Council Regulation (EC) No 329/2007 of 27 March 2007 concerning restrictive measures against the Democratic People's Republic of Korea
Date: 2007-03-27
Institutions: Council of the European Union
Subjects: North Korea, arms trade, dual-use good, economic resources, economic sanctions, international sanctions, luxury products industry, nuclear non-proliferation, technology transfer, trade restriction

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(Acts adopted under the EC Treaty/Euratom Treaty whose publication is obligatory)

I

REGULATIONS

COUNCIL REGULATION (EC) No 329/2007

of 27 March 2007

concerning restrictive measures against the Democratic People's Republic of Korea

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty
Community, and in particular Articles 60 and 301 thereof,

establishing the European

Having regard to Council Common Position 2006/795/CFSP of
20 November 2006 concerning restrictive measures against the
Democratic People's Republic of Korea (1),

Having regard to the proposal from the Commission,

Whereas:

(1)

that

On 14 October 2006, the UN Security Council adopted
Resolution 1718 (2006)
in which it condemned the
nuclear test
the Democratic People's Republic of
referred to as North Korea), had
Korea (hereinafter
conducted on 9 October 2006, determining that there
was a clear threat to international peace and security, and
imposing on all Member States of the United Nations
that they apply a number of restrictive measures.

or

ballistic

exports of goods and technology which could contribute
to North Korea's nuclear-related, other weapons of mass
destruction-related
missile-related
programmes, and on the provision of related services, a
ban on procurement of goods and technology from
luxury goods to
North Korea, a ban on exports of
North Korea, as well as the freezing of
funds and
economic resources of persons, entities and bodies
engaged in or providing support
for the said North
Korean programmes.

(3)

(4)

These measures fall within the scope of the Treaty estab-
lishing the European Community and, therefore, notably
with a view to ensuring their uniform application by
economic operators in all Member States, Community
legislation is necessary in order to implement them as
far as the Community is concerned.

This Regulation derogates
from existing Community
legislation that provides for general rules on exports to,
and imports from, third countries, and in particular from
Council Regulation (EC) No 1334/2000 of 22 June 2000
setting up a Community regime for
the control of
exports of dual-use items and technology (2); most of
these items and technology should be covered by this
Regulation.

(2)

the
Common Position 2006/795/CFSP provides
implementation of the restrictive measures set out
in
Resolution 1718 (2006) and notably for a ban on

for

(1) OJ L 322, 22.11.2006, p. 32.

(5)

It is appropriate to clarify the procedure that should be
followed to obtain approval for exports of goods and
technology and the provision of
related technical
assistance.

(2) OJ L 159, 30.6.2000, p. 1. Regulation as last amended by Regu-

lation (EC) No 394/2006 (OJ L 74, 13.3.2006, p. 1).

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(6)

(7)

(8)

(9)

For reasons of expediency, the Commission should be
empowered to publish the list of goods and technology
that will be adopted by the Sanctions Committee or the
UN Security Council and,
to add the
reference numbers taken from the Combined Nomen-
clature as set out
to Council Regulation
(EEC) No 2658/87 of 23 July 1987 on the tariff and
statistical nomenclature and on the Common Customs
Tariff (1).

if appropriate,

in Annex I

The Commission should also be empowered to amend
the list of
luxury goods if necessary in view of any
the Sanctions Committee
definition or guidelines that
may promulgate to facilitate the implementation of the
restrictions concerning luxury goods, taking the lists of
luxury goods produced by other
into
account.

jurisdictions

For reasons of expediency, the Commission should also
be empowered to amend the list of persons, entities and
bodies whose funds and economic resources should be
frozen, on the basis of determinations made by either the
Sanctions Committee or the United Nations Security
Council.

Member States should determine the penalties applicable
to infringements of the provisions of this Regulation. The
penalties provided for should be proportionate, effective
and dissuasive.

3.

‘technical assistance’ means any technical support related to
repairs, development, manufacture, assembly, testing, main-
tenance, or any other technical service, and may take forms
such as instruction, advice, training, transmission of working
knowledge or skills or consulting services; including verbal
forms of assistance;

4.

