Order Renewing Temporary Denial of Export Privileges, 48789-48792 [2023-16035]

Download as PDF Federal Register / Vol. 88, No. 144 / Friday, July 28, 2023 / Notices nomination of individuals to the Federal Economic Statistics Advisory Committee (FESAC or the Committee). The Under Secretary for Economic Affairs, in coordination with the Directors of the Bureau of Economic Analysis (BEA) and the Census Bureau, as well as the Commissioner of the Department of Labor’s Bureau of Labor Statistics (BLS), will consider nominations received in response to this notice, as well as from other sources. DATES: Nominations for FESAC will be accepted on an ongoing basis and will be considered as and when vacancies arise. Please submit nominations by email to Gianna.marrone@bea.gov (subject line ‘‘FESAC Nomination’’). FOR FURTHER INFORMATION CONTACT: Gianna Marrone, Committee Management Official, Department of Commerce, Bureau of Economic Analysis, telephone 301–278–9282, email: gianna.marrone@bea.gov. SUPPLEMENTARY INFORMATION: FESAC was established in accordance with the Federal Advisory Committee Act (Title 5, U.S.C., App. 2). The following sections provide information about the Committee, membership to the Committee, and the Committee’s nomination process. ADDRESSES: Objectives and Scope of FESAC Activities The Committee advises the Directors of BEA and the Census Bureau, as well as the Commissioner of BLS, on statistical methodology and other technical matters related to the design, collection, tabulation, and analysis of Federal economic statistics. lotter on DSK11XQN23PROD with NOTICES1 Description of the FESAC Member Duties The Committee functions solely as an advisory committee to the senior officials of BEA, the Census Bureau, and BLS (the agencies). Important aspects of the Committee’s responsibilities include, but are not limited to: a. Recommending research to address important technical problems arising in the field of Federal economic statistics; b. Identifying areas in which better coordination of the agencies’ activities would be beneficial; c. Exploring ways to enhance the agencies’ economic indicators to improve their timeliness, accuracy, and specificity to meet changing demands and future data needs; d. Improving the means, methods, and techniques to obtain economic information needed to produce current and future economic indicators; and VerDate Sep<11>2014 17:16 Jul 27, 2023 Jkt 259001 e. Coordinating, in its identification of agenda items, with other existing academic advisory committees chartered to provide agency-specific advice, for the purpose of avoiding duplication of effort. The Committee meets once or twice a year, budget permitting. Additional meetings may be held as deemed necessary by the Under Secretary for Economic Affairs or the Designated Federal Official. All Committee meetings are open to the public in accordance with the Federal Advisory Committee Act. FESAC Membership The Committee will comprise approximately sixteen members who serve at the pleasure of the Secretary of Commerce. Members shall be appointed by the Under Secretary for Economic Affairs in consultation with the agencies. Committee members shall be professionals in appropriate disciplines, including economists, statisticians, survey methodologists, computer scientists, data scientists, and behavioral scientists who are experts in their fields and are recognized for their scientific, professional, and operational achievements and objectivity. Membership will represent data users with expertise from the public sector, academia, and the private sector. Members will be chosen to achieve a balanced membership that will meet the needs of the agencies. Members shall serve as Special Government Employees (SGEs) and shall be subject to the applicable ethics rules. A FESAC member term is three years. Members may serve more than one term as described in the FESAC Charter, available at: https:// apps.bea.gov/fesac/. 48789 serve as a Committee member and carry out the affiliated duties. A nomination package should include the following information for each nominee: 1. A letter of nomination stating the name, affiliation, and contact information for the nominee, the basis for the nomination (i.e., what specific attributes recommend the nominee for service in this capacity), and the nominee’s field(s) of expertise; 2. A biographical sketch of the nominee; 3. A copy of the nominee’s curriculum vitae; and 4. The name, return address, email address, and daytime telephone number at which the nominator can be contacted. The Committee aims to have a balanced representation among its members, considering such factors as geography, age, sex, race, ethnicity, technical expertise, community involvement, and knowledge of programs and/or activities related to FESAC. Individuals will be selected based on their expertise in or representation of specific areas as needed by FESAC. All nomination information should be provided in a single, complete package. Interested applicants should send their nomination packages to Gianna Marrone, Committee Management Official, at Gianna.Marrone@bea.gov (subject line ‘‘FESAC Nomination’’). Authority: Federal Advisory