Sudanese Sanctions Regulations, 46361-46364 [E9-21553]
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Federal Register / Vol. 74, No. 173 / Wednesday, September 9, 2009 / Rules and Regulations
seviceastm.org; Web site: https://
www.astm.org.
(1) ASTM F–2412–2005, Standard
Test Methods for Foot Protection; IBR
approved for § 1917.94(b)(1)(i).
(2) ASTM F–2413–2005, Standard
Specification for Performance
Requirements for Protective Footwear;
IBR approved for § 1917.94(b)(1)(i).
Subpart J—[Amended]
§ 1918.104
24. Revise paragraph (a)(1) of
§ 1918.101 to read as follows:
■
§ 1918.101
Eye and face protection.
Head protection.
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(b)(1) The employer must ensure that
head protection complies with any of
the following consensus standards:
(i) ANSI Z89.1–2003, ‘‘American
National Standard for Industrial Head
Protection,’’ which is incorporated by
reference in § 1918.3;
(ii) ANSI Z89.1–1997, ‘‘American
National Standard for Industrial Head
Protection,’’ which is incorporated by
reference in § 1918.3; or
(iii) ANSI Z89.1–1986, ‘‘American
National Standard for Personnel
Protection—Protective Headwear for
Industrial Workers—Requirements,’’
which is incorporated by reference in
§ 1918.3.
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Foot protection.
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(a) * * *
(1)(i) Employers must ensure that
each employee uses appropriate eye
and/or face protection when the
employee is exposed to an eye or face
hazard, and that protective eye and face
devices comply with any of the
following consensus standards:
(A) ANSI Z87.1–2003, ‘‘American
National Standard Practice for
Occupational and Educational Eye and
Face Protection,’’ which is incorporated
by reference in § 1918.3;
(B) ANSI Z87.1–1989 (R1998),
‘‘American National Standard Practice
for Occupational and Educational Eye
and Face Protection,’’ which is
incorporated by reference in § 1918.3; or
(C) ANSI Z87.1–1989, ‘‘American
National Standard Practice for
Occupational and Educational Eye and
Face Protection,’’ which is incorporated
by reference in § 1918.3.
(ii) Protective eye and face protection
devices that the employer demonstrates
are at least as effective as protective eye
and face protection devices that are
constructed in accordance with one of
the above consensus standards will be
deemed to be in compliance with the
requirements of this section.
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■ 25. Revise paragraph (b) of § 1918.103
to read as follows:
§ 1918.103
(2) Head protection devices that the
employer demonstrates are at least as
effective as head protection devices that
are constructed in accordance with one
of the above consensus standards will
be deemed to be in compliance with the
requirements of this section.
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■ 26. Revise paragraph (b) of § 1918.104
to read as follows:
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(b)(1) The employer must ensure that
protective footwear complies with any
of the following consensus standards:
(i) ASTM F–2412–2005, ‘‘Standard
Test Methods for Foot Protection,’’ and
ASTM F–2413–2005, ‘‘Standard
Specification for Performance
Requirements for Protective Footwear,’’
which are incorporated by reference in
§ 1918.3;
(ii) ANSI Z41–1999, ‘‘American
National Standard for Personal
Protection—Protective Footwear,’’
which is incorporated by reference in
§ 1918.3; or
(iii) ANSI Z41–1991, ‘‘American
National Standard for Personal
Protection—Protective Footwear,’’
which is incorporated by reference in
§ 1918.3.
(2) Protective footwear that the
employer demonstrates is at least as
effective as protective footwear that is
constructed in accordance with one of
the above consensus standards will be
deemed to be in compliance with the
requirements of this section.
[FR Doc. E9–21360 Filed 9–8–09; 8:45 am]
BILLING CODE 4510–26–P
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 Department of the
Treasury’s Office of Foreign Assets
Control (‘‘OFAC’’) is amending the
Sudanese Sanctions Regulations by
issuing a general license that authorizes
the exportation and reexportation of
agricultural commodities, medicine, and
medical devices to the Specified Areas
of Sudan, as well as the conduct of
related transactions. The Specified
Areas of Sudan are defined as Southern
Sudan, Southern Kordofan/Nuba
Mountains State, Blue Nile State, Abyei,
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46361
Darfur, and marginalized areas in and
around Khartoum. OFAC also is making
conforming changes to the Sudanese
Sanctions Regulations to reflect this
authorization.
DATES: Effective Date: September 9,
2009.
FOR FURTHER INFORMATION CONTACT:
Assistant Director for Compliance,
Outreach and 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
(not toll free numbers).
SUPPLEMENTARY INFORMATION:
Electronic and Facsimile Availability
This document and additional
information concerning OFAC are
available from OFAC’s Web site
(https://www.treas.gov/ofac) or via
facsimile through a 24-hour fax-ondemand 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 (62
FR 59989, November 5, 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.
