82 FR 4793 - Sudanese Sanctions Regulations
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control Federal Register Volume 82, Issue 10 (January 17, 2017)
Office of Foreign Assets Control
Federal Register Volume 82, Issue 10 (January 17, 2017)
| Page Range | 4793-4794 | |
| FR Document | 2017-00844 |
[Federal Register Volume 82, Number 10 (Tuesday, January 17, 2017)] [Rules and Regulations] [Pages 4793-4794] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-00844] ======================================================================= ----------------------------------------------------------------------- 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. ----------------------------------------------------------------------- SUMMARY: The Department of the Treasury's Office of Foreign Assets Control (OFAC) is amending the Sudanese Sanctions Regulations to authorize all prohibited transactions, including transactions involving property in which the Government of Sudan has an interest. OFAC is issuing this general license in connection with ongoing U.S.-Sudan bilateral engagement and in response to positive developments in the country over the past six months related to bilateral cooperation, the ending of internal hostilities, regional cooperation, and improvements to humanitarian access. DATES: Effective: January 17, 2017. FOR FURTHER INFORMATION CONTACT: The Department of the Treasury's Office of Foreign Assets Control: Assistant Director for Licensing, tel.: 202-622-2480, Assistant Director for Regulatory Affairs, tel.: 202-622-4855, Assistant Director for Sanctions Compliance & Evaluation, tel.: 202-622-2490; or the Department of the Treasury's Office of the Chief Counsel (Foreign Assets Control), Office of the General Counsel, tel.: 202-622-2410. SUPPLEMENTARY INFORMATION: Electronic Availability This document and additional information concerning OFAC are available from OFAC's Web site (www.treasury.gov/ofac). Background OFAC is amending the Sudanese Sanctions Regulations (the ``Regulations'') to add section 538.540, authorizing all transactions prohibited by the Regulations and by Executive Orders 13067 and 13412, effective as of January 17, 2017. Newly authorized transactions include the processing of transactions involving persons in Sudan; the importation of goods and services from Sudan; the exportation of goods, technology, and services to Sudan; and transactions involving property in which the Government of Sudan has an interest. OFAC is issuing this rule in connection with ongoing U.S.-Sudan bilateral engagement and in order to support and sustain positive developments in the country over the past six months. In conjunction with this engagement, the U.S. government has supported the Sudanese government's ongoing efforts, including its cessation of military offensives in Darfur and the Two Areas, its cooperative efforts to resolve the ongoing conflict in South Sudan and cease any activity to undermine stability there, to improve access for humanitarian assistance by reducing government obstruction and streamlining governing regulations, and to enhance bilateral counterterrorism and security cooperation, including efforts to counter the Lord's Resistance Army. Notwithstanding these positive developments in Sudan and the decision to amend the Regulations today to authorize all transactions prohibited by the Regulations, section 906 of the Trade Sanctions Reform and Export Enhancement Act of 2000, as amended (22 U.S.C. 7201 et seq.) (TSRA), continues to require in pertinent part that the export of agricultural commodities, medicine, and medical devices to Sudan shall be made pursuant to one-year licenses issued by the U.S. government, except that the requirements of such one-year licenses shall be no more restrictive than general licenses administered by the Department of the Treasury. See 22 U.S.C. 7205(a)(1). Section 906 of TSRA also specifies that procedures be in place to deny licenses for certain exports of agricultural commodities, medicine, and medical devices to Sudan. As with a general license added to the Regulations in 2011 that authorized the exportation or reexportation of food to Sudan (see 31 CFR 538.523; 76 FR 63191 (October 12, 2011)), the new general license added today includes the one-year license requirement and, along with counter-terrorism sanctions implemented by OFAC set forth in 31 CFR chapter V and other continuing requirements and authorities, satisfies TSRA's requirement that procedures be in place to deny authorization for exports to Sudan that are determined to be [[Page 4794]] promoting international terrorism. In particular, Sec. 501.601 of the Reporting, Procedures and Penalties Regulations, 31 CFR part 501 (RPPR), requires that all U.S. persons maintain records of authorized transactions for a period of not