Entities in Iran, China, Taiwan, and Hong Kong Targeted for Supplying Components to HESA
On July 31, 2025 — The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced new sanctions against a global procurement network supporting Iran regime’s expanding military drone program. The sanctions target five entities and one individual located in Iran, China, Hong Kong, and Taiwan, all of whom have played key roles in acquiring sensitive technologies on behalf of the Iran Aircraft Manufacturing Industrial Company (HESA), a state-owned defense contractor tied to Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL).
HESA, long sanctioned by the U.S., is known for manufacturing Iran’s military aircraft and the Ababil-series unmanned aerial vehicles (UAVs), which have been widely deployed by the Islamic Revolutionary Guard Corps (IRGC) in regional conflicts. This latest action builds on previous efforts under National Security Presidential Memorandum 2, which aims to deny the Iranian regime access to conventional and asymmetric weapons capabilities.
“Iran continues to pursue the development of asymmetric weapons capabilities, including unmanned aerial vehicles, to carry out attacks on the United States, our servicemembers and our partners and allies in the region,” said John K. Hurley, Under Secretary for Terrorism and Financial Intelligence. “We will continue to put America first by disrupting Tehran’s ability to further its destabilizing agenda that threatens regional stability and the safety of the American people.”
Designated Entities and Individuals
The action falls under the authority of Executive Order 13382, which targets proliferators of weapons of mass destruction (WMD) and their delivery systems. Among those designated:
- Control Afzar Tabriz Co Ltd (Iran): Under the leadership of Javad Alizadeh Hoshyar, this company procured computer numerical control (CNC) machines—vital for manufacturing aircraft components—for HESA.
- Javad Alizadeh Hoshyar: Designated for acting on behalf of Control Afzar and coordinating these procurement efforts.
- Clifton Trading Limited (Hong Kong): Served as an intermediary and consignee to obscure Control Afzar’s involvement in equipment shipments.
- Mecatron Machinery Co Ltd (Taiwan) and Joemars Machinery and Electric Industrial Co Ltd (Taiwan): Supplied CNC machines to Iran, knowingly bypassing export controls and international sanctions.
- Changzhou Joemars Industrial Automation Co Ltd (China): A subsidiary of Joemars Machinery, designated for being owned or controlled by a sanctioned entity.
These entities worked in coordination to acquire and ship critical manufacturing equipment to Iran, thereby supporting HESA’s drone and military aircraft production efforts.
Sanctions and Legal Implications
As a result of this designation:
- All property and interests in property of the designated persons within U.S. jurisdiction are blocked.
- Any U.S. persons or entities are prohibited from engaging in transactions involving the blocked parties unless authorized by OFAC.
- Entities 50% or more owned by designated persons are automatically blocked.
- Foreign financial institutions engaging with these designated entities may face secondary sanctions, including restrictions on opening or maintaining U.S. correspondent accounts.
OFAC reminded the public that violations of U.S. sanctions could lead to civil or criminal penalties, and enforcement may occur on a strict liability basis. The agency encouraged due diligence in dealings with international clients to avoid inadvertent sanctions exposure.
Broader Context
The Iranian regime has aggressively pursued drone capabilities as part of its regional power projection strategy, supplying UAVs to its proxy militias and using them to threaten U.S. forces and regional allies. Despite longstanding sanctions on HESA, the regime has exploited global supply chains to acquire sensitive equipment—often through front companies and illicit intermediaries.
This latest round of sanctions underscores the Biden administration’s commitment to disrupting Iran’s military-industrial base and its efforts to build a network of partners to isolate Iran’s defense sector from the global economy.
As Iran’s regime continues to invest in asymmetric warfare capabilities, including drones and ballistic missiles, the U.S. is ramping up both enforcement and diplomatic pressure to curb these activities and hold responsible entities accountable.
