Sudanese Sanctions Regulations, 76617-76619 [2011-31557]

Agencies

• DEPARTMENT OF THE TREASURY
• Office of Foreign Assets Control

[Federal Register Volume 76, Number 236 (Thursday, December 8, 2011)]
[Rules and Regulations]
[Pages 76617-76619]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-31557]


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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 two general licenses that authorize all activities and 
transactions relating to the petroleum and petrochemical industries in 
the Republic of South Sudan and related financial transactions and the 
transshipment of goods, technology, and services through Sudan to or 
from the Republic of South Sudan and related financial transactions. 
OFAC also is amending an existing general license to broaden its 
authorization with respect to the importation of certain Sudanese-
origin services and to add an authorization for activities related to 
Sudanese persons' travel to the United States. Lastly, OFAC is making 
technical changes to the Sudanese Sanctions Regulations, including 
changes to reflect the formation by Southern Sudan of the independent 
state of the Republic of South Sudan on July 9, 2011.

DATES: Effective Date: December 8, 2011.

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) 
(the ``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, exempted the Specified Areas of Sudan from certain 
prohibitions set forth in E.O. 13067, and defined 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 
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).
    On January 9, 2011, in a popular referendum, the people of Southern 
Sudan voted in favor of independence. On July 9, 2011, Southern Sudan 
gained its independence, becoming the new Republic of South Sudan, and 
was

[[Page 76618]]

formally recognized by the United States Government. Since July 9, 
2011, the Republic of South Sudan has been an independent state. As 
such, it is no longer subject to the SSR.
    While the Republic of South Sudan is no longer subject to the SSR, 
certain activities in or involving the Republic of South Sudan continue 
to be prohibited by the SSR, absent authorization from OFAC, given the 
interdependence between certain sectors of the economies of the 
Republic of South Sudan and Sudan. For example, the SSR continue to 
prohibit U.S. persons from engaging in transactions relating to the 
petroleum or petrochemical industry in the Republic of South Sudan if 
such transactions also relate to the petroleum or petrochemical 
industry in Sudan, and from exporting goods, technology, or services 
to, or importing goods or services from, the Republic of South Sudan 
that transit through Sudan (see SSR Sec. Sec.  538.406, 538.210, and 
538.417).
    OFAC today is amending the SSR by issuing two general licenses that 
authorize, to the extent otherwise prohibited by the SSR, (1) all 
activities involving the petroleum and petrochemical industries in the 
Republic of South Sudan and related financial transactions and (2) the 
transshipment of goods, technology, and services through Sudan to or 
from the Republic of South Sudan and related financial transactions. 
OFAC also is amending an existing general license to broaden its 
authorization with respect to the importation of certain Sudanese-
origin services and to add an authorization for activities related to 
Sudanese persons' travel to the United States. Finally, OFAC is making 
certain technical changes to the SSR, including changes to reflect the 
establishment of the independent state of the Republic of South Sudan 
and the separation of the Government of the Republic of South Sudan 
from the Government of Sudan.

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, Banking, Banks, Blocking of 
assets, Exports, Foreign trade, Humanitarian aid, Imports, Penalties, 
Petroleum, Reporting and recordkeeping requirements, Specially 
designated nationals, Sudan, 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

0
1. The authority citation for part 538 continues to read as follows:

    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; Pub. L. 101-410, 104 Stat. 
890 (28 U.S.C. 2461 note); 22 U.S.C. 7201-7211; 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, 3 CFR, 2006 
Comp., p. 244.

Subpart C--General Definitions

0
2. Amend Sec.  538.305 by redesignating paragraph (a) as introductory 
text of the section and republishing it, removing paragraph (b), 
redesignating paragraphs (1) through (4) as (a) through (d), 
respectively, redesignating the Note to Sec.  538.305 as Note 2 to 
Sec.  538.305, and adding new Note 1 to Sec.  538.305 to read as 
follows:


Sec.  538.305  Government of Sudan.

