[Federal Register Volume 80, Number 64 (Friday, April 3, 2015)]
[Notices]
[Pages 18194-18195]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-07566]


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 DEPARTMENT OF COMMERCE

Bureau of Industry and Security

[13-BIS-002]


In the Matter of: Yavuz Cizmeci, Yesiloy Cad. No. 13, Istanbul 
34153, Turkey, Respondent; Order Relating to Yavuz Cizmeci

    The Bureau of Industry and Security, U.S. Department of Commerce 
(``BIS''), has notified Yavuz Cizmeci of Istanbul, Turkey 
(``Cizmeci''), that it has initiated an administrative proceeding 
against Cizmeci pursuant to Section 766.3 of the Export Administration 
Regulations (the ``Regulations''),\1\ and Section 13(c) of the Export 
Administration Act of 1979, as amended (the ``Act''),\2\ through the 
issuance of a Charging Letter to Cizmeci that alleges that Cizmeci 
committed one violation of the Regulations. Specifically, the charge 
is:
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2014). The charged 
violation occurred in 2008. The Regulations governing the violation 
at issue are found in the 2008 version of the Code of Federal 
Regulations (15 CFR parts 730-774). The 2014 Regulations set forth 
the procedures that apply to this matter.
    \2\ 50 U.S.C. app. Sec. Sec.  2401-2420 (2000). 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 7, 2014 (79 FR 46959 (Aug. 11, 2014)), 
has continued the Regulations in effect under the International 
Emergency Economic Powers Act (50 U.S.C. 1701, et seq.) 2006 & Supp. 
IV 2010)).
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Charge 1: 15 CFR 764.2(b)--Causing, Aiding, or Abetting Actions 
Contrary to the Terms of a Temporary Denial Order

    Between on or about June 26, 2008, and on or about June 27, 
2008, Cizmeci caused, aided, abetted, induced, procured or permitted 
an act or actions prohibited by a BIS Temporary Denial Order (``the 
TDO'') issued in accordance with Section 766.24 of the Regulations. 
Specifically, Cizmeci caused, aided, abetted, induced, procured or 
permitted the participation by Dunyaya Bais Hava Tasimaciligi A.S., 
also known as Dunyaya Bakis Air Transportation, Inc., and doing 
business as Ankair (``Ankair''), of Istanbul, Turkey, in a 
transaction concerning a U.S.-origin Boeing 747 aircraft 
(manufacturer's serial number 24134, bearing Turkish tail number TC-
AKZ), and actions by Ankair facilitating the acquisition, possession 
and/or control by Iran Air of the aircraft. The Boeing 747 was an 
item subject to the Regulations, classified under Export Control 
Classification Number 9A991.b, controlled for anti-terrorism 
reasons, and valued at least at approximately $5.3 million.
    Cizmeci, who was the CEO and President of Ankair, submitted a 
letter dated June 26, 2008, to the Turkish Civil Aviation 
authorities directing that the Boeing 747 aircraft be de-registered 
in Turkey. Ankair also informed Turkish authorities that the 
aircraft would be subsequently re-registered in Pakistan. Ankair 
instead transferred physical possession and control of the aircraft 
to Iran Air on or about June 27, 2008. The Iran Air crew then 
ferried the aircraft from Turkey to Iran, where it remained under 
Iran Air's possession and control. At the time, Ankair's export 
privileges and those of Iran Air's had been denied under the 
Regulations by the TDO, which had issued on June 6, 2008.\3\ The TDO 
prohibited Ankair from ``directly or indirectly, participating in 
any way in any transaction involving the Boeing 747 (manufacturer 
serial number 24134, and current tail number TC-AKZ), including, but 
not limited to . . . [c]arrying 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 Boeing 747. . . .'' 
Moreover, the TDO provided that no person ``may, directly or 
indirectly, do any of the following . . . [t]ake any action that 
facilitates the acquisition or attempted acquisition by [Iran Air 
or] any Denied Person [under the TDO] 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 any Denied 
Person acquires or attempts to acquire such ownership, possession, 
or control.'' The TDO as issued was effective for 180 days, until 
December 3, 2008, and continued in force at all times pertinent 
hereto.
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    \3\ The June 6, 2008 TDO was published in the Federal Register 
on June 17, 2008 (73 FR 34249). Iran Air was subject to a standard 
denial order which extended to all items subject to the Regulations. 
Ankair's restrictions were tailored to transactions and activities 
involving the Boeing 747 aircraft at issue (manufacturer's serial 
number 24134).
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    In so doing, Cizmeci violated Section 764.2(b) of the 
Regulations.

    Whereas, BIS and Cizmeci have entered into a Settlement Agreement 
pursuant to Section 766.18(b) of the

[[Page 18195]]

Regulations, whereby they agreed to settle this matter in accordance 
with the terms and conditions set forth therein; and
    Whereas, I have approved of the terms of such Settlement Agreement;
    It is therefore ordered:
    First, Cizmeci shall be assessed a civil penalty in the amount of 
$50,000, the payment of which shall be made to the U.S. Department of 
Commerce within 30 days of the date of this Order.
    Second, pursuant to the Debt Collection Act of 1982, as amended (31 
U.S.C. 3701-3720E (2000)), the civil penalty owed under this Order 
accrues interest as more fully described in the attached Notice, and if 
payment is not made by the due date specified herein, Cizmeci will be 
assessed, in addition to the full amount of the civil penalty and 
interest, a penalty charge and an administrative charge, as more fully 
described in the attached Notice.
    Third, that for a period of twenty (20) years from the date of this 
Order, Yavuz Cizmeci, with a last known address of Yesiloy Cad. No. 13, 
Istanbul 34153, Turkey, and when acting for or on his behalf, his 
successors, assigns, employees, agents or representatives (hereinafter 
collectively referred to as ``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.
    Fourth, 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 item 
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.
    Fifth, 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 the Denied Person 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.
    Sixth, Cizmeci shall not take any action or make or permit to be 
made any public statement, directly or indirectly, denying the 
allegations in the Charging Letter or this Order. The foregoing does 
not affect Cizmeci's testimonial obligations in any proceeding, nor 
does it affect his right to take legal or factual positions in civil 
litigation or other civil proceedings in which the U.S. Department of 
Commerce is not a party.
    Seventh, the Charging Letter, the Settlement Agreement, and this 
Order shall be made available to the public.
    Eighth, that this Order shall be served on Cizmeci, and shall be 
published in the Federal Register.
    This Order, which constitutes the final agency action in this 
matter, is effective immediately.

    Issued this 23rd day of March, 2015.
David W. Mills,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2015-07566 Filed 4-2-15; 8:45 am]
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