[Federal Register Volume 83, Number 126 (Friday, June 29, 2018)]
[Rules and Regulations]
[Pages 30539-30541]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-14084]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Parts 538 and 596


Removal of the Sudanese Sanctions Regulations and Amendment of 
the Terrorism List Government 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 removing from the Code of Federal Regulations the 
Sudanese Sanctions Regulations as a result of the revocation of certain 
provisions of one Executive Order and the entirety of another Executive 
Order on which the regulations were based. OFAC is also amending the 
Terrorism List Government Sanctions Regulations to incorporate a 
general license authorizing certain transactions related to exports of 
agricultural commodities, medicines, and medical devices, which has, 
until now, appeared only on OFAC's website.

DATES: Effective: June 29, 2018.

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 
General Counsel: Office of the Chief Counsel (Foreign Assets Control); 
tel.: 202-622-2410.

SUPPLEMENTARY INFORMATION:

Electronic and Facsimile Availability

    This document and additional information concerning OFAC are 
available from OFAC's website (www.treasury.gov/ofac).

Background

Removal of the Sudanese Sanctions Regulations

    On November 3, 1997, the President issued Executive Order 13067, 
``Blocking Sudanese Government Property and Prohibiting Transactions 
With Sudan'' (E.O. 13067), declaring a national emergency to deal with 
the unusual and extraordinary threat to the national security and 
foreign policy of the United States posed by the policies and actions 
of the Government of Sudan. E.O. 13067 blocked all property and 
interests in property of the Government of Sudan that were in the 
United States, that thereafter came within the United States, or that 
thereafter came within the possession or control of United States 
persons. E.O. 13067 also prohibited: (a) The importation into the 
United States of any goods or services of Sudanese origin; (b) the 
exportation or reexportation, directly or indirectly, to Sudan of 
goods, technology, or services from the United States or by a United 
States person, wherever located, or requiring the issuance of a license 
by a Federal agency; (c) the facilitation by a United States person of 
the exportation or reexportation of goods, technology, or services to 
or from Sudan; (d) the performance by any United States person of any 
contract, including a financing contract, in support of an industrial, 
commercial, public utility, or governmental project in Sudan; (e) the 
grant or extension of credits or loans by any United States person to 
the Government of Sudan; (f) any transaction by a United States person 
relating to transportation of cargo to or from Sudan; and (g) any 
transaction by any United States person, or within the United States 
that evaded or avoided, or had the purpose of evading or avoiding, or 
attempted to violate any of the prohibitions set forth in E.O. 13067.
    On July 1, 1998, OFAC issued the Sudanese Sanctions Regulations, 31 
CFR part 538 (SSR), as a final rule to implement E.O. 13067. The SSR 
were amended on various occasions to, among other things, implement 
further Executive orders and add additional authorizations.
    On April 26, 2006, in Executive Order 13400 (E.O. 13400), the 
President determined that the conflict in Sudan's Darfur region posed 
an unusual and extraordinary threat to the national security and 
foreign policy of the United States, expanded the scope of the national 
emergency declared in E.O. 13067 to deal with that threat, and ordered 
the blocking of property of certain persons connected to the conflict. 
On May 28, 2009, OFAC issued the Darfur Sanctions Regulations, 31 CFR 
part 546 (DSR), as a final rule to implement E.O. 13400. On October 13, 
2006, the President issued Executive Order 13412 (E.O. 13412) to take 
additional steps with respect to the national emergency and to 
implement the Darfur Peace and Accountability Act of 2006, Public Law 
109-344, 120 Stat. 1869.
    On January 13, 2017, President Obama issued Executive Order 13761, 
``Recognizing Positive Actions by the Government of Sudan and Providing 
for the Revocation of Certain Sudan-Related Sanctions'' (E.O. 13761). 
In E.O. 13761, President Obama found that the situation that gave rise 
to the actions taken in E.O.s 13067 and 13412 related to the policies 
and actions of the Government of Sudan had been altered by Sudan's 
positive actions over the prior six months. These actions included a 
marked reduction in offensive military activity, culminating in a 
pledge to maintain a cessation of hostilities in conflict areas in 
Sudan, and steps toward the improvement of humanitarian access 
throughout Sudan, as well as cooperation with the United States on 
addressing regional conflicts and the threat of terrorism. Given these 
developments, and in order to see these efforts sustained and enhanced 
by the Government of Sudan, President Obama ordered that, effective 
July 12, 2017, sections 1 and 2 of E.O. 13067 be revoked, and E.O. 
13412 be revoked in its entirety, provided that a review before that 
date determined certain criteria were met.
    On July 11, 2017, President Trump issued Executive Order 13804, 
``Allowing Additional Time for Recognizing Positive Actions by the 
Government of Sudan and Amending Executive Order 13761'' (E.O. 13804). 
In E.O. 13804, President Trump amended E.O. 13761, extending until 
October 12,

[[Page 30540]]