less than five years and further provides that OFAC may obtain these records at any time to monitor activities conducted pursuant to the general license; section 538.502 of the Regulations provides that OFAC may exclude any person, property, or transaction from the operation of this general license; and section 501.803 of the RPPR provides that OFAC may amend, modify, or revoke this general license at any time. This new general license does not eliminate the need to comply with other provisions of 31 CFR chapter V including those parts related to terrorism, the proliferation of weapons of mass destruction, or narcotics trafficking, or other applicable provisions of law, including any requirements of agencies other than OFAC. Such requirements include, for example, the Export Administration Regulations (15 CFR parts 730 through 774) administered by the Bureau of Industry and Security of the Department of Commerce. This general license does not affect past, present, or future enforcement actions or investigations with respect to any violations, including apparent or alleged violations, of the Regulations that occurred prior to the effective date of this final rule. Public Participation Because the amendment of the Regulations 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 Regulations are contained in the RPPR. 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, Foreign trade, Sanctions, Services, Sudan. For the reasons set forth in the preamble, the Department of the Treasury's Office of Foreign Assets Control amends 31 CFR part 538 to read 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); 22 U.S.C. 7201-7211; Pub. L. 109-344, 120 Stat. 1869; Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); 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. Add Sec. 538.540 to subpart E to read as follows: Sec. 538.540 All transactions authorized; Government of Sudan property unblocked. (a) All transactions prohibited by this part and Executive Orders 13067 and 13412, including all transactions that involve property in which the Government of Sudan has an interest, are authorized. (b) Pursuant to section 906(a)(1) of the Trade Sanctions Reform and Export Enhancement Act of 2000 (22 U.S.C. 7205), any exports or reexports of agricultural commodities, medicine, or medical devices to the Government of Sudan, to any individual or entity in Sudan, or to any person in a third country purchasing specifically for resale to any of the foregoing must be shipped within the 12-month period beginning on the date of the signing of the contract for export or reexport. Note 1 to Sec. 538.540: Section 538.540 authorizes all transactions necessary to unblock any property or interests in property that were blocked pursuant to 31 CFR 538.201 prior to January 17, 2017, including the return or processing of funds. Note 2 to Sec. 538.540: This authorization is effective on January 17, 2017 and does not eliminate the need to comply with other provisions of 31 CFR chapter V or other applicable provisions of law, including any requirements of agencies other than the Department of the Treasury's Office of Foreign Assets Control. Such requirements include the Export Administration Regulations (15 CFR parts 730 through 774) administered by the Bureau of Industry and Security of the Department of Commerce and the International Traffic in Arms Regulations (22 CFR parts 120 through 130) administered by the Department of State. Note 3 to Sec. 538.540: Consistent with section 906(a)(1) of the Trade Sanctions Reform and Export Enhancement Act of 2000 (22 U.S.C. 7205), each year OFAC will determine whether to revoke this general license. Unless revoked, the general license will remain in effect. Dated: January 10, 2017. John E. Smith, Acting Director, Office of Foreign Assets Control. [FR Doc. 2017-00844 Filed 1-13-17; 8:45 am] BILLING CODE 4810-AL-P
![Federal Register / Vol. 82, No. 10 / Tuesday, January 17, 2017 / Rules and Regulations 4793
(6) Compliance. The State must transfer to the custody of a child welfare January 17, 2017. Newly authorized
demonstrate the extent to which the or social service agency is not detained transactions include the processing of
requirements of sections 223(a)(11), or confined within the meaning of this transactions involving persons in
(12), and (13) of the Act are met. definition. Sudan; the importation of goods and
(i) In determining the compliance Dated: January 10, 2017. services from Sudan; the exportation of
standards to be applied to States’ FY Karol V. Mason,
goods, technology, and services to
2016 compliance monitoring data, the Sudan; and transactions involving
Assistant Attorney General, Office of Justice
Administrator shall collect all of the property in which the Government of
Programs.
data from each of the States’ CY 2013 Sudan has an interest.
