Order Renewing Temporary Denial of Export Privileges; Azur Air, Sharypovo Airport, 404/1 Kozhevnicheskiy Land, Moscow, Russia, 19908-19911 [2023-06907]
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Federal Register / Vol. 88, No. 64 / Tuesday, April 4, 2023 / Notices
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ddrumheller on DSK120RN23PROD with NOTICES1
[FR Doc. 2023–06926 Filed 4–3–23; 8:45 am]
BILLING CODE 3510–07–P
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Foreign-Trade Zones Board
Dated: March 29, 2023.
Elizabeth Whiteman,
Acting Executive Secretary.
[B–23–2023]
[FR Doc. 2023–06868 Filed 4–3–23; 8:45 am]
DEPARTMENT OF COMMERCE
BILLING CODE 3510–DS–P
Foreign-Trade Zone (FTZ) 136,
Notification of Proposed Production
Activity; Airbus OneWeb Satellites,
North America LLC; (Satellites and
Satellite Systems); Merritt Island,
Florida
Airbus OneWeb Satellites, North
America LLC submitted a notification of
proposed production activity to the FTZ
Board (the Board) for its facility in
Merritt Island, Florida, within FTZ 136.
The notification conforming to the
requirements of the Board’s regulations
(15 CFR 400.22) was received on March
28, 2023.
Pursuant to 15 CFR 400.14(b), FTZ
production activity would be limited to
the specific foreign-status material(s)/
component(s) described in the
submitted notification (summarized
below) and subsequently authorized by
the Board. The benefits that may stem
from conducting production activity
under FTZ procedures are explained in
the background section of the Board’s
website—accessible via www.trade.gov/
ftz. The proposed material(s)/
component(s) would be added to the
production authority that the Board
previously approved for the operation,
as reflected on the Board’s website.
The proposed foreign-status materials
and components include: titanium
fittings, screws, and washers; krypton
gas; fabricated aluminum parts (for
balancing satellites and simulating mass
or gravity); gyroscopes with or without
automatic pilots; rustproof nickelcopper staples; copper wire thermal
straps; and, aluminum pipe (duty rate
ranges from duty-free to 5.5%).The
request indicates that certain materials/
components are subject to duties under
section 232 of the Trade Expansion Act
of 1962 (section 232) or section 301 of
the Trade Act of 1974 (section 301),
depending on the country of origin. The
applicable section 232 and section 301
decisions require subject merchandise
to be admitted to FTZs in privileged
foreign status (19 CFR 146.41).
Public comment is invited from
interested parties. Submissions shall be
addressed to the Board’s Executive
Secretary and sent to: ftz@trade.gov. The
closing period for their receipt is May
15, 2023.
A copy of the notification will be
available for public inspection in the
‘‘Online FTZ Information System’’
section of the Board’s website.
For further information, contact
Juanita Chen at juanita.chen@trade.gov.
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DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[B–57–2022]
Foreign-Trade Zone (FTZ) 38;
Authorization of Production Activity;
BMW Manufacturing Company, LLC;
(Passenger Motor Vehicles);
Spartanburg, South Carolina
On November 29, 2022, BMW
Manufacturing Company, LLC
submitted a notification of proposed
production activity to the FTZ Board for
its facility within Subzone 38A, in
Spartanburg, South Carolina.
The notification was processed in
accordance with the regulations of the
FTZ Board (15 CFR part 400), including
notice in the Federal Register inviting
public comment (87 FR 75025,
December 7, 2022). On March 29, 2023,
the applicant was notified of the FTZ
Board’s decision that no further review
of the activity is warranted at this time.
The production activity described in the
notification was authorized, subject to
the FTZ Act and the FTZ Board’s
regulations, including Section 400.14.
Dated: March 29, 2023
Elizabeth Whiteman,
Acting Executive Secretary.
