[Federal Register Volume 79, Number 130 (Tuesday, July 8, 2014)]
[Notices]
[Pages 38489-38490]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-15875]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Order Renewing Order Temporarily Denying Export Privileges
In the matter of:
3K Aviation Consulting & Logistics, a/k/a 3K Havacilik Ve
Danismanlik SAN. TIC. LTD. ST., Biniciler Apt. Savas Cad. No. 18/5,
Sirinyali Mah. 07160, Antalya, Turkey and
Sonmez Apt. No. 4/5 1523 Sokak Sirinyali Mah. 07160 Antalya, Turkey
Huseyin Engin Borluca, Biniciler Apt. Savas Cad. No. 18/5, Sirinyali
Mah. 07160, Antalya, Turkey and
Sonmez Apt. No. 4/5 1523 Sokak, Sirinyali Mah. 07160, Antalya,
Turkey
Pouya Airline a/k/a Pouya Air Mehrebad Airport, Tehran, Iran
Evans Meridians Ltd., Drake Chambers, 1st Floor, Yamraj Building,
P.O. Box 3321, Road Town, Tortola, British Virgin Islands,
Respondents.
Pursuant to Section 766.24 of the Export Administration
Regulations, 15 CFR Parts 730-774 (2014) (``EAR'' or the
``Regulations''), I hereby grant the request of the Office of Export
Enforcement (``OEE'') to renew the January 3, 2014 Order Temporarily
Denying the Export Privileges of 3K Aviation Consulting & Logistics,
also known as 3K Havacilik Ve Danismanlik SAN. TIC. LTD. ST. (``3K
Aviation''); Huseyin Engin Borluca (``Borluca''), 3K's Aviation founder
and director; Pouya Airline, also known as Pouya Air; and Evans
Meridians Ltd. I find that renewal of the Temporary Denial Order
(``TDO'') is necessary in the public interest to prevent an imminent
violation of the EAR.
I. Procedural History and Background
On January 3, 2014, I signed a TDO denying for 180 days the export
privileges of 3K Aviation, Borluca, Pouya Airline, and Adaero
International Trade, LLC and its managing director, Recep Sadettin
Ilgin.\1\ The TDO was issued ex parte pursuant to Section 766.24(a),
and went into effect upon issuance on January 3, 2014. Copies of the
TDO were sent to the respondents named in the January 3, 2014 order in
accordance with Sections 766.5 and 766.24(d) of the Regulations, and on
January 10, 2014, the TDO was published in the Federal Register. 79 FR
1,823 (Jan. 10, 2014).
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\1\ OEE did not seek renewal of the TDO as to Adaero
International Trade, LLC, or its managing director, Recep Sadettin
Ilgin.
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On January 30, 2014, I issued an Order modifying the TDO to add
Evans Meridians Ltd. (``Evans Meridians'') as an additional
respondent.\2\ In its modification request, OEE presented evidence
demonstrating that Evans Meridians was involved with the transaction
described in the TDO. Prior to issuance of the TDO on January 3, 2014,
OEE did not have evidence of Evans Meridians' relationship to the items
or role in the transaction.
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\2\ The January 30, 2014 Modification Order was sent in
accordance with Sections 766.5 and 766.24(d) of the Regulations to
the respondents named in that order and, on February 6, 2014, was
published in the Federal Register. 79 FR 7169 (Feb. 6, 2014).
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In support of the original TDO and modification, OEE presented
evidence that in December 2013, two U.S.-origin General Electric CF6
aircraft engines \3\ bearing manufacturer's serial numbers (``MSNs'')
695244 and 705112, respectively, had been exported to 3K Aviation,
which is located in Turkey, and that 3K Aviation was preparing to re-
export the engines to Iran without the U.S. Government authorization
required by Section 746.7 of the EAR. OEE had further information that
Pouya Airline, an Iranian cargo airline, was scheduled to transport
both engines from Turkey to Iran on January 7, 2014.
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\3\ The engines are items subject to the Regulations, classified
under Export Control Classification Number 9A991.d, and controlled
for anti-terrorism reasons.
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As mentioned above, OEE obtained evidence following issuance of the
TDO of Evans Meridians' involvement in the attempted export or reexport
of the items to Iran. OEE presented evidence as part of its request to
modify the TDO that Evans Meridians appeared on documents as the
purchaser and had acted as the owner of the items in connection with
their transfer to 3K Aviation en route to Iran. OEE also provided
evidence showing that, in violation of the TDO, Evans Meridians made
and 3K Aviation accepted payment of approximately $100,000 for customs
storage fees for the engines on or about January 21, 2014, that is, 18
days after the TDO issued on January 3, 2014, and 11 days after
publication of the TDO on January 10, 2014. The most recent evidence
available shows the two aircraft engines remain in the possession and/
or control of 3K Aviation in Turkey.
The current TDO dated January 3, 2014, will expire on July 1, 2014,
unless renewed on or before that date. On June 10, 2014, OEE submitted
a written request for renewal of the TDO as to 3K Aviation, Borluca,
Pouya Airline, and Evans Meridians. Notice of the renewal request was
provided in accordance with Sections 766.5 and 766.24(d) of the
Regulations. No opposition to any aspect of the requested renewal has
been received.
