[Federal Register Volume 72, Number 22 (Friday, February 2, 2007)]
[Rules and Regulations]
[Pages 4960-4961]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-1702]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 500


Foreign Assets Control Regulations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule.

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SUMMARY: The Office of Foreign Assets Control of the U.S. Department of 
the Treasury is amending the Foreign Assets Control Regulations, 31 CFR 
part 500, by revising paragraph (b)(5) of Sec.  500.586 to prohibit 
U.S. persons from registering vessels in the Democratic People's 
Republic of Korea (``North Korea''), or from otherwise obtaining 
authorization for a vessel to fly the North Korean flag. This paragraph 
already prohibits U.S. persons from owning, leasing, operating, or 
insuring any North Korean-flagged vessel.

DATES: Effective Date: February 2, 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, or Chief Counsel, tel.: 202/622-2410, Office of Foreign 
Assets Control, 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 
http://www.treas.gov/ofac or via facsimile through a 24-hour fax-on 
demand service, tel.: (202) 622-0077.

Background

    The Foreign Assets Control Regulations (the ``FACR''), 31 CFR part 
500, which are authorized under the Trading with the Enemy Act, 50 
U.S.C. App. 1-44, imposed economic sanctions against the Democratic 
People's Republic of Korea (``North Korea'') beginning in 1950. 
Consistent with U.S. foreign policy interests, the Office of Foreign 
Assets Control (``OFAC''), on June 19, 2000, amended the FACR to add 
Sec.  500.586, authorizing new transactions in which North Korea or a 
North Korean national has a property interest, subject to certain 
limitations set forth in paragraph (b).
    Effective May 8, 2006, OFAC further amended the FACR by adding a 
new limitation on the authorization provided by Sec.  500.586. This 
limitation, Sec.  500.586(b)(5), prohibits U.S. persons from owning, 
leasing, operating, or insuring any vessel flagged by North Korea. 
Based on information that OFAC has received during its implementation 
of Sec.  500.586(b)(5) and other foreign policy considerations, OFAC is 
amending Sec.  500.586(b)(5) to expand this prohibition. Effective 
immediately, U.S. persons are prohibited from registering vessels in 
North Korea, or from otherwise obtaining authorization for a vessel to 
fly the North Korean flag.
    In addition to the amendment relating to North Korean vessels, OFAC 
is making a technical amendment to the note to Sec.  500.586 to correct 
its placement within the section and to make minor revisions to its 
content.

Public Participation

    Because the amendments of the FACR involve 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.

[[Page 4961]]

Paperwork Reduction Act

    The collections of information related to the FACR 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 500

    Administrative practice and procedure, Banks, Banking, Brokers, 
Foreign Trade, Investments, Loans, Securities, North Korea.

0
For the reasons set forth in the preamble, the Office of Foreign Assets 
Control amends 31 CFR part 500 as follows:

PART 500--FOREIGN ASSETS CONTROL REGULATIONS

0
1. The authority citation for part 500 continues to read as follows:

    Authority: 18 U.S.C. 2332d; 31 U.S.C. 321(b); 50 U.S.C. App. 1-
44; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); E.O. 9193, 
7 FR 5205, 3 CFR, 1938-1943 Comp., p. 1174; E.O. 9989, 13 FR 4891, 3 
CFR, 1943-1948 Comp., p. 748.

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

0
2. Amend Sec.  500.586 by revising paragraph (b)(5) of Sec.  500.586, 
removing the note to paragraph (b) of Sec.  500.586, and adding a new 
note to Sec.  500.586 to read as follows:


Sec.  500.586  Authorization of new transactions concerning certain 
North Korean property.

* * * * *
    (b) * * *
    (5)(i) Effective May 8, 2006, United States persons are prohibited 
from owning, leasing, operating, or insuring any vessel flagged by 
North Korea.
    (ii) Effective February 2, 2007, United States persons are 
prohibited from registering vessels in North Korea, or from otherwise 
obtaining authorization for a vessel to fly the North Korean flag.
    (iii) For purposes of this section, the term United States person 
means any United States citizen, permanent resident alien, entity 
organized under the laws of the United States or any jurisdiction 
within the United States (including foreign branches), or any person in 
the United States.

    Note to Sec.  500.586: The exportation and reexportation of 
items may be subject to license application requirements under 
regulations administered by other federal agencies (see e.g., the 
Export Administration Regulations administered by the Department of 
Commerce). It should also be noted that the shipment of strategic 
goods from a foreign country to North Korea by persons subject to 
the jurisdiction of the United States remains prohibited by 31 CFR 
part 505. The application requirements for a specific license 
relating to such goods are found in 31 CFR 501.801.


    Dated: January 9, 2007.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. E7-1702 Filed 2-1-07; 8:45 am]
BILLING CODE 4811-42-P