[Federal Register Volume 89, Number 33 (Friday, February 16, 2024)]
[Rules and Regulations]
[Pages 12233-12236]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03255]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 510


North Korea 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 North Korea Sanctions Regulations to 
modify a general license that authorizes certain transactions in 
support of specified humanitarian activities of nongovernmental 
organizations. Additionally, OFAC is adding general licenses to 
authorize the following: transactions related to the exportation and 
reexportation of items authorized by the U.S. Department of Commerce; 
the provision of certain agricultural commodities, medicine, and 
medical devices; and certain journalistic activities in North Korea.

DATES: This rule is effective February 16, 2024.

FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for 
Licensing, tel.: 202-622-2480; Assistant Director for Regulatory 
Affairs, tel.: 202-622-4855; or Assistant Director for Compliance, 
tel.: 202-622-2490.

SUPPLEMENTARY INFORMATION:

Electronic Availability

    This document and additional information concerning OFAC are 
available on OFAC's website: www.treas.gov/ofac.

Background

    On November 4, 2010, OFAC issued the North Korea Sanctions 
Regulations, 31 CFR part 510 (75 FR 67912, November 4, 2010) (the 
``Regulations''). Since then, OFAC has amended the Regulations several 
times. OFAC is now amending the general license at Sec.  510.512 of the 
Regulations, which authorizes certain transactions in support of 
specified humanitarian activities of nongovernmental organizations 
(NGOs) in North Korea, to broaden the activities and transactions 
authorized, including transactions with certain Government of North 
Korea entities that are necessary for the provision of services 
authorized by Sec.  510.512, and make other changes. As a condition of 
the general license, NGOs relying on the authorization must submit a 
report to the U.S. Department of State no fewer than 30 days before the 
commencement of their activity indicating that the NGO's activities 
have been approved by or notified to the Security Council Committee 
established pursuant to United Nations Security Council resolution 1718 
(2006), or that the NGO's activities do not require such an approval or 
notification. The U.S. Department of State may notify NGOs within the 
two-week period following submission of the report to inform them that 
their activities are not authorized by the NGO general license.
    Additionally, this rule adds three new general licenses to the 
Regulations. Section 510.520 authorizes transactions incident to the 
exportation or reexportation to North Korea of items (commodities, 
software, or technology) subject to the Export Administration 
Regulations, 15 CFR parts 730 through 774 (EAR), that have been 
licensed or otherwise authorized by the U.S. Department of Commerce 
under the EAR, including on a ``No License Required'' (NLR) basis due 
to the availability of an EAR license exception. Section 510.521 
authorizes the provision of certain agricultural commodities, medicine, 
and medical devices (excluding ``luxury goods'' as described in 15 CFR 
746.4(b)(1)) that are not subject to the EAR to North Korea. Section 
510.522 authorizes U.S. news reporting organizations and their 
employees to engage in certain journalistic activities in North Korea, 
which OFAC authorizes via specific license. Finally, this rule corrects 
a typographic error in the authority citation.

Public Participation

    Because this amendment of the Regulations involves a foreign 
affairs function, the provisions of Executive Order 12866 of September 
30, 1993, ``Regulatory Planning and Review'' (58 FR 51735, October 4, 
1993), as amended, 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 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 510

    Administrative practice and procedure, Agricultural commodities, 
Aircraft, Banks, Banking, Blocking of assets, CAPTA List, Diplomatic 
missions, Foreign financial institutions, Foreign trade, Imports, 
Journalistic activities, Medical devices, Medicine, Nongovernmental 
organizations, North Korea, Patents, Secondary sanctions, Services, 
Telecommunications, United Nations, Vessels, Workers' Party of Korea.

    For the reasons set forth in the preamble, OFAC amends 31 CFR part 
510 as follows:

PART 510--NORTH KOREA SANCTIONS REGULATIONS

0
1. The authority citation is revised to read as follows:

    Authority:  3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; 22 U.S.C. 287c, 9201-9255; Pub. L. 101-410, 104 Stat. 
890, as amended (28 U.S.C. 2461 note); Pub. L. 115-44, 131 Stat. 886 
(codified in scattered sections of 22 U.S.C.); E.O. 13466, 73 FR 
36787, 3 CFR, 2008 Comp., p. 195; E.O. 13551, 75 FR 53837, 3 CFR, 
2010 Comp., p. 242; E.O. 13570, 76 FR 22291, 3 CFR, 2011 Comp., p. 
233; E.O. 13687, 80 FR 819, 3 CFR, 2015 Comp., p. 259; E.O. 13722, 
81 FR 14943,

[[Page 12234]]

3 CFR, 2016 Comp., p. 446; E.O. 13810, 82 FR 44705, 3 CFR, 2017 
Comp., p. 379.

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

0
2. Revise Sec.  510.512 to read as follows:


Sec.  510.512  Certain transactions in support of nongovernmental 
organizations' activities.

