82 FR 4793 - Sudanese Sanctions Regulations

DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control

Federal Register Volume 82, Issue 10 (January 17, 2017)

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.

[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]


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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 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