Details of EO Strengthening Ban on Imports from North Korea
On April 18, 2011 the President issued Executive Order 13570, to strengthen existing import sanctions against North Korea. The EO prohibits (unless excepted) the direct or indirect importation of goods, services, and technology from North Korea. The EO takes additional steps to address the national emergency declared in EOs 13466 and 13551, ensures implementation of United Nations Security Council Resolutions 1718 and 1874 (on preventing imports of certain goods and services from North Korea1), and complements the import restrictions provided for under section 73 of the Arms Export Control Act.
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Prior Restrictions Ban Import of Goods, Block Property, Ban Certain Exports, Etc.
According to the Office of Foreign Assets Control (OFAC), the following restrictions were already in place for North Korea prior to the EO: (i) a ban on the import of goods of North Korean origin either directly or through third countries without a license; (ii) a prohibition on registering vessels in North Korea, etc: (iii) prohibitions on transferring, paying, exporting, withdrawing or otherwise dealing in the property and interests in property of blocked North Korea persons; and (iv) a prohibition on exporting goods to blocked North Korean parties.
EO Prohibits All Imports of Goods, Services & Technology from North Korea, Unless Licensed
Effective April 19, 2011, the EO prohibits, except to the extent provided in statutes or in licenses, regulations, orders, or directives 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 the order, the importation into the U.S., directly or indirectly, of any goods, services, or technology from North Korea.
Also Prohibits Any Transactions/Conspiracies to Evade EO’s Prohibitions
In addition, the order prohibits any transaction by a U.S. person or within the U.S. that evades or avoids, has the purpose of evading or avoiding, causes a violation of, or attempts to violate any of the prohibitions set forth in the EO. Similarly it prohibits any conspiracy formed to violate any of the prohibitions set forth in the EO.
Prior EOs on Blocked Property of Individuals Remain in Effect
The provisions of Executive Orders 13466 and 13551 remain in effect, and this order does not affect any action taken pursuant to those orders. OFAC describes these EO’s as follows:
EO 13466 - Property and interests in property that were blocked pursuant to the Foreign Assets Control Regulations as of June 16, 2000, and that remained blocked immediately prior to June 26, 2008, remain blocked pursuant to E.O. 13466.
EO 13551 -- This EO blocks the property and interests in property of persons listed in the Annex to the EO, as well as individuals and entities determined by the Secretary of the Treasury, in consultation with the Secretary of State, to be facilitating North Korean trafficking in arms and related material, facilitating North Korean procurement of luxury goods, or engaging in illicit activities that involve or support the North Korean regime, including money laundering, the counterfeiting of goods and currency, bulk cash smuggling, and narcotics trafficking. With certain exceptions, U.S. persons are prohibited from transferring, paying, exporting, withdrawing, or otherwise dealing in the property and interests in property of an entity or individual named in the Annex to E.O. 13351 or designated under the authority of the E.O.
(See ITT’s Online Archives or 06/26/09, 08/31/10 and 11/04/10 news, 09062699, 10083107 and 10110416, for BP summaries of these EO’s and OFAC regulations to codify them.)
EO May Be in Response to Concerns on Pending FTA with S. Korea
Trade sources state that the EO’s expanded sanctions may be in response to continued North Korean actions including attacks on South Korea. Others state it is meant to address concerns by certain members of Congress that the pending free trade agreement with South Korea (KORUS FTA) could allow certain goods from the north to receive preferential access to the U.S., especially through the Kaesong Industrial Complex in North Korea. (See ITT’s Online Archives or 04/08/11 and 03/17/11 news, 11040816 and 11031703, for BP summaries on the concerns expressed by certain members of Congress.)
1The President’s letter to Congress states that the U.N. Security Council Resolutions 1718 and 1874 require Member States to take certain measures to prevent, among other transactions, the importation of certain goods and services from North Korea.
President’s letter to Congress and EO as posted by the White House, dated 04/18/11, available here and here.