    (a) Except as provided in paragraph (d) of this section, and 
subject to the reporting requirements set forth in paragraph (e) of 
this section, all transactions, including the payment of reasonable and 
customary taxes, fees, and import duties to, and purchase or receipt of 
permits, licenses, or public utility services from, the Government of 
North Korea that are ordinarily incident and necessary to the 
activities described in paragraph (b) of this section by a 
nongovernmental organization (NGO) are authorized, provided that the 
NGO is not a person whose property and interests in property are 
blocked pursuant to this part.

    Note 1 to paragraph (a).  The authorization in paragraph (a) of 
this section includes the exportation or reexportation of items 
(commodities, software, or technology) not subject to the Export 
Administration Regulations (15 CFR parts 730 through 774) (EAR) that 
are ordinarily incident and necessary to activities described in 
paragraph (b) of this section, except for items described in 
paragraph (d)(3) of this section. Pursuant to 15 CFR 746.4(a), a 
license from the Department of Commerce is required to export or 
reexport any item subject to the EAR to North Korea, except food and 
medicine designated as EAR99, unless a license exception applies.

    (b) The activities referenced in paragraph (a) of this section are 
non-commercial activities designed to directly benefit the civilian 
population that fall into one of the following categories:
    (1) Activities to support humanitarian projects to meet basic human 
needs, including disaster, drought, or flood relief; food, nutrition, 
or medicine distribution; the provision of health services; assistance 
for vulnerable or displaced populations, including individuals with 
disabilities and the elderly; and environmental programs;
    (2) Activities to support democracy building, including activities 
to support rule of law, citizen participation, government 
accountability and transparency, human rights and fundamental freedoms, 
access to information, and civil society development projects;
    (3) Activities to support education at or below a secondary school 
level, including combating illiteracy, increasing access to education 
at the primary or secondary school level, and assisting education 
reform projects, provided that such education excludes the subjects of 
math, sciences, technology, engineering, and computer programming;
    (4) Activities to support non-commercial development projects 
directly benefiting civilians, including those related to health, food 
security, and water and sanitation;
    (5) Activities to support environmental and natural resource 
protection, including the preservation and protection of threatened or 
endangered species, responsible and transparent management of natural 
resources, and the remediation of pollution or other environmental 
damage; and
    (6) Activities to support disarmament, demobilization, and 
reintegration (DDR) programs and peacebuilding, conflict prevention, 
and conflict resolution programs.
    (c) U.S. depository institutions, U.S.-registered brokers or 
dealers in securities, and U.S.-registered money transmitters are 
authorized to process transfers of funds on behalf of U.S. or third-
country NGOs, including transfers of funds to or from North Korea, in 
support of the activities authorized by paragraph (a) of this section.
    (d) This section does not authorize the following transactions:
    (1) The exportation or reexportation of services to, charitable 
donations to or for the benefit of, or any other transactions involving 
the Government of North Korea, the Workers' Party of Korea, or any 
other person whose property and interests in property are blocked 
pursuant to Sec.  510.201, except as ordinarily incident and necessary 
to an activity authorized in paragraph (a) of this section;
    (2) Partnerships or partnership agreements with any military, 
intelligence, or law enforcement entity owned or controlled by the 
Government of North Korea, except as necessary to export or import 
items to or from North Korea that are licensed or otherwise authorized 
pursuant to this part or pursuant to the EAR; or
    (3) Exportation or reexportation of any item that would not be 
designated as EAR99 if it were located in the United States, unless 
exempt or authorized.
    (e) NGOs relying on the authorization in paragraph (a) of this 
section must submit a report to the U.S. Department of State via email 
at [email protected] no fewer than 30 days before 
commencement of the authorized activity with the following:
    (1) UN Security Council 1718 Committee (``1718 Committee'') report. 
(i) If the NGO has received 1718 Committee approval with respect to its 
activities to be conducted pursuant to this section, a copy of such 
approval along with the exemption request submitted to the 1718 
Committee; or
    (ii) If the NGO has not received 1718 Committee approval with 
respect to its activities to be conducted pursuant to this section, 
either:
    (A) A copy of any 1718 Committee exemption request or notification 
that has been or will be submitted to the 1718 Committee with respect 
to the NGO's activities; or
    (B) A detailed explanation of why the NGO's proposed activities do 
not require such an exemption or notification, including:
    (1) Items the NGO plans to transport to North Korea related to 
activities described in paragraph (b) of this section, including items 
for personal use by persons regularly employed by the NGO;
    (2) Estimated or actual dollar value of the transaction(s), as 
determined by the value of goods, services, or contracts;
    (3) The parties involved, including any persons owned, controlled, 
or acting on behalf of the Government of North Korea or the Workers 
Party of Korea, as well as financial institutions that may be involved 
in processing such transactions;
    (4) The type and scope of activities conducted; and
    (5) The dates or duration of the activities.
    (2) U.S. Department of State confirmation. The U.S. Department of 
State may notify an NGO within the 2-week period following submission 
of the report described in this paragraph (e) to inform the NGO that it 
may not rely upon this section.
    (f) Specific licenses may be issued on a case-by-case basis to 
authorize NGOs or other entities to engage in other activities designed 
to directly benefit the civilian population, including support for the 
removal of landmines and economic development projects to directly 
benefit the civilian population of North Korea.

