[Federal Register Volume 72, Number 91 (Friday, May 11, 2007)]
[Notices]
[Pages 26780-26781]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-2322]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Action Affecting Export Privileges; Khalid Mahmood; In the Matter 
of Khalid Mahmood, 11505 Blue Ridge Drive, Beltsville, MD 20750, 
Respondent

Order Relating to Khalid Mahmood

    The Bureau of Industry and Security, U.S. Department of Commerce 
(``BIS'') has notified Khalid Mahmood (hereinafter referred to as 
``Mahmood'') of its intention to initiate an administrative proceeding 
against Mahmood pursuant to Section 766.3 of the Export Administration 
Regulations (currently codified at 15 CFR parts 730-774 (2006)) 
(``Regulations'') \1\ and Section 13(c) of the Export Administration 
Act of 1979, as amended (50 U.S.C. app. sections 2401-2420 (2000)) 
(``Act''),\2\ by issuing a proposed charging letter to Mahmood that 
alleged that Mahmood committed six violations of the Regulations. 
Specifically, the charges are:
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    \1\ The violations charged occurred between 2003 and 2004. The 
Regulations governing the violations at issue are found in the 2003-
2004 versions of the Code of Federal Regulations (15 CFR part 730-
774 (2003-2004)). The 2006 Regulations govern the procedural aspects 
of the case.
    \2\ Since August 21, 2001, the Act has been in lapse and the 
President, through Executive Order 13222 of August 17, 2001 (3 CFR, 
2001 Comp. 783 (2002)), which has been extended by successive 
Presidential Notices, the most recent being that of August 2, 2006 
(71 FR 44,551 (Aug. 7, 2006)), has continued the Regulations in 
effect under the International Emergency Economic Powers Act (50 
U.S.C. 1701-1706 (2000)) (``IEEPA'').
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Charge 1 15 CFR 764.2(d)--Conspiracy To Violate the Regulations

    Beginning in or about February 2003 and continuing through in or 
about December 2004, Mahmood acted in concert with others, known and 
unknown, to do or bring about an act that violates the Regulations. The 
purpose of the conspiracy was to export lift truck parts (``parts'') 
items subject to the Regulations (``EAR 99'' \3\) and the Iranian 
Transactions Regulations,\4\ from the United States to Iran without the 
required U.S. Government authorization. In furtherance of the 
conspiracy, Mahmood facilitated the export of parts from the United 
States through the United Arab Emirates (``UAE'') to Iran. Pursuant to 
Section 746.7 of the Regulations, authorization was required from the 
Office of Foreign Assets Control, U.S. Department of Treasury 
(``OFAC'') before the parts could be exported to Iran. Failure to 
obtain authorization from OFAC is a violation of the Regulations. In so 
doing, Mahmood committed one violation of Section 764.2(d) of the 
Regulations.
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    \3\ EAR 99 is a designation for items subject to the Regulations 
that are not listed on the Commerce Control List.
    \4\ The Iranian Transactions Regulations are currently codified 
in the Code of Federal Regulations at 31 CFR part 560 (2006).
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Charges 2-6 15 CFR 764.2(b)--Causing the Export of Lift Truck Parts to 
Iran Without the Required Authorizations

    On five occasions between on or about March 28, 2003 and on or 
about December 18, 2003, Mahmood caused the doing of an act prohibited 
by the Regulations. Specifically, Mahmood coordinated the shipping of 
parts, items subject to the Regulations (``EAR 99'') and the Iranian 
Transactions Regulations, from the United States to Iran through the 
UAE without the required U.S. Government authorizations. Pursuant to 
Section 560.204 of the Iranian Transactions Regulations, an export to a 
third country intended for transshipment to Iran is a transaction 
subject to the Iranian Transactions Regulations. Pursuant to Section 
746.7 of the Regulations, authorization was required from OFAC for the 
shipment of the parts from the United States to Iran. Failure to obtain 
authorization from OFAC is a violation of the Regulations. By causing 
these exports in this manner, Mahmood committed five violations of 
Section 764.2(b) of the Regulations.

[[Page 26781]]

    Whereas, BIS and Mahmood have entered into a Settlement Agreement 
pursuant to Section 766.18(a) of the Regulations whereby they agreed to 
settle this matter in accordance with the terms and conditions set 
forth therein, and
    Whereas, I have approved the terms of such Settlement Agreement;
    It is therefore ordered:
    First, that for a period of ten years from the date of entry of 
this Order, Khalid Mahmood, 11505 Blue Ridge Drive, Beltsville, MD 
20750, and when acting for or on behalf of Mahmood, his representatives 
or agents (``Denied Person'') 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 Regulations, or in any other activity subject to the 
Regulations, 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 Regulations, or in any other 
activity subject to 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 Regulations, or in any other activity subject to the Regulations.
    Second, that no person may, directly or indirectly, do any of the 
following:
    A. Export or reexport to or on behalf of the Denied Person any 
items subject to the Regulations;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by the Denied Person of the ownership, possession, or 
control of any item subject to the Regulations that has been or will be 
exported from the United States, including financing or other support 
activities related to a transaction whereby the 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 the Denied Person of any item subject to 
the Regulations that has been exported from the United States;
    D. Obtain from the Denied Person in the United States any item 
subject to the Regulations 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 
Regulations that has been or will be exported from the United States 
and which is owned, possessed or controlled by the Denied Person, or 
service any item, of whatever origin, that is owned, possessed or 
controlled by the Denied Person if such service involves the use of any 
item subject to the Regulations 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 Regulations, any person, firm, corporation, or 
business organization related to Mahmood 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 the 
Order.
    Fourth, that this Order does not prohibit any export, reexport, or 
other transaction subject to the Regulations where the only items 
involved that are subject to the Regulations are the foreign-produced 
direct product of U.S.-origin technology.
    Fifth, that the proposed charging letter, the Settlement Agreement, 
and this Order shall be made available to the public.
    Sixth, that this Order shall be served on the Denied Person and on 
BIS, and shall be published in the Federal Register.
    This Order, which constitutes the final agency action in this 
matter, is effective immediately.

    Entered this 2nd day of May 2007.
Darryl W. Jackson,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 07-2322 Filed 5-10-07; 8:45 am]
BILLING CODE 3510-OT-M