‘funds’ means financial assets and benefits of every kind,
including but not limited to:

(a) cash, cheques, claims on money, drafts, money orders

and other payment instruments;

(b) deposits with financial

institutions or other entities,

balances on accounts, debts and debt obligations;

(c) publicly-

and privately-traded

debt
including stocks and shares, certificates
warrants,

instruments,
representing
debentures and derivatives contracts;

securities,

securities

bonds,

notes,

and

(d) interest, dividends or other income on or value accruing

from or generated by assets;

(e) credit, right of set-off, guarantees, performance bonds or

other financial commitments;

(10)

In order to ensure that the measures provided for in this
Regulation are effective, this Regulation should enter into
force immediately,

(f)

letters of credit, bills of lading, bills of sale; and

HAS ADOPTED THIS REGULATION:

(g) documents evidencing an interest in funds or financial

resources;

Article 1

For the purposes of this Regulation, the following definitions
shall apply:

1.

‘Sanctions Committee’ means:
the UN
Security Council which was
to
paragraph 12 of UN Security Council Resolution 1718
(2006);

established pursuant

the Committee of

5.

‘freezing of funds’ means preventing any moving, transfer,
alteration, use of, access to, or dealing with funds in any way
that would result in any change in their volume, amount,
location, ownership, possession, character, destination or
other change that would enable the use of
the funds,
including portfolio management;

6.

‘economic resources’ means assets of every kind, whether
tangible or intangible, movable or immovable, which are
not funds but can be used to obtain funds, goods or services;

2.

‘North Korea’ means the Democratic People's Republic of
Korea;

(1) OJ L 256, 7.9.1987, p. 1. Regulation as last amended by Regulation

(EC) No 129/2007 (OJ L 56, 23.2.2007, p. 1).

7.

‘freezing of economic resources’ means preventing the use of
economic resources to obtain funds, goods or services in any
way,
limited to, by selling, hiring or
mortgaging them;

including, but not

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8.

‘territory of the Community’ means the territories of the
Member States to which the Treaty is applicable, under the
conditions laid down in the Treaty, including their airspace.

The prohibitions set out in paragraph 1 shall not apply to
2.
non-combat vehicles which have been manufactured or fitted
with materials to provide ballistic protection, intended solely for
protective use of personnel of the EU and its Member States in
North Korea.

Article 2

1.

It shall be prohibited:

(a)

to sell, supply, transfer or export, directly or indirectly, the
goods and technology, including software, listed in Annex I,
whether or not originating in the Community,
to any
natural or legal person, entity or body in, or for use in
North Korea;

(b) to participate, knowingly and intentionally, in activities the
object or effect of which is to circumvent the prohibition
referred to in point (a).

Annex I shall

2.
include any items, materials, equipment,
goods and technology, including software, which are dual-use
items as defined in Regulation (EC) No 1334/2000, which could
contribute to North Korea's nuclear-related, other weapons of
mass destruction-related or ballistic missile-related programmes,
as determined by the Sanctions Committee or the UN Security
Council. It shall not include goods and technology included in
the EU Common List of Military Equipment (1).

3.
It shall be prohibited to purchase, import or transport the
from North Korea
goods and technology listed in Annex I
whether the item concerned originates or not in North Korea.

Article 3

1.

It shall be prohibited:

(a)

to provide, directly or indirectly, technical assistance related
to goods and technology listed in the EU Common List of
Military Equipment or in Annex I, and to the provision,
manufacture, maintenance and use of goods listed in the
EU Common List of Military Equipment or in Annex I to
any natural or legal person, entity or body in, or for use in,
North Korea;

(b) to provide, directly or indirectly,

financing or financial
assistance related to goods and technology listed in the
EU Common List of Military Equipment or in Annex I,
including in particular grants,
loans and export credit
insurance, for any sale, supply, transfer or export of such
items, or for any provision of related technical assistance to
any natural or legal person, entity or body in, or for use in,
North Korea;

(c)

to participate, knowingly and intentionally, in activities, the
object or effect of which is to circumvent the prohibitions
referred to in points (a) or (b).

(1) The current version of the list is published on page 58 of this

Official Journal.