Subsequently, on October 13, 2006,
the President signed the Darfur Peace
and Accountability Act of 2006 (Pub. L.
109–344, 120 Stat. 1869) (‘‘DPAA’’) and
issued Executive Order 13412 of
October 13, 2006 (71 FR 61369, October
17, 2006) (‘‘E.O. 13412’’). The DPAA
and E.O. 13412, inter alia, exempt the
Specified Areas of Sudan from certain
prohibitions set forth in E.O. 13067, and
define the term Specified Areas of
Sudan to include Southern Sudan,
Southern Kordofan/Nuba Mountains
State, Blue Nile State, Abyei, Darfur,
and marginalized areas in and around
Khartoum. While E.O. 13412 exempted
the Specified Areas of Sudan from
certain prohibitions in E.O. 13067, it
continued the country-wide blocking of
the Government of Sudan’s property
and interests in property and imposed a
new country-wide prohibition on
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transactions relating to Sudan’s
petroleum or petrochemical industries.
E.O. 13412 also removed the regional
Government of Southern Sudan from
the definition of the term Government of
Sudan set forth in E.O. 13067. OFAC
issued amendments to the SSR
implementing E.O. 13412 on October
31, 2007 (72 FR 61513, October 31,
2007).
OFAC today is further amending the
SSR to resolve a tension between E.O.
13412 and the DPAA on the one hand,
and the Trade Sanctions Reform and
Export Enhancement Act of 2000 (22
U.S.C. 7201–7211) (‘‘TSRA’’) on the
other. Pursuant to E.O. 13412 and the
DPAA, most trade and related
activities—other than trade with the
Government of Sudan or relating to
Sudan’s petroleum or petrochemical
industries—are allowed with the
Specified Areas of Sudan. These
Specified Areas, however, remained
subject to regulations promulgated
pursuant to section 906(a)(1) of TSRA,
which provides that the export of
agricultural commodities, medicine, and
medical devices to the government of a
country that has been determined by the
Secretary of State, under section 6(j) of
the Export Administration Act of 1979,
50 U.S.C. App. 2405(j) (the ‘‘EAA’’), to
have repeatedly provided support for
acts of international terrorism, or to any
entity in such a country, shall be made
pursuant to one-year licenses issued by
the United States government.
Because Sudan has been determined
by the Secretary of State to be a country
that has repeatedly provided support for
acts of international terrorism pursuant
to section 6(j) of the EAA, the entire
country remained subject to TSRA’s
licensing requirements under the SSR.
The overlap of TSRA with E.O. 13412
and the DPAA—as previously
implemented in the SSR—resulted in
the requirement that OFAC authorize
the export of agricultural and medical
items to the Specified Areas of Sudan,
even though no OFAC authorization
was required to export most other items
to those areas.
Therefore, in view of the underlying
policy objectives and findings
concerning the Specified Areas of
Sudan that resulted in the elimination
of most of the previous economic
sanctions against these areas within
Sudan, including export sanctions
analogous to those covered by TSRA,
OFAC has determined that specific
licenses for TSRA-related transactions
with respect to the Specified Areas of
Sudan should no longer be required.
Instead, OFAC is authorizing such
transactions through a general license,
set forth at SSR § 538.523(a)(2),
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provided that such transactions do not
involve any property or interests in
property of the Government of Sudan or
relate to the petroleum or petrochemical
industries in Sudan. In accordance with
the requirements set forth in section
906(a)(1) of TSRA, this general license
covers exports shipped within the
twelve-month period beginning on the
date of the signing of the export
contract. In addition, each year by the
anniversary of its effective date on
September 9, 2009, OFAC will
determine whether to revoke the general
license. Unless revoked, the general
license will remain in effect. However,
specific licenses for TSRA-related
transactions with respect to the
Government of Sudan, to any individual
or entity in an area of Sudan other than
the Specified Areas of Sudan, or to
persons in third countries purchasing
specifically for resale to the foregoing
are still required.
Existing prohibitions and safeguards
satisfy TSRA’s requirement that
procedures be in place to deny the
general license for exports to entities
within Sudan promoting international
terrorism. For instance, the requirement
that no U.S. person engage in any
transaction with anyone on OFAC’s List
of Specially Designated Nationals and
Blocked Persons, including persons
designated under the terrorism
programs administered by OFAC,
provides a mechanism for denying
TSRA-related exports to certain entities
within the Specified Areas of Sudan. In
addition, if it deems necessary, OFAC
may amend, modify, or revoke the new
general license pursuant to § 501.803 of
the Reporting, Procedures and Penalties
Regulations, 31 CFR part 501 (the
‘‘RPPR’’), which set forth standard
reporting and recordkeeping
requirements and license application
and other procedures governing
transactions regulated pursuant to other
parts of 31 CFR chapter V. Section
538.502 of the SSR similarly provides
OFAC with the authority to exclude any
person, property, or transaction from the
operation of the general license or to
restrict the applicability of the general
license with respect to any persons,
property, or transactions. Finally, the
requirement that all U.S. persons
maintain records of any transaction
subject to OFAC-administered sanctions
for a period of not less than five years
pursuant to RPPR § 501.601, and
OFAC’s authority to obtain these
records pursuant to RPPR § 501.602,
allow OFAC to monitor activities under
the general license in order to determine
whether it should exercise these
authorities.