[FR Doc. 2017–00740 Filed 1–13–17; 8:45 am] OFAC is issuing this rule in
compliance reports, remove one
negative outlier in each data collection BILLING CODE 4410–18–P connection with ongoing U.S.-Sudan
period for DSO, separation, and jail bilateral engagement and in order to
removal, and apply a standard deviation support and sustain positive
factor of two to establish the compliance DEPARTMENT OF THE TREASURY developments in the country over the
standards to be applied, which shall be past six months. In conjunction with
Office of Foreign Assets Control this engagement, the U.S. government
posted on OJJDP’s Web site no later than
March 3, 2017. has supported the Sudanese
31 CFR Part 538 government’s ongoing efforts, including
(ii) In determining the compliance
standards to be applied to States’ FY its cessation of military offensives in
Sudanese Sanctions Regulations
2017 compliance monitoring data, the Darfur and the Two Areas, its
Administrator shall collect all of the AGENCY: Office of Foreign Assets cooperative efforts to resolve the
data from each of the States’ CY 2013 Control, Treasury. ongoing conflict in South Sudan and
and FY 2016 compliance reports ACTION: Final rule. cease any activity to undermine stability
(removing, when appropriate or there, to improve access for
applicable, one negative outlier in each SUMMARY: The Department of the humanitarian assistance by reducing
data collection period for DSO, Treasury’s Office of Foreign Assets government obstruction and
separation, and jail removal) and apply Control (OFAC) is amending the streamlining governing regulations, and
a standard deviation factor of not less Sudanese Sanctions Regulations to to enhance bilateral counterterrorism
than one to establish the compliance authorize all prohibited transactions, and security cooperation, including
standards to be applied, which shall be including transactions involving efforts to counter the Lord’s Resistance
posted on OJJDP’s Web site by August property in which the Government of Army.
31, 2017. Sudan has an interest. OFAC is issuing Notwithstanding these positive
this general license in connection with developments in Sudan and the
(iii) In determining the compliance
ongoing U.S.-Sudan bilateral decision to amend the Regulations today
standards to be applied to States’ FY
engagement and in response to positive to authorize all transactions prohibited
2018 and subsequent years’ compliance
developments in the country over the by the Regulations, section 906 of the
monitoring data, the Administrator shall
past six months related to bilateral Trade Sanctions Reform and Export
take the average of the States’
cooperation, the ending of internal Enhancement Act of 2000, as amended
compliance monitoring data from not
hostilities, regional cooperation, and (22 U.S.C. 7201 et seq.) (TSRA),
less than two years prior to the
improvements to humanitarian access. continues to require in pertinent part
compliance reporting period with
that the export of agricultural
respect to which the compliance DATES: Effective: January 17, 2017.
commodities, medicine, and medical
determination will be made (removing, FOR FURTHER INFORMATION CONTACT: The devices to Sudan shall be made
when applicable, one negative outlier in Department of the Treasury’s Office of pursuant to one-year licenses issued by
each data collection period for DSO, Foreign Assets Control: Assistant the U.S. government, except that the
separation, and jail removal) and apply Director for Licensing, tel.: 202–622– requirements of such one-year licenses
a standard deviation of not less than one 2480, Assistant Director for Regulatory shall be no more restrictive than general
to establish the compliance standards to Affairs, tel.: 202–622–4855, Assistant licenses administered by the
be applied, except that the Director for Sanctions Compliance & Department of the Treasury. See 22
Administrator may make adjustments to Evaluation, tel.: 202–622–2490; or the U.S.C. 7205(a)(1). Section 906 of TSRA
the methodology described in this Department of the Treasury’s Office of also specifies that procedures be in
paragraph as he deems necessary and the Chief Counsel (Foreign Assets place to deny licenses for certain
shall post the compliance standards on Control), Office of the General Counsel, exports of agricultural commodities,
OJJDP’s Web site by August 31st of each tel.: 202–622–2410. medicine, and medical devices to
year. SUPPLEMENTARY INFORMATION: Sudan. As with a general license added
