Sudanese Sanctions Regulations, 61513-61517 [E7-21443]
Download as PDF
<![CDATA[
Federal Register / Vol. 72, No. 210 / Wednesday, October 31, 2007 / Rules and Regulations
61513
submitted to Sheila Quarterman,
Regulatory Policy Division, Bureau of
Industry and Security, Department of
Commerce, P.O. Box 273, Washington,
DC 20044.
Rulemaking
1. This final rule has been determined
to be not significant for purposes of
Executive Order 12866.
2. Notwithstanding any other
provision of law, no person is required
to respond to nor be subject to a penalty
for failure to comply with a collection
of information, subject to the
requirements of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501
et seq.) (PRA), unless that collection of
information displays a currently valid
Office of Management and Budget
(OMB) Control Number. This regulation
involves collections previously
approved by the OMB under control
number 0694–0088, ‘‘Multi-Purpose
Application’’, which carries a burden
hour estimate of 58 minutes to prepare
and submit form BIS–748; and for
recordkeeping, reporting and review
requirements in connection with
Authorization Validated End-User,
which carries an estimated burden of 30
minutes per submission. This rule is
expected to result in a decrease in
license applications submitted to BIS.
Total burden hours associated with the
Paperwork Reduction Act and Office
and Management and Budget control
number 0694–0088 are not expected to
increase significantly as a result of this
rule.
3. This rule does not contain policies
with Federalism implications as that
term is defined under Executive Order
13132.
4. The provisions of the
Administrative Procedure Act requiring
notice of proposed rulemaking, the
opportunity for public participation,
and a delay in effective date, are
inapplicable because this regulation
involves a military and foreign affairs
function of the United States (5 U.S.C.
553(a)(1)). Further, no other law
requires that a notice of proposed
rulemaking and an opportunity for
public comment be given for this final
rule. Because a notice of proposed
rulemaking and an opportunity for
public comment are not required to be
given for this rule under the
Administrative Procedure Act or by any
other law, the analytical requirements of
the Regulatory Flexibility Act (5 U.S.C.
601 et seq.) are not applicable.
Therefore, this regulation is issued in
final form. Although there is no formal
comment period, public comments on
this regulation are welcome on a
continuing basis. Comments should be
Validated end-user
Eligible items (by ECCN)
Eligible destination
*
*
National Semiconductor Corporation ..............
*
*
*
3A001.a.5.a.1; 3A001.a.5.a.2; 3A001.a.5.a.3;
3A001.a.5.a.4; 3A001.a.5.a.5; 3A001.a.5.b.
*
*
National Semiconductor Hong Kong Limited,
Beijing Representative Office, Room 604,
CN
Resources
Building,
No.
8
Jianggumenbei A, Beijing, China 100005.
National Semiconductor Hong Kong Limited,
Shanghai Representative Office, Room
903–905 Central Plaza, No. 227 Huangpi
Road North, Shanghai, China 200003.
National Semiconductor Hong Kong Limited,
Shenzhen Representative Office, Room
1709 Di Wang Commercial Centre, Shung
Hing Square, 5002 Shenna Road East,
Shenzhen, China 518008.
most recently by the Notice of August
15, 2007 (72 FR 46137, August 16,
2007), has continued the EAR in effect
under the International Emergency
Economic Powers Act. BIS continues to
carry out the provisions of the Act, as
appropriate and to the extent permitted
by law, pursuant to Executive Order
13222.
*
*
*
*
*
DEPARTMENT OF THE TREASURY
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. E7–21465 Filed 10–30–07; 8:45 am]
mstockstill on PROD1PC66 with RULES
BILLING CODE 3510–33–P
Office of Foreign Assets Control
31 CFR Part 538
Sudanese Sanctions Regulations
Office of Foreign Assets
Control, Treasury.
ACTION: Final rule.
AGENCY:
SUMMARY: The Office of Foreign Assets
Control of the U.S. Department of the
VerDate Aug<31>2005
16:50 Oct 30, 2007
Jkt 214001
PO 00000
Frm 00035
Fmt 4700
Sfmt 4700
List of Subjects
15 CFR Part 748
Administrative practice and
procedure, Exports, Reporting and
recordkeeping requirements.
I Accordingly, part 748 of the Export
Administration Regulations (15 CFR
parts 730–799) is amended as follows:
PART 748—[AMENDED]
1. The authority citation for 15 CFR
part 748 continues to read as follows:
I
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; E.O. 13026, 61 FR 58767,
3 CFR, 1996 Comp., p. 228; E.O. 13222, 66
FR 44025, 3 CFR, 2001 Comp., p. 783; Notice
of August 3, 2006, 71 FR 44551 (August 7,
2006); Notice of August 15, 2007, 72 FR
46137 (August 16, 2007).
2. Supplement No. 7 to part 748 is
amended to correct the entry for
National Semiconductor Corporation to
read as follows:
I
Supplement No. 7 to Part 748—
Authorization Validated End-User
(VEU): List of Validated End-Users,
Respective Items Eligible for Export,
Reexport and Transfer, and Eligible
Destinations
Treasury is amending the Sudanese
Sanctions Regulations, 31 CFR part 538,
to include several new provisions
implementing Executive Order 13412 of
October 13, 2006.
DATES: Effective Date: October 31, 2007.
FOR FURTHER INFORMATION CONTACT:
Assistant Director for Compliance
Outreach & Implementation, tel.: 202/
622–2490, Assistant Director for
Licensing, tel.: 202/622–2480, Assistant
Director for Policy, tel.: 202/622–4855,
Office of Foreign Assets Control, or
E:\FR\FM\31OCR1.SGM
31OCR1
61514
Federal Register / Vol. 72, No. 210 / Wednesday, October 31, 2007 / Rules and Regulations
Chief Counsel (Foreign Assets Control),
tel.: 202/622–2410, Office of the General
Counsel, Department of the Treasury,
Washington, DC 20220 (not toll free
numbers).
SUPPLEMENTARY INFORMATION:
Electronic and Facsimile Availability
This document and additional
information concerning the Office of
Foreign Assets Control are available
from OFAC’s Web site (https://
www.treas.gov/ofac) or via facsimile
through a 24-hour fax-on demand
service, tel.: (202) 622–0077.
mstockstill on PROD1PC66 with RULES
Background
The Sudanese Sanctions Regulations,
31 CFR part 538 (the ‘‘SSR’’), were
promulgated to implement Executive
Order 13067 of November 3, 1997 (‘‘E.O.
13067’’), in which the President
declared a national emergency with
respect to the policies and actions of the
Government of Sudan. To deal with that
emergency, E.O. 13067 imposed
comprehensive trade sanctions with
respect to Sudan and blocked all
property and interests in property of the
Government of Sudan in the United
States or within the possession or
control of United States persons.