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Those transactions now authorized by
the general license set forth at
§ 538.523(a)(2) of the SSR include the
sale, exportation, and reexportation of
agricultural commodities, medicine, and
medical devices, the financing of and
payment for such sales, and the
brokering of TSRA sales. However, the
transshipment or transit of TSRArelated exports through areas of Sudan
other than the Specified Areas of Sudan,
and any related financial transactions
that are routed through depository
institutions located in an area of Sudan
other than the Specified Areas, remain
prohibited under §§ 538.417 and
538.418 of the SSR.
Public Participation
Because the amendment of 31 CFR
part 538 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 part 538 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.
For the reasons set forth in the
preamble, the Department of the
Treasury’s Office of Foreign Assets
Control amends 31 CFR part 538 as
follows:
■
PART 538—SUDANESE SANCTIONS
REGULATIONS
1. Revise the authority citation for part
538 to read as follows:
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Authority: 3 U.S.C. 301; 18 U.S.C. 2339B,
2332d; 31 U.S.C. 321(b); 50 U.S.C. 1601–
1651, 1701–1706; Public Law 101–410, 104
Stat. 890 (28 U.S.C. 2461 note); 22 U.S.C.
7201–7211; Public Law 109–344, 120 Stat.
1869; Public Law 110–96, 121 Stat. 1011;
E.O. 13067, 62 FR 59989, 3 CFR, 1997 Comp.,
p. 230; E.O. 13412, 71 FR 61369, 3 CFR, 2006
Comp., p. 244.
Subpart B—Prohibitions
2. Revise the note to § 538.212(g)(2) to
read as follows:
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§ 538.212
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Exempt transactions.
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(g) * * *
(2) * * *
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Note to § 538.212(g)(2): See § 538.523(a)(2)
for a general license authorizing the
exportation and reexportation of agricultural
commodities, medicine, and medical devices
to the Specified Areas of Sudan, and the
conduct of related transactions.
Subpart D—Interpretations
3. Amend § 538.405 by revising
paragraph (d) to read as follows:
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§ 538.405 Transactions incidental to a
licensed transaction authorized.
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(d) Financing of licensed sales for
exportation or reexportation of
agricultural commodities or products,
medicine, or medical equipment to the
Government of Sudan, to any individual
or entity in an area of Sudan other than
the Specified Areas of Sudan, or to
persons in third countries purchasing
specifically for resale to the foregoing.
See § 538.525.
Subpart E—Licenses, Authorizations,
and Statements of Licensing Policy
4. Amend § 538.523 by redesignating
paragraph (a), paragraph (b), and the
introductory text to paragraph (c) to
read as follows:
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§ 538.523 Commercial sales, exportation,
and reexportation of agricultural
commodities, medicine, and medical
devices.
(a)(1) One-year specific license
requirement. The exportation or
reexportation of agricultural
commodities (including bulk
agricultural commodities listed in
appendix A to this part 538), medicine,
or medical devices to the Government of
Sudan, to any individual or entity in an
area of Sudan other than the Specified
Areas of Sudan, or to persons in third
countries purchasing specifically for
resale to the foregoing, shall only be
made pursuant to a one-year specific
license issued by the U.S. Department of
the Treasury, Office of Foreign Assets
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Control, for contracts entered into
during the one-year period of the license
and shipped within the 12-month
period beginning on the date of the
signing of the contract. No specific
license will be granted for the
exportation or reexportation of
agricultural commodities, medicine, or
medical equipment to any entity or
individual in Sudan promoting
international terrorism, to any narcotics
trafficking entity designated pursuant to
Executive Order 12978 of October 21,
1995 (60 FR 54579, October 24, 1995) or
the Foreign Narcotics Kingpin
Designation Act (21 U.S.C. 1901–1908),
or to any foreign organization, group, or
persons subject to any restriction for its
involvement in weapons of mass
destruction or missile proliferation.
Executory contracts entered into
pursuant to paragraph (b)(2) of this
section prior to the issuance of the oneyear specific license described in this
paragraph shall be deemed to have been
signed on the date of issuance of that
one-year specific license (and, therefore,
the exporter is authorized to make
shipments under that contract within
the 12-month period beginning on the
date of issuance of the one-year specific
license).