    The term Government of Sudan includes:
* * * * *

    NOTE 1 TO Sec.  538.305: The term Government of Sudan does not 
include the Government of the Republic of South Sudan or the central 
bank of the Republic of South Sudan.

* * * * *

0
3. Amend Sec.  538.312 by adding new paragraph (e) to read as follows:


Sec.  538.312  Sudanese origin.

* * * * *
    (e) The term goods or services of Sudanese origin does not include 
goods or services that have transshipped through Sudan to or from the 
Republic of South Sudan pursuant to the authorization in Sec.  538.537 
of this part.

0
4. Amend Sec.  538.320 by revising paragraph (a) to read as follows:


Sec.  538.320  Specified Areas of Sudan.

    (a) The term Specified Areas of Sudan means Southern Kordofan/Nuba 
Mountains State, Blue Nile State, Abyei, Darfur, and marginalized areas 
in and around Khartoum.
* * * * *

Subpart D--Interpretations

0
5. Amend Sec.  538.405 by revising paragraphs (b), (c), and (d), and 
adding new paragraph (e) to read as follows:


Sec.  538.405  Transactions incidental to a licensed transaction 
authorized.

* * * * *
    (b) Provision of any transportation services to or from Sudan not 
explicitly authorized in or pursuant to this part other than loading, 
transporting, and discharging licensed or exempt cargo there;
    (c) Distribution or leasing in Sudan of any containers or similar 
goods owned or controlled by United States persons after the 
performance of transportation services to Sudan;
    (d) Financing of licensed sales for exportation or reexportation of 
the excluded food items specified in Sec.  538.523(a)(3)(iii), other 
agricultural commodities not included in the definition of food set 
forth in Sec.  538.523(a)(3)(ii), food (as defined in Sec.  
538.523(a)(3)(ii)) intended for military or law enforcement purchasers 
or importers, medicine, and medical devices to the Government of Sudan, 
to an area of Sudan other than the Specified Areas of Sudan, or to 
persons in third countries purchasing specifically for resale to any of 
the foregoing. See Sec.  538.525; and
    (e) All financial transactions ordinarily incident to the 
activities authorized by Sec. Sec.  538.536 and 538.537 of this part.
* * * * *

0
6. Amend Sec.  538.417 by redesignating the Note to Sec.  538.417 as 
Note 2 to Sec.  538.417, adding new Note 1 to Sec.  538.417, and 
revising redesignated Note 2 to Sec.  538.417 to read as follows:


Sec.  538.417  Transshipments through Sudan.

* * * * *

    NOTE 1 TO Sec.  538.417: See Sec.  538.537 for a general license 
authorizing the transshipment of goods, technology, and services 
through Sudan to or from the Republic of South Sudan, and related 
transactions.



[[Page 76619]]


    NOTE 2 TO Sec.  538.417: See Sec.  538.532 for a general license 
authorizing humanitarian transshipments through areas of Sudan other 
than the Specified Areas of Sudan to or from the Specified Areas of 
Sudan.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

0
7. Revise Sec.  538.509 to read as follows:


Sec.  538.509  Importation of certain Sudanese-origin services 
authorized; activities related to travel to the United States by 
Sudanese persons authorized.

    (a) The importation of Sudanese-origin services into the United 
States or other dealing in such services is authorized where such 
services are performed in the United States by a Sudanese citizen or 
national and either are for the purpose of or directly relate to 
participating in a public conference, performance, exhibition or 
similar event.
    (b) Persons otherwise qualified for a non-immigrant visa under 
categories A-3 and G-5 (attendants, servants, and personal employees of 
aliens in the United States on diplomatic status), D (crewmen), F 
(students), I (information media representatives), J (exchange 
visitors), M (non-academic students), O and P (aliens with 
extraordinary ability, athletes, artists and entertainers), Q 
(international cultural exchange visitors), R (religious workers), or S 
(witnesses) are authorized to carry out in the United States those 
activities for which such a visa has been granted by the U.S. State 
Department.
    (c) Persons otherwise qualified for a visa under categories E-2 
(treaty investor), H (temporary worker), or L (intra-company 
transferee) and all immigrant visa categories are authorized to carry 
out in the United States those activities for which such a visa has 
been granted by the U.S. State Department, provided that the persons 
are not coming to the United States to work as an agent, employee or 
contractor of the Government of Sudan or a business entity or other 
organization in Sudan.
    (d) U.S. persons are authorized to provide services to persons in 
Sudan in connection with the filing of visa applications with the U.S. 
Department of State or the Department of Homeland Security's U.S. 
Citizenship and Immigration Services for the visa categories listed in 
paragraphs (b) and (c) of this section.

