38164 Federal Register / Vol. 65, No. 118 / Monday, June 19, 2000 / Rules and Regulations

Dated: June 12, 2000.

R. Roger Majak,

Assistant Secretary for Export

Administration.

[FR Doc. 00–15168 Filed 6–16–00; 8:45 am]

BILLING CODE 3510–33–P

DEPARTMENT OF COMMERCE

DEPARTMENT OF TRANSPORTATION

44 CFR Part 403

RIN 2105–AC70

Repeal of Traffic Restrictions to North

Korea

AGENCY: Department of Commerce and

Department of Transportation.

ACTION: Final rule.

SUMMARY: The Departments of

Transportation and Commerce maintain

joint restrictions on shipping to North

Korea, prohibiting any ships

documented under the laws of the

United States or any aircraft registered

under the laws of the United States from

engaging in transportation to and from

North Korea. In view of the President’s

recent decision to ease certain sanctions

against North Korea, the two

departments are repealing the

restrictions. This action requires a

change to the Code of Federal

Regulations.

DATES: This final rule is effective June

19, 2000.

FOR FURTHER INFORMATION CONTACT: Mr.

Christopher T. Tourtellot, Office of the

Assistant General Counsel for

International Law, U.S. Department of

Transportation, 400 Seventh Street SW.,

Washington, DC 20590. Telephone:

(202) 366–9183. Ms. Rochelle Woodard,

Department of Commerce, Office of the

Chief Counsel for Export

Administration, Room 3839, 14th Street

& Constitution Avenue NW.,

Washington, DC 20230. Telephone:

(202) 482–5304.

SUPPLEMENTARY INFORMATION: The

regulations in 44 CFR Part 403

(Transportation Order T–2), which are

the joint responsibility of the

Departments of Transportation and

Commerce, currently impose a shipping

restriction that prohibits any ships

documented under the laws of the

United States or any aircraft under the

laws of the United States from engaging

in transportation to and from North

Korea.

On September 17, 1999, the President

announced his intention to ease certain

sanctions against North Korea in order

to pursue improved relations. There is

also a need to facilitate transportation to

and from North Korea in support of the

Agreed Framework of October 1994.

To accomplish this goal, the

Departments of Transportation and

Commerce are repealing Order T–2, 44

CFR Part 403, the effect of which is to

permit any ships documented under the

laws of the United States and any

aircraft registered under laws of the

United States to engage in

transportation to and from North Korea,

subject to applicable regulatory

restrictions such as the transportation

and export control regulations.

This is being released as a final rule.

Prior notice and opportunity for public

comment are not required to be

provided for this rule pursuant to the

military and foreign affairs exemption

contained in 5 U.S.C. 553(a)(1).

Therefore, the analytical requirements

of the Regulatory Flexibility Act, 5

U.S.C. 601 et seq., are inapplicable.

Because of the need to facilitate

transportation to and from North Korea,

especially the delivery of humanitarian

aid, and because of the need to support

the Agreed Framework to pursue

improved relations with North Korea in

furtherance of United States foreign

policy, we are making the rule effective

on less than 30-day’s notice.

International Trade Impact Statement

This final regulation applies to all

United States air carriers and shipping

lines, as well as all privately owned

aircraft and ships that are documented

or registered under the laws of the

United States. The rule should improve

United States companies’ ability to

compete in international markets and to

participate in trade and travel in the

North Korea market. The overall level of

travel to and from the United States is

not expected to be significantly affected.

Regulatory Impact

Executive Order 12866 and DOT

Regulatory Policies and Procedures

This rulemaking affects other federal

agencies and involves important matters

of public policy, and is therefore

significant under DOT Policies and

Procedures. It is also a significantly

regulatory action for the purposes of

Executive Order 12866.

Economic Analysis

The repeal of the regulation will have

only the smallest economic impact on

affected parties. Given this de minimis

effect, the Department finds that further

economic analysis is unnecessary.

Paperwork Reduction Act

The repeal of this rule will not alter

any recordkeeping or reporting

requirements.

Other Executive Orders

The repeal of this rule will not

implicate any interests affected by the

provisions of Executive Order 12630,

Government Actions and Interference

with Constitutionally Protected Property

Rights; Executive Order 12988, Civil

Justice Reform; or Executive Order

13045, Protection of Children from

Environmental Health Risks and Safety

Risks.

Federalism Implications

The repeal of this regulation has no

direct impact on the individual states,

on the balance of power in their

respective governments, or on the

burden of responsibilities assigned them

by the national government. In

accordance with Executive Order 13132

consultation with state and local

governments is, therefore, not required.

Unfunded Mandates Reform Act of

1995

The repeal of this rule does not

impose unfunded mandates under the

Unfunded Mandates Reform Act of

1995. It does not result in costs of $100

million or more to either state, local, or

tribal governments, in the aggregate, or

on the private sector.

List of Subjects in 44 CFR Part 403

Air carriers, Korea, Democratic

Peoples Republic of, Maritime carriers,

Reporting and recordkeeping

requirements.

Accordingly, under the authority of

Sec. 704, 64 Stat. 816, as amended; 50

U.S.C. App. 2154; interpret or apply

sec.101, 64 Stat. 799, as amended; 50

U.S.C. App. 2071; E.O. 10480, 18 FR

4939, 3 CFR 1953 Supp.; sec. 4(a) Pub.