Committee Act (FACA), as amended, 5 U.S.C., App. Dated: July 25, 2023. Gianna Marrone, Bureau of Economic Analysis, Alternate Designated Federal Official, Federal Economic Statistics Advisory Committee. Compensation for Members Members of the Committee serve without compensation but may be reimbursed for Committee-related travel and lodging expenses. [FR Doc. 2023–16043 Filed 7–27–23; 8:45 am] Solicitation of Nominations The Committee is currently filling one or more positions on FESAC. The Under Secretary of Economic Affairs, in consultation with the agencies, will consider nominations of all qualified individuals to ensure that the Committee includes the areas of experience noted above. Individuals may nominate themselves or other individuals. Professional associations and organizations also may nominate one or more qualified persons for Committee membership. Nominations shall state that the nominee is willing to Bureau of Industry and Security PO 00000 Frm 00004 Fmt 4703 Sfmt 4703 BILLING CODE 3510–06–P DEPARTMENT OF COMMERCE Order Renewing Temporary Denial of Export Privileges Empresa de Transporte Ae´reocargo del Sur, S.A., a/k/a Aerocargo del Sur Transportation Company, a/k/a EMTRASUR, Avenida Intercomunal, Edificio Sede, Sector 6.3, Maiquetia, Distrito Federal, Venezuela, Avenida Lecuna Torre Oeste Piso 49, Libertador, Caracas, Venezuela Pursuant to section 766.24 of the Export Administration Regulations, 15 CFR parts 730–774 (2021) (‘‘EAR’’ or E:\FR\FM\28JYN1.SGM 28JYN1 48790 Federal Register / Vol. 88, No. 144 / Friday, July 28, 2023 / Notices ‘‘the Regulations’’),1 I hereby grant the request of the Bureau of Industry and Security (‘‘BIS’’), U.S. Department of Commerce, through its Office of Export Enforcement (‘‘OEE’’), to renew the temporary denial order (‘‘TDO’’) issued in this matter on January 26, 2023. 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 August 2, 2022, I signed an order denying the export privileges of Venezuela-based cargo airline Empresa de Transporte Ae´reocargo del Sur, S.A., a/k/a Aerocargo del Sur Transportation Company, a/k/a EMTRASUR (‘‘EMTRASUR’’) 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 January 26, 2023 and was effective upon issuance.4 On July 3, 2023, BIS, through OEE, submitted a written request for renewal of the TDO that issued on January 26, 2023. The written request was made more than 20 days before the TDO’s scheduled expiration. A copy of the renewal request was sent to EMTRASUR in accordance with sections 766.5 and 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). 2 The TDO was published in the Federal Register on August 5, 2022. See 87 FR 47964 (August 5, 2022). 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 January 26, 2023 renewal order was published in the Federal Register on January 31, 2023. See 88 FR 6231 (January 31, 2023). VerDate Sep<11>2014 17:16 Jul 27, 2023 Jkt 259001 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 OEE’s request for renewal is based upon the facts underlying the issuance of the initial TDO and evidence developed during this investigation, which demonstrate continued disregard for U.S. export controls and the terms of a preexisting TDO. As noted in OEE’s initial request for a temporary denial order, EMTRASUR is a subsidiary of Consorcio Venezolano de Industrias Aeronauticas Y Servicios Aereos, S.A., a/k/a CONVIASA (‘‘CONVIASA’’), a Venezuelan state-owned airline. On or about February 7, 2020, U.S. Department of the Treasury’s Office of Foreign Assets Control (‘‘OFAC’’) added CONVIASA to the list of Specially Designated Nationals (‘‘SDN’’) pursuant to Executive Order (E.O.) 13884.5 The initial TDO, issued on August 2, 2022, was based on evidence that EMTRASUR engaged in conduct prohibited by a TDO that had been previously issued against Iranian airline Mahan Air a/k/a Mahan Airlines a/k/a Mahan Airways (‘‘Mahan Air’’) and the Regulations when EMTRASUR, through its parent company, acquired custody 5 See https://home.treasury.gov/news/pressreleases/sm903. PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 and/or control from Mahan Air of a U.Sorigin Boeing 747 aircraft bearing manufacturer’s serial number 23413 (‘‘MSN 23413’’), an item subject to the EAR and classified under ECCN 9A991, in or around October 2021.6 Moreover, the initial TDO, issued on August 2, 2022, was also based on evidence that EMTRASUR had continued to use MSN 23413 on flights into Iran and Russia in violation of General Prohibition 10, which (among other restrictions) prohibits the continued use of an item that was known to have been exported or reexported in violation of the EAR.7 See General Prohibition 10 of the EAR at 15 CFR 736.2(b)(10). There are no license exceptions available for this General Prohibition.8 As also noted in OEE’s initial request, MSN 23413 was detained by Argentinian authorities on or about June 8, 2022, where it presently remains. On or about August 2, 2022, the United States Department of Justice transmitted a request to Argentinian authorities for the seizure of MSN 23413 following the unsealing of a seizure warrant in the U.S. District Court for the District of Columbia. In its request for renewal of the