Article 4

It shall be prohibited:

(a)

to sell, supply,
luxury goods, as listed in Annex III, to North Korea;

transfer or export, directly or indirectly,

(b) to participate, knowingly and intentionally, in activities the
object or effect of which is to circumvent the prohibition
referred to in point (a).

Article 5

1.
If a derogation from Articles 2(1)(a) or 3(1)(a) or (b) or
4(a) is deemed necessary in a specific case, the seller, supplier,
transferring party, exporter or service provider concerned may
present a duly motivated request to the competent authorities of
a Member State as indicated in the websites listed in Annex II.
The Member State that received the request shall, if it deems
that such derogation is justified, present a request for a specific
approval to the UN Security Council.

The Member State concerned shall

inform the other
2.
Member States and the Commission of any request
for
approval submitted to the UN Security Council pursuant to
paragraph 1.

The competent authorities of

3.
the Member States, as
indicated in the websites listed in Annex II, may authorise the
sale, supply, transfer, export or provision of technical assistance,
under such conditions as they deem appropriate,
if the UN
Security Council has approved the request for specific approval.

Article 6

1.
All funds and economic resources belonging to, owned,
held or controlled by the persons, entities and bodies listed in
Annex IV shall be frozen. Annex IV shall include the persons,
entities and bodies designated by the Sanctions Committee or
the UN Security Council in accordance with paragraph 8(d) of
UNSCR 1718 (2006).

2.
No funds or economic resources shall be made available,
directly or indirectly, to or for the benefit of the natural or legal
persons, entities or bodies listed in Annex IV.

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The

participation,

in
knowingly
3.
activities the object or effect of which is, directly or indirectly,
to circumvent the measures referred to in paragraphs 1 and 2
shall be prohibited.

intentionally,

and

Article 7

By way of derogation from Article 6,

the competent
1.
authorities of the Member States, as indicated in the websites
listed in Annex II, may authorise, under such conditions as they
deem appropriate,
the release of certain frozen funds or
economic resources or the making available of certain funds
or economic resources, having determined that the funds or
economic resources concerned are:

(a) necessary to satisfy the basic needs of persons listed in
Annex IV and their dependent family members, including
payments for foodstuffs, rent or mortgage, medicines and
insurance premiums, and public
medical treatment, taxes,
utility charges;

Article 8

By way of derogation from Article 6, the competent authorities
of the Member States, as indicated in the websites listed in
Annex II, may authorise the release of certain frozen funds or
economic resources, if the following conditions are met:

(a)

the funds or economic resources are the subject of a
judicial, administrative or arbitral
lien established prior to
14 October 2006 or of a judicial, administrative or arbitral
judgement rendered prior to that date;

(b) the funds or economic resources will be used exclusively to
satisfy claims secured by such a lien or recognised as valid
in such a judgement, within the limits set by applicable laws
and regulations governing the rights of persons having such
claims;

(c)

the lien or judgement is not for the benefit of a person,
entity or body listed in Annex IV;

(b) intended exclusively for payment of reasonable professional
incurred expenses associated

fees and reimbursement of
with the provision of legal services; or

(d) recognising the lien or judgement is not contrary to public

policy in the Member State concerned;

(c)

intended exclusively for payment of fees or service charges
for routine holding or maintenance of
frozen funds or
economic resources; and

the Member State concerned has notified the
provided that
Sanctions Committee of that determination and its intention
to grant an authorisation, and the Sanctions Committee has
not objected to that course of action within five working
days of notification.

(e)

the lien or judgement has been notified by the Member
State to the Sanctions Committee.

Article 9

financial or credit

Article 6(2) shall not prevent

1.
insti-
tutions in the Community from crediting frozen accounts
where they receive funds transferred by third parties to the
account of a listed natural or legal person, entity or body,
provided that any additions to such accounts will also be
frozen. The financial or credit
inform the
competent authorities about such transactions without delay.

institution shall

By way of derogation from Article 6 the competent
2.
authorities of the Member States, as indicated in the websites
listed in Annex II, may authorise the release of certain frozen
funds or economic resources or the making available of certain
frozen funds or economic resources, after having determined
that the funds or economic resources are necessary for extra-
ordinary expenses, provided that this determination has been
notified by the Member State to the Sanctions Committee and
that the determination has been approved by that Committee.