On October 13, 2006, the President
signed into law the Darfur Peace and
Accountability Act of 2006 (the
‘‘DPAA’’), which, among other things,
calls for support of the regional
government of Southern Sudan,
assistance with the peace efforts in
Darfur, and provision of economic
assistance in specified areas of Sudan.
In particular, section 7 of the DPAA
requires the continuation of the
sanctions currently imposed on the
Government of Sudan pursuant to E.O.
13067. However, section 8(e) of the
DPAA exempts from the prohibitions of
E.O. 13067 activities or related
transactions with respect to certain
areas in Sudan, including Southern
Sudan, Southern Kordofan/Nuba
Mountains State, Blue Nile State, Abyei,
Darfur, and marginalized areas in and
around Khartoum.
To reconcile sections 7 and 8(e) of the
DPAA and to maintain in place
sanctions on the Government of Sudan,
the President issued Executive Order
13412 on October 13, 2006 (‘‘E.O.
13412’’). In E.O. 13412, the President
determined that the Government of
Sudan continues to implement policies
and actions that violate human rights, in
particular with respect to the conflict in
Darfur, and that the Government of
Sudan plays a pervasive role in Sudan’s
petroleum and petrochemical
industries, thus constituting a threat to
VerDate Aug<31>2005
16:50 Oct 30, 2007
Jkt 214001
U.S. national security and foreign
policy.
In light of these determinations, and
in order to take additional steps with
respect to the national emergency
declared in E.O. 13067, section 1 of E.O.
13412 continues the blocking of the
Government of Sudan’s property and
interests in property that are in or come
within the United States, or that are in
or come within the possession or
control of United States persons.
Section 2 of E.O. 13412 prohibits
transactions by United States persons
relating to the petroleum or
petrochemical industries in Sudan,
including, but not limited to, oilfield
services and oil or gas pipelines. Both
sections 1 and 2 of E.O. 13412 apply to
the entire territory of Sudan.
Section 4 of E.O. 13412, consistent
with section 8(e) of the DPAA, provides
that the prohibitions contained in
section 2 of E.O. 13067 no longer apply
to activities or related transactions with
respect to Southern Sudan, Southern
Kordofan/Nuba Mountains State, Blue
Nile State, Abyei, Darfur, or
marginalized areas in and around
Khartoum, provided that the
transactions do not involve any property
or interests in property of the
Government of Sudan. Section 4(b)(ii) of
E.O. 13412 authorizes the Secretary of
State, after consultation with the
Secretary of the Treasury, to define the
geographic areas of Southern Sudan,
Southern Kordofan/Nuba Mountains
State, Blue Nile State, Abyei, Darfur,
and marginalized areas in and around
Khartoum for purposes of the order. In
addition, section 6(d) of E.O. 13412
defines the term ‘‘Government of
Sudan’’ to include its agencies,
instrumentalities, and controlled
entities, and the Central Bank of Sudan,
but to exclude the regional government
of Southern Sudan.
In accordance with E.O. 13412, the
Office of Foreign Assets Control
(‘‘OFAC’’) today is amending the SSR to
add several new provisions
implementing the provisions of E.O.
13412 discussed above. First, OFAC is
renumbering §§ 538.210 and 538.211 as
§§ 538.211 and 538.212, respectively, in
order to add a new § 538.210. Paragraph
(a) of new § 538.210 prohibits all
transactions by United States persons
relating to the petroleum or
petrochemical industries in Sudan,
including, but not limited to, oilfield
services and oil or gas pipelines.
Paragraph (b) of § 538.210 prohibits the
facilitation by a United States person of
any transaction relating to Sudan’s
petroleum or petrochemical industries.
Second, OFAC is adding an
exemption to newly renumbered
PO 00000
Frm 00036
Fmt 4700
Sfmt 4700
§ 538.212. Paragraph (g)(1) of § 538.212
provides that, except for the provisions
of §§ 538.201–203, 538.210, and
538.211, and except as provided in
paragraph (g)(2) of § 538.212, the
prohibitions contained in the SSR do
not apply to activities or related
transactions with respect to the
Specified Areas of Sudan. This
provision means that, subject to the new
interpretive sections set forth below,
activities and related transactions with
respect to the Specified Areas of Sudan
are no longer prohibited, unless they
involve any property or interests in
property of the Government of Sudan or
relate to Sudan’s petroleum or
petrochemical industries. In addition,
paragraph (g)(2) of § 538.212 states that
the exemption does not apply to the
exportation or reexportation of
agricultural commodities, medicine, and
medical devices. Section 906 of the
Trade Sanctions Reform and Export
Enhancement Act of 2000 (Pub. L. 106–
387) continues to impose licensing
requirements on these transactions,
regardless of the intended destination in
Sudan. These licensing requirements are
implemented in §§ 538.523, 538.525,
and 538.526.
Third, OFAC is revising the definition
of the term Government of Sudan
contained in § 538.305 to exclude the
regional government of Southern Sudan,
as set forth in section 6(d) of E.O. 13412.
Fourth, OFAC is adding a new
definitional section to identify the areas
of Sudan that were exempted in section
4(b) of E.O. 13412 from the prohibitions
contained in section 2 of E.O. 13067.
New § 538.320 defines the term
Specified Areas of Sudan to mean
Southern Sudan, Southern Kordofan/
Nuba Mountains State, Blue Nile State,
Abyei, Darfur, and marginalized areas in
and around Khartoum. This section also
defines the term ‘‘marginalized areas in
and around Khartoum’’ to refer to four
official camps for internally displaced
persons.
Fifth, OFAC is adding interpretive
§ 538.417 to clarify that all of the
prohibitions in the SSR apply to
shipments of goods, services, and
technology that transit areas of Sudan
other than the Specified Areas of Sudan.
Section 538.417(a) provides that an
exportation or reexportation of goods,
technology, or services to the Specified
Areas of Sudan is exempt under
§ 538.212(g) only if it does not transit or
transship through any area of Sudan
other than the Specified Areas of Sudan.
Section 538.417(b) provides that an
importation into the United States of
goods or services from, or originating in,
the Specified Areas of Sudan is exempt
under § 538.212(g) only if it does not
E:\FR\FM\31OCR1.SGM
31OCR1
mstockstill on PROD1PC66 with RULES
Federal Register / Vol. 72, No. 210 / Wednesday, October 31, 2007 / Rules and Regulations
transit or transship through any area of
Sudan other than the Specified Areas of
Sudan. Thus, imports and exports to or
from the Specified Areas of Sudan that
do not transit or transship non-exempt
areas of Sudan are not prohibited,
provided that the Government of Sudan
does not have an interest in the
transaction and the transaction does not
relate to Sudan’s petroleum or
petrochemical industries. However,
imports and exports to or from the
Specified Areas of Sudan that involve
the transiting of, or transshipment
through, non-exempt areas of Sudan,
e.g., Khartoum and Port Sudan, require
authorization from OFAC.
