf, any successors or
assigns, agents, or employees 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
EAR, or in any other activity subject to
the EAR including, but not limited to:
A. Applying for, obtaining, or using
any license (except directly related to
safety of flight), 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 except directly
related to safety of flight and authorized
by BIS pursuant to section 764.3(a)(2) of
the Regulations, or engaging in any
other activity subject to the EAR except
directly related to safety of flight and
authorized by BIS pursuant to section
764.3(a)(2) of 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 EAR, or from any
other activity subject to the EAR except
directly related to safety of flight and
authorized by BIS pursuant to section
764.3(a)(2) of the Regulations.
Second, that no person may, directly
or indirectly, do any of the following:
A. Export, reexport, or transfer (incountry) to or on behalf of Aviastar any
item subject to the EAR except directly
related to safety of flight and authorized
by BIS pursuant to section 764.3(a)(2) of
the Regulations;
B. Take any action that facilitates the
acquisition or attempted acquisition by
Aviastar 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 Aviastar acquires
or attempts to acquire such ownership,
possession or control except directly
related to safety of flight and authorized
by BIS pursuant to section 764.3(a)(2) of
the Regulations;
C. Take any action to acquire from or
to facilitate the acquisition or attempted
acquisition from Aviastar of any item
subject to the EAR that has been
exported from the United States except
directly related to safety of flight and
authorized by BIS pursuant to section
764.3(a)(2) of the Regulations;
D. Obtain from Aviastar 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 except
directly related to safety of flight and
6 Section 736.2(b)(10) of the EAR provides:
General Prohibition Ten—Proceeding with
transactions with knowledge that a violation has
occurred or is about to occur (Knowledge Violation
to Occur). You may not sell, transfer, export,
reexport, finance, order, buy, remove, conceal,
store, use, loan, dispose of, transport, forward, or
otherwise service, in whole or in part, any item
subject to the EAR and exported or to be exported
with knowledge that a violation of the Export
Administration Regulations, the Export
Administration Act or any order, license, License
Exception, or other authorization issued thereunder
has occurred, is about to occur, or is intended to
occur in connection with the item. Nor may you
rely upon any license or License Exception after
notice to you of the suspension or revocation of that
license or exception. There are no License
Exceptions to this General Prohibition Ten in part
740 of the EAR. (emphasis in original).
III. Findings
Under the applicable standard set
forth in section 766.24 of the
Regulations and my review of the entire
record, I find that the evidence
presented by BIS convincingly
demonstrates that Aviastar has acted in
violation of the Regulations and the
TDO; that such violations have been
significant, deliberate and covert; and
that given the foregoing and the nature
of the matters under investigation, there
is a likelihood of imminent violations.
Therefore, renewal of the TDO is
necessary in the public interest to
prevent imminent violation of the
Regulations and to give notice to
companies and individuals in the
United States and abroad that they
should avoid dealing with Aviastar, in
connection with export and reexport
transactions involving items subject to
the Regulations and in connection with
any other activity subject to the
Regulations.
IV. Order
lotter on DSK11XQN23PROD with NOTICES1
flights into Russia. Specifically, BIS’s
evidence and related investigation
indicated that Aviastar has continued to
operate aircraft subject to the EAR,
including, but not limited to, flights into
and out of Russia from/to Hangzhou,
China and Zhengzhou, China, as well as
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Federal Register / Vol. 87, No. 202 / Thursday, October 20, 2022 / Notices
lotter on DSK11XQN23PROD with NOTICES1
authorized by BIS pursuant to section
764.3(a)(2) of the Regulations; 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 Aviastar, or
service any item, of whatever origin,
that is owned, possessed or controlled
by Aviastar if such service involves the
use of any item subject to the EAR that
has been or will be exported from the
United States except directly related to
safety of flight and authorized by BIS
pursuant to section 764.3(a)(2) of the
Regulations. 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 Aviastar by
ownership, control, position of
responsibility, affiliation, or other
connection in the conduct of trade or
business may also be made subject to
the provisions of this Order.
In accordance with the provisions of
sections 766.24(e) of the EAR, Aviastar
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. A renewal
request may be opposed by Aviastar as
provided in section 766.24(d), by filing
a written submission with the Assistant
Secretary of Commerce for Export
Enforcement, which must be received
not later than seven days before the
expiration date of the Order.