[FR Doc. 2023–06867 Filed 4–3–23; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Order Renewing Temporary Denial of
Export Privileges; Azur Air, Sharypovo
Airport, 404/1 Kozhevnicheskiy Land,
Moscow, Russia
Pursuant to section 766.24 of the
Export Administration Regulations, 15
CFR parts 730–774 (‘‘EAR’’ or ‘‘the
Regulations’’),1 I hereby grant the
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 the International
Emergency Economic Powers Act, 50 U.S.C. 1701
E:\FR\FM\04APN1.SGM
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Federal Register / Vol. 88, No. 64 / Tuesday, April 4, 2023 / Notices
request of the Office of Export
Enforcement (‘‘OEE’’) to renew the
temporary denial order (‘‘TDO’’) issued
in this matter on October 3, 2022. I find
that renewal of this order is necessary
in the public interest to prevent an
imminent violation of the Regulations.
I. Procedural History
On April 7, 2022, I signed an order
denying Azur Air’s (‘‘Azur’’) 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 This temporary denial order
was subsequently renewed in
accordance with section 766.24(d) of the
Regulations.3 The renewal order issued
on October 3, 2022 and was effective
upon issuance.4
On March 7, 2023, BIS, through OEE,
submitted a written request for renewal
of the TDO that issued on October 3,
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 Azur 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
ddrumheller on DSK120RN23PROD with NOTICES1
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
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 12, 2022 (87 FR 21614).
3 Section 766.24(d) provides that BIS may seek
renewal of a temporary denial order for additional
180-day renewal periods, if it believes that renewal
is necessary in the public interest to prevent an
imminent violation. Renewal requests are to be
made in writing no later than 20 days before the
scheduled expiration date of a temporary denial
order.
4 The October 3, 2022 renewal order was
published in the Federal Register on October 7,
2022 (87 FR 60983).
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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 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).5 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).6 Accordingly, any U.S.-origin
aircraft or foreign aircraft that includes
more than 25% controlled U.S.-origin
5 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).
6 87 FR 13048 (Mar. 8, 2022).
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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.
This OEE request for renewal is based
upon the facts underlying the issuance
of the initial TDO and the renewal order
subsequently issued in this matter on
October 3, 2022, as well as other
evidence developed during this
investigation. These facts and evidence
demonstrate that Azur continues to act
in blatant disregard for U.S. export
controls and the applicable TDO.
Specifically, the initial TDO, issued on
April 7, 2022, was based on evidence
that Azur 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, but not
limited to, Nha Trang, Vietnam, Dubai,
United Arab Emirates, and Antalya,
Turkey, without the required BIS
authorization.7 Further evidence
submitted by BIS indicated that Azur
was continuing to operate aircraft
subject to the EAR domestically on
flights within Russia, potentially in
violation of section 736.2(b)(10) of the
Regulations.
As discussed in the October 3, 2022
renewal order, evidence presented by
BIS indicated that, after the initial order
issued, Azur continued to operate
aircraft subject to the EAR and classified
under ECCN 9A991.b on flights both
into and out of Russia, in violation of
the Regulations and the TDO itself.8
Specifically, the October 3, 2022
renewal order detailed Azur’s continued
operation of aircraft subject to the EAR,
including, but not limited to, on flights
into and out of Russia from/to Antalya,
Turkey, Dalaman, Turkey, and Bodrum,
Turkey.9
Since that time, Azur has continued
to engage in conduct prohibited by the
applicable TDO and Regulations. In its
March 7, 2023 request for renewal of the
TDO, BIS submitted evidence that Azur
7 Publicly available flight tracking information
shows that on March 6, 2022, serial number (SN)
27612 flew from Nha Trang, Vietnam to Moscow,
Russia and on March 10, 2022, SN 27909 flew from
Dubai, UAE to Vladivostok, Russia. In addition, on
March 17, 2022, SN 21614 flew from Antalya,
Turkey to Kazan, Russia.
8 Engaging in conduct prohibited by a denial
order violates the Regulations. 15 CFR 764.2(a) and
(k).
9 Publicly available flight tracking information
shows that SN 29377 flew from Antalya, Turkey to
Moscow, Russia on September 21, 2022. In
addition, on September 20, 2022, SN 26271 flew
from Bodrum, Turkey to Moscow, Russia and SN
30045 flew from Dalaman, Turkey to Yekaterinburg,
Russia.
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Federal Register / Vol. 88, No. 64 / Tuesday, April 4, 2023 / Notices
is operating aircraft subject to the EAR
and classified under ECCN 9A991.b,
both on flights into and within Russia,
in violation of the October 3, 2022 TDO
and/or the Regulations. Specifically,
Tail No.