OFAC is also adding interpretive
§ 538.418 to explain the prohibitions on
financial transactions in Sudan.
Financial transactions are no longer
prohibited by the SSR if: (1) The
underlying activity is not prohibited by
the SSR; (2) the financial transaction
involves a third-country depository
institution, or a Sudanese depository
institution not owned or controlled by
the Government of Sudan, that is
located in the Specified Areas of Sudan;
and (3) the financial transaction is not
routed through a depository institution
that is located in the non-exempt areas
or that is owned or controlled by the
Government of Sudan, wherever
located. However, any financial
transactions that involve, in any
manner, depository institutions that are
located in the non-exempt areas of
Sudan, e.g., Khartoum, remain
prohibited and require authorization
from OFAC.
For example, if a financial transaction
involves a branch of a depository
institution in the Specified Areas of
Sudan, but that depository institution is
headquartered in Khartoum and
requires all financial transactions to be
routed through the headquarters or
another branch located in the nonexempt areas of Sudan, that transaction
is prohibited and requires authorization
from OFAC.
Finally, OFAC is amending the SSR to
add three new general licenses, which
are set forth in §§ 538.530, 538.531, and
538.532. Paragraph (a) of § 538.530
provides that all general licenses issued
pursuant to E.O. 13067 are authorized
and remain in effect pursuant to E.O.
13412. Paragraph (b) of § 538.530
provides that all specific licenses and
all nongovernmental organization
registrations issued pursuant to E.O.
13067 or the SSR prior to October 13,
2006, are authorized pursuant to E.O.
13412 and remain in effect until the
expiration date specified in the license
or registration, or if no expiration date
is specified, June 30, 2008. OFAC urges
VerDate Aug<31>2005
16:50 Oct 30, 2007
Jkt 214001
all license and nongovernmental
organization registration holders to take
note of this potentially new expiration
date, which applies to all licenses and
registrations that do not otherwise
contain an expiration date, regardless of
when they were originally issued.
The second general license, new
§ 538.531, authorizes otherwise
prohibited official activities of the
United States Government and
international organizations. Subject to
certain conditions and limitations,
paragraph (a)(1) of § 538.531 authorizes
all transactions and activities otherwise
prohibited by the SSR or E.O. 13412 that
are for the conduct of the official
business of the United States
Government by contractors or grantees
thereof. Employees who engage in
transactions for the conduct of the
official business of the United States
Government already are exempt from
these prohibitions. See § 538.212(e) and
section 5(a) of E.O. 13412. Paragraph
(a)(2) of § 538.531 authorizes, subject to
the same conditions and limitations as
paragraph (a)(1), all transactions and
activities otherwise prohibited by the
SSR or E.O. 13412 that are for the
conduct of the official business of the
United Nations, or United Nations
specialized agencies, programmes, and
funds, by employees, contractors, or
grantees thereof. Paragraphs (b), (c), and
(d) of § 538.531 set forth conditions and
limitations on the authorizations
described in paragraph (a).
The third general license, § 538.532,
authorizes humanitarian transshipments
of goods, technology, or services
through non-exempt areas of Sudan to
or from Southern Sudan and Darfur.
This license will be subject to review on
an annual basis. Upon completion of the
annual review, OFAC may revoke the
general license through the issuance of
a notice in the Federal Register. If
OFAC does not take any action, this
license will remain in force.
Public Participation
Because the amendment of the SSR
involve a foreign affairs function,
Executive Order 12866 and the
provisions of the Administrative
Procedure Act (5 U.S.C. 553) requiring
notice of proposed rulemaking,
opportunity for public participation,
and delay in effective date are
inapplicable. Because no notice of
proposed rulemaking is required for this
rule, the Regulatory Flexibility Act (5
U.S.C. 601–612) does not apply.
Paperwork Reduction Act
The collections of information related
to the SSR are contained in 31 CFR part
501 (the ‘‘Reporting, Procedures and
PO 00000
Frm 00037
Fmt 4700
Sfmt 4700
61515
Penalties Regulations’’). Pursuant to the
Paperwork Reduction Act of 1995 (44
U.S.C. 3507), those collections of
information have been approved by the
Office of Management and Budget under
control number 1505–0164. An agency
may not conduct or sponsor, and a
person is not required to respond to, a
collection of information unless the
collection of information displays a
valid control number.
List of Subjects in 31 CFR Part 538
Administrative practice and
procedure, Banks, Banking, Blocking of
assets, Exports, Foreign trade,
Humanitarian aid, Imports, Penalties,
Reporting and recordkeeping
requirements, Specially designated
nationals, Sudan, Terrorism,
Transportation.
For the reasons set forth in the
preamble, the Office of Foreign Assets
Control amends 31 CFR part 538 as
follows:
I
PART 538—SUDANESE SANCTIONS
REGULATIONS
1. Revise the authority citation for part
538 to read as follows:
I
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b);
18 U.S.C. 2339B, 2332d; 50 U.S.C. 1601–
1651, 1701–1706; Pub. L. 106–387, 114 Stat.
1549; Pub. L. 109–344, 120 Stat. 1869; Pub.
L. 110–96, 121 Stat. 1011; E.O. 13067, 62 FR
59989, 3 CFR, 1997 Comp., p. 230; E.O.
13412, 71 FR 61369, October 13, 2006.
Subpart B—Prohibitions
2. Redesignate §§ 538.210 and 538.211
as §§ 538.211 and 538.212, respectively,
and add a new § 538.210 to read as
follows:
I
§ 538.210 Prohibited transactions relating
to petroleum and petrochemical industries.
(a) Except as otherwise authorized,
and notwithstanding any contract
entered into or any license or permit
granted prior to October 13, 2006, all
transactions by United States persons
relating to the petroleum or
petrochemical industries in Sudan,
including, but not limited to, oilfield
services and oil or gas pipelines, are
prohibited.
(b) Except as otherwise authorized,
the facilitation by a United States
person, including but not limited to
brokering activities, of any transaction
relating to the petroleum or
petrochemical industries in Sudan is
prohibited.
3. Add a new paragraph (g) to newly
redesignated § 538.212 to read as
follows:
I
E:\FR\FM\31OCR1.SGM
31OCR1
61516
§ 538.212
Federal Register / Vol. 72, No. 210 / Wednesday, October 31, 2007 / Rules and Regulations
Exempt transactions.
*
*
*
*
*
(g)(1) Specified Areas of Sudan.
Except for the provisions of §§ 538.201
through 538.203, 538.210, and 538.211,
and except as provided in paragraph
(g)(2) of this section, the prohibitions
contained in this part do not apply to
activities or related transactions with
respect to the Specified Areas of Sudan.
(2) The exemption in paragraph (g)(1)
of this section does not apply to the
exportation or reexportation of
agricultural commodities (including
bulk agricultural commodities listed in
appendix A to this part 538), medicine,
and medical devices.