0
8. Amend Sec.  538.515 by removing paragraph (c), redesignating the 
Note to paragraph (c) of Sec.  538.515 as Note to Sec.  538.515, and 
revising the redesignated Note to Sec.  538.515 to read as follows:


Sec.  538.515  Sudanese diplomatic missions in the United States.

* * * * *

    NOTE TO Sec.  538.515:  The importation of goods and services 
into the United States by the Government of the Republic of South 
Sudan not involving transit or transshipment through Sudan is not 
prohibited and therefore requires no authorization. Similarly, the 
provision of goods, technology, and services in the United States to 
the Government of the Republic of South Sudan and its employees is 
not prohibited and also requires no authorization. See Sec.  538.537 
for a general license authorizing the transshipment of goods, 
technology, and services through Sudan to or from the Republic of 
South Sudan, and related transactions.


0
9. Revise Sec.  538.532 to read as follows:


Sec.  538.532  Humanitarian transshipments to or from the Specified 
Areas of Sudan.

    The transit or transshipment to or from the Specified Areas of 
Sudan of goods, technology, or services intended for humanitarian 
purposes, through areas of Sudan other than the Specified Areas of 
Sudan, is authorized.

0
10. Add new Sec.  538.536 to read as follows:


Sec.  538.536  Activities relating to the petroleum and petrochemical 
industries in the Republic of South Sudan.

    (a) To the extent they are not exempt from the prohibitions of this 
part, all activities and transactions relating to the petroleum and 
petrochemical industries in the Republic of South Sudan are authorized, 
including but not limited to the transshipment of goods, technology, 
and services to or from the Republic of South Sudan through Sudan; 
exploration; development; production; field auditing services; oilfield 
services; activities related to oil and gas pipelines; investment; 
payment to the Government of Sudan or to entities owned or controlled 
by the Government of Sudan of pipeline, port, and other fees; and 
downstream activities such as refining, sale, and transport of 
petroleum from the Republic of South Sudan, except for the refining in 
Sudan of petroleum from the Republic of South Sudan.
    (b) All financial transactions ordinarily incident to the 
activities authorized by paragraph (a) of this section also are 
authorized, including but not limited to financial transactions with a 
depository institution owned or controlled by the Government of Sudan 
or located in Sudan, provided that any transaction between a U.S. 
depository institution and a depository institution owned or controlled 
by the Government of Sudan must first transit through a depository 
institution not owned or controlled by the Government of Sudan.
    (c) This section does not authorize exports of goods, services, or 
technology that are not used in connection with the Republic of South 
Sudan's petroleum or petrochemical industries.

0
11. Add new Sec.  538.537 to read as follows:


Sec.  538.537  Transshipment of goods, technology, and services to or 
from the Republic of South Sudan.

    (a) To the extent they are not exempt from the prohibitions of this 
part, the transit or transshipment of goods, technology, and services 
through Sudan to or from the Republic of South Sudan are authorized.
    (b) All financial transactions ordinarily incident to the 
activities authorized by paragraph (a) of this section also are 
authorized, including but not limited to financial transactions with a 
depository institution owned or controlled by the Government of Sudan 
or located in Sudan, provided that any transaction between a U.S. 
depository institution and a depository institution owned or controlled 
by the Government of Sudan must first transit through a depository 
institution not owned or controlled by the Government of Sudan.

    Dated: December 5, 2011.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
 [FR Doc. 2011-31557 Filed 12-7-11; 8:45 am]
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