President Lifts TWEA Sanctions on North Korea, Continues Blocked Property Sanctions, Etc.
On June 26, 2008, President Bush issued Proclamation 8271 lifting the application of the Trading with the Enemy Act (TWEA) sanctions with respect to the Democratic People's Republic of Korea (North Korea).
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At the same time, the President issued Executive Order 13466 under certain authorities, including the International Emergency Economic Powers Act (IEEPA), to continue the blocked property and other restrictions on North Korea that otherwise would be lifted when the TWEA sanctions were removed.
In addition, President Bush notified Congress of his intent to rescind North Korea's designation as a State Sponsor of Terrorism (SST).
(These actions were taken following North Korea's submission of a declaration on its nuclear programs (which will now be subject to verification) and its June 10th public statement affirming that it does not support international terrorism, etc.)
Proclamation Lifts TWEA Sanctions
The President's proclamation on June 26 effectively lifts the application of the TWEA, however, according to the State Department, this action is largely symbolic, as most of the TWEA-based sanctions were lifted in 2000. (See ITT's Online Archives or 06/22/00 news, 00062120, for BP summary.)
In addition, other sanctions - in particular those related to North Korea's detonation of a nuclear device on October 9, 2006, proliferation activities, and human rights violations - will continue on the basis of other laws and regulations.
Removes import license requirement, certain imports still banned. The termination of the application of TWEA does remove the current requirement for licenses on all imports from North Korea, but certain imports continue to be banned under other legal authorities.
EO Continues Blocked Property Sanctions, Etc.
EO 13466 declares a national emergency, under certain authorities, including IEEPA, to deal with the unusual and extraordinary threat to the national security and foreign policy of the U.S. posed by the current existence and risk of the proliferation of weapons-usable fissile material on the Korean Peninsula.
Specifically, the EO blocks all property and interests in property of North Korea or a North Korean national that, pursuant to the President's authorities under the TWEA, were blocked as of June 16, 2000, and remained blocked immediately prior to the date of this order.
Such property and interests in property remain blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in except to the extent provided in statutes or in regulations, orders, directives, or licenses that may be issued pursuant to the order, and notwithstanding any contract entered into or any license or permit granted prior to the date of this order.
(In addition, the EO prohibits U.S. persons from registering a vessel in North Korea, obtaining authorization for a vessel to fly the North Korean flag, etc.)
Any transaction violating EO is prohibited. Any transaction by a U.S. person or within the U.S. that evades or avoids, has the purpose of evading or avoiding, or attempts to violate any of the prohibitions set forth in this order is prohibited as is any conspiracy formed to violate any of the prohibitions set forth in the order.
President's Intended Rescission of North Korea's Designation as a State Sponsor of Terrorism
On June 26th, President Bush also provided a report to Congress justifying his intended rescission of North Korea's SST designation and certifying that North Korea has satisfied the statutory criteria for rescission. After a Congressional review period of 45 calendar days and absent the enactment of a joint resolution blocking the proposed rescission, the Secretary of State may rescind North Korea's designation as a SST on August 11, 2008.
According to the State Department, rescission of North Korea's SST status is largely symbolic. Most sanctions, including those related to North Korea's detonation of a nuclear device on October 9, 2006, proliferation activities, and human rights violations, will continue on the basis of other laws and regulations.
Presidential Proclamation 8271 (issued 06/26/08, FR Pub 06/27/08) available at http://edocket.access.gpo.gov/2008/pdf/08-1398.pdf
EO 13466 (issued 06/26/08) available at http://www.treas.gov/offices/enforcement/ofac/legal/eo/nkeo.pdf
Presidential Certification Memorandum (dated 06/26/08) available at http://edocket.access.gpo.gov/2008/pdf/08-1404.pdf
OFAC press release (dated 06/26/08) available at http://www.treas.gov/offices/enforcement/ofac/actions/20080626.shtml
State Dept. fact sheet (dated 06/26/08) available at http://www.state.gov/r/pa/prs/ps/2008/jun/106281.htm