Note to § 538.212(g)(2). See §§ 538.523,
538.525, and 538.526 for licensing
requirements governing the transactions
described in paragraph (g)(2) of this section.
Subpart C—General Definitions
4. Amend § 538.305 by redesignating
paragraphs (a) through (d) as paragraphs
(a)(1) through (a)(4), respectively,
redesignating the introductory text as
paragraph (a) introductory text, revising
the newly designated paragraph (a), and
adding a new paragraph (b) to read as
follows:
I
§ 538.305
mstockstill on PROD1PC66 with RULES
Specified Areas of Sudan.
(a) The term Specified Areas of Sudan
means Southern Sudan, Southern
Kordofan/Nuba Mountains State, Blue
Nile State, Abyei, Darfur, and
VerDate Aug<31>2005
16:50 Oct 30, 2007
Jkt 214001
requires authorization from the Office of
Foreign Assets Control. However, if the
U.S. bank is able to bypass the
Khartoum headquarters and transfer the
funds directly to the Abyei branch of the
Sudanese bank, then the transaction
would not be prohibited.
Subpart D—Interpretations
Subpart E—Licenses, Authorizations,
and Statements of Licensing Policy
6. Add a new § 538.417 to read as
follows:
I
§ 538.417
Transshipments through Sudan.
(a) The exportation or reexportation of
goods, technology, or services to the
Specified Areas of Sudan is exempt
under § 538.212(g) only if such goods,
technology, or services do not transit or
transship through any area of Sudan
other than the Specified Areas of Sudan.
(b) The importation into the United
States of goods or services from, or
originating in, the Specified Areas of
Sudan is exempt under § 538.212(g)
only if such goods or services do not
transit or transship through any area of
Sudan other than the Specified Areas of
Sudan.
Note to § 538.417. See § 538.532, which
authorizes humanitarian transshipments to or
from Southern Sudan and Darfur.
7. Add a new § 538.418 to read as
follows:
I
Government of Sudan.
(a) The term Government of Sudan
includes:
(1) The state and the Government of
Sudan, as well as any political
subdivision, agency, or instrumentality
thereof, including the Central Bank of
Sudan;
(2) Any entity owned or controlled by
the foregoing;
(3) Any person to the extent that such
person is, or has been, or to the extent
that there is reasonable cause to believe
that such person is, or has been, since
the effective date, acting or purporting
to act directly or indirectly on behalf of
any of the foregoing; and
(4) Any other person determined by
the Director of the Office of Foreign
Assets Control to be included within
paragraphs (a)(1) through (a)(3) of this
section.
(b) Effective October 13, 2006, the
term Government of Sudan, as defined
in paragraph (a) of this section, does not
include the regional government of
Southern Sudan.
*
*
*
*
*
I 5. Add a new § 538.320 to read as
follows:
§ 538.320
marginalized areas in and around
Khartoum.
(b) The term marginalized areas in
and around Khartoum means the
following official camps for internally
displaced persons: Mayo, El Salaam,
Wad El Bashir, and Soba.
§ 538.418
Financial transactions in Sudan.
(a) Any financial transaction with a
depository institution located in an area
of Sudan other than the Specified Areas
of Sudan, e.g., Khartoum, remains
prohibited.
(b) Financial transactions are no
longer prohibited by this part if:
(1) The underlying activity is not
prohibited by this part;
(2) The financial transaction involves
a third-country depository institution,
or a Sudanese depository institution not
owned or controlled by the Government
of Sudan, that is located in the Specified
Areas of Sudan; and
(3) The financial transaction is not
routed through a depository institution
that is located in an area of Sudan other
than the Specified Areas of Sudan or
that is owned or controlled by the
Government of Sudan, wherever
located.
(c) Example. A U.S. bank is instructed
to transfer funds to the Abyei branch of
a Sudanese bank that is not owned or
controlled by the Government of Sudan.
In order for the transfer to take place,
the U.S. bank is required to route the
funds through the Sudanese bank’s
headquarters, which is located in
Khartoum. Due to the routing of the
financial transaction through Khartoum,
this transaction is prohibited and
PO 00000
Frm 00038
Fmt 4700
Sfmt 4700
8. Add a new § 538.530 to read as
follows:
I
§ 538.530 Licenses and registrations
issued pursuant to Executive Order 13067
or this part authorized pursuant to
Executive Order 13412.
(a) All general licenses issued
pursuant to Executive Order 13067 are
authorized pursuant to Executive Order
13412 and remain in effect.
(b) All specific licenses and all
nongovernmental organization
registrations issued pursuant to
Executive Order 13067 or this part prior
to October 13, 2006, are authorized
pursuant to Executive Order 13412 and
remain in effect until the expiration date
specified in the license or registration
or, if no expiration date is specified,
June 30, 2008.
I 9. Add a new § 538.531 to read as
follows:
§ 538.531 Official activities of the United
States Government and international
organizations.
(a) Subject to the conditions of
paragraphs (b), (c), and (d) of this
section, the following transactions are
authorized:
(1) All transactions and activities
otherwise prohibited by this part that
are for the conduct of the official
business of the United States
Government or the United Nations by
contractors or grantees thereof; and
(2) All transactions and activities
otherwise prohibited by this part that
are for the conduct of the official
business of the United Nations
specialized agencies, programmes, and
funds by employees, contractors, or
grantees thereof.
(b) Contractors or grantees conducting
transactions authorized pursuant to
paragraph (a) of this section must
provide a copy of their contract or grant
with the United States Government or
the United Nations, or its specialized
agencies, programmes, and funds, to any
U.S. person before the U.S. person
engages in or facilitates any transaction
or activity prohibited by this part. If the
contract or grant contains any sensitive
or proprietary information, such
information may be redacted or
removed from the copy given to the U.S.
person, provided that the information is
E:\FR\FM\31OCR1.SGM
31OCR1
Federal Register / Vol. 72, No. 210 / Wednesday, October 31, 2007 / Rules and Regulations
not necessary to demonstrate that the
transaction is authorized pursuant to
paragraph (a) of this section.
(c) Any U.S. person engaging in or
facilitating transactions authorized
pursuant to this section shall keep a full
and accurate record of each such
transaction, including a copy of the
contract or grant, and such record shall
be available for examination for at least
five (5) years after the date of the
transaction.
(d) No payment pursuant to this
section may involve a debit to an
account blocked pursuant to this part.
Note 1 to § 538.531. This license does not
relieve any persons participating in
transactions authorized hereunder from
compliance with any other U.S. legal
requirements applicable to the transactions
authorized pursuant to paragraph (a) of this
section. See, e.g., the Export Administration
Regulations (15 CFR parts 730 et seq.).
Note 2 to § 538.531. Paragraph (e) of
§ 538.212 exempts transactions for the
conduct of the official business of the Federal
Government or the United Nations by
employees thereof from the prohibitions
contained in this part.
