Consistent with the revocation of these sanctions provisions, OFAC is removing the Sudanese Sanctions Regulations from the Code of Federal Regulations effective upon the June 29 publication in the Federal Register.
In a June 29, 2018, Notice in the Federal Register, the Office of Foreign Assets Control (OFAC) announced that Sudanese Sanctions Regulations have been removed from the Code of Federal Regulations. This action is the result of the termination of certain Executive Orders (E.O.) issued by Presidents Obama and Trump. E.O. 13067 blocked all property and interests in property of the Government of Sudan that were in the United States, that thereafter came within the United States, or that thereafter came within the possession or control of United States persons.
E.O. 13067 also prohibited, in general: importation of any goods or services of Sudanese origin; direct or indirect exportation or re-exportation to Sudan of goods, technology or services from the United States or by a United States person, wherever located, or requiring the issuance of a license by the cognizant U.S. government agency; certain unlawful “facilitation” by United States persons; the performance by any United States person of any contract, including a financing contract, in support of an industrial, commercial, public utility or governmental project in Sudan; the grant or extension of credits or loans by any United States person to the Government of Sudan; any transportation by a United States person relating to cargo to or from Sudan; and any transaction by any United States person or within the United States that evaded or avoided, or had the purpose of evading or avoiding, or attempted to violate any of the prohibitions identified in the E.O.
As a result of various E.O.s, on October 11, 2017, the secretary of State published notice in the Federal Register that Sudan had satisfied certain required actions to support revocation of certain economic sanctions. The foregoing led to the revocation of E.O.s that had established the sanctions covered by the Sudanese Sanctions Regulations (SSR). Consistent with the revocation of these sanctions provisions, OFAC is removing the SSR from the Code of Federal Regulations effective upon the June 29 publication in the Federal Register.
Notwithstanding the foregoing action, pursuant to the Trade Sanctions Reform and Export Enhancement Act (TSRA), an OFAC license is still required for the exportation or re-exportation to Sudan, or to any person in a third country purchasing specifically for resale to Sudan, of certain agricultural commodities, medicine and medical devices as a result of Sudan’s inclusion on the State Sponsors of Terrorism List. In this regard, OFAC had made available a General License covering the above items (General License A). The license is now being added directly to the Terrorism List Government Sanctions Regulations (31 CFR 596, located in section 596.506). All goods authorized for export or re-export by General License A must be shipped within a 12-month period beginning on the date of signing of the contract for export or re-export.
Notwithstanding the foregoing, U.S. persons and non-U.S. persons will still be required to obtain any license required by the Department of Commerce, Bureau of Industry and Security (BIS), to export or re-export to Sudan certain items (commodities, software and technology) that are on the Commerce Control List or otherwise require a license or other authorization from BIS for reasons such as end use or end user concerns. In addition, General License A does not eliminate requirements that may be applicable to the transaction under other provisions applicable to Sudan, including 31 CFR part 596 (administrative procedure, banks, banking, blocking of assets, foreign trade, penalties reporting, recordkeeping requirements and terrorism).
For More Information
If you would like further information about this Alert, please contact Brian S. Goldstein, any member of the International Practice Group or the attorney in the firm with whom you are regularly in contact.
Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.