(2) General license for the Specified
Areas of Sudan. The exportation or
reexportation of agricultural
commodities (including bulk
agricultural commodities listed in
appendix A to this part 538), medicine,
and medical devices to the Specified
Areas of Sudan and the conduct of
related transactions, including, but not
limited to, the making of shipping and
cargo inspection arrangements, the
obtaining of insurance, the arrangement
of financing and payment, the entry into
executory contracts, and the provision
of brokerage services for such sales and
exports or reexports, are hereby
authorized, provided that such activities
or transactions do not involve any
property or interests in property of the
Government of Sudan and do not relate
to the petroleum or petrochemical
industries in Sudan, and also provided
that all such exports or reexports are
shipped within the 12-month period
beginning on the date of the signing of
the contract for export or reexport.
Note 1 to § 538.523(a)(2): Consistent with
section 906(a)(1) of the Trade Sanctions
Reform and Export Enhancement Act of 2000
(22 U.S.C. 7205), each year by the
anniversary of its effective date of September
9, 2009, the Office of Foreign Assets Control
will determine whether to revoke this general
license. Unless revoked, the general license
will remain in effect.
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46363
Note 2 to § 538.523(a)(2): See §§ 538.417
and 538.418 for additional requirements with
respect to transshipments through, and
financial transactions in, Sudan.
(b) General license for arrangement of
exportation or reexportation of covered
products. (1) With respect to sales
pursuant to § 538.523(a)(1), the making
of shipping arrangements, cargo
inspection, obtaining of insurance, and
arrangement of financing (consistent
with § 538.525) for the exportation or
reexportation of agricultural
commodities, medicine, or medical
devices to the Government of Sudan, to
any individual or entity in an area of
Sudan other than the Specified Areas of
Sudan, or to persons in third countries
purchasing specifically for resale to the
foregoing, are authorized.
(2) If desired, entry into executory
contracts (including executory pro
forma invoices, agreements in principle,
or executory offers capable of
acceptance such as bids in response to
public tenders) for the exportation or
reexportation of agricultural
commodities, medicine, and medical
devices to the Government of Sudan, to
any individual or entity in an area of
Sudan other than the Specified Areas of
Sudan, or to persons in third countries
purchasing specifically for resale to the
foregoing, is authorized, provided that
performance of an executory contract is
expressly made contingent upon the
prior issuance of the one-year specific
license described in paragraph (a)(1) of
this section.
(c) Instructions for obtaining one-year
specific licenses. In order to obtain the
one-year specific license described in
paragraph (a)(1) of this section, the
exporter must provide to the Office of
Foreign Assets Control:
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■ 5. Amend § 538.525 by revising
paragraphs (a) introductory text and (b)
to read as follows:
§ 538.525 Payment for and financing of
commercial sales of agricultural
commodities, medicine, and medical
equipment.
(a) General license for payment terms.
The following payment terms for sales,
pursuant to § 538.523(a)(1), of
agricultural commodities and products,
medicine, and medical equipment to the
Government of Sudan, to any individual
or entity in an area of Sudan other than
the Specified Areas, or to persons in
third countries purchasing specifically
for resale to the foregoing are
authorized:
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(b) Specific licenses for alternate
payment terms. Specific licenses may be
issued on a case-by-case basis for
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payment terms and trade financing not
authorized by the general license in
paragraph (a) of this section for sales
pursuant to § 538.523(a)(1). See
§ 501.801(b) of this chapter for specific
licensing procedures.
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DEPARTMENT OF HOMELAND
SECURITY
6. Amend § 538.526 by revising
paragraph (a), the introductory text of
paragraph (b), and paragraph (b)(2) to
read as follows:
RIN 1625–AA08
§ 538.526 Brokering sales of agricultural
commodities, medicine, and medical
devices.
AGENCY:
(a) General license for brokering sales
by U.S. persons. United States persons
are authorized to provide brokerage
services on behalf of U.S. persons for
the sale and exportation or
reexportation by United States persons
of agricultural commodities, medicine,
and medical devices to the Government
of Sudan, to any individual or entity in
an area of Sudan other than the
Specified Areas of Sudan, or to persons
in third countries purchasing
specifically for resale to the foregoing,
provided that the sale and exportation
or reexportation is authorized by a oneyear specific license issued pursuant to
§ 538.523(a)(1).
(b) Specific licensing for brokering
sales by non-U.S. persons of bulk
agricultural commodities. Specific
licenses may be issued on a case-by-case
basis to permit United States persons to
provide brokerage services on behalf of
non-United States, non-Sudanese
persons for the sale and exportation or
reexportation of bulk agricultural
commodities to the Government of
Sudan, to any individual or entity in an
area of Sudan other than the Specified
Areas of Sudan, or to persons in third
countries purchasing specifically for
resale to the foregoing. Specific licenses
issued pursuant to this section will
authorize the brokering only of sales
that:
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*
(2) Are to purchasers permitted
pursuant to § 538.523(a)(1); and
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SUMMARY: The Coast Guard is
temporarily suspending the existing
enforcement period of a special local
regulation for a recurring marine event
in the Fifth Coast Guard District and
adding a temporary enforcement period.