10. Add a new § 538.532 to read as
follows:
I
§ 538.532 Humanitarian transshipments to
or from Southern Sudan and Darfur
authorized.
The transit or transshipment to or
from Southern Sudan and Darfur of
goods, technology, or services intended
for humanitarian purposes, through any
area of Sudan not exempted by
paragraph (g)(1) of § 538.212, is
authorized.
Dated: October 23, 2007.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. E7–21443 Filed 10–30–07; 8:45 am]
BILLING CODE 4811–45–P
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Parts 594, 595, and 597
Global Terrorism Sanctions
Regulations; Terrorism Sanctions
Regulations; Foreign Terrorist
Organizations Sanctions Regulations
Office of Foreign Assets
Control, Treasury.
ACTION: Final rule.
mstockstill on PROD1PC66 with RULES
AGENCY:
SUMMARY: The Office of Foreign Assets
Control of the U.S. Department of the
Treasury (‘‘OFAC’’) is revising the
Global Terrorism Sanctions Regulations,
the Terrorism Sanctions Regulations,
VerDate Aug<31>2005
16:50 Oct 30, 2007
Jkt 214001
and the Foreign Terrorist Organizations
Sanctions Regulations to add a new
general license authorizing all
transactions with the Palestinian
Authority, as defined in the general
license.
DATES: Effective Date: October 31, 2007.
FOR FURTHER INFORMATION CONTACT:
Assistant Director for Compliance,
Outreach & Implementation, tel.: 202/
622–2490, Assistant Director for
Licensing, tel.: 202/622–2480, Assistant
Director for Policy, tel.: 202/622–4855,
Office of Foreign Assets Control, or
Chief Counsel (Foreign Assets Control),
tel.: 202/622–2410, Office of the General
Counsel, Department of the Treasury,
Washington, DC 20220 (not toll free
numbers).
SUPPLEMENTARY INFORMATION:
Electronic and Facsimile Availability
This document and additional
information concerning the Office of
Foreign Assets Control (‘‘OFAC’’) are
available from OFAC’s Web site
(https://www.treas.gov/ofac) or via
facsimile through a 24-hour fax-on
demand service, tel.: (202) 622–0077.
Background
OFAC administers three sanctions
programs with respect to terrorists and
terrorist organizations. The Terrorism
Sanctions Regulations, 31 CFR part 595
(‘‘TSR’’), implement Executive Order
12947 of January 23, 1995, in which the
President declared a national emergency
with respect to ‘‘grave acts of violence
committed by foreign terrorists that
disrupt the Middle East peace process
* * *’’ The Global Terrorism Sanctions
Regulations, 31 CFR part 594 (‘‘GTSR’’),
implement Executive Order 13224 of
September 23, 2001, in which the
President declared an emergency more
generally with respect to ‘‘grave acts of
terrorism and threats of terrorism
committed by foreign terrorists * * *’’
The Foreign Terrorist Organizations
Sanctions Regulations, 31 CFR part 597
(‘‘FTOSR’’), implement provisions of the
Antiterrorism and Effective Death
Penalty Act of 1996.
HAMAS is a target of each of these
sanctions programs, resulting in the
blocking of its property and interests in
property that are in the United States or
within the possession or control of a
U.S. person. In the case of the FTOSR,
U.S. financial institutions are required
to retain possession or control of any
funds of HAMAS and report the
existence of such funds to Treasury.
These restrictions effectively prohibit
U.S. persons from dealing in property or
interests in property of HAMAS.
Following the 2006 parliamentary
PO 00000
Frm 00039
Fmt 4700
Sfmt 4700
61517
elections in the West Bank and Gaza,
which resulted in HAMAS members
forming the majority party within the
Palestinian Legislative Council and
holding positions of authority within
the government, OFAC determined that
HAMAS had a property interest in the
transactions of the Palestinian
Authority. That determination remains
in place. Accordingly, pursuant to the
TSR, the GTSR, and the FTOSR, U.S.
persons are prohibited from engaging in
transactions with the Palestinian
Authority unless authorized. On April
12, 2006, OFAC issued six general
licenses authorizing U.S. persons to
engage in certain transactions in which
the Palestinian Authority may have an
interest.
Based on foreign policy
considerations resulting from recent
events in the West Bank and Gaza,
including the appointment of Salam
Fayyad as the new Prime Minister of the
Palestinian Authority and of other
ministers not affiliated with HAMAS,
OFAC is revising the TSR, GTSR, and
FTOSR to add a new general license as
TSR § 595.514, GTSR § 594.516, and
FTOSR § 597.512. Paragraph (a) of new
§§ 595.514, 594.516, and 597.512
authorizes U.S. persons to engage in all
transactions with the Palestinian
Authority. Paragraph (b) of these
sections defines the term Palestinian
Authority, for purposes of the
authorization in paragraph (a), as the
Palestinian Authority government of
Prime Minister Salam Fayyad and
President Mahmoud Abbas, including
all branches, ministries, offices, and
agencies (independent or otherwise)
thereof. Transactions with HAMAS, or
in any property in which HAMAS has
an interest, not covered by the general
license remain prohibited.
Public Participation
Because the amendment of 31 CFR
parts 594, 595, and 597 involves a
foreign affairs function, the provisions
of Executive Order 12866 and the
Administrative Procedure Act (5 U.S.C.
553) requiring notice of proposed
rulemaking, opportunity for public
participation, and delay in effective
date, are inapplicable. Because no
notice of proposed rulemaking is
required for this rule, the Regulatory
Flexibility Act (5 U.S.C. 601–612) does
not apply.
Paperwork Reduction Act
The collections of information related
to 31 CFR parts 594, 595, and 597 are
contained in 31 CFR part 501 (the
‘‘Reporting, Procedures and Penalties
Regulations’’). Pursuant to the
Paperwork Reduction Act of 1995 (44
E:\FR\FM\31OCR1.SGM
31OCR1
]]>Agencies
[Federal Register Volume 72, Number 210 (Wednesday, October 31, 2007)]
[Rules and Regulations]
[Pages 61513-61517]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-21443]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 538
Sudanese Sanctions Regulations
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Office of Foreign Assets Control of the U.S. Department of
the Treasury is amending the Sudanese Sanctions Regulations, 31 CFR
part 538, to include several new provisions implementing Executive
Order 13412 of October 13, 2006.
DATES: Effective Date: October 31, 2007.
FOR FURTHER INFORMATION CONTACT: Assistant Director for Compliance
Outreach & Implementation, tel.: 202/622-2490, Assistant Director for
Licensing, tel.: 202/622-2480, Assistant Director for Policy, tel.:
202/622-4855, Office of Foreign Assets Control, or
[[Page 61514]]
Chief Counsel (Foreign Assets Control), tel.: 202/622-2410, Office of
the General Counsel, Department of the Treasury, Washington, DC 20220
(not toll free numbers).
