Rule2024-03255
North Korea Sanctions Regulations
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 16, 2024
Effective
February 16, 2024
Issuing agencies
Treasury DepartmentForeign Assets Control Office
Abstract
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.
Full Text
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<title>Federal Register, Volume 89 Issue 33 (Friday, February 16, 2024)</title>
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[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 [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[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: <a href="http://www.treas.gov/ofac">www.treas.gov/ofac</a>.
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 <a href="/cdn-cgi/l/email-protection#9dd9cdcfd6b0d3dad2b0dad1b0d3f2e9f4fbf4fefce9f4f2f3b0d9d1ddeee9fce9f8b3faf2eb"><span class="__cf_email__" data-cfemail="e4a0b4b6afc9aaa3abc9a3a8c9aa8b908d828d8785908d8b8ac9a0a8a49790859081ca838b92">[email protected]</span></a> 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 (<a href="http://www.treasury.gov/ofac">www.treasury.gov/ofac</a>) 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 <a href="http://travel.state.gov">travel.state.gov</a> for additional details.
Bradley T. Smith,
Director, Office of Foreign Assets Control.
[FR Doc. 2024-03255 Filed 2-15-24; 8:45 am]
BILLING CODE 4810-AL-P
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