RA–73071
RA–73071
RA–73071
RA–73071
RA–73077
RA–73077
RA–73077
RA–73077
RA–73079
RA–73079
RA–73079
RA–73079
Serial No.
.........
.........
.........
.........
.........
.........
.........
.........
.........
.........
.........
.........
29377
29377
29377
29377
30045
30045
30045
30045
24947
24947
24947
24947
BIS’s evidence and related investigation
demonstrates that Azur has continued to
operate aircraft subject to the EAR,
including, but not limited to, on flights
into and out of Russia from/to
Aircraft type
Departure/arrival cities
Dates
757–2Q8 (B752) ...........................
757–2Q8 (B752) ...........................
757–2Q8 (B752) ...........................
757–2Q8 (B752) ...........................
757–2Q8 (B752) ...........................
757–2Q8 (B752) ...........................
757–2Q8 (B752) ...........................
757–2Q8 (B752) ...........................
767–3Y0 (ER) B763 .....................
767–3Y0 (ER) B763 .....................
767–3Y0 (ER) B763 .....................
767–3Y0 (ER) B763 .....................
Adana, TR/Moscow, RU ..........................................
Sharm el-Sheikh, EG/Moscow, RU ..........................
Dubai, AE/Moscow, RU ...........................................
Hurghada, EG/Moscow, RU .....................................
Goa, IN/Perm, RU ....................................................
Rayong, TH/Kemerovo, RU .....................................
Phuket, TH/Novosibirsk, RU ....................................
Rayong, TH/Kemerovo, RU .....................................
Male, MV/Moscow, RU .............................................
Colombo, LK/Moscow, RU .......................................
Dubai, AE/Moscow, RU ...........................................
Phuket, TH/Moscow, RU ..........................................
March 13, 2023.
March 14, 2023.
March 15, 2023.
March 18, 2023.
March 3, 2023.
March 6, 2023.
March 12, 2023.
March 16, 2023.
February 18, 2023.
February 28, 2023.
March 1, 2023.
March 5, 2023.
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 Azur has acted in
violation of the Regulations and the
TDO; that such violations have been
significant and deliberate; 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 Azur, in
connection with export and reexport
transactions involving items subject to
the Regulations and in connection with
any other activity subject to the
Regulations.
ddrumheller on DSK120RN23PROD with NOTICES1
IV. Order
It is therefore ordered:
First, Azur Air, Sharypovo Airport,
404/1 Kozhevnicheskiy Lane, 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,
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Hurghada, Egypt, Goa, India, and
Phuket, Thailand. Information about
those flights includes, but is not limited
to, the following:
Jkt 259001
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 Azur 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
Azur 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 Azur 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 Azur of any item
subject to the EAR that has been
exported from the United States except
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directly related to safety of flight and
authorized by BIS pursuant to section
764.3(a)(2) of the Regulations;
D. Obtain from Azur 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
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 Azur, or
service any item, of whatever origin,
that is owned, possessed or controlled
by Azur 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 Azur 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, Azur
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.
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Federal Register / Vol. 88, No. 64 / Tuesday, April 4, 2023 / Notices
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 Azur 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 Azur, 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. 2023–06907 Filed 4–3–23; 8:45 am]
BILLING CODE 3510–DT–P
II. Renewal of the TDO
DEPARTMENT OF COMMERCE
A. Legal Standard
Bureau of Industry and Security
Order Renewing Temporary Denial of
Export Privileges; UTair Aviation JSC,
Khanty-Mansiysk Airport, Tyumen
Region, Russia 628012
Pursuant to section 766.24 of the
Export Administration Regulations, 15
CFR parts 730–774 (‘‘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 October 3, 2022. I find
that renewal of this order is necessary
in the public interest to prevent an
imminent violation of the Regulations.
I. Procedural History
ddrumheller on DSK120RN23PROD with NOTICES1
On April 7, 2022, I signed an order
denying UTair Aviation JCS’s (‘‘UTair’’)
export privileges for a period of 180
days on the ground that issuance of the
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 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).