SUPPLEMENTARY INFORMATION:
Electronic and Facsimile Availability
This document and additional information concerning the Office of
Foreign Assets Control are available from OFAC's Web site (https://
www.treas.gov/ofac) or via facsimile through a 24-hour fax-on demand
service, tel.: (202) 622-0077.
Background
The Sudanese Sanctions Regulations, 31 CFR part 538 (the ``SSR''),
were promulgated to implement Executive Order 13067 of November 3, 1997
(``E.O. 13067''), in which the President declared a national emergency
with respect to the policies and actions of the Government of Sudan. To
deal with that emergency, E.O. 13067 imposed comprehensive trade
sanctions with respect to Sudan and blocked all property and interests
in property of the Government of Sudan in the United States or within
the possession or control of United States persons.
On October 13, 2006, the President signed into law the Darfur Peace
and Accountability Act of 2006 (the ``DPAA''), which, among other
things, calls for support of the regional government of Southern Sudan,
assistance with the peace efforts in Darfur, and provision of economic
assistance in specified areas of Sudan. In particular, section 7 of the
DPAA requires the continuation of the sanctions currently imposed on
the Government of Sudan pursuant to E.O. 13067. However, section 8(e)
of the DPAA exempts from the prohibitions of E.O. 13067 activities or
related transactions with respect to certain areas in Sudan, including
Southern Sudan, Southern Kordofan/Nuba Mountains State, Blue Nile
State, Abyei, Darfur, and marginalized areas in and around Khartoum.
To reconcile sections 7 and 8(e) of the DPAA and to maintain in
place sanctions on the Government of Sudan, the President issued
Executive Order 13412 on October 13, 2006 (``E.O. 13412''). In E.O.
13412, the President determined that the Government of Sudan continues
to implement policies and actions that violate human rights, in
particular with respect to the conflict in Darfur, and that the
Government of Sudan plays a pervasive role in Sudan's petroleum and
petrochemical industries, thus constituting a threat to U.S. national
security and foreign policy.
In light of these determinations, and in order to take additional
steps with respect to the national emergency declared in E.O. 13067,
section 1 of E.O. 13412 continues the blocking of the Government of
Sudan's property and interests in property that are in or come within
the United States, or that are in or come within the possession or
control of United States persons. Section 2 of E.O. 13412 prohibits
transactions by United States persons relating to the petroleum or
petrochemical industries in Sudan, including, but not limited to,
oilfield services and oil or gas pipelines. Both sections 1 and 2 of
E.O. 13412 apply to the entire territory of Sudan.
Section 4 of E.O. 13412, consistent with section 8(e) of the DPAA,
provides that the prohibitions contained in section 2 of E.O. 13067 no
longer apply to activities or related transactions with respect to
Southern Sudan, Southern Kordofan/Nuba Mountains State, Blue Nile
State, Abyei, Darfur, or marginalized areas in and around Khartoum,
provided that the transactions do not involve any property or interests
in property of the Government of Sudan. Section 4(b)(ii) of E.O. 13412
authorizes the Secretary of State, after consultation with the
Secretary of the Treasury, to define the geographic areas of Southern
Sudan, Southern Kordofan/Nuba Mountains State, Blue Nile State, Abyei,
Darfur, and marginalized areas in and around Khartoum for purposes of
the order. In addition, section 6(d) of E.O. 13412 defines the term
``Government of Sudan'' to include its agencies, instrumentalities, and
controlled entities, and the Central Bank of Sudan, but to exclude the
regional government of Southern Sudan.
In accordance with E.O. 13412, the Office of Foreign Assets Control
(``OFAC'') today is amending the SSR to add several new provisions
implementing the provisions of E.O. 13412 discussed above. First, OFAC
is renumbering Sec. Sec. 538.210 and 538.211 as Sec. Sec. 538.211 and
538.212, respectively, in order to add a new Sec. 538.210. Paragraph
(a) of new Sec. 538.210 prohibits all transactions by United States
persons relating to the petroleum or petrochemical industries in Sudan,
including, but not limited to, oilfield services and oil or gas
pipelines. Paragraph (b) of Sec. 538.210 prohibits the facilitation by
a United States person of any transaction relating to Sudan's petroleum
or petrochemical industries.
Second, OFAC is adding an exemption to newly renumbered Sec.
538.212. Paragraph (g)(1) of Sec. 538.212 provides that, except for
the provisions of Sec. Sec. 538.201-203, 538.210, and 538.211, and
except as provided in paragraph (g)(2) of Sec. 538.212, the
prohibitions contained in the SSR do not apply to activities or related
transactions with respect to the Specified Areas of Sudan. This
provision means that, subject to the new interpretive sections set
forth below, activities and related transactions with respect to the
Specified Areas of Sudan are no longer prohibited, unless they involve
any property or interests in property of the Government of Sudan or
relate to Sudan's petroleum or petrochemical industries. In addition,
paragraph (g)(2) of Sec. 538.212 states that the exemption does not
apply to the exportation or reexportation of agricultural commodities,
medicine, and medical devices. Section 906 of the Trade Sanctions
Reform and Export Enhancement Act of 2000 (Pub. L. 106-387) continues
to impose licensing requirements on these transactions, regardless of
the intended destination in Sudan. These licensing requirements are
implemented in Sec. Sec. 538.523, 538.525, and 538.526.
Third, OFAC is revising the definition of the term Government of
Sudan contained in Sec. 538.305 to exclude the regional government of
Southern Sudan, as set forth in section 6(d) of E.O. 13412.
Fourth, OFAC is adding a new definitional section to identify the
areas of Sudan that were exempted in section 4(b) of E.O. 13412 from
the prohibitions contained in section 2 of E.O. 13067. New Sec.
538.320 defines the term Specified Areas of Sudan to mean Southern
Sudan, Southern Kordofan/Nuba Mountains State, Blue Nile State, Abyei,
Darfur, and marginalized areas in and around Khartoum. This section
also defines the term ``marginalized areas in and around Khartoum'' to
refer to four official camps for internally displaced persons.
Fifth, OFAC is adding interpretive Sec. 538.417 to clarify that
all of the prohibitions in the SSR apply to shipments of goods,
services, and technology that transit areas of Sudan other than the
Specified Areas of Sudan. Section 538.417(a) provides that an
exportation or reexportation of goods, technology, or services to the
Specified Areas of Sudan is exempt under Sec. 538.212(g) only if it
does not transit or transship through any area of Sudan other than the
Specified Areas of Sudan. Section 538.417(b) provides that an
importation into the United States of goods or services from, or
originating in, the Specified Areas of Sudan is exempt under Sec.