* * * * * to the Regulations in 2011 that
Electronic Availability authorized the exportation or
■ 3. Amend § 31.304 by adding
paragraph (q) to read as follows: This document and additional reexportation of food to Sudan (see 31
information concerning OFAC are CFR 538.523; 76 FR 63191 (October 12,
§ 31.304 Definitions. available from OFAC’s Web site 2011)), the new general license added
* * * * * (www.treasury.gov/ofac). today includes the one-year license
(q) Detain or confine means to hold, requirement and, along with counter-
sradovich on DSK3GMQ082PROD with RULES
keep, or restrain a person such that he Background terrorism sanctions implemented by
is not free to leave, or such that a OFAC is amending the Sudanese OFAC set forth in 31 CFR chapter V and
reasonable person would believe that he Sanctions Regulations (the other continuing requirements and
is not free to leave, except that a ‘‘Regulations’’) to add section 538.540, authorities, satisfies TSRA’s
juvenile held by law enforcement solely authorizing all transactions prohibited requirement that procedures be in place
for the purpose of returning him to his by the Regulations and by Executive to deny authorization for exports to
parent or guardian or pending his Orders 13067 and 13412, effective as of Sudan that are determined to be
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![4794 Federal Register / Vol. 82, No. 10 / Tuesday, January 17, 2017 / Rules and Regulations
promoting international terrorism. In List of Subjects in 31 CFR Part 538 the International Traffic in Arms Regulations
particular, § 501.601 of the Reporting, (22 CFR parts 120 through 130) administered
Administrative practice and by the Department of State.
Procedures and Penalties Regulations, procedure, Banks, Banking, Foreign
31 CFR part 501 (RPPR), requires that all trade, Sanctions, Services, Sudan. Note 3 to § 538.540: Consistent with
U.S. persons maintain records of section 906(a)(1) of the Trade Sanctions
For the reasons set forth in the
authorized transactions for a period of Reform and Export Enhancement Act of 2000
preamble, the Department of the
not less than five years and further (22 U.S.C. 7205), each year OFAC will
Treasury’s Office of Foreign Assets
provides that OFAC may obtain these determine whether to revoke this general
Control amends 31 CFR part 538 to read license. Unless revoked, the general license
records at any time to monitor activities
as follows: will remain in effect.
conducted pursuant to the general
license; section 538.502 of the PART 538—SUDANESE SANCTIONS Dated: January 10, 2017.
Regulations provides that OFAC may REGULATIONS
exclude any person, property, or John E. Smith,
transaction from the operation of this ■ 1. The authority citation for part 538 Acting Director, Office of Foreign Assets
general license; and section 501.803 of Control.
continues to read as follows:
the RPPR provides that OFAC may [FR Doc. 2017–00844 Filed 1–13–17; 8:45 am]
Authority: 3 U.S.C. 301; 18 U.S.C. 2339B,
amend, modify, or revoke this general 2332d; 31 U.S.C. 321(b); 50 U.S.C. 1601–
BILLING CODE 4810–AL–P
license at any time. 1651, 1701–1706; Pub. L. 101–410, 104 Stat.
This new general license does not 890 (28 U.S.C. 2461 note); 22 U.S.C. 7201–
eliminate the need to comply with other 7211; Pub. L. 109–344, 120 Stat. 1869; Pub. DEPARTMENT OF HOMELAND
provisions of 31 CFR chapter V L. 110–96, 121 Stat. 1011 (50 U.S.C. 1705 SECURITY
including those parts related to note); E.O. 13067, 62 FR 59989, 3 CFR, 1997
terrorism, the proliferation of weapons Comp., p. 230; E.O. 13412, 71 FR 61369, 3 Coast Guard
CFR, 2006 Comp., p. 244.
of mass destruction, or narcotics
trafficking, or other applicable 33 CFR Part 165
Subpart E—Licenses, Authorizations,
provisions of law, including any and Statements of Licensing Policy [Docket No. USCG–2017–0007]
requirements of agencies other than RIN 1625–AA87
OFAC. Such requirements include, for ■ 2. Add § 538.540 to subpart E to read
example, the Export Administration as follows: Security Zones; Annual Events in the
Regulations (15 CFR parts 730 through Captain of the Port Detroit Zone—
774) administered by the Bureau of § 538.540 All transactions authorized;
Government of Sudan property unblocked. North American International Auto
Industry and Security of the Department Show, Detroit River, Detroit MI
of Commerce. This general license does (a) All transactions prohibited by this
not affect past, present, or future part and Executive Orders 13067 and AGENCY: Coast Guard, DHS.