This regulation applies to only one
recurring marine event, the ‘‘Cambridge
Offshore Challenge’’ power boat race. A
special local regulation is necessary to
provide for the safety of life on
navigable waters during the event. This
action is intended to restrict vessel
traffic in a portion of the Choptank
River, MD, during the event.
DATES: In the Table to 33 CFR 100.501,
the suspension of line No. 27 is effective
from September 9, 2009 to September
30, 2009; and the addition of line No.
64 is effective from 9 a.m. to 6 p.m., on
September 19, 2009, and from 9 a.m. to
6 p.m., on September 20, 2009.
ADDRESSES: Documents indicated in this
preamble as being available in the
docket are part of docket USCG–2009–
0749 and are available online by going
to https://www.regulations.gov, inserting
USCG–2009–0749 in the ‘‘Keyword’’
box, and then clicking ‘‘Search.’’ They
are also available for inspection or
copying at the Docket Management
Facility (M–30), U.S. Department of
Transportation, West Building Ground
Floor, Room W12–140, 1200 New Jersey
Avenue, SE., Washington, DC 20590,
between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this temporary
rule, call or e-mail Dennis Sens, Project
Manager, Fifth Coast Guard District,
Prevention Division, at 757–398–6204
or e-mail at Dennis.M.Sens@uscg.mil. If
you have questions on viewing the
docket, call Renee V. Wright, Program
Manager, Docket Operations, telephone
202–366–9826.
SUPPLEMENTARY INFORMATION:
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■
Dated: September 1, 2009.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. E9–21553 Filed 9–8–09; 8:45 am]
BILLING CODE 4811–45–P
Coast Guard
33 CFR Part 100
[Docket No. USCG–2009–0749]
Special Local Regulation for Marine
Events; Choptank River, Cambridge,
MD
ACTION:
Coast Guard, DHS.
Temporary final rule.
Regulatory Information
The Coast Guard is issuing this
temporary final rule without prior
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notice and opportunity to comment
pursuant to authority under section 4(a)
of the Administrative Procedure Act
(APA) (5 U.S.C. 553(b)). This provision
authorizes an agency to issue a rule
without prior notice and opportunity to
comment when the agency for good
cause finds that those procedures are
‘‘impracticable, unnecessary, or contrary
to the public interest.’’ Under 5 U.S.C.
553(b)(B), the Coast Guard finds that
good cause exists for not publishing a
notice of proposed rulemaking (NPRM)
with respect to this rule because
immediate action is needed to minimize
potential danger to the public during the
event. The potential dangers posed by a
high speed power boat race conducted
on the waterway with other vessel
traffic makes a special local regulation
necessary to provide for the safety of
participants, spectator craft and other
vessels transiting the event area. For the
safety concerns noted, it is in the public
interest to have this regulation in effect
during the event. The Coast Guard will
issue broadcast notice to mariners to
advise vessel operators of navigational
restrictions. On scene Coast Guard and
local law enforcement vessels will also
provide actual notice to mariners.
Under 5 U.S.C. 553(d)(3), the Coast
Guard finds that good cause exists for
making this rule effective less than 30
days after publication in the Federal
Register. The potential dangers posed
by boat races operating in close
proximity to transiting vessels make
special local regulation necessary.
Delaying the effective date would be
contrary to the public interest, since
immediate action is needed to ensure
the safety of the event participants,
patrol vessels, spectator craft and other
vessels transiting the event area.
However, the Coast Guard will provide
advance notifications to users of the
effected waterways via marine
information broadcasts, local notice to
mariners, commercial radio stations and
area newspapers.
Background and Purpose
Marine events are frequently held on
the navigable waters within the
boundary of the Fifth Coast Guard
District. The on water activities that
typically comprise marine events
include sailing regattas, power boat
races, swim races and holiday parades.
For a description of the geographical
area of each Coast Guard Sector—
Captain of the Port Zone, please see 33
CFR 3.25.
This regulation temporarily suspends
the enforcement period of a special local
regulation for a recurring marine event
within the Fifth Coast Guard District
and temporarily adds a new
E:\FR\FM\09SER1.SGM
09SER1
Agencies
[Federal Register Volume 74, Number 173 (Wednesday, September 9, 2009)]
[Rules and Regulations]
[Pages 46361-46364]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-21553]
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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.
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SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (``OFAC'') is amending the Sudanese Sanctions Regulations by
issuing a general license that authorizes the exportation and
reexportation of agricultural commodities, medicine, and medical
devices to the Specified Areas of Sudan, as well as the conduct of
related transactions. The Specified Areas of Sudan are defined as
Southern Sudan, Southern Kordofan/Nuba Mountains State, Blue Nile
State, Abyei, Darfur, and marginalized areas in and around Khartoum.