538.212(g) only if it does not
[[Page 61515]]
transit or transship through any area of Sudan other than the Specified
Areas of Sudan. Thus, imports and exports to or from the Specified
Areas of Sudan that do not transit or transship non-exempt areas of
Sudan are not prohibited, provided that the Government of Sudan does
not have an interest in the transaction and the transaction does not
relate to Sudan's petroleum or petrochemical industries. However,
imports and exports to or from the Specified Areas of Sudan that
involve the transiting of, or transshipment through, non-exempt areas
of Sudan, e.g., Khartoum and Port Sudan, require authorization from
OFAC.
OFAC is also adding interpretive Sec. 538.418 to explain the
prohibitions on financial transactions in Sudan. Financial transactions
are no longer prohibited by the SSR if: (1) The underlying activity is
not prohibited by the SSR; (2) the financial transaction involves a
third-country depository institution, or a Sudanese depository
institution not owned or controlled by the Government of Sudan, that is
located in the Specified Areas of Sudan; and (3) the financial
transaction is not routed through a depository institution that is
located in the non-exempt areas or that is owned or controlled by the
Government of Sudan, wherever located. However, any financial
transactions that involve, in any manner, depository institutions that
are located in the non-exempt areas of Sudan, e.g., Khartoum, remain
prohibited and require authorization from OFAC.
For example, if a financial transaction involves a branch of a
depository institution in the Specified Areas of Sudan, but that
depository institution is headquartered in Khartoum and requires all
financial transactions to be routed through the headquarters or another
branch located in the non-exempt areas of Sudan, that transaction is
prohibited and requires authorization from OFAC.
Finally, OFAC is amending the SSR to add three new general
licenses, which are set forth in Sec. Sec. 538.530, 538.531, and
538.532. Paragraph (a) of Sec. 538.530 provides that all general
licenses issued pursuant to E.O. 13067 are authorized and remain in
effect pursuant to E.O. 13412. Paragraph (b) of Sec. 538.530 provides
that all specific licenses and all nongovernmental organization
registrations issued pursuant to E.O. 13067 or the SSR prior to October
13, 2006, are authorized pursuant to E.O. 13412 and remain in effect
until the expiration date specified in the license or registration, or
if no expiration date is specified, June 30, 2008. OFAC urges all
license and nongovernmental organization registration holders to take
note of this potentially new expiration date, which applies to all
licenses and registrations that do not otherwise contain an expiration
date, regardless of when they were originally issued.
The second general license, new Sec. 538.531, authorizes otherwise
prohibited official activities of the United States Government and
international organizations. Subject to certain conditions and
limitations, paragraph (a)(1) of Sec. 538.531 authorizes all
transactions and activities otherwise prohibited by the SSR or E.O.
13412 that are for the conduct of the official business of the United
States Government by contractors or grantees thereof. Employees who
engage in transactions for the conduct of the official business of the
United States Government already are exempt from these prohibitions.
See Sec. 538.212(e) and section 5(a) of E.O. 13412. Paragraph (a)(2)
of Sec. 538.531 authorizes, subject to the same conditions and
limitations as paragraph (a)(1), all transactions and activities
otherwise prohibited by the SSR or E.O. 13412 that are for the conduct
of the official business of the United Nations, or United Nations
specialized agencies, programmes, and funds, by employees, contractors,
or grantees thereof. Paragraphs (b), (c), and (d) of Sec. 538.531 set
forth conditions and limitations on the authorizations described in
paragraph (a).
The third general license, Sec. 538.532, authorizes humanitarian
transshipments of goods, technology, or services through non-exempt
areas of Sudan to or from Southern Sudan and Darfur. This license will
be subject to review on an annual basis. Upon completion of the annual
review, OFAC may revoke the general license through the issuance of a
notice in the Federal Register. If OFAC does not take any action, this
license will remain in force.
Public Participation
Because the amendment of the SSR involve a foreign affairs
function, Executive Order 12866 and the provisions of the
Administrative Procedure Act (5 U.S.C. 553) requiring notice of
proposed rulemaking, opportunity for public participation, and delay in
effective date are inapplicable. Because no notice of proposed
rulemaking is required for this rule, the Regulatory Flexibility Act (5
U.S.C. 601-612) does not apply.
Paperwork Reduction Act
The collections of information related to the SSR are contained in
31 CFR part 501 (the ``Reporting, Procedures and Penalties
Regulations''). Pursuant to the Paperwork Reduction Act of 1995 (44
U.S.C. 3507), those collections of information have been approved by
the Office of Management and Budget under control number 1505-0164. An
agency may not conduct or sponsor, and a person is not required to
respond to, a collection of information unless the collection of
information displays a valid control number.
List of Subjects in 31 CFR Part 538
Administrative practice and procedure, Banks, Banking, Blocking of
assets, Exports, Foreign trade, Humanitarian aid, Imports, Penalties,
Reporting and recordkeeping requirements, Specially designated
nationals, Sudan, Terrorism, Transportation.
0
For the reasons set forth in the preamble, the Office of Foreign Assets
Control amends 31 CFR part 538 as follows:
PART 538--SUDANESE SANCTIONS REGULATIONS
0
1. Revise the authority citation for part 538 to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 18 U.S.C. 2339B,
2332d; 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 106-387, 114 Stat.
1549; Pub. L. 109-344, 120 Stat. 1869; Pub. L. 110-96, 121 Stat.
1011; E.O. 13067, 62 FR 59989, 3 CFR, 1997 Comp., p. 230; E.O.
13412, 71 FR 61369, October 13, 2006.
Subpart B--Prohibitions
0
2. Redesignate Sec. Sec. 538.210 and 538.211 as Sec. Sec. 538.211 and
538.212, respectively, and add a new Sec. 538.210 to read as follows:
Sec. 538.210 Prohibited transactions relating to petroleum and
petrochemical industries.
(a) Except as otherwise authorized, and notwithstanding any
contract entered into or any license or permit granted prior to October
13, 2006, all transactions by United States persons relating to the
petroleum or petrochemical industries in Sudan, including, but not
limited to, oilfield services and oil or gas pipelines, are prohibited.
(b) Except as otherwise authorized, the facilitation by a United
States person, including but not limited to brokering activities, of
any transaction relating to the petroleum or petrochemical industries
in Sudan is prohibited.
0
3. Add a new paragraph (g) to newly redesignated Sec. 538.212 to read
as follows:
[[Page 61516]]
Sec. 538.212 Exempt transactions.
* * * * *
(g)(1) Specified Areas of Sudan. Except for the provisions of
Sec. Sec. 538.201 through 538.203, 538.210, and 538.211, and except as
provided in paragraph (g)(2) of this section, the prohibitions
contained in this part do not apply to activities or related
transactions with respect to the Specified Areas of Sudan.
(2) The exemption in paragraph (g)(1) of this section does not
apply to the exportation or reexportation of agricultural commodities
(including bulk agricultural commodities listed in appendix A to this
part 538), medicine, and medical devices.