A copy of this Order shall be provided
to Aviastar, and shall be published in
the Federal Register.
This Order is effective immediately
and shall remain in effect for 180 days.
Matthew S. Axelrod,
Assistant Secretary of Commerce for Export
Enforcement.
[FR Doc. 2022–22815 Filed 10–19–22; 8:45 am]
BILLING CODE 3510–DT–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
[RTID 0648–XC463]
New England Fishery Management
Council; Public Meeting
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice of public meeting.
AGENCY:
The New England Fishery
Management Council (Council) is
scheduling a public meeting of its Skate
Committee via webinar to consider
actions affecting New England fisheries
in the exclusive economic zone (EEZ).
Recommendations from this group will
be brought to the full Council for formal
consideration and action, if appropriate.
DATES: This webinar will be held on
Monday, November 7, 2022, at 10 a.m.
Webinar registration URL information:
https://attendee.gotowebinar.com/
register/7734602932755043339.
ADDRESSES: Council address: New
England Fishery Management Council,
50 Water Street, Mill 2, Newburyport,
MA 01950.
FOR FURTHER INFORMATION CONTACT:
Thomas A. Nies, Executive Director,
New England Fishery Management
Council; telephone: (978) 465–0492.
SUPPLEMENTARY INFORMATION: The Skate
Committee will finalize
recommendations for 2023 Council
management priorities regarding skates.
Other business may be discussed, as
necessary. Also, a closed session for
Committee members only will take
place to review Skate Advisory Panel
applications for the 2023–2025 and
provide recommendations.
Although non-emergency issues not
contained on the agenda may come
before this Council for discussion, those
issues may not be the subject of formal
action during this meeting. Council
action will be restricted to those issues
specifically listed in this notice and any
issues arising after publication of this
notice that require emergency action
under section 305(c) of the MagnusonStevens Act, provided the public has
been notified of the Council’s intent to
take final action to address the
emergency. The public also should be
aware that the meeting will be recorded.
Consistent with 16 U.S.C. 1852, a copy
of the recording is available upon
request.
SUMMARY:
Special Accommodations
This meeting is physically accessible
to people with disabilities. Requests for
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16:50 Oct 19, 2022
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sign language interpretation or other
auxiliary aids should be directed to
Thomas A. Nies, Executive Director, at
(978) 465–0492, at least 5 days prior to
the meeting date.
Authority: 16 U.S.C. 1801 et seq.
Dated: October 17, 2022.
Rey Israel Marquez,
Acting Deputy Director, Office of Sustainable
Fisheries, National Marine Fisheries Service.
[FR Doc. 2022–22808 Filed 10–19–22; 8:45 am]
BILLING CODE 3510–22–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
[RTID 0648–XC474]
Magnuson-Stevens Act Provisions;
General Provisions for Domestic
Fisheries; Application for Exempted
Fishing Permits
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice; request for comments.
AGENCY:
The Assistant Regional
Administrator for Sustainable Fisheries,
Greater Atlantic Region, NMFS, has
made a preliminary determination that
an Exempted Fishing Permit (EFP)
application contains all of the required
information and warrants further
consideration. The EFP would allow
commercial fishing vessels to fish
outside fishery regulations in support of
research conducted by the applicant.
Regulations under the MagnusonStevens Fishery Conservation and
Management Act require publication of
this notification to provide interested
parties the opportunity to comment on
applications for proposed EFPs.
DATES: Comments must be received on
or before November 4, 2022.
ADDRESSES: You may submit written
comments by any of the following
methods:
• Email: nmfs.gar.efp@noaa.gov.
Include in the subject line ‘‘MREM 4.5inch Mesh and Underutilized Species
EFP.’’
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Samantha Tolken, Fishery Management
Specialist, Samantha.Tolken@noaa.gov,
978–675–2176.
SUPPLEMENTARY INFORMATION: The
applicant submitted a complete
application for an EFP to conduct
commercial fishing activities that the
regulations would otherwise restrict.
This EFP would exempt the
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]]>Agencies
[Federal Register Volume 87, Number 202 (Thursday, October 20, 2022)]
[Notices]
[Pages 63760-63762]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-22815]
========================================================================
Notices
Federal Register
________________________________________________________________________
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.
