OFAC Issues General License for Agricultural Commodities, Medicine, Medical Devices To Specified Areas of Sudan
The Office of Foreign Assets Controls has issued a final rule, effective September 9, 2009, which amends the Sudanese Sanctions Regulations (SSR) by issuing a general license that authorizes the exportation and reexportation of agricultural commodities, medicine, and medical devices to the Specified Areas of Sudan1, as well as the conduct of related transactions.
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(OFAC is amending the SSR to resolve a tension between Executive Order 13412 and the Darfur Peace and Accountability Act of 2006 (DPAA), and the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA).
Under EO 13412 and the DPAA, most trade and related activities, other than trade with the Government of Sudan or relating to Sudan's petroleum or petrochemical industries, are allowed with the Specified Areas of Sudan; however, because Sudan has been determined by the Secretary of State to be a country that has repeatedly provided support for acts of international terrorism, the entire country remained subject to TSRA's licensing requirements under the SSR.
The overlap of TSRA with EO 13412 and the DPAA resulted in the requirement that OFAC authorize the export of agricultural and medical items to the Specified Areas of Sudan, even though no OFAC authorization was required to export most other items to those areas.)
General License Authorizes Certain TSRA-Related Exports, Reexports, Sales
OFAC has determined that specific licenses for TSRA-related transactions with respect to the Specified Areas of Sudan should no longer be required; therefore, OFAC is authorizing such transactions through a general license, set forth at 31 CFR 538.523(a)(2), provided that such transactions do not: (i) involve any property or interests in property of the Government of Sudan or (ii) relate to the petroleum or petrochemical industries in Sudan.
Those transactions now authorized by the general license set forth at 31 CFR 538.523(a)(2) include the sale, exportation, and reexportation of agricultural commodities, medicine, and medical devices, the financing of and payment for such sales, and the brokering of TSRA sales.
General License Covers 12-Month Period from Signing of Export Contract, Etc.
The subject general license covers exports shipped within the twelve-month period beginning on the date of the signing of the export contract. In addition, each year by the anniversary of its effective date on September 9, 2009, OFAC will determine whether to revoke the general license. Unless revoked, the general license will remain in effect.
Specific Licenses Still Required for Certain Areas, Transshipments Prohibited
Specific licenses for TSRA-related transactions with respect to the Government of Sudan, to any individual or entity in an area of Sudan other than the Specified Areas of Sudan, or to persons in third countries purchasing specifically for resale to the foregoing are still required.
The transshipment or transit of TSRA-related exports through areas of Sudan other than the Specified Areas of Sudan, and any related financial transactions that are routed through depository institutions located in an area of Sudan other than the Specified Areas, remain prohibited under 31 CFR 538.417 and 538.418.
1The Specified Areas of Sudan are defined as Southern Sudan, Southern Kordofan/Nuba Mountains State, Blue Nile State, Abyei, Darfur, and marginalized areas in and around Khartoum.
(See ITT's Online Archives or 11/05/07 news, 07110520, for BP summary of OFAC's amendment of the SSR to implement EO 13412 and the DPAA.
See ITT's Online Archives or 11/18/08 news, 08111840, for BP summary of OFAC's request for comments on the effectiveness of its licensing procedures for the exportation of agricultural commodities, medicine, and medical devices to Sudan, etc.)
OFAC contact - Compliance, Outreach & Implementation (202) 622-2490
OFAC final rule (FR Pub 09/09/09) available at http://edocket.access.gpo.gov/2009/pdf/E9-21553.pdf