Article 6(2) shall not apply to the addition to frozen

2.
accounts of:

(a)

interest or other earnings on those accounts; or

(b) payments due under contracts, agreements or obligations
that were concluded or arose prior to 14 October 2006;

The Member States concerned shall

3.
inform the other
Member States and the Commission of any authorisation
granted under paragraphs 1 and 2.

provided that any such interest, other earnings and payments
are frozen in accordance with Article 6(1).

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Article 10

Article 13

1. Without prejudice to the applicable rules concerning
reporting, confidentiality and professional secrecy, natural and
legal persons, entities and bodies shall:

The Commission shall be empowered to:

(a) supply immediately any information which would facilitate
compliance with this Regulation, such as accounts and
amounts
to the
frozen in accordance with Article 6,
competent authorities of the Member States, as indicated
in the websites listed in Annex II, where they are resident
or located, and shall transmit such information, directly or
through the relevant Member States, to the Commission;

(b) cooperate with the competent authorities, as indicated in the
websites listed in Annex II, in any verification of this infor-
mation.

Any additional

2.
information directly received by the
Commission shall be made available to the Member State
concerned.

3.
Any information provided or received in accordance with
this Article shall be used only for the purposes for which it was
provided or received.

Article 11

The freezing of funds and economic resources or the refusal to
in
make funds or economic resources available, carried out
good faith on the basis that such action is in accordance with
this Regulation, shall not give rise to liability of any kind on the
part of the natural or legal person or entity or body imple-
menting it, or its directors or employees, unless it is proved that
the funds and economic resources were frozen or withheld as a
result of negligence.

Article 12

The Commission and Member States shall immediately inform
each other of the measures taken under this Regulation and
shall supply each other with any other relevant information at
their disposal in connection with this Regulation, in particular
information in respect of violations and enforcement problems
and judgments handed down by national courts.

the Sanctions Committee or

(a) amend Annex I on the basis of determinations made by
either
the United Nations
Security Council and, where appropriate, add the reference
numbers taken from the Combined Nomenclature as set out
in Annex I to Regulation (EEC) No 2658/87;

(b) amend Annex II on the basis of information supplied by

Member States;

(c) amend Annex III in order to refine or adapt the list of
goods included therein, according to any definition or
guidelines
that may be promulgated by the Sanctions
Committee and taking into account the lists produced by
other jurisdictions, or to add the reference numbers taken
from the Combined Nomenclature as set out in Annex I to
Regulation (EEC) No 2658/87, if necessary or appropriate;

(d) amend Annex IV on the basis of determinations made by
the United Nations

the Sanctions Committee or

either
Security Council; and

(e) amend Annexes I or IV pursuant to any decision taken by
Position

of Common

basis

the

on

the Council
2006/795/CFSP.

Article 14

1. Member States shall
lay down the rules on penalties
applicable to infringements of this Regulation and shall take
all measures necessary to ensure that they are implemented.
The penalties provided for shall be effective, proportionate
and dissuasive.

2. Member States shall notify the Commission of those rules
without delay after the entry into force of this Regulation and
shall notify it of any subsequent amendment.

Article 15

1. Member States shall designate the competent authorities
referred to in this Regulation and identify them in, or through,
the websites as listed in Annex II.

shall notify the Commission of

2. Member States
their
competent authorities without delay after the entry into force
of
this Regulation and shall notify it of any subsequent
amendment.

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Article 16

This Regulation shall apply:

(a) within the territory of the Community;

(d) to any legal person, entity or body which is incorporated or

constituted under the law of a Member State;

(e)

to any legal person, entity or body in respect of any
business done in whole or in part within the Community.

(b) on board any aircraft or any vessel under the jurisdiction of

a Member State;

Article 17

(c)

to any person inside or outside the territory of
Community who is a national of a Member State;

the

This Regulation shall enter into force on the day of its publi-
cation in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 27 March 2007.