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19:41 Apr 03, 2023
Jkt 259001
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 This
temporary denial order was
subsequently renewed in accordance
with section 766.24(d) of the
Regulations.3 The renewal order issued
on October 3, 2022 and was effective
upon issuance.4
On March 7, 2023, BIS, through OEE,
submitted a written request for renewal
of the TDO that issued on October 3,
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 UTair in
accordance with sections 766.5 and
766.24(d) of the Regulations. No
opposition to the renewal of the TDO
has been received.
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.
2 The TDO was published in the Federal Register
on April 12, 2022 (87 FR 21616).
3 Section 766.24(d) provides that BIS may seek
renewal of a temporary denial order for additional
180-day renewal periods, if it believes that renewal
is necessary in the public interest to prevent an
imminent violation. Renewal requests are to be
made in writing no later than 20 days before the
scheduled expiration date of a temporary denial
order.
4 The October 3, 2022 renewal order was
published in the Federal Register on October 7,
2022 (87 FR 60987).
PO 00000
Frm 00009
Fmt 4703
Sfmt 4703
19911
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 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).5 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).6 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.
This OEE request for renewal is based
upon the facts underlying the issuance
of the initial TDO and the renewal order
subsequently issued in this matter on
October 3, 2022, as well as other
evidence developed during this
investigation. These facts and evidence
demonstrate that UTair continues to act
in blatant disregard for U.S. export
controls and the applicable TDO.
Specifically, the initial TDO, issued on
April 7, 2022, was based on evidence
5 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).
6 87 FR 13048 (Mar. 8, 2022).
E:\FR\FM\04APN1.SGM
04APN1
]]>Agencies
[Federal Register Volume 88, Number 64 (Tuesday, April 4, 2023)]
[Notices]
[Pages 19908-19911]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-06907]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Order Renewing Temporary Denial of Export Privileges; Azur Air,
Sharypovo Airport, 404/1 Kozhevnicheskiy Land, Moscow, Russia
Pursuant to section 766.24 of the Export Administration
Regulations, 15 CFR parts 730-774 (``EAR'' or ``the Regulations''),\1\
I hereby grant the
[[Page 19909]]
request of the Office of Export Enforcement (``OEE'') to renew the
temporary denial order (``TDO'') issued in this matter on October 3,
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 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 7, 2022, I signed an order denying Azur Air's (``Azur'')
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\ This temporary denial order was subsequently renewed in
accordance with section 766.24(d) of the Regulations.\3\ The renewal
order issued on October 3, 2022 and was effective upon issuance.\4\
---------------------------------------------------------------------------
\2\ The TDO was published in the Federal Register on April 12,
2022 (87 FR 21614).
\3\ Section 766.24(d) provides that BIS may seek renewal of a
temporary denial order for additional 180-day renewal periods, if it
believes that renewal is necessary in the public interest to prevent
an imminent violation. Renewal requests are to be made in writing no
later than 20 days before the scheduled expiration date of a
temporary denial order.
\4\ The October 3, 2022 renewal order was published in the
Federal Register on October 7, 2022 (87 FR 60983).
---------------------------------------------------------------------------
On March 7, 2023, BIS, through OEE, submitted a written request for
renewal of the TDO that issued on October 3, 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 Azur 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).\5\ 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).\6\ 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.
---------------------------------------------------------------------------
\5\ 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).
\6\ 87 FR 13048 (Mar. 8, 2022).
---------------------------------------------------------------------------
This OEE request for renewal is based upon the facts underlying the
issuance of the initial TDO and the renewal order subsequently issued
in this matter on October 3, 2022, as well as other evidence developed
during this investigation. These facts and evidence demonstrate that
Azur continues to act in blatant disregard for U.S. export controls and
the applicable TDO. Specifically, the initial TDO, issued on April 7,
2022, was based on evidence that Azur 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, but not limited to, Nha Trang,
Vietnam, Dubai, United Arab Emirates, and Antalya, Turkey, without the
required BIS authorization.\7\ Further evidence submitted by BIS
indicated that Azur was continuing to operate aircraft subject to the
EAR domestically on flights within Russia, potentially in violation of
section 736.2(b)(10) of the Regulations.
---------------------------------------------------------------------------
\7\ Publicly available flight tracking information shows that on
March 6, 2022, serial number (SN) 27612 flew from Nha Trang, Vietnam
to Moscow, Russia and on March 10, 2022, SN 27909 flew from Dubai,
UAE to Vladivostok, Russia. In addition, on March 17, 2022, SN 21614
flew from Antalya, Turkey to Kazan, Russia.
