OFAC Amends Sudanese Sanction Regulations to Expand Scope of Existing Authorization of Certain Diplomatic/Official Imports, Etc.

(The Sudanese Sanctions Regulations, 31 CFR Part 538 (the SSR), were promulgated for Executive Order 13067, in which the President declared a national emergency with respect to the policies and actions of the Government of Sudan.)

Scope of Authorization of Certain Imports for Diplomatic/Official Personnel Expanded

The final rule expands the scope of an existing authorization of certain imports for diplomatic or official personnel to include the provision of goods or services in the U.S. to the diplomatic missions of the Government of Sudan to the U.S. and the United Nations (UN), and to the employees of such missions, subject to certain conditions (see below).

Importation of Goods/Services into U.S. by Southern Sudan Via Transshipment Authorized

In addition, the final rule authorizes the importation of goods or services into the U.S. 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 (see below).

The importation of goods and services into the U.S. 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 31 CFR 538.212(g) and 538.305(b) and, therefore, requires no authorization. Similarly, the provision of goods and services in the U.S. to the regional Government of Southern Sudan and its employees already is exempt pursuant to 31 CFR 538.212(g) and 538.305(b) and also requires no authorization.

Amendments to Implement Changes

1. CFR 538.515 is being amended to read as follows:

(a) The importation of goods or services into the U.S. by, and the provision of goods or services in the U.S. to, the diplomatic missions of the Government of Sudan to the U.S. and the UN 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;
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. OFAC notes 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 U.S. and the UN.

(b) The importation of goods or services into the U.S. by, and the provision of goods or services in the U.S. to, the employees of the diplomatic missions of the Government of Sudan to the U.S. and the UN 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 U.S. 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.

OFAC notes that 538.515(c) permits the regional Government of Southern Sudan and its employees to import into the U.S. 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 31 CFR 538.417.

OFAC final rule (FR Pub 06/10/09) available at http://www.federalregister.gov/OFRUpload/OFRData/2009-13523_PI.pdf