For the Council
The President

P. STEINBRÜCK

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ANNEX I

Goods and technology referred to in Articles 2 and 3

A. Goods

(to be completed in due course)

B. Technology

(to be completed in due course)

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ANNEX II

Websites for information on the competent authorities referred to in Articles 5, 7, 8, 10 and 15 and address for
notifications to the European Commission

BELGIUM

http://www.diplomatie.be/eusanctions

BULGARIA

(to be completed in due course)

CZECH REPUBLIC

http://www.mfcr.cz/mezinarodnisankce

DENMARK

http://www.um.dk/da/menu/Udenrigspolitik/FredSikkerhedOgInternationalRetsorden/Sanktioner/

GERMANY

http://www.bmwi.de/BMWi/Navigation/Aussenwirtschaft/Aussenwirtschaftsrecht/embargos.html

ESTONIA

http://web-visual.vm.ee/est/kat_622/

GREECE

http://www.ypex.gov.gr/www.mfa.gr/en-US/Policy/Multilateral+Diplomacy/International+Sanctions/

SPAIN

www.mae.es/es/Menuppal/Asuntos/Sanciones+Internacionales

FRANCE

http://www.diplomatie.gouv.fr/autorites-sanctions/

IRELAND

www.dfa.ie/un_eu_restrictive_measures_ireland/competent_authorities

ITALY

http://www.esteri.it/UE/deroghe.html

CYPRUS

http://www.mfa.gov.cy/sanctions

LATVIA

http://www.mfa.gov.lv/en/security/4539

LITHUANIA

http://www.urm.lt

LUXEMBOURG

http://www.mae.lu/sanctions

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HUNGARY

http://www.kulugyminiszterium.hu/kum/hu/bal/nemzetkozi_szankciok.htm

MALTA

http://www.doi.gov.mt/EN/bodies/boards/sanctions_monitoring.asp

NETHERLANDS

http://www.minbuza.nl/sancties

AUSTRIA

(to be completed in due course)

POLAND

http://www.msz.gov.pl

PORTUGAL

http://www.min-nestrangeiros.pt

ROMANIA

http://www.mae.ro/index.php?unde=doc&id=32311&idlnk=1&cat=3

SLOVENIA

http://www.mzz.gov.si/si/zunanja_politika/mednarodna_varnost/omejevalni_ukrepi/

SLOVAKIA

http://www.foreign.gov.sk

FINLAND

http://formin.finland.fi/kvyhteistyo/pakotteet

SWEDEN

(to be completed in due course)

UNITED KINGDOM

www.fco.gov.uk/competentauthorities

Address for notifications to the European Commission:

European Commission
DG External Relations
Directorate A. Crisis Platform and Policy Coordination in CFSP
Unit A.2. Crisis Management and Conflict Prevention
CHAR 12/106
B-1049 Bruxelles/Brussels (Belgium)
E-mail relex-sanctions@ec.europa.eu
Tel. (32-2) 295 55 85, 299 11 76
Fax (32-2) 299 08 73

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ANNEX III

Luxury goods referred to in Article 4

1. Pure-bred horses

2. Caviar and caviar substitutes

3. Truffles and preparations thereof

4. High quality wines (including sparkling wines), spirits and spirituous beverages

5. High quality cigars and cigarillos

6. Luxury perfumes, toilet waters and cosmetics, including beauty and make-up products

7. High quality leather, saddlery and travel goods, handbags and similar articles

8. High quality garments, clothing accessories and shoes (regardless of their material)

9. Hand-knotted carpets, handwoven rugs and tapestries

10. Pearls, precious and semi-precious stones, articles of pearls, jewellery, gold- or silversmith articles

11. Coins and banknotes, not being legal tender

12. Cutlery of precious metal or plated or clad with precious metal

13. High quality tableware of porcelain, china, stone- or earthenware or fine pottery

14. High quality lead crystal glassware

15. High end electronic items for domestic use

16. High end electrical/electronic or optical apparatus for recording and reproducing sound and images

17. Luxury vehicles for the transport of persons on earth, air or sea, as well as their accessories and spare parts

18. Luxury clocks and watches and their parts

19. High quality musical instruments

20. Works of art, collectors' pieces and antiques

21. Articles and equipment for skiing, golf, diving and water sports

22. Articles and equipment for billiard, automatic bowling, casino games and games operated by coins or banknotes

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ANNEX IV

List of persons, entities and bodies referred to in Article 6

A. Natural persons

(to be completed in due course)

B. Legal persons, entities and bodies

(to be completed in due course)