Sudan Sanctions Update October 2017
On 6 October 2017 the US Government announced that it will revoke certain sanctions with respect to Sudan and the Government of Sudan, effective 12 October 2017, pursuant to Executive Order (EO) 13761, as amended by EO 13804.
EOs 13067 and 13412 block the property of the Government of Sudan and generally prohibit US persons from engaging in transactions with Sudan and the Government of Sudan. As a result of the revocation US persons will no longer be prohibited from engaging in transactions that were previously prohibited under the Sudanese Sanctions Regulations (SSR).
Pursuant to the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA), an Office