[Federal Register Volume 74, Number 110 (Wednesday, June 10, 2009)]
[Rules and Regulations]
[Pages 27433-27435]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-13523]


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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 Office of Foreign Assets Control of the U.S. Department of 
the Treasury (``OFAC'') is amending the Sudanese Sanctions Regulations 
to expand the scope of an existing authorization of certain imports for 
diplomatic or official personnel to include the provision of goods or 
services in the United States to the diplomatic missions of the 
Government of Sudan to the United States and the United Nations, and to 
the employees of such missions, subject to certain conditions. The 
amended section also authorizes the importation of goods or services 
into the United States by the regional Government of Southern Sudan and 
its employees that involve the transit or transshipment of goods 
through areas of Sudan other than the Specified Areas of Sudan, subject 
to certain conditions.

DATES: Effective Date: June 10, 2009.

FOR FURTHER INFORMATION CONTACT: Assistant Director for Compliance 
Outreach & Implementation, tel.: 202-622-2490, Assistant Director for 
Licensing, tel.: 202-622-2480, Assistant Director for Policy, tel.: 
202-622-4855, Office of Foreign Assets Control, or Chief Counsel 
(Foreign Assets Control), tel.: 202-622-2410, Office of the General 
Counsel, Department of the Treasury (not toll free numbers).

SUPPLEMENTARY INFORMATION: 

Electronic and Facsimile Availability

    This document and additional information concerning OFAC are 
available from OFAC's Web site (http://www.treas.gov/ofac) or via 
facsimile through a 24-hour fax-on demand service, tel.: (202) 622-
0077.

Background

    The Sudanese Sanctions Regulations, 31 CFR part 538 (the ``SSR''), 
were promulgated to implement Executive Order 13067 of November 3, 1997 
(``E.O. 13067''), in which the President declared a national emergency 
with respect to the policies and actions of the Government of Sudan. To 
deal with that emergency, E.O. 13067 imposed comprehensive trade 
sanctions with respect to Sudan and blocked all property and interests 
in property of the

[[Page 27434]]

Government of Sudan in the United States or within the possession or 
control of United States persons. On October 13, 2006, the President 
issued Executive Order 13412 (``E.O. 13412''), to take additional steps 
with respect to the emergency declared in E.O. 13067, and to implement 
the Darfur Peace and Accountability Act of 2006 (Pub. L. 109-344, 120 
Stat. 1869). While it exempted specified areas of Sudan from certain 
prohibitions in E.O. 13067, E.O. 13412 continued the blocking of the 
Government of Sudan's property and interests in property and imposed a 
country-wide prohibition on transactions relating to Sudan's petroleum 
or petrochemical industries. E.O. 13412 also removed the regional 
Government of Southern Sudan from the definition of the Government of 
Sudan. On October 31, 2007, the SSR were amended to implement E.O. 
13412 (72 FR 61513, October 31, 2007).
    Today, OFAC is amending section 538.515 of the SSR. Before its 
amendment, section 538.515 authorized all transactions ordinarily 
incident to the importation of any goods or services into the United 
States destined for official or personal use by the diplomatic missions 
of the Government of Sudan to the United States and to international 
organizations located in the United States, subject to certain 
conditions. OFAC is amending this section to expand the scope of the 
authorization to include the provision of goods or services in the 
United States to the diplomatic missions of the Government of Sudan to 
the United States and the United Nations, and to the employees of the 
diplomatic missions of the Government of Sudan to the United States and 
the United Nations, subject to certain conditions.
    Paragraph (a) of the revised section 538.515 authorizes the 
importation of goods or services into the United States by, and the 
provision of goods or services in the United States to, the diplomatic 
missions of the Government of Sudan to the United States and the United 
Nations, subject to four conditions: (1) The goods or services must be 
for the conduct of the official business of the missions, or for 
personal use of the employees of the missions, and not for resale; (2) 
such transactions must not involve the purchase, sale, financing, or 
refinancing of real property; (3) such transactions are not otherwise 
prohibited by law; and (4) all such transactions must be conducted 
through an account at a U.S. financial institution specifically 
licensed by OFAC. A note to paragraph (a)(4) of the revised section 
538.515 states that U.S. financial institutions are required to obtain 
specific licenses to operate accounts for, or extend credit to, the 
diplomatic missions of the Government of Sudan to the United States and 
the United Nations.
    Paragraph (b) of the revised section 538.515 authorizes the 
importation of goods or services into the United States by, and the 
provision of goods or services in the United States to, the employees 
of the diplomatic missions of the Government of Sudan to the United 
States and the United Nations, subject to two conditions: (1) The goods 
or services must be for personal use of the employees of the missions, 
and not for resale; and (2) such transactions are not otherwise 
prohibited by law.
    Paragraph (c) of the revised section 538.515 authorizes the 
importation of goods or services into the United States by the regional 
Government of Southern Sudan and its employees that involve the transit 
or transshipment of goods from the Specified Areas of Sudan through 
areas of Sudan other than the Specified Areas of Sudan, subject to two 
conditions: (1) The goods or services must be for the conduct of the 
business of the regional Government, or for personal use of the 
employees of the regional Government, and not for resale; and (2) such 
transactions are not otherwise prohibited by law. A note to paragraph 
(c) of revised section 538.515 explains that the authorization 
contained in this paragraph permits the regional Government of Southern 
Sudan and its employees to import into the United States goods or 
services that have transited or transshipped through areas of Sudan 
other than the Specified Areas of Sudan without the need to obtain a 
specific license under Sec.  538.417. The importation of goods and 
services into the United States by the regional Government of Southern 
Sudan not involving the transit or transshipment through areas of Sudan 
other than the Specified Areas of Sudan is already exempt under 
Sec. Sec.  538.212(g) and 538.305(b) and, therefore, requires no 
authorization. Similarly, the provision of goods and services in the 
United States to the regional Government of Southern Sudan and its 
employees already is exempt pursuant to Sec. Sec.  538.212(g) and 
538.305(b) and also requires no authorization.