========================================================================
Federal Register / Vol. 87, No. 202 / Thursday, October 20, 2022 /
Notices
[[Page 63760]]
=======================================================================
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Aviastar--TU, 5 b. 7 Leningradsky prospekt g. Moskva, 125040,
Moscow, Russia; Order Renewing Temporary Denial of Export Privileges
Pursuant to section 766.24 of the Export Administration
Regulations, 15 CRR parts 730-774 (2021) (``EAR'' or ``the
Regulations''),\1\ I hereby grant the request of the Office of Export
Enforcement (``OEE'') to renew the temporary denial order (``TDO'')
issued in this matter on April 21, 2022. I find that renewal of this
order is necessary in the public interest to prevent an imminent
violation of the Regulations.
---------------------------------------------------------------------------
\1\ 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 Export Administration Act, 50 U.S.C. app. 2401 et
seq. (``EAA''), (except for three sections which are inapplicable
here), Section 1768 of ECRA provides, in pertinent part, that all
orders, rules, regulations, and other forms of administrative action
that were made or issued under the EAA, including as continued in
effect pursuant to to the International Emergency Economic Powers
Act, 50 U.S.C. 1701 et seq. (``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. Moreover, Section 1761(a)(5) of ECRA authorizes the
issuance of temporary denial orders. 50 U.S.C. 4820(a)(5).
---------------------------------------------------------------------------
I. Procedural History
On April 21, 2022, I signed an order denying Aviastar--TU's
(``Aviastar'') export privileges for a period of 180 days on the ground
that issuance of the order was necessary in the public interest to
prevent an imminent violation of the Regulations. The order was issued
ex parte pursuant to section 766.24(a) of the Regulations and was
effective upon issuance.\2\
---------------------------------------------------------------------------
\2\ The TDO was published in the Federal Register on April 26,
2022 (87 FR 24514).
---------------------------------------------------------------------------
On September 13, 2022, BIS, through OEE, submitted a written
request for renewal of the TDO that issued on April 21, 2022. The
written request was made more than 20 days before the TDO's scheduled
expiration. A copy of the renewal request was sent to Aviastar in
accordance with sections 766.5 and 766.24(d) of the Regulations. No
opposition to the renewal of the TDO has been received.
II. Renewal of the TDO
A. Legal Standard
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, or any order, license or authorization
issued thereunder. 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 ``lack of information
establishing the precise time a violation may occur does not preclude a
finding that a violation is imminent, so long as there is sufficient
reason to believe the likelihood of a violation.'' Id.
B. The TDO and BIS's Request for Renewal
The U.S. Commerce Department, through BIS, responded to the Russian
Federation's (``Russia's'') further invasion of Ukraine by implementing
a sweeping series of stringent export controls that severely restrict
Russia's access to technologies and other items that it needs to
sustain its aggressive military capabilities. These controls primarily
target Russia's defense, aerospace, and maritime sectors and are
intended to cut off Russia's access to vital technological inputs,
atrophy key sectors of its industrial base, and undercut Russia's
strategic ambitions to exert influence on the world stage. Effective
February 24, 2022, BIS imposed expansive controls on aviation-related
(e.g., Commerce Control List Categories 7 and 9) items to Russia,
including a license requirement for the export, reexport or transfer
(in-country) to Russia of any aircraft or aircraft parts specified in
Export Control Classification Number (ECCN) 9A991 (section 746.8(a)(1)
of the EAR).\3\ BIS will review any export or reexport license
applications for such items under a policy of denial. See section
746.8(b). Effective March 2, 2022, BIS excluded any aircraft registered
in, owned, or controlled by, or under charter or lease by Russia or a
national of Russia from being eligible for license exception Aircraft,
Vessels, and Spacecraft (AVS) (section 740.15 of the EAR).\4\
Accordingly, any U.S.-origin aircraft or foreign aircraft that includes
more than 25% controlled U.S.-origin content, and that is registered
in, owned, or controlled by, or under charter or lease by Russia or a
national of Russia, is subject to a license requirement before it can
travel to Russia.
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\3\ 87 FR 12226 (Mar. 3, 2022). Additionally, BIS published a
final rule effective April 8, 2022, which imposed licensing
requirements on items controlled on the Commerce Control List
(``CCL'') under Categories 0-2 that are destined for Russia or
Belarus. Accordingly, now all CCL items require export, reexport,
and transfer (in-country) licenses if destined for or within Russia
or Belarus. 87 FR 22130 (Apr. 14, 2022).