2017, the review period established by E.O. 13761. This review period 
provided for the revocation of certain sanctions if the Government of 
Sudan sustained the positive actions that gave rise to E.O. 13761, 
including carrying out a pledge to maintain a cessation of hostilities 
in conflict areas in Sudan; continuing improvement of humanitarian 
access throughout Sudan; and maintaining its cooperation with the 
United States on addressing regional conflicts and the threat of 
terrorism.
    On October 11, 2017, the Secretary of State, in consultation with 
the Secretary of the Treasury, the Director of National Intelligence, 
and the Administrator of the U.S. Agency for International Development, 
published notice in the Federal Register stating that the Government of 
Sudan had sustained the positive actions that gave rise to E.O. 13761. 
That notice also stated that the Secretary of State had provided to the 
President the report described in section 10 of E.O. 13761, fulfilling 
the requirement set forth in E.O. 13761, as amended by E.O. 13804, that 
make effective the revocation of certain economic sanctions related to 
Sudan. As such, effective October 12, 2017, pursuant to E.O. 13761, as 
amended by E.O. 13804, sections 1 and 2 of E.O. 13067 were revoked and 
E.O. 13412 was revoked in its entirety. As a result of the revocation 
of these sanctions provisions, U.S. persons are no longer prohibited 
from engaging in transactions that were previously prohibited solely 
under the SSR. Consistent with the revocation of these sanctions 
provisions, OFAC is removing the SSR from the Code of Federal 
Regulations.
    The emergency declared by the President with respect to Sudan in 
E.O. 13067, and expanded in E.O. 13400, has not been terminated. These 
authorities remain the basis for the DSR, which remain in effect with 
respect to Darfur and continues to block the property and interests in 
property of certain persons connected with the conflict in Darfur.
    Pursuant to section 1 of E.O. 13761, as amended by E.O. 13804, the 
revocation of sections 1 and 2 of E.O. 13067 and the entirety of E.O. 
13412 shall not affect any violation of any rules, regulations, orders, 
licenses, or other forms of administrative action under those orders 
during the period that those provisions were in effect.

Authorization for Certain Exports of Agricultural Commodities, 
Medicine, and Medical Devices

    Pursuant to Section 906 of the Trade Sanctions Reform and Export 
Enhancement Act of 2000, 22 U.S.C. 7205 (TSRA), an OFAC license is 
still required for certain exports and reexports to Sudan of 
agricultural commodities, medicine, and medical devices as a result of 
Sudan's inclusion on the State Sponsors of Terrorism List. Effective 
October 12, 2017, OFAC issued and made available on its website General 
License A. This general license authorized exports and reexports of 
these items to Sudan. Today, OFAC is incorporating General License A 
into the Terrorism List Government Sanctions Regulations, 31 CFR part 
596, as new Sec.  596.506. No OFAC license is required for financing of 
these exports and reexports.
    U.S. persons and non-U.S. persons will still need to obtain any 
licenses required by the Department of Commerce's Bureau of Industry 
and Security (BIS) to export or reexport to Sudan certain items 
(commodities, software, and technology) that are on the Commerce 
Control List (CCL), Supp. No. 1 to part 774 of the Export 
Administration Regulations, 15 CFR parts 730 through 774 (EAR). In 
limited circumstances, U.S. persons and non-U.S. persons may also need 
to obtain licenses from BIS to export or reexport to Sudan items that 
are subject to the EAR but not specifically listed on the CCL 
(``EAR99'' items) if such transactions implicate certain end-use or 
end-user concerns (see 15 CFR part 744).

Public Participation

    Because the Regulations 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, as well as the 
provisions of Executive Order 13771, 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 Paperwork Reduction Act does not apply because this rule does 
not impose information collection requirements that would require the 
approval of the Office of Management and Budget under 44 U.S.C. 3501 et 
seq.

List of Subjects

31 CFR Part 538

    Administrative practice and procedure, Banks, Banking, Blocking of 
assets, Sudan, Credit, Foreign Trade, Penalties, Reporting and 
recordkeeping requirements, Securities, Services.

31 CFR Part 596

    Administrative practice and procedure, Banks, Banking, Blocking of 
assets, Foreign Trade, Penalties, Reporting and recordkeeping 
requirements, Terrorism.

    For the reasons set forth in the preamble, and under the authority 
of 3 U.S.C. 301; 50 U.S.C. 1601-1651; E.O. 13067, 62 FR 59989, 3 CFR, 
1997 Comp., p. 230; E.O. 13412, 71 FR 61369, 3 CFR, 2006 Comp., p. 244; 
E.O. 13761, 82 FR 5331, as amended by E.O. 13804, 82 FR 23611, OFAC 
amends 31 CFR parts 538 and 596 as follows:

PART 538--[REMOVED]

0
1. Remove part 538.

PART 596--TERRORISM LIST GOVERNMENTS SANCTIONS REGULATIONS

0
2. The authority citation for part 596 is revised to read as follows:

    Authority: 18 U.S.C. 2332d; 22 U.S.C. 7201-7211; 31 U.S.C. 
321(b).

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

0
3. Add Sec.  596.506 to read as follows:


Sec.  596.506  Authorizing Certain Transactions Pursuant to the Trade 
Sanctions Reform and Export Enhancement Act of 2000.

    (a) Effective October 12, 2017, pursuant to section 906(a)(l) of 
the Trade Sanctions Reform and Export Enhancement Act of 2000 (22 
U.S.C. 7205) (TSRA), all exports and reexports of agricultural 
commodities, medicine, or medical devices to the Government of Sudan or 
to any entity in Sudan or to any person in a third country purchasing 
specifically for resale to any of the foregoing are authorized, 
provided that the exports and reexports are shipped within the 12-month 
period beginning on the date of the signing of the contract for export 
or reexport.
    (b) Consistent with section 906(a)(l) of TSRA, each year the Office 
of Foreign Assets Control will determine whether to revoke this general 
license. Unless revoked, the general license will remain in effect.

    Note 1 to Sec.  596.506: This authorization does not eliminate 
the need to comply with other provisions of 31 CFR chapter V, 
including 31 CFR part 596, 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

[[Page 30541]]

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.


Andrea Gacki,
Acting Director, Office of Foreign Assets Control.
[FR Doc. 2018-14084 Filed 6-28-18; 8:45 am]
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