August 2, 2022 TDO, as well as the most recent request submitted on July 3, 2023, BIS offered evidence demonstrating that EMTRASUR’s acquisition of MSN 23413 from Mahan Air was in violation of the TDO previously issued against Mahan Air and the Regulations. Specifically, BIS’s 6 Mahan Air’s status as a denied person was most recently renewed by BIS through a TDO issued on May 5, 2023. See 88 FR 30078 (May 10, 2023). The May 5, 2023 renewal order summarizes the initial TDO issued against Mahan in March 2008 and the other renewal orders issued prior to May 5, 2023. See id. 7 Publicly available flight tracking information demonstrates, for instance, that EMTRASUR operated MSN 23413 on multiple flights between Caracas, Venezuela and Tehran, Iran between February 19, 2022 and May 25, 2022. In addition, EMTRASUR operated MSN 23413 on flights between Tehran, Iran and Moscow, Russia on May 24, 2022 and May 25, 2022. 8 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. E:\FR\FM\28JYN1.SGM 28JYN1 Federal Register / Vol. 88, No. 144 / Friday, July 28, 2023 / Notices lotter on DSK11XQN23PROD with NOTICES1 ongoing investigation has uncovered evidence that certain of MSN 23413’s parts, including spare parts which appear to be U.S-origin, bear the markings and logos of Mahan and/or CONVIASA. This evidence further demonstrates that EMTRASUR’s acquisition and operation of the aircraft violated the TDO issued against Mahan Air; as a result, any attempts by EMTRASUR to operate the aircraft or to return it to Venezuela, as well as any efforts EMTRASUR may take to maintain it, would violate General Prohibition 10. Moreover, as detailed in the January 26, 2023 renewal order, BIS’s investigation indicates that Venezuelan parties took affirmative actions to secure the release of the aircraft from its detention in Argentina, even after the issuance of the August 2, 2022, TDO against EMTRASUR. In its most recent request for renewal, BIS has offered evidence that on May 3, 2023, United States District Judge Randolph D. Moss of the United States District Court for the District of Columbia issued a final order of forfeiture as to the aircraft, vesting all rights to MSN 23413 with the United States. See United States v. Boeing 747–300 Aircraft, No. 1:22–cv– 3208, Dkt. 11 (D.D.C. May 3, 2023). Notwithstanding this order, however, the aircraft remains in Argentina and has not yet been recovered by the United States government. Based upon the violations by EMTRASUR, its disregard for the Regulations and the previously-issued TDO against Mahan Air, and the potential release of the MSN 23413 from detention, there are concerns of future violations of the EAR. These concerns are heightened because any subsequent actions taken with regard to MSN 23413 may violate the EAR, including, but not limited to, its refueling, maintenance, repair, or the provision of spare parts or services. 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 EMTRASUR 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 VerDate Sep<11>2014 17:16 Jul 27, 2023 Jkt 259001 United States and abroad that they should avoid dealing with EMTRASUR 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, Empresa de Transporte Ae´reocargo del Sur, S.A., a/k/a Aerocargo del Sur Transportation Company, a/k/a EMTRASUR, Avenida Intercomunal, Edificio Sede, Sector 6.3, Maiquetia, Distrito Federal, Venezuela, and Avenida Lecuna Torre Oeste Piso 49, Libertador, Caracas, Venezuela, and when acting for or on its 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 EMTRASUR 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 EMTRASUR of the ownership, possession, or control of any item PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 48791 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 EMTRASUR 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 EMTRASUR 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 EMTRASUR 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 EMTRASUR, or service any item, of whatever origin, that is owned, possessed or controlled by EMTRASUR 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 EMTRASUR 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, EMTRASUR 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 EMTRASUR as provided in section 766.24(d), by E:\FR\FM\28JYN1.SGM 28JYN1 48792 Federal Register / Vol. 88, No. 144 / Friday, July 28, 2023 / Notices 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 EMTRASUR and shall be published in the Federal Register. This Order is effective immediately and shall remain in effect for 180 days. Dated: July 25, 2023. Matthew S. Axelrod, Assistant Secretary of Commerce for Export Enforcement. [FR Doc. 2023–16035 Filed 7–27–23; 8:45 am] BILLING CODE 3510–DT–P DEPARTMENT OF COMMERCE International Trade Administration [A–201–844] Steel Concrete Reinforcing Bar From Mexico: Amended Final Results of Antidumping Duty Administrative Review; 2020–2021 Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The U.S. Department of Commerce (Commerce) is amending the final results of the administrative review of the antidumping duty order on steel concrete reinforcing bar (rebar) from Mexico to correct a