BIS Denies Export Privileges for People, Companies Involved in Mahan Air Procurement Scheme
The Bureau of Industry and Security issued an order temporarily denying export privileges for three Indonesian companies and three people for illegally exporting U.S. aircraft parts to Iran’s Mahan Air. In an Aug. 20 press release, BIS said the companies operate an “international procurement scheme” for the sanctioned Iranian airline and will be barred from exporting or receiving U.S.-origin goods for 180 days. The suspension may be renewed.
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The three companies and one of the people -- PT MS Aero Support (PTMS), PT Kandiyasa Energi Utama (PTKEU), PT Antasena Kreasi (PTAK) and Sunarko Kuntjoro -- were charged for violating U.S. export controls and sanctions in December (see 1912170025). BIS also denied export privileges for Kuntjoro’s son, Triadi Senna Kuntjoro, and brother, Satrio Wiharjo Sasmito, for being involved in the unlicensed exports.
BIS said Sunarko Kuntjoro created PTKEU to avoid scrutiny from BIS enforcement officers, who were inspecting his other companies for illegally procuring U.S. aircraft parts. Kuntjoro used the companies to purchase, repair and refurbish aircraft parts for Mahan Air, which would send the parts to Kuntjoro through a freight forwarder in Singapore. Kuntjoro would then use a different freight forwarder and send the parts to the U.S. for repair before returning them to the Iranian airline. Kuntjoro removed all references to Mahan Air on the shipments and made false statements to BIS about the exports.
BIS said the companies participated in the procurement scheme since at least 2011 and continued to seek U.S. aircraft parts as recently as December 2019. Many of the shipments involved a freight forwarder in Singapore and used the email address aryo.antasenakreasi@gmail.com, “which closely matches PTAK’s full name.”