Commerce Renews Temporary Denial Order for Export Violations

The Commerce Department’s Bureau of Industry and Security renewed the temporary denial order of export privileges issued to Mahan Airways and several affiliated people and entities in 2018, according to an order signed by the Office of Export Enforcement on June 5. The order was renewed to “prevent an imminent violation” of more regulations, Commerce said.

The order stems from a 2008 decision by the assistant secretary of Commerce for export enforcement to deny Mahan Airways export privileges for 180 days. Several other affiliated people and entities, named in the order, were eventually added to prevent evasions of the denial order, Commerce said.

Commerce detailed a list of violations and illegal transactions conducted by Mahan Airways and affiliates, saying the violations represented a “blatant disregard of U.S. export controls.” Commerce said the initial denial order was issued after Commerce found evidence that Mahan Airways and other parties violated the Export Administration Regulations by knowingly re-exporting several U.S.-origin aircrafts to Iran, including Boeing 747s and an “MD-82 aircraft.” Mahan Airways subsequently hid from the U.S. the fact that the planes were being used regularly and were being flown between Iran and Syria. Among other export violations, Mahan Airways also exported “computer motherboards” from the U.S. to Iran, violating U.S. export laws, Commerce said.

In renewing the temporary denial order, Commerce said the violations by Mahan Airways and others “have been significant, deliberate and covert” and “there is a likelihood of future violations.” Commerce said all U.S. companies should “cease dealing” with Mahan Airways “and the other denied persons in connection” with the violations.