Temporary Denial Order Issued for Export of a U.S. Aircraft to Iran

WASHINGTON – The U.S. Commerce Department’s Bureau of Industry and Security (BIS) issued a Temporary Denial Order (TDO) suspending the export privileges of Galaxy Aviation Trade Company, three of its shareholders, and Iran Air for 180 days.

Evidence obtained by BIS shows that the respondent parties were planning to re-export a U.S.-origin Boeing 747 cargo aircraft to Iran from Turkey in violation of the Export Administration Regulations (EAR).  The U.S. Government maintains comprehensive economic sanctions on Iran as a result of Iran's sponsorship of international terrorism and its pursuit of weapons of  mass destruction.  The order also imposes a non-standard denial on Ankair, a Turkish airline involved in the re-export, which only applies to any transactions involving this specific aircraft. 

"This action demonstrates that we will energetically use the tools at our disposal to enforce U.S. and international sanctions on Iran and enhance U.S. security," said Under Secretary of Commerce Mario Mancuso.  Under Secretary Mancuso also noted the anomaly of cargo aircraft being acquired by Iran Air, in light of United Nations Security Council resolution 1803, which specifically calls upon all States to inspect Iran Air Cargo aircraft provided there are reasonable grounds to believe that the aircraft is transporting goods prohibited under resolutions 1803, 1737 or 1747.

Under the Denial Order, Galaxy Aviation Trade Company, its shareholders, and Iran Air, may not directly or indirectly participate in or benefit in any way from any transaction subject to the EAR. It is also a violation of the EAR for any person to participate in a transaction subject to the EAR involving a denied party. Ankair, under the non-standard Denial Order, may not participate in or benefit from any transaction involving the Boeing 747 at issue.

BACKGROUND

BIS controls exports and re-exports of dual-use commodities, technology and software for reasons of national security, missile technology, nuclear non-proliferation, chemical and biological non-proliferation, crime control and regional stability. Criminal and administrative sanctions can be imposed for violations of the EAR. For more information, please visit www.bis.doc.gov.

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