    Note 2 to Sec.  510.512.  This section does not relieve any 
person authorized thereunder from complying with any other 
applicable laws or regulations.


0
3. Add Sec.  510.520 to read as follows:

[[Page 12235]]

Sec.  510.520  Transactions ordinarily incident to the exportation or 
reexportation to North Korea of items licensed or otherwise authorized 
by the Department of Commerce, and related services.

    All transactions ordinarily incident to the exportation or 
reexportation of items (commodities, software, or technology) to North 
Korea, including transactions with the Government of North Korea or any 
other person whose property and interests in property are blocked 
pursuant to Sec.  510.201, and services provided outside North Korea to 
install, repair, or replace such items, are authorized, provided that 
the exportation or reexportation of such items to North Korea is 
licensed or otherwise authorized by the Department of Commerce.

0
4. Add Sec.  510.521 to read as follows:


Sec.  510.521  Exportation or reexportation to North Korea of certain 
agricultural commodities, medicine, medical devices, and replacement 
parts and components.

    (a) All transactions prohibited by Sec.  510.206 that are related 
to the exportation or reexportation to North Korea of agricultural 
commodities, medicine, medical devices, or replacement parts or 
components for medical devices, in each case that are not subject to 
the Export Administration Regulations (15 CFR parts 730 through 774) 
(EAR), are authorized, provided that the agricultural commodities, 
medicine, medical devices, or replacement parts or components:
    (1) Would be designated as EAR99 if they were located in the United 
States;
    (2) Are not luxury goods as set forth in 15 CFR 746.4(b)(1), 
including identified as examples of luxury goods in 17 CFR part 746, 
supplement no. 1;
    (3) Are approved for exportation or reexportation to North Korea by 
the Security Council Committee established pursuant to United Nations 
Security Council resolution 1718 (2006), to the extent such approval is 
required;
    (4) Are not exported or reexported to any military, intelligence, 
or law enforcement purchaser or importer; and
    (5) Replacement parts are limited to a one-for-one export or 
reexport basis (i.e., only one replacement part can be exported or 
reexported to replace a broken or non-operational part).

    Note 1 to paragraph (a).  Separate authorization from OFAC is 
required for export or reexport by a U.S. person to North Korea of 
items that are not subject to the EAR, other than agricultural 
commodities, medicine, medical devices, or replacement parts or 
components for medical devices as described in this paragraph. See 
Sec.  510.512 for a general license authorizing certain transactions 
by nongovernmental organizations, including exports and reexports of 
certain items that are not subject to the EAR.

