[Federal Register Volume 82, Number 10 (Tuesday, January 17, 2017)]
[Rules and Regulations]
[Pages 4793-4794]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00844]
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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 to
authorize all prohibited transactions, including transactions involving
property in which the Government of Sudan has an interest. OFAC is
issuing this general license in connection with ongoing U.S.-Sudan
bilateral engagement and in response to positive developments in the
country over the past six months related to bilateral cooperation, the
ending of internal hostilities, regional cooperation, and improvements
to humanitarian access.
DATES: Effective: January 17, 2017.
FOR FURTHER INFORMATION CONTACT: The Department of the Treasury's
Office of Foreign Assets Control: Assistant Director for Licensing,
tel.: 202-622-2480, Assistant Director for Regulatory Affairs, tel.:
202-622-4855, Assistant Director for Sanctions Compliance & Evaluation,
tel.: 202-622-2490; or the Department of the Treasury's Office of the
Chief Counsel (Foreign Assets Control), Office of the General Counsel,
tel.: 202-622-2410.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional information concerning OFAC are
available from OFAC's Web site (www.treasury.gov/ofac).
Background
OFAC is amending the Sudanese Sanctions Regulations (the
``Regulations'') to add section 538.540, authorizing all transactions
prohibited by the Regulations and by Executive Orders 13067 and 13412,
effective as of January 17, 2017. Newly authorized transactions include
the processing of transactions involving persons in Sudan; the
importation of goods and services from Sudan; the exportation of goods,
technology, and services to Sudan; and transactions involving property
in which the Government of Sudan has an interest.
OFAC is issuing this rule in connection with ongoing U.S.-Sudan
bilateral engagement and in order to support and sustain positive
developments in the country over the past six months. In conjunction
with this engagement, the U.S. government has supported the Sudanese
government's ongoing efforts, including its cessation of military
offensives in Darfur and the Two Areas, its cooperative efforts to
resolve the ongoing conflict in South Sudan and cease any activity to
undermine stability there, to improve access for humanitarian
assistance by reducing government obstruction and streamlining
governing regulations, and to enhance bilateral counterterrorism and
security cooperation, including efforts to counter the Lord's
Resistance Army.
Notwithstanding these positive developments in Sudan and the
decision to amend the Regulations today to authorize all transactions
prohibited by the Regulations, section 906 of the Trade Sanctions
Reform and Export Enhancement Act of 2000, as amended (22 U.S.C. 7201
et seq.) (TSRA), continues to require in pertinent part that the export
of agricultural commodities, medicine, and medical devices to Sudan
shall be made pursuant to one-year licenses issued by the U.S.
government, except that the requirements of such one-year licenses
shall be no more restrictive than general licenses administered by the
Department of the Treasury. See 22 U.S.C. 7205(a)(1). Section 906 of
TSRA also specifies that procedures be in place to deny licenses for
certain exports of agricultural commodities, medicine, and medical
devices to Sudan. As with a general license added to the Regulations in
2011 that authorized the exportation or reexportation of food to Sudan
(see 31 CFR 538.523; 76 FR 63191 (October 12, 2011)), the new general
license added today includes the one-year license requirement and,
along with counter-terrorism sanctions implemented by OFAC set forth in
31 CFR chapter V and other continuing requirements and authorities,
satisfies TSRA's requirement that procedures be in place to deny
authorization for exports to Sudan that are determined to be
[[Page 4794]]
promoting international terrorism. In particular, Sec. 501.601 of the
Reporting, Procedures and Penalties Regulations, 31 CFR part 501
(RPPR), requires that all U.S. persons maintain records of authorized
transactions for a period of not less than five years and further
provides that OFAC may obtain these records at any time to monitor
activities conducted pursuant to the general license; section 538.502
of the Regulations provides that OFAC may exclude any person, property,
or transaction from the operation of this general license; and section
501.803 of the RPPR provides that OFAC may amend, modify, or revoke
this general license at any time.
This new general license does not eliminate the need to comply with
other provisions of 31 CFR chapter V including those parts related to
terrorism, the proliferation of weapons of mass destruction, or
narcotics trafficking, or other applicable provisions of law, including
any requirements of agencies other than OFAC. Such requirements
include, for example, the Export Administration Regulations (15 CFR
parts 730 through 774) administered by the Bureau of Industry and
Security of the Department of Commerce. This general license does not
affect past, present, or future enforcement actions or investigations
with respect to any violations, including apparent or alleged
violations, of the Regulations that occurred prior to the effective
date of this final rule.
Public Participation
Because the amendment of the Regulations 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 the Regulations are
contained in the RPPR. 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, Foreign
trade, Sanctions, Services, Sudan.
For the reasons set forth in the preamble, the Department of the
Treasury's Office of Foreign Assets Control amends 31 CFR part 538 to
read 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 (50 U.S.C. 1705 note);
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 E--Licenses, Authorizations, and Statements of Licensing
Policy
0
2. Add Sec. 538.540 to subpart E to read as follows:
Sec. 538.540 All transactions authorized; Government of Sudan
property unblocked.
(a) All transactions prohibited by this part and Executive Orders
13067 and 13412, including all transactions that involve property in
which the Government of Sudan has an interest, are authorized.
(b) Pursuant to section 906(a)(1) of the Trade Sanctions Reform and
Export Enhancement Act of 2000 (22 U.S.C. 7205), any exports or
reexports of agricultural commodities, medicine, or medical devices to
the Government of Sudan, to any individual or entity in Sudan, or to
any person in a third country purchasing specifically for resale to any
of the foregoing must be shipped within the 12-month period beginning
on the date of the signing of the contract for export or reexport.
Note 1 to Sec. 538.540: Section 538.540 authorizes all
transactions necessary to unblock any property or interests in
property that were blocked pursuant to 31 CFR 538.201 prior to
January 17, 2017, including the return or processing of funds.
Note 2 to Sec. 538.540: This authorization is effective on
January 17, 2017 and does not eliminate the need to comply with
other provisions of 31 CFR chapter V or other applicable provisions
of law, including any requirements of agencies other than the
Department of the Treasury's Office of Foreign Assets Control. Such
requirements include the Export Administration Regulations (15 CFR
parts 730 through 774) administered by the Bureau of Industry and
Security of the Department of Commerce and the International Traffic
in Arms Regulations (22 CFR parts 120 through 130) administered by
the Department of State.
Note 3 to Sec. 538.540: Consistent with section 906(a)(1) of
the Trade Sanctions Reform and Export Enhancement Act of 2000 (22
U.S.C. 7205), each year OFAC will determine whether to revoke this
general license. Unless revoked, the general license will remain in
effect.
Dated: January 10, 2017.
John E. Smith,
Acting Director, Office of Foreign Assets Control.
[FR Doc. 2017-00844 Filed 1-13-17; 8:45 am]
BILLING CODE 4810-AL-P