Note to Sec. 538.212(g)(2). See Sec. Sec. 538.523, 538.525,
and 538.526 for licensing requirements governing the transactions
described in paragraph (g)(2) of this section.
Subpart C--General Definitions
0
4. Amend Sec. 538.305 by redesignating paragraphs (a) through (d) as
paragraphs (a)(1) through (a)(4), respectively, redesignating the
introductory text as paragraph (a) introductory text, revising the
newly designated paragraph (a), and adding a new paragraph (b) to read
as follows:
Sec. 538.305 Government of Sudan.
(a) The term Government of Sudan includes:
(1) The state and the Government of Sudan, as well as any political
subdivision, agency, or instrumentality thereof, including the Central
Bank of Sudan;
(2) Any entity owned or controlled by the foregoing;
(3) Any person to the extent that such person is, or has been, or
to the extent that there is reasonable cause to believe that such
person is, or has been, since the effective date, acting or purporting
to act directly or indirectly on behalf of any of the foregoing; and
(4) Any other person determined by the Director of the Office of
Foreign Assets Control to be included within paragraphs (a)(1) through
(a)(3) of this section.
(b) Effective October 13, 2006, the term Government of Sudan, as
defined in paragraph (a) of this section, does not include the regional
government of Southern Sudan.
* * * * *
0
5. Add a new Sec. 538.320 to read as follows:
Sec. 538.320 Specified Areas of Sudan.
(a) The term Specified Areas of Sudan means Southern Sudan,
Southern Kordofan/Nuba Mountains State, Blue Nile State, Abyei, Darfur,
and marginalized areas in and around Khartoum.
(b) The term marginalized areas in and around Khartoum means the
following official camps for internally displaced persons: Mayo, El
Salaam, Wad El Bashir, and Soba.
Subpart D--Interpretations
0
6. Add a new Sec. 538.417 to read as follows:
Sec. 538.417 Transshipments through Sudan.
(a) The exportation or reexportation of goods, technology, or
services to the Specified Areas of Sudan is exempt under Sec.
538.212(g) only if such goods, technology, or services do not transit
or transship through any area of Sudan other than the Specified Areas
of Sudan.
(b) The importation into the United States of goods or services
from, or originating in, the Specified Areas of Sudan is exempt under
Sec. 538.212(g) only if such goods or services do not transit or
transship through any area of Sudan other than the Specified Areas of
Sudan.
Note to Sec. 538.417. See Sec. 538.532, which authorizes
humanitarian transshipments to or from Southern Sudan and Darfur.
0
7. Add a new Sec. 538.418 to read as follows:
Sec. 538.418 Financial transactions in Sudan.
(a) Any financial transaction with a depository institution located
in an area of Sudan other than the Specified Areas of Sudan, e.g.,
Khartoum, remains prohibited.
(b) Financial transactions are no longer prohibited by this part
if:
(1) The underlying activity is not prohibited by this part;
(2) The financial transaction involves a third-country depository
institution, or a Sudanese depository institution not owned or
controlled by the Government of Sudan, that is located in the Specified
Areas of Sudan; and
(3) The financial transaction is not routed through a depository
institution that is located in an area of Sudan other than the
Specified Areas of Sudan or that is owned or controlled by the
Government of Sudan, wherever located.
(c) Example. A U.S. bank is instructed to transfer funds to the
Abyei branch of a Sudanese bank that is not owned or controlled by the
Government of Sudan. In order for the transfer to take place, the U.S.
bank is required to route the funds through the Sudanese bank's
headquarters, which is located in Khartoum. Due to the routing of the
financial transaction through Khartoum, this transaction is prohibited
and requires authorization from the Office of Foreign Assets Control.
However, if the U.S. bank is able to bypass the Khartoum headquarters
and transfer the funds directly to the Abyei branch of the Sudanese
bank, then the transaction would not be prohibited.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
8. Add a new Sec. 538.530 to read as follows:
Sec. 538.530 Licenses and registrations issued pursuant to Executive
Order 13067 or this part authorized pursuant to Executive Order 13412.
(a) All general licenses issued pursuant to Executive Order 13067
are authorized pursuant to Executive Order 13412 and remain in effect.
(b) All specific licenses and all nongovernmental organization
registrations issued pursuant to Executive Order 13067 or this part
prior to October 13, 2006, are authorized pursuant to Executive Order
13412 and remain in effect until the expiration date specified in the
license or registration or, if no expiration date is specified, June
30, 2008.
0
9. Add a new Sec. 538.531 to read as follows:
Sec. 538.531 Official activities of the United States Government and
international organizations.
(a) Subject to the conditions of paragraphs (b), (c), and (d) of
this section, the following transactions are authorized:
(1) All transactions and activities otherwise prohibited by this
part that are for the conduct of the official business of the United
States Government or the United Nations by contractors or grantees
thereof; and
(2) All transactions and activities otherwise prohibited by this
part that are for the conduct of the official business of the United
Nations specialized agencies, programmes, and funds by employees,
contractors, or grantees thereof.
(b) Contractors or grantees conducting transactions authorized
pursuant to paragraph (a) of this section must provide a copy of their
contract or grant with the United States Government or the United
Nations, or its specialized agencies, programmes, and funds, to any
U.S. person before the U.S. person engages in or facilitates any
transaction or activity prohibited by this part. If the contract or
grant contains any sensitive or proprietary information, such
information may be redacted or removed from the copy given to the U.S.
person, provided that the information is
[[Page 61517]]
not necessary to demonstrate that the transaction is authorized
pursuant to paragraph (a) of this section.
(c) Any U.S. person engaging in or facilitating transactions
authorized pursuant to this section shall keep a full and accurate
record of each such transaction, including a copy of the contract or
grant, and such record shall be available for examination for at least
five (5) years after the date of the transaction.
(d) No payment pursuant to this section may involve a debit to an
account blocked pursuant to this part.
Note 1 to Sec. 538.531. This license does not relieve any
persons participating in transactions authorized hereunder from
compliance with any other U.S. legal requirements applicable to the
transactions authorized pursuant to paragraph (a) of this section.
See, e.g., the Export Administration Regulations (15 CFR parts 730
et seq.).
Note 2 to Sec. 538.531. Paragraph (e) of Sec. 538.212 exempts
transactions for the conduct of the official business of the Federal
Government or the United Nations by employees thereof from the
prohibitions contained in this part.
0
10. Add a new Sec. 538.532 to read as follows:
Sec. 538.532 Humanitarian transshipments to or from Southern Sudan
and Darfur authorized.
The transit or transshipment to or from Southern Sudan and Darfur
of goods, technology, or services intended for humanitarian purposes,
through any area of Sudan not exempted by paragraph (g)(1) of Sec.
538.212, is authorized.
Dated: October 23, 2007.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. E7-21443 Filed 10-30-07; 8:45 am]
BILLING CODE 4811-45-P