Public Participation

    Because the amendment of the SSR 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 SSR 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 538

    Administrative practice and procedure, Banks, Banking, Blocking of 
assets, Exports, Foreign trade, Humanitarian aid, Imports, Penalties, 
Reporting and recordkeeping requirements, Specially designated 
nationals, Sudan, Terrorism, Transportation.


0
For the reasons set forth in the preamble, the Office of Foreign Assets 
Control amends 31 CFR part 538 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); Pub. L. 106-387, 114 Stat. 1549; Pub. L. 
109-344, 120 Stat. 1869; Pub. L. 110-96, 121 Stat. 1011; 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. Revise Sec.  538.515 to read as follows:


Sec.  538.515  Sudanese diplomatic missions in the United States.

    (a) The importation of goods or services into the United States by, 
and the provision of goods or services in the United States to, the 
diplomatic missions of the Government of Sudan to the United States and 
the United Nations are authorized, provided that:
    (1) The goods or services are for the conduct of the official 
business of the missions, or for personal use of the employees of the 
missions, and are not for resale;

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    (2) The transaction does not involve the purchase, sale, financing, 
or refinancing of real property;
    (3) The transaction is not otherwise prohibited by law; and
    (4) The transaction is conducted through an account at a U.S. 
financial institution specifically licensed by OFAC.

    Note to paragraph (a)(4) of Sec.  538.515: U.S. financial 
institutions are required to obtain specific licenses to operate 
accounts for, or extend credit to, the diplomatic missions of the 
Government of Sudan to the United States and the United Nations.

    (b) The importation of goods or services into the United States by, 
and the provision of goods or services in the United States to, the 
employees of the diplomatic missions of the Government of Sudan to the 
United States and the United Nations are authorized, provided that:
    (1) The goods or services are for personal use of the employees of 
the missions, and are not for resale; and
    (2) The transaction is not otherwise prohibited by law.
    (c) The importation of goods or services into the United States by 
the regional Government of Southern Sudan and its employees that 
involves the transit or transshipment of goods from the Specified Areas 
of Sudan through areas of Sudan other than the Specified Areas of Sudan 
is authorized, provided that:
    (1) The goods or services are for the conduct of the business of 
the regional Government, or for personal use of the employees of the 
regional Government, and are not for resale; and
    (2) The transaction is not otherwise prohibited by law.

    Note to paragraph (c) of Sec.  538.515:  The authorization 
contained in paragraph (c) of this section permits the regional 
Government of Southern Sudan and its employees to import into the 
United States goods or services that have transited or transshipped 
through areas of Sudan other than the Specified Areas of Sudan 
without the need to obtain a specific license under Sec.  538.417. 
The importation of goods and services into the United States by the 
regional Government of Southern Sudan not involving transit or 
transshipment through areas of Sudan other than the Specified Areas 
of Sudan already is exempt pursuant to Sec. Sec.  538.212(g) and 
538.305(b) and, therefore, requires no authorization. Similarly, the 
provision of goods and services in the United States to the regional 
Government of Southern Sudan and its employees already is exempt 
pursuant to Sec. Sec.  538.212(g) and 538.305(b) and also requires 
no authorization.


    Dated: June 3, 2009.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. E9-13523 Filed 6-9-09; 8:45 am]
BILLING CODE 4811-45-P