II. TDO Renewal
A. Legal Standard
Pursuant to Section 766.24(b) of the Regulations, BIS may issue or
renew an order temporarily denying a Respondent's export privileges
upon a showing that the order is necessary in the public interest to
prevent an ``imminent violation'' of the Regulations. 15 CFR
766.24(b)(1). ``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
[[Page 38490]]
charges 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. Request for Renewal
OEE's request for renewal is based upon the facts underlying the
issuance of the initial TDO and modification and the evidence developed
over the course of this investigation, including the evidence
summarized in Section I., supra. The two aircraft engines remain in the
possession and/or control of 3K Aviation in Turkey. In addition to the
evidence discussed or summarized above, OEE's investigation also has
revealed that 3K Aviation has more recently been instructed by a party,
whose identity it will not disclose, to prepare the engines (MSNs
695244 and 705112) for shipment from Turkey. This evidence further
supports OEE's reasonable belief of a continued risk that further
attempts likely will be made to reexport the items from Turkey without
U.S. Government authorization, in violation of the TDO and the
Regulations.
C. Findings
I find that the evidence presented by OEE demonstrates that a
violation of the Regulations is imminent in both time and degree of
likelihood. Renewal of the TDO is needed to give notice to persons and
companies in the United States and abroad that they should cease
dealing with the Respondents in export and re-export transactions
involving items subject to the EAR or other activities prohibited by
the TDO. Doing so is consistent with the public interest to preclude
future violations of the EAR.
It is therefore ordered:
First, that 3K AVIATION CONSULTING & LOGISTICS, a/k/a 3K HAVACILIK
VE DANISMANLIK SAN. TIC. LTD. ST., Biniciler Apt. Savas Cad. No. 18/5,
Sirinyali Mah. 07160, Antalya, Turkey, and Sonmez Apt. No. 4/5 1523
Sokak, Sirinyali Mah. 07160, Antalya, Turkey; HUSEYIN ENGIN BORLUCA,
Biniciler Apt. Savas Cad. No. 18/5, Sirinyali Mah. 07160, Antalya,
Turkey, and Sonmez Apt. No. 4/5 1523 Sokak, Sirinyali Mah. 07160,
Antalya, Turkey; POUYA AIRLINE, a/k/a POUYA AIR, Mehrebad Airport,
Tehran, Iran; and EVANS MERIDIANS LTD., Drake Chambers, 1st Floor,
Yamraj Building, P.O. Box 3321, Road Town, Tortola, British Virgin
Islands; and when acting for or on their behalf, any successors or
assigns, agents, or employees (each a ``Denied Person'' and
collectively the ``Denied Persons'') may not, directly or indirectly,
participate in any way in any transaction involving any commodity,
software or technology (hereinafter collectively referred to as
``item'') exported or to be exported from the United States that is
subject to the Export Administration Regulations (``EAR''), or in any
other activity subject to the EAR including, but not limited to:
A. Applying for, obtaining, or using any license, License
Exception, or export control document;
B. Carrying on negotiations concerning, or ordering, buying,
receiving, using, selling, delivering, storing, disposing of,
forwarding, transporting, financing, or otherwise servicing in any way,
any transaction involving any item exported or to be exported from the
United States that is subject to the EAR, or in any other activity
subject to the EAR; or
C. Benefitting in any way from any transaction involving any item
exported or to be exported from the United States that is subject to
the EAR, or in any other activity subject to the EAR.
Second, that no person may, directly or indirectly, do any of the
following:
A. Export or reexport to or on behalf of a Denied Person any item
subject to the EAR;
B. Take any action that facilitates the acquisition or attempted
acquisition by a Denied Person of the ownership, possession, or control
of any item subject to the EAR that has been or will be exported from
the United States, including financing or other support activities
related to a transaction whereby a Denied Person acquires or attempts
to acquire such ownership, possession or control;
C. Take any action to acquire from or to facilitate the acquisition
or attempted acquisition from a Denied Person of any item subject to
the EAR that has been exported from the United States;
D. Obtain from a Denied Person in the United States any item
subject to the EAR with knowledge or reason to know that the item will
be, or is intended to be, exported from the United States; or
E. Engage in any transaction to service any item subject to the EAR
that has been or will be exported from the United States and which is
owned, possessed or controlled by a Denied Person, or service any item,
of whatever origin, that is owned, possessed or controlled by a Denied
Person if such service involves the use of any item subject to the EAR
that has been or will be exported from the United States. For purposes
of this paragraph, servicing means installation, maintenance, repair,
modification or testing.
Third, that, after notice and opportunity for comment as provided
in section 766.23 of the EAR, any other person, firm, corporation, or
business organization related to a Denied Person by affiliation,
ownership, control, or position of responsibility in the conduct of
trade or related services may also be made subject to the provisions of
this Order.
In accordance with the provisions of Section 766.24(e) of the EAR,
the Respondents 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. The Respondents may
oppose such a request to renew this Order by filing a written
submission with the Assistant Secretary for Export Enforcement, which
must be received not later than seven days before the expiration date
of the Order.
A copy of this Order shall be served on the Respondents and shall
be published in the Federal Register.
This Order is effective immediately and shall remain in effect for
180 days.
Dated: July 1, 2014.
David W. Mills,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2014-15875 Filed 7-7-14; 8:45 am]
BILLING CODE XXXX-XX-P