ministerial error. The period of review is November 1, 2020, through October 31, 2021. DATES: Applicable July 28, 2023. FOR FURTHER INFORMATION CONTACT: Kyle Clahane, AD/CVD Operations, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–5449. SUPPLEMENTARY INFORMATION: AGENCY: Background On June 9, 2023, Commerce published the final results of the 2020–2021 administrative review of rebar from Mexico.1 Additionally, on June 9, 2023, Commerce informed interested parties that it had disclosed all calculations for the Final Results and provided them with the opportunity to submit ministerial error comments.2 Subsequently, on June 14, 2023, Commerce received a timely-filed allegation from the Rebar Trade Action Coalition and its individual members (collectively, the petitioner), regarding the calculation of the final weightedaverage dumping margin for Deacero S.A.P.I. de C.V. (Deacero)/Ingeteknos Estructurales, S.A. de C.V. (Ingetek) (collectively, Deacero Group).3 No other interested party submitted comments. Legal Framework Section 751(h) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.224(f) define a ‘‘ministerial error’’ as including ‘‘errors in addition, subtraction, or other arithmetic function, clerical errors resulting from inaccurate copying, duplication, or the like, and any other unintentional error which the administering authority considers ministerial.’’ With respect to final results of administrative reviews, 19 CFR 351.224(e) provides that Commerce ‘‘will analyze any comments received and, if appropriate, correct any ministerial error by amending . . . the final results of review . . .’’. Ministerial Error The petitioner alleges that, in the final results of the review, Commerce made inadvertent errors with respect to the treatment of Ingetek’s home market sales databases, and with respect to the treatment of missing payment dates that were factored into the calculation of U.S. credit expenses, which it claims resulted in an incorrect weightedaverage dumping margin calculated for Deacero Group. We have analyzed the allegations and find that the petitioner made a timely allegation concerning a ministerial error within the meaning of section 751(h) of the Act and 19 CFR 351.224(f) pertaining to use of Ingetek’s home market sales dabases, but that the petitioner’s allegation alleging a ministerial error in calculating U.S. credit expenses is untimely. Accordingly, we have revised the margin calculations such that normal value is based on the intended treatment of Deacero Group’s home market sales, but have made no modification to our calculation of U.S. credit expenses. Details of Commerce’s analysis of the petitioner’s ministerial error allegations are included in the Ministerial Error Allegation Memorandum.4 The Ministerial Error Allegation Memorandum is a public document and is available 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. Accordingly, pursuant to 19 CFR 351.224(e), Commerce is amending the Final Results to reflect the correction of this ministerial error in the calculation of the weighted-average dumping margin for Deacero Group, which changes from 2.30 percent to 2.49 percent.5 Furthermore, we are amending the weighted-average dumping margin for the companies not selected for individual examination in this review. The weighted-average dumping margin for the non-examined companies is based on the weighted-average dumping margins calculated for the mandatory respondents, Deacero Group and Grupo Acerero S.A. de C.V. (Acerero), which changes from 5.78 percent to 5.93 percent.6 Amended Final Results of Review As a result of correcting the ministerial error, Commerce determines that the following weighted-average dumping margins exist for the period November 1, 2020, through October 31, 2021: Weighted-average dumping margin (percent) Producer or exporter lotter on DSK11XQN23PROD with NOTICES1 Deacero S.A.P.I. de C.V./Ingeteknos Estructurales, S.A. de C.V .............................................................................................. Grupo Acerero S.A. de C.V.7 ...................................................................................................................................................... ArcelorMittal Mexico SA de CV ................................................................................................................................................... 1 See Steel Concrete Reinforcing Bar from Mexico: Final Results of Antidumping Duty Administrative Review; 2020–2021, 88 FR 37849 (June 9, 2023) (Final Results), and accompanying Issues and Decision Memorandum. 2 See Memorandum, ‘‘Deadline for Ministerial Error Comments,’’ dated June 9, 2023. VerDate Sep<11>2014 17:16 Jul 27, 2023 Jkt 259001 3 See Petitioner’s Letter, ‘‘Ministerial Error Comments on Deacero’s Final Margin Calculations,’’ dated June 14, 2023. 4 See Memorandum, ‘‘Ministerial Error Allegation,’’ dated concurrently with this notice (Ministerial Error Allegation Memorandum). PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 2.49 16.28 5.93 5 Id. 6 See Memorandum, ‘‘Amended Non-Examined Company Rate Calculation,’’ dated concurrently with this notice. E:\FR\FM\28JYN1.SGM 28JYN1