\4\ 87 FR 13048 (Mar. 8, 2022).
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OEE's request for renewal is based upon the facts underlying the
issuance of the initial TDO and the evidence developed over the course
of this investigation, which indicate a blatant disregard for U.S.
export controls, as well as the TDO. Specifically, the initial TDO,
issued on April 21, 2022, was based on evidence that Aviastar engaged
in conduct prohibited by the Regulations by operating multiple aircraft
subject to the EAR and classified under ECCN 9A991.b on flights into
Russia after March 2, 2022, from destinations including Hangzhou,
China, Shenzhen, China, and Zhengzhou, China, without the required BIS
authorization.\5\
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\5\ Publicly available flight tracking information shows that on
April 10, 2022, serial number (SN) 27054 flew from Hangzhou, China
to Novosibirsk, Russia and that on April 11, 2022 and April 14,
2022, respectively, SN 25696 and SN 25731 flew from Hangzhou, China
to Novosibirsk, Russia. In addition, on April 12, 2022, SN 27053
flew from Shenzhen, China to Abakan, Russia.
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[[Page 63761]]
In its September 13, 2022, request for renewal of the TDO, BIS has
submitted evidence that Aviastar continues to operate in violation of
the April 21, 2022 TDO and/or the Regulations by operating aircraft
subject to the EAR and classified under ECCN 9A991.b on flights into
Russia. Specifically, BIS's evidence and related investigation
indicated that Aviastar has continued to operate aircraft subject to
the EAR, including, but not limited to, flights into and out of Russia
from/to Hangzhou, China and Zhengzhou, China, as well as on domestic
flights within Russia potentially in violation of section 736.2(b)(10)
of the Regulations.\6\ Information about those flights includes, but is
not limited to, the following:
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\6\ Section 736.2(b)(10) of the EAR provides: General
Prohibition Ten--Proceeding with transactions with knowledge that a
violation has occurred or is about to occur (Knowledge Violation to
Occur). You may not sell, transfer, export, reexport, finance,
order, buy, remove, conceal, store, use, loan, dispose of,
transport, forward, or otherwise service, in whole or in part, any
item subject to the EAR and exported or to be exported with
knowledge that a violation of the Export Administration Regulations,
the Export Administration Act or any order, license, License
Exception, or other authorization issued thereunder has occurred, is
about to occur, or is intended to occur in connection with the item.
Nor may you rely upon any license or License Exception after notice
to you of the suspension or revocation of that license or exception.
There are no License Exceptions to this General Prohibition Ten in
part 740 of the EAR. (emphasis in original).
----------------------------------------------------------------------------------------------------------------
Departure/Arrival
Tail No. Serial No. Aircraft Type Cities Dates
----------------------------------------------------------------------------------------------------------------
RA-73355......................... 27054 757-223 (PCF) Zhengzhou, CN/ May 22, 2022.
(B752). Novosibirsk, RU.
RA-73355......................... 27054 757-223 (PCF) Irkutsk, RU/Moscow, September 25, 2022.
(B752). RU.
RA-73355......................... 27054 757-223 (PCF) Norilsk, RU/ September 30, 2022.
(B752). Novosibirsk, RU.
RA-73355......................... 27054 757-223 (PCF) Moscow, RU/Mirny, October 4, 2022.
(B752). RU.
RA-73351......................... 25696 757-223 (PCF) Zhengzhou, CN/ May 24, 2022.
(B752). Novosibirsk, RU.
RA-73351......................... 25696 757-223 (PCF) Moscow, RU/Norilsk, September 23, 2022.
(B752). RU.
RA-73351......................... 25696 757-223 (PCF) Moscow, RU/Norilsk, September 27, 2022.
(B752). RU.
RA-73351......................... 25696 757-223 (PCF) Ulan-Ude, RU/ October 1, 2022.
(B752). Moscow, RU.
RA-73352......................... 25731 757-223 (PCF) Hangzhou, CN/ May 25, 2022.
(B752). Novosibirsk, RU.
RA-73352......................... 25731 757-223 (PCF) Irkutsk, RU/Moscow, September 22, 2022.
(B752). RU.