L. 89–670, 80 Stat. 933; 49 U.S.C. 1653;

and the authority delegated by 49 CFR

1.56a(c) for the Department of

Transportation; and as discussed in the

Supplementary Information, amend 44

CFR Chapter IV as follows:

PART 403—[REMOVED]

1. Part 403 is removed.

Federal Register / Vol. 65, No. 118 / Monday, June 19, 2000 / Rules and Regulations 38165

Dated: May 23, 2000.

Iain S. Baird,

Deputy Assistant Secretary for Export

Administration, Department of Commerce.

Dated: June 9, 2000.

A. Bradley Mims,

Deputy Assistant Secretary for Aviation and

International Affairs, Department of

Transportation.

[FR Doc. 00–15217 Filed 6–16–00; 8:45 am]

BILLING CODE 4910–62–M

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; amendments.

SUMMARY: The Office of Foreign Assets

Control of the U.S. Department of the

Treasury is amending the Foreign Assets

Control Regulations to implement the

President’s September 17, 1999,

determination to ease sanctions against

North Korea. This final rule authorizes

new financial, trade, and other

transactions with North Korea and its

nationals. An import notification and

approval procedure will be required for

all imports from North Korea. This final

rule does not unblock assets within U.S.

jurisdiction blocked prior to this time,

nor does it affect enforcement actions

with respect to prior violations of the

embargo.

EFFECTIVE DATE: June 19, 2000.

FOR FURTHER INFORMATION CONTACT:

Dennis P. Wood, Chief of Compliance

Programs, tel.: 202/622–2490, Steve

Pinter, Acting Chief of Licensing, tel.:

202/622–2480, or Barbara Hammerle,

Deputy Chief Counsel, tel.: 202/622–

2410, Office of Foreign Assets Control,

Department of the Treasury,

Washington, DC 20220.

SUPPLEMENTARY INFORMATION:

Electronic Availability

This document is available as an

electronic file on The Federal Bulletin

Board the day of publication in the

Federal Register. By modem, dial 202/

512–1387 and type ‘‘/GO FAC,’’ or call

202/512–1530 for disk or paper copies.

This file is available for downloading

without charge in ASCII and Adobe

Acrobat7 readable (*.PDF) formats. For

Internet access, the address for use with

the World Wide Web (Home Page),

Telnet, or FTP protocol is:

fedbbs.access.gpo.gov. This document

and additional information concerning

the programs of the Office of Foreign

Assets Control are available for

downloading from the Office’s Internet

Home Page: http://www.treas.gov/ofac,

or in fax form through the Office’s 24-

hour fax-on-demand service: call 202/

622–0077 using a fax machine, fax

modem, or (within the United States) a

touch-tone telephone.

Background

On September 17, 1999, the President

announced his decision to ease

economic sanctions against North Korea

in order to improve overall relations

with North Korea, to support the Agreed

Framework, and to encourage North

Korea to continue to refrain from testing

long-range missiles. Accordingly, the

Office of Foreign Assets Control is

amending the Foreign Assets Control

Regulations, 31 CFR part 500 (the

‘‘FACR’’), to add § 500.586, authorizing

new transactions involving property in

which North Korean nationals have an

interest. The effect of this amendment is

that transactions involving such

property coming within the jurisdiction

of the United States or into the

possession or control of persons subject

to the jurisdiction of the United States

after June 19, 2000 or in which an

interest of North Korea or a national

thereof arises after that time, are

authorized by general license. Newly

authorized transactions include, but are

not limited to, exportation to North

Korea, new investment, and brokering

transactions (except as otherwise

restricted under regulations

administered by other federal agencies,

e.g., the Export Administration

Regulations). Importations from North

Korea require notification to and

approval from the Office of Foreign

Assets Control for purposes of

compliance with Chapter 7 of the Arms

Export Control Act. Property blocked as

of June 16, 2000. remains blocked.

Reports due under general or specific

license must still be filed covering

activities prior to the effective date of

this rule.

Because the Regulations involve a

foreign affairs function, the provisions

of Executive Order 12866 and the

Administrative Procedure Act (5 U.S.C.

553) (the ‘‘APA’’) 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

As authorized in the APA, the

Regulations are being issued without

prior notice and public comment. The

collections of information related to the

Regulations are contained in 31 CFR

part 501 (the ‘‘Reporting and Procedures

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

(‘‘OMB’’) 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, Foreign

investments in U.S., Foreign trade,

Securities, North Korea.

PART 500—FOREIGN ASSETS

CONTROL REGULATIONS

1. The authority citation for part 500

continues to read as follows:

Authority: 50 U.S.C. App. 1–44; E.O. 9193,

3 CFR, 1938–1943 Comp., p. 1174; E.O. 9989,

3 CFR, 1943–1948 Comp., p. 748.

Subpart E—Licenses, Authorizations

and Statements of Licensing Policy

2. Section 500.533 is revised to read

as follows:

§ 500.533 Exportations, reexportations,

and incidental transactions.

(a) All transactions ordinarily

incident to the exportation of goods,

software, or technology (including

technical data) from the United States or

reexportation of U.S.-origin goods,

software, or technology from a foreign

country to any person in a designated

foreign country or to the government of

a designated foreign country, are hereby

authorized, provided that the

exportation or reexportation is licensed

or otherwise authorized by the

Department of Commerce under the

Export Administration Regulations (15

CFR parts 730–799).

(b) The general license does not

authorize the financing of any

transaction from a blocked account.

Note to § 500.533: See note to § 500.586(b).

3. Section 500.586 is added to subpart

E to read as follows:

§ 500.586 Authorization of new

transactions concerning certain North

Korean property.

(a) Subject to the limitations in

paragraph (b) of this section,