OFAC also is making conforming changes to the Sudanese Sanctions
Regulations to reflect this authorization.
DATES: Effective Date: September 9, 2009.
FOR FURTHER INFORMATION CONTACT: Assistant Director for Compliance,
Outreach and 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 (not toll free numbers).
SUPPLEMENTARY INFORMATION:
Electronic and Facsimile Availability
This document and additional information concerning 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
The Sudanese Sanctions Regulations, 31 CFR part 538 (the ``SSR''),
were promulgated to implement Executive Order 13067 of November 3, 1997
(62 FR 59989, November 5, 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.
Subsequently, on October 13, 2006, the President signed the Darfur
Peace and Accountability Act of 2006 (Pub. L. 109-344, 120 Stat. 1869)
(``DPAA'') and issued Executive Order 13412 of October 13, 2006 (71 FR
61369, October 17, 2006) (``E.O. 13412''). The DPAA and E.O. 13412,
inter alia, exempt the Specified Areas of Sudan from certain
prohibitions set forth in E.O. 13067, and define the term Specified
Areas of Sudan to include Southern Sudan, Southern Kordofan/Nuba
Mountains State, Blue Nile State, Abyei, Darfur, and marginalized areas
in and around Khartoum. While E.O. 13412 exempted the Specified Areas
of Sudan from certain prohibitions in E.O. 13067, it continued the
country-wide blocking of the Government of Sudan's property and
interests in property and imposed a new country-wide prohibition on
[[Page 46362]]
transactions relating to Sudan's petroleum or petrochemical industries.
E.O. 13412 also removed the regional Government of Southern Sudan from
the definition of the term Government of Sudan set forth in E.O. 13067.
OFAC issued amendments to the SSR implementing E.O. 13412 on October
31, 2007 (72 FR 61513, October 31, 2007).
OFAC today is further amending the SSR to resolve a tension between
E.O. 13412 and the DPAA on the one hand, and the Trade Sanctions Reform
and Export Enhancement Act of 2000 (22 U.S.C. 7201-7211) (``TSRA'') on
the other. Pursuant to E.O. 13412 and the DPAA, most trade and related
activities--other than trade with the Government of Sudan or relating
to Sudan's petroleum or petrochemical industries--are allowed with the
Specified Areas of Sudan. These Specified Areas, however, remained
subject to regulations promulgated pursuant to section 906(a)(1) of
TSRA, which provides that the export of agricultural commodities,
medicine, and medical devices to the government of a country that has
been determined by the Secretary of State, under section 6(j) of the
Export Administration Act of 1979, 50 U.S.C. App. 2405(j) (the
``EAA''), to have repeatedly provided support for acts of international
terrorism, or to any entity in such a country, shall be made pursuant
to one-year licenses issued by the United States government.
Because Sudan has been determined by the Secretary of State to be a
country that has repeatedly provided support for acts of international
terrorism pursuant to section 6(j) of the EAA, the entire country
remained subject to TSRA's licensing requirements under the SSR. The
overlap of TSRA with E.O. 13412 and the DPAA--as previously implemented
in the SSR--resulted in the requirement that OFAC authorize the export
of agricultural and medical items to the Specified Areas of Sudan, even
though no OFAC authorization was required to export most other items to
those areas.
Therefore, in view of the underlying policy objectives and findings
concerning the Specified Areas of Sudan that resulted in the
elimination of most of the previous economic sanctions against these
areas within Sudan, including export sanctions analogous to those
covered by TSRA, OFAC has determined that specific licenses for TSRA-
related transactions with respect to the Specified Areas of Sudan
should no longer be required. Instead, OFAC is authorizing such
transactions through a general license, set forth at SSR Sec.
538.523(a)(2), provided that such transactions do not involve any
property or interests in property of the Government of Sudan or relate
to the petroleum or petrochemical industries in Sudan. In accordance
with the requirements set forth in section 906(a)(1) of TSRA, this
general license covers exports shipped within the twelve-month period
beginning on the date of the signing of the export contract. In
addition, each year by the anniversary of its effective date on
September 9, 2009, OFAC will determine whether to revoke the general
license. Unless revoked, the general license will remain in effect.
However, specific licenses for TSRA-related transactions with respect
to the Government of Sudan, to any individual or entity in an area of
Sudan other than the Specified Areas of Sudan, or to persons in third
countries purchasing specifically for resale to the foregoing are still
required.