RA-73352......................... 25731 757-223 (PCF) Moscow, RU/Norilsk, October 1, 2022.
(B752). RU.
RA-73352......................... 25731 757-223 (PCF) Moscow, RU/Norilsk, October 7, 2022.
(B752). RU.
RA-73354......................... 27053 757-223 (PCF) Hangzhou, CN/ May 25, 2022.
(B752). Novosibirsk, RU.
RA-73354......................... 27053 757-223 (PCF) Moscow, RU/Norilsk, September 28, 2022.
(B752). RU.
RA-73354......................... 27053 757-223 (PCF) Moscow, RU/ September 30, 2022.
(B752). Novosibirsk, RU.
RA-73354......................... 27053 757-223 (PCF) Moscow, RU/Mirny, October 7, 2022.
(B752). RU.
----------------------------------------------------------------------------------------------------------------
III. Findings
Under the applicable standard set forth in section 766.24 of the
Regulations and my review of the entire record, I find that the
evidence presented by BIS convincingly demonstrates that Aviastar has
acted in violation of the Regulations and the TDO; that such violations
have been significant, deliberate and covert; and that given the
foregoing and the nature of the matters under investigation, there is a
likelihood of imminent violations. Therefore, renewal of the TDO is
necessary in the public interest to prevent imminent violation of the
Regulations and to give notice to companies and individuals in the
United States and abroad that they should avoid dealing with Aviastar,
in connection with export and reexport transactions involving items
subject to the Regulations and in connection with any other activity
subject to the Regulations.
IV. Order
It is therefore ordered:
First, Aviastar-TU, 5 b. 7 Leningradsky prospekt, g. Moskva,
125040, Moscow, Russia, when acting for or on their behalf, any
successors or assigns, agents, or employees 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 EAR, or in any other activity subject to the EAR
including, but not limited to:
A. Applying for, obtaining, or using any license (except directly
related to safety of flight), 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 except directly related to
safety of flight and authorized by BIS pursuant to section 764.3(a)(2)
of the Regulations, or engaging in any other activity subject to the
EAR except directly related to safety of flight and authorized by BIS
pursuant to section 764.3(a)(2) of 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 EAR, or from any other activity subject to the EAR except directly
related to safety of flight and authorized by BIS pursuant to section
764.3(a)(2) of the Regulations.
Second, that no person may, directly or indirectly, do any of the
following:
A. Export, reexport, or transfer (in-country) to or on behalf of
Aviastar any item subject to the EAR except directly related to safety
of flight and authorized by BIS pursuant to section 764.3(a)(2) of the
Regulations;
B. Take any action that facilitates the acquisition or attempted
acquisition by Aviastar 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 Aviastar acquires or attempts to acquire such
ownership, possession or control except directly related to safety of
flight and authorized by BIS pursuant to section 764.3(a)(2) of the
Regulations;
C. Take any action to acquire from or to facilitate the acquisition
or attempted acquisition from Aviastar of any item subject to the EAR
that has been exported from the United States except directly related
to safety of flight and authorized by BIS pursuant to section
764.3(a)(2) of the Regulations;
D. Obtain from Aviastar 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 except directly related
to safety of flight and
[[Page 63762]]
authorized by BIS pursuant to section 764.3(a)(2) of the Regulations;
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 Aviastar, or service any item, of
whatever origin, that is owned, possessed or controlled by Aviastar if
such service involves the use of any item subject to the EAR that has
been or will be exported from the United States except directly related
to safety of flight and authorized by BIS pursuant to section
764.3(a)(2) of the Regulations. 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 Aviastar by ownership, control,
position of responsibility, affiliation, or other connection in the
conduct of trade or business may also be made subject to the provisions
of this Order.
In accordance with the provisions of sections 766.24(e) of the EAR,
Aviastar 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. A renewal request may be
opposed by Aviastar as provided in section 766.24(d), by filing a
written submission with the Assistant Secretary of Commerce for Export
Enforcement, which must be received not later than seven days before
the expiration date of the Order.
A copy of this Order shall be provided to Aviastar, and shall be
published in the Federal Register.
This Order is effective immediately and shall remain in effect for
180 days.
Matthew S. Axelrod,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2022-22815 Filed 10-19-22; 8:45 am]
BILLING CODE 3510-DT-P