Agencies

[Federal Register Volume 88, Number 144 (Friday, July 28, 2023)]
[Notices]
[Pages 48789-48792]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-16035]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Order Renewing Temporary Denial of Export Privileges

Empresa de Transporte A[eacute]reocargo del Sur, S.A., a/k/a 
Aerocargo del Sur Transportation Company, a/k/a EMTRASUR, Avenida 
Intercomunal, Edificio Sede, Sector 6.3, Maiquetia, Distrito 
Federal, Venezuela, Avenida Lecuna Torre Oeste Piso 49, Libertador, 
Caracas, Venezuela

    Pursuant to section 766.24 of the Export Administration 
Regulations, 15 CFR parts 730-774 (2021) (``EAR'' or

[[Page 48790]]

``the Regulations''),\1\ I hereby grant the request of the Bureau of 
Industry and Security (``BIS''), U.S. Department of Commerce, through 
its Office of Export Enforcement (``OEE''), to renew the temporary 
denial order (``TDO'') issued in this matter on January 26, 2023. I 
find that renewal of this order is necessary in the public interest to 
prevent an imminent violation of the Regulations.
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    \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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I. Procedural History

    On August 2, 2022, I signed an order denying the export privileges 
of Venezuela-based cargo airline Empresa de Transporte 
A[eacute]reocargo del Sur, S.A., a/k/a Aerocargo del Sur Transportation 
Company, a/k/a EMTRASUR (``EMTRASUR'') 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 January 26, 2023 and was 
effective upon issuance.\4\
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    \2\ The TDO was published in the Federal Register on August 5, 
2022. See 87 FR 47964 (August 5, 2022).
    \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 January 26, 2023 renewal order was published in the 
Federal Register on January 31, 2023. See 88 FR 6231 (January 31, 
2023).
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    On July 3, 2023, BIS, through OEE, submitted a written request for 
renewal of the TDO that issued on January 26, 2023. The written request 
was made more than 20 days before the TDO's scheduled expiration. A 
copy of the renewal request was sent to EMTRASUR 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

    OEE's request for renewal is based upon the facts underlying the 
issuance of the initial TDO and evidence developed during this 
investigation, which demonstrate continued disregard for U.S. export 
controls and the terms of a preexisting TDO. As noted in OEE's initial 
request for a temporary denial order, EMTRASUR is a subsidiary of 
Consorcio Venezolano de Industrias Aeronauticas Y Servicios Aereos, 
S.A., a/k/a CONVIASA (``CONVIASA''), a Venezuelan state-owned airline. 
On or about February 7, 2020, U.S. Department of the Treasury's Office 
of Foreign Assets Control (``OFAC'') added CONVIASA to the list of 
Specially Designated Nationals (``SDN'') pursuant to Executive Order 
(E.O.) 13884.\5\
---------------------------------------------------------------------------

    \5\ See https://home.treasury.gov/news/press-releases/sm903.
---------------------------------------------------------------------------

    The initial TDO, issued on August 2, 2022, was based on evidence 
that EMTRASUR engaged in conduct prohibited by a TDO that had been 
previously issued against Iranian airline Mahan Air a/k/a Mahan 
Airlines a/k/a Mahan Airways (``Mahan Air'') and the Regulations when 
EMTRASUR, through its parent company, acquired custody and/or control 
from Mahan Air of a U.S-origin Boeing 747 aircraft bearing 
manufacturer's serial number 23413 (``MSN 23413''), an item subject to 
the EAR and classified under ECCN 9A991, in or around October 2021.\6\
---------------------------------------------------------------------------

    \6\ Mahan Air's status as a denied person was most recently 
renewed by BIS through a TDO issued on May 5, 2023. See 88 FR 30078 
(May 10, 2023). The May 5, 2023 renewal order summarizes the initial 
TDO issued against Mahan in March 2008 and the other renewal orders 
issued prior to May 5, 2023. See id.
---------------------------------------------------------------------------