enforcement actions or investigations 13412, including all transactions that ACTION: Notice of enforcement of
with respect to any violations, including involve property in which the regulation.
apparent or alleged violations, of the Government of Sudan has an interest,
Regulations that occurred prior to the are authorized. SUMMARY: The Coast Guard will enforce
effective date of this final rule. (b) Pursuant to section 906(a)(1) of the a security zone associated with the
Trade Sanctions Reform and Export North American International Auto
Public Participation Enhancement Act of 2000 (22 U.S.C. Show, Detroit River, Detroit, MI. This
Because the amendment of the 7205), any exports or reexports of security zone is intended to restrict
Regulations involves a foreign affairs agricultural commodities, medicine, or vessels from a portion of the Detroit
function, the provisions of Executive medical devices to the Government of River in order to ensure the safety and
Order 12866 and the Administrative Sudan, to any individual or entity in security of participants, visitors, and
Procedure Act (5 U.S.C. 553) requiring Sudan, or to any person in a third public officials at the North American
notice of proposed rulemaking, country purchasing specifically for International Auto Show (NAIAS),
opportunity for public participation, resale to any of the foregoing must be which is being held at Cobo Hall in
and delay in effective date are shipped within the 12-month period downtown Detroit, MI. Vessels in close
inapplicable. Because no notice of beginning on the date of the signing of proximity to the security zone will be
proposed rulemaking is required for this the contract for export or reexport. subject to increased monitoring and
rule, the Regulatory Flexibility Act (5 Note 1 to § 538.540: Section 538.540 boarding during the enforcement of the
U.S.C. 601–612) does not apply. authorizes all transactions necessary to security zone. No person or vessel may
unblock any property or interests in property enter the security zone while it is being
Paperwork Reduction Act that were blocked pursuant to 31 CFR enforced without permission of the
538.201 prior to January 17, 2017, including Captain of the Port Detroit.
The collections of information related the return or processing of funds.
to the Regulations are contained in the DATES: The security zone regulation
RPPR. Pursuant to the Paperwork Note 2 to § 538.540: This authorization is described in 33 CFR 165.915(a)(3) will
Reduction Act of 1995 (44 U.S.C. 3507), effective on January 17, 2017 and does not be enforced from 8 a.m. on January 9,
those collections of information have eliminate the need to comply with other 2017 through 11:59 p.m. on January 22,
been approved by the Office of provisions of 31 CFR chapter V or other 2017.
sradovich on DSK3GMQ082PROD with RULES
Management and Budget under control applicable provisions of law, including any FOR FURTHER INFORMATION CONTACT: If
number 1505–0164. An agency may not requirements of agencies other than the you have questions on this document,
Department of the Treasury’s Office of
conduct or sponsor, and a person is not Foreign Assets Control. Such requirements
call or email Tracy Girard, Prevention,
required to respond to, a collection of include the Export Administration U.S. Coast Guard Sector Detroit, 110
information unless the collection of Regulations (15 CFR parts 730 through 774) Mount Elliot Ave., Detroit, MI 48207;
information displays a valid control administered by the Bureau of Industry and telephone (313) 568–9564; email
number. Security of the Department of Commerce and Tracy.M.Girard@uscg.mil.
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Document Created: 2017-01-14 01:44:41
Document Modified: 2017-01-14 01:44:41
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | Effective: January 17, 2017. | |
| Contact | The Department of the Treasury's Office of Foreign Assets Control: Assistant Director for Licensing, tel.: 202-622-2480, Assistant Director for Regulatory Affairs, tel.: 202-622-4855, Assistant Director for Sanctions Compliance & Evaluation, tel.: 202-622-2490; or the Department of the Treasury's Office of the Chief Counsel (Foreign Assets Control), Office of the General Counsel, tel.: 202-622-2410. | |
| FR Citation | 82 FR 4793 | |
| CFR Associated | Administrative Practice and Procedure; Banks; Banking; Foreign Trade; Sanctions; Services and Sudan |
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