    (b) For the purposes of this section, agricultural commodities, 
medicine, and medical devices are defined as follows:
    (1) Agricultural commodities. The term agricultural commodities 
means products:
    (i) That fall within the term ``agricultural commodity'' as defined 
in section 102 of the Agricultural Trade Act of 1978 (7 U.S.C. 5602); 
and
    (ii) That are intended for ultimate use as:
    (A) Food for humans (including raw, processed, and packaged foods; 
live animals; vitamins and minerals; food additives or supplements; and 
bottled drinking water) or animals (including animal feeds);
    (B) Seeds for food crops;
    (C) Fertilizers for the purposes of food production; or
    (D) Reproductive materials (such as live animals, fertilized eggs, 
embryos, and semen) for the production of food animals.
    (2) Medicine. The term medicine means an item that falls within the 
definition of the term ``drug'' in section 201 of the Federal Food, 
Drug, and Cosmetic Act (21 U.S.C. 321).
    (3) Medical device. The term medical device means an item that:
    (i) Falls within the definition of ``device'' in section 201 of the 
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321); and
    (ii) Is not on the List of Medical Devices Requiring Specific 
Authorization, which is maintained on OFAC's website (www.treasury.gov/ofac) on the North Korea Sanctions page.

    Note 2 to Sec.  510.521.  Pursuant to 17 CFR 746.4(a), a license 
from the Department of Commerce is required to export or reexport 
any item subject to the EAR to North Korea, except food and medicine 
designated as EAR99, unless a license exception applies.


0
5. Add Sec.  510.522 to read as follows:


Sec.  510.522  Journalistic activities and establishment of news 
bureaus in North Korea.

    (a) Subject to the conditions set forth in paragraph (b) of this 
section, news reporting organizations that are United States persons, 
and individuals who are United States persons regularly employed by 
news reporting organizations either as journalists (including 
photojournalists) or as supporting broadcast or technical personnel, 
are authorized to engage in the following transactions in North Korea, 
provided that such transactions are ordinarily incident and necessary 
to their journalistic activities or the establishment or operation of a 
news bureau in North Korea:
    (1) Hiring and compensating support staff in North Korea (e.g., 
stringers, translators, interpreters, camera operators, technical 
experts, freelance producers, or drivers), persons to handle logistics, 
or other office personnel as needed;
    (2) Leasing or renting office space;
    (3) Purchasing, leasing, or renting North Korean-origin goods and 
services (e.g., mobile phones and related airtime), selling such goods 
when no longer needed to persons other than the Government of North 
Korea or Worker's Party of Korea, or importing them into the United 
States;
    (4) Renting and using telecommunications facilities in North Korea 
and paying fees or taxes related to the dissemination of information 
and transmission of news feeds (e.g., fees for satellite uplink 
facilities, or live news feeds);
    (5) Exporting and reexporting to North Korea, and subsequently 
reexporting from North Korea, equipment that is not subject to the 
Export Administration Regulations (15 CFR parts 730 through 774) (EAR), 
and that is ordinarily incident and necessary to journalistic 
activities, provided that:
    (i) Such equipment would be designated as EAR99 if it were located 
in the United States;
    (ii) The exportation or reexportation is approved by the Security 
Council Committee established pursuant to United Nations Security 
Council resolution 1718 (2006), to the extent such approval is 
required; and
    (iii) Such equipment remains under the effective control and in the 
physical possession of the news reporting organization or journalist 
exporting such equipment while it is in North Korea and is reexported 
from North Korea to the United States or a third country when no longer 
needed for journalistic activities in North Korea; and
    (6) Paying for all expenses ordinarily incident and necessary to 
journalistic activities, including sales or employment taxes to the 
Government of North Korea.

    Note 1 to paragraph (a).  This section does not relieve any 
person authorized thereunder from complying with any other 
applicable laws or regulations. Pursuant to 15 CFR 746.4(a), a 
license from the Department of Commerce is required to export or 
reexport any item (commodities, software, or technology) subject to 
the EAR to North Korea, except food and medicine designated as 
EAR99, unless a license exception applies.



[[Page 12236]]


    Note 2 to paragraph (a).  See Sec.  510.520 for a general 
license authorizing transactions ordinarily incident to the 
exportation or reexportation to North Korea of items that are 
licensed or otherwise authorized by the Department of Commerce.

    (b) For the purposes of this section, the term ``news reporting 
organization'' means an entity whose primary purpose is the gathering 
and dissemination of news to the general public.

    Note 3 to Sec.  510.522.  As of September 1, 2017, the U.S. 
Department of State has restricted the use of U.S. passports to 
travel into, in, or through North Korea. See 22 CFR 51.63. U.S. 
nationals who wish to travel to or within North Korea for the 
extremely limited purposes that are set forth in Federal regulations 
must apply for a passport with a special validation from the 
Department of State. See travel.state.gov for additional details.


Bradley T. Smith,
Director, Office of Foreign Assets Control.
[FR Doc. 2024-03255 Filed 2-15-24; 8:45 am]
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