    Moreover, the initial TDO, issued on August 2, 2022, was also based 
on evidence that EMTRASUR had continued to use MSN 23413 on flights 
into Iran and Russia in violation of General Prohibition 10, which 
(among other restrictions) prohibits the continued use of an item that 
was known to have been exported or reexported in violation of the 
EAR.\7\ See General Prohibition 10 of the EAR at 15 CFR 736.2(b)(10). 
There are no license exceptions available for this General 
Prohibition.\8\ As also noted in OEE's initial request, MSN 23413 was 
detained by Argentinian authorities on or about June 8, 2022, where it 
presently remains. On or about August 2, 2022, the United States 
Department of Justice transmitted a request to Argentinian authorities 
for the seizure of MSN 23413 following the unsealing of a seizure 
warrant in the U.S. District Court for the District of Columbia.
---------------------------------------------------------------------------

    \7\ Publicly available flight tracking information demonstrates, 
for instance, that EMTRASUR operated MSN 23413 on multiple flights 
between Caracas, Venezuela and Tehran, Iran between February 19, 
2022 and May 25, 2022. In addition, EMTRASUR operated MSN 23413 on 
flights between Tehran, Iran and Moscow, Russia on May 24, 2022 and 
May 25, 2022.
    \8\ 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.
---------------------------------------------------------------------------

    In its request for renewal of the August 2, 2022 TDO, as well as 
the most recent request submitted on July 3, 2023, BIS offered evidence 
demonstrating that EMTRASUR's acquisition of MSN 23413 from Mahan Air 
was in violation of the TDO previously issued against Mahan Air and the 
Regulations. Specifically, BIS's

[[Page 48791]]

ongoing investigation has uncovered evidence that certain of MSN 
23413's parts, including spare parts which appear to be U.S-origin, 
bear the markings and logos of Mahan and/or CONVIASA. This evidence 
further demonstrates that EMTRASUR's acquisition and operation of the 
aircraft violated the TDO issued against Mahan Air; as a result, any 
attempts by EMTRASUR to operate the aircraft or to return it to 
Venezuela, as well as any efforts EMTRASUR may take to maintain it, 
would violate General Prohibition 10.
    Moreover, as detailed in the January 26, 2023 renewal order, BIS's 
investigation indicates that Venezuelan parties took affirmative 
actions to secure the release of the aircraft from its detention in 
Argentina, even after the issuance of the August 2, 2022, TDO against 
EMTRASUR. In its most recent request for renewal, BIS has offered 
evidence that on May 3, 2023, United States District Judge Randolph D. 
Moss of the United States District Court for the District of Columbia 
issued a final order of forfeiture as to the aircraft, vesting all 
rights to MSN 23413 with the United States. See United States v. Boeing 
747-300 Aircraft, No. 1:22-cv-3208, Dkt. 11 (D.D.C. May 3, 2023). 
Notwithstanding this order, however, the aircraft remains in Argentina 
and has not yet been recovered by the United States government.
    Based upon the violations by EMTRASUR, its disregard for the 
Regulations and the previously-issued TDO against Mahan Air, and the 
potential release of the MSN 23413 from detention, there are concerns 
of future violations of the EAR. These concerns are heightened because 
any subsequent actions taken with regard to MSN 23413 may violate the 
EAR, including, but not limited to, its refueling, maintenance, repair, 
or the provision of spare parts or services.

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 EMTRASUR 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 EMTRASUR 
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, Empresa de Transporte A[eacute]reocargo del Sur, S.A., a/k/a 
Aerocargo del Sur Transportation Company, a/k/a EMTRASUR, Avenida 
Intercomunal, Edificio Sede, Sector 6.3, Maiquetia, Distrito Federal, 
Venezuela, and Avenida Lecuna Torre Oeste Piso 49, Libertador, Caracas, 
Venezuela, and when acting for or on its 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 
EMTRASUR 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 EMTRASUR 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 EMTRASUR 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 EMTRASUR 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 EMTRASUR 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 EMTRASUR, or service any item, of 
whatever origin, that is owned, possessed or controlled by EMTRASUR 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 EMTRASUR 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, 
EMTRASUR 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 EMTRASUR as provided in section 766.24(d), by

[[Page 48792]]

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 EMTRASUR and shall be 
published in the Federal Register.
    This Order is effective immediately and shall remain in effect for 
180 days.

    Dated: July 25, 2023.
Matthew S. Axelrod,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2023-16035 Filed 7-27-23; 8:45 am]
BILLING CODE 3510-DT-P

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