Existing prohibitions and safeguards satisfy TSRA's requirement
that procedures be in place to deny the general license for exports to
entities within Sudan promoting international terrorism. For instance,
the requirement that no U.S. person engage in any transaction with
anyone on OFAC's List of Specially Designated Nationals and Blocked
Persons, including persons designated under the terrorism programs
administered by OFAC, provides a mechanism for denying TSRA-related
exports to certain entities within the Specified Areas of Sudan. In
addition, if it deems necessary, OFAC may amend, modify, or revoke the
new general license pursuant to Sec. 501.803 of the Reporting,
Procedures and Penalties Regulations, 31 CFR part 501 (the ``RPPR''),
which set forth standard reporting and recordkeeping requirements and
license application and other procedures governing transactions
regulated pursuant to other parts of 31 CFR chapter V. Section 538.502
of the SSR similarly provides OFAC with the authority to exclude any
person, property, or transaction from the operation of the general
license or to restrict the applicability of the general license with
respect to any persons, property, or transactions. Finally, the
requirement that all U.S. persons maintain records of any transaction
subject to OFAC-administered sanctions for a period of not less than
five years pursuant to RPPR Sec. 501.601, and OFAC's authority to
obtain these records pursuant to RPPR Sec. 501.602, allow OFAC to
monitor activities under the general license in order to determine
whether it should exercise these authorities.
Those transactions now authorized by the general license set forth
at Sec. 538.523(a)(2) of the SSR include the sale, exportation, and
reexportation of agricultural commodities, medicine, and medical
devices, the financing of and payment for such sales, and the brokering
of TSRA sales. However, the transshipment or transit of TSRA-related
exports through areas of Sudan other than the Specified Areas of Sudan,
and any related financial transactions that are routed through
depository institutions located in an area of Sudan other than the
Specified Areas, remain prohibited under Sec. Sec. 538.417 and 538.418
of the SSR.
Public Participation
Because the amendment of 31 CFR part 538 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 part 538 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 Department of the
Treasury's 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:
[[Page 46363]]
Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 31 U.S.C.
321(b); 50 U.S.C. 1601-1651, 1701-1706; Public Law 101-410, 104
Stat. 890 (28 U.S.C. 2461 note); 22 U.S.C. 7201-7211; Public Law
109-344, 120 Stat. 1869; Public Law 110-96, 121 Stat. 1011; E.O.
13067, 62 FR 59989, 3 CFR, 1997 Comp., p. 230; E.O. 13412, 71 FR
61369, 3 CFR, 2006 Comp., p. 244.
Subpart B--Prohibitions
0
2. Revise the note to Sec. 538.212(g)(2) to read as follows:
Sec. 538.212 Exempt transactions.
* * * * *
(g) * * *
(2) * * *
Note to Sec. 538.212(g)(2): See Sec. 538.523(a)(2) for a
general license authorizing the exportation and reexportation of
agricultural commodities, medicine, and medical devices to the
Specified Areas of Sudan, and the conduct of related transactions.
Subpart D--Interpretations
0
3. Amend Sec. 538.405 by revising paragraph (d) to read as follows:
Sec. 538.405 Transactions incidental to a licensed transaction
authorized.
* * * * *
(d) Financing of licensed sales for exportation or reexportation of
agricultural commodities or products, medicine, or medical equipment to
the Government of Sudan, to any individual or entity in an area of
Sudan other than the Specified Areas of Sudan, or to persons in third
countries purchasing specifically for resale to the foregoing. See
Sec. 538.525.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
4. Amend Sec. 538.523 by redesignating paragraph (a), paragraph (b),
and the introductory text to paragraph (c) to read as follows:
Sec. 538.523 Commercial sales, exportation, and reexportation of
agricultural commodities, medicine, and medical devices.
(a)(1) One-year specific license requirement. The exportation or
reexportation of agricultural commodities (including bulk agricultural
commodities listed in appendix A to this part 538), medicine, or
medical devices to the Government of Sudan, to any individual or entity
in an area of Sudan other than the Specified Areas of Sudan, or to
persons in third countries purchasing specifically for resale to the
foregoing, shall only be made pursuant to a one-year specific license
issued by the U.S. Department of the Treasury, Office of Foreign Assets
Control, for contracts entered into during the one-year period of the
license and shipped within the 12-month period beginning on the date of
the signing of the contract. No specific license will be granted for
the exportation or reexportation of agricultural commodities, medicine,
or medical equipment to any entity or individual in Sudan promoting
international terrorism, to any narcotics trafficking entity designated
pursuant to Executive Order 12978 of October 21, 1995 (60 FR 54579,
October 24, 1995) or the Foreign Narcotics Kingpin Designation Act (21
U.S.C. 1901-1908), or to any foreign organization, group, or persons
subject to any restriction for its involvement in weapons of mass
destruction or missile proliferation. Executory contracts entered into
pursuant to paragraph (b)(2) of this section prior to the issuance of
the one-year specific license described in this paragraph shall be
deemed to have been signed on the date of issuance of that one-year
specific license (and, therefore, the exporter is authorized to make
shipments under that contract within the 12-month period beginning on
the date of issuance of the one-year specific license).