---------------------------------------------------------------------------
As discussed in the October 3, 2022 renewal order, evidence
presented by BIS indicated that, after the initial order issued, Azur
continued to operate aircraft subject to the EAR and classified under
ECCN 9A991.b on flights both into and out of Russia, in violation of
the Regulations and the TDO itself.\8\ Specifically, the October 3,
2022 renewal order detailed Azur's continued operation of aircraft
subject to the EAR, including, but not limited to, on flights into and
out of Russia from/to Antalya, Turkey, Dalaman, Turkey, and Bodrum,
Turkey.\9\
---------------------------------------------------------------------------
\8\ Engaging in conduct prohibited by a denial order violates
the Regulations. 15 CFR 764.2(a) and (k).
\9\ Publicly available flight tracking information shows that SN
29377 flew from Antalya, Turkey to Moscow, Russia on September 21,
2022. In addition, on September 20, 2022, SN 26271 flew from Bodrum,
Turkey to Moscow, Russia and SN 30045 flew from Dalaman, Turkey to
Yekaterinburg, Russia.
---------------------------------------------------------------------------
Since that time, Azur has continued to engage in conduct prohibited
by the applicable TDO and Regulations. In its March 7, 2023 request for
renewal of the TDO, BIS submitted evidence that Azur
[[Page 19910]]
is operating aircraft subject to the EAR and classified under ECCN
9A991.b, both on flights into and within Russia, in violation of the
October 3, 2022 TDO and/or the Regulations. Specifically, BIS's
evidence and related investigation demonstrates that Azur has continued
to operate aircraft subject to the EAR, including, but not limited to,
on flights into and out of Russia from/to Hurghada, Egypt, Goa, India,
and Phuket, Thailand. Information about those flights includes, but is
not limited to, the following:
----------------------------------------------------------------------------------------------------------------
Departure/arrival
Tail No. Serial No. Aircraft type cities Dates
----------------------------------------------------------------------------------------------------------------
RA-73071....................... 29377 757-2Q8 (B752).... Adana, TR/Moscow, March 13, 2023.
RU.
RA-73071....................... 29377 757-2Q8 (B752).... Sharm el-Sheikh, March 14, 2023.
EG/Moscow, RU.
RA-73071....................... 29377 757-2Q8 (B752).... Dubai, AE/Moscow, March 15, 2023.
RU.
RA-73071....................... 29377 757-2Q8 (B752).... Hurghada, EG/ March 18, 2023.
Moscow, RU.
RA-73077....................... 30045 757-2Q8 (B752).... Goa, IN/Perm, RU.. March 3, 2023.
RA-73077....................... 30045 757-2Q8 (B752).... Rayong, TH/ March 6, 2023.
Kemerovo, RU.
RA-73077....................... 30045 757-2Q8 (B752).... Phuket, TH/ March 12, 2023.
Novosibirsk, RU.
RA-73077....................... 30045 757-2Q8 (B752).... Rayong, TH/ March 16, 2023.
Kemerovo, RU.
RA-73079....................... 24947 767-3Y0 (ER) B763. Male, MV/Moscow, February 18, 2023.
RU.
RA-73079....................... 24947 767-3Y0 (ER) B763. Colombo, LK/ February 28, 2023.
Moscow, RU.
RA-73079....................... 24947 767-3Y0 (ER) B763. Dubai, AE/Moscow, March 1, 2023.
RU.
RA-73079....................... 24947 767-3Y0 (ER) B763. Phuket, TH/Moscow, March 5, 2023.
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 Azur has acted
in violation of the Regulations and the TDO; that such violations have
been significant and deliberate; 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 Azur, 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, Azur Air, Sharypovo Airport, 404/1 Kozhevnicheskiy Lane,
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
Azur 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 Azur 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 Azur 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 Azur 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 Azur 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 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 Azur, or service any item, of
whatever origin, that is owned, possessed or controlled by Azur 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 Azur 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,
Azur 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.
[[Page 19911]]
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 Azur 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 Azur, 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. 2023-06907 Filed 4-3-23; 8:45 am]
BILLING CODE 3510-DT-P