(2) General license for the Specified Areas of Sudan. The
exportation or reexportation of agricultural commodities (including
bulk agricultural commodities listed in appendix A to this part 538),
medicine, and medical devices to the Specified Areas of Sudan and the
conduct of related transactions, including, but not limited to, the
making of shipping and cargo inspection arrangements, the obtaining of
insurance, the arrangement of financing and payment, the entry into
executory contracts, and the provision of brokerage services for such
sales and exports or reexports, are hereby authorized, provided that
such activities or transactions do not involve any property or
interests in property of the Government of Sudan and do not relate to
the petroleum or petrochemical industries in Sudan, and also provided
that all such exports or reexports are shipped within the 12-month
period beginning on the date of the signing of the contract for export
or reexport.
Note 1 to Sec. 538.523(a)(2): Consistent with section
906(a)(1) of the Trade Sanctions Reform and Export Enhancement Act
of 2000 (22 U.S.C. 7205), each year by the anniversary of its
effective date of September 9, 2009, the Office of Foreign Assets
Control will determine whether to revoke this general license.
Unless revoked, the general license will remain in effect.
Note 2 to Sec. 538.523(a)(2): See Sec. Sec. 538.417 and
538.418 for additional requirements with respect to transshipments
through, and financial transactions in, Sudan.
(b) General license for arrangement of exportation or reexportation
of covered products. (1) With respect to sales pursuant to Sec.
538.523(a)(1), the making of shipping arrangements, cargo inspection,
obtaining of insurance, and arrangement of financing (consistent with
Sec. 538.525) for the exportation or reexportation of agricultural
commodities, medicine, or medical devices to the Government of Sudan,
to any individual or entity in an area of Sudan other than the
Specified Areas of Sudan, or to persons in third countries purchasing
specifically for resale to the foregoing, are authorized.
(2) If desired, entry into executory contracts (including executory
pro forma invoices, agreements in principle, or executory offers
capable of acceptance such as bids in response to public tenders) for
the exportation or reexportation of agricultural commodities, medicine,
and medical devices to the Government of Sudan, to any individual or
entity in an area of Sudan other than the Specified Areas of Sudan, or
to persons in third countries purchasing specifically for resale to the
foregoing, is authorized, provided that performance of an executory
contract is expressly made contingent upon the prior issuance of the
one-year specific license described in paragraph (a)(1) of this
section.
(c) Instructions for obtaining one-year specific licenses. In order
to obtain the one-year specific license described in paragraph (a)(1)
of this section, the exporter must provide to the Office of Foreign
Assets Control:
* * * * *
0
5. Amend Sec. 538.525 by revising paragraphs (a) introductory text and
(b) to read as follows:
Sec. 538.525 Payment for and financing of commercial sales of
agricultural commodities, medicine, and medical equipment.
(a) General license for payment terms. The following payment terms
for sales, pursuant to Sec. 538.523(a)(1), of agricultural commodities
and products, medicine, and medical equipment to the Government of
Sudan, to any individual or entity in an area of Sudan other than the
Specified Areas, or to persons in third countries purchasing
specifically for resale to the foregoing are authorized:
* * * * *
(b) Specific licenses for alternate payment terms. Specific
licenses may be issued on a case-by-case basis for
[[Page 46364]]
payment terms and trade financing not authorized by the general license
in paragraph (a) of this section for sales pursuant to Sec.
538.523(a)(1). See Sec. 501.801(b) of this chapter for specific
licensing procedures.
* * * * *
0
6. Amend Sec. 538.526 by revising paragraph (a), the introductory text
of paragraph (b), and paragraph (b)(2) to read as follows:
Sec. 538.526 Brokering sales of agricultural commodities, medicine,
and medical devices.
(a) General license for brokering sales by U.S. persons. United
States persons are authorized to provide brokerage services on behalf
of U.S. persons for the sale and exportation or reexportation by United
States persons of agricultural commodities, medicine, and medical
devices to the Government of Sudan, to any individual or entity in an
area of Sudan other than the Specified Areas of Sudan, or to persons in
third countries purchasing specifically for resale to the foregoing,
provided that the sale and exportation or reexportation is authorized
by a one-year specific license issued pursuant to Sec. 538.523(a)(1).
(b) Specific licensing for brokering sales by non-U.S. persons of
bulk agricultural commodities. Specific licenses may be issued on a
case-by-case basis to permit United States persons to provide brokerage
services on behalf of non-United States, non-Sudanese persons for the
sale and exportation or reexportation of bulk agricultural commodities
to the Government of Sudan, to any individual or entity in an area of
Sudan other than the Specified Areas of Sudan, or to persons in third
countries purchasing specifically for resale to the foregoing. Specific
licenses issued pursuant to this section will authorize the brokering
only of sales that:
* * * * *
(2) Are to purchasers permitted pursuant to Sec. 538.523(a)(1);
and
* * * * *
Dated: September 1, 2009.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. E9-21553 Filed 9-8-09; 8:45 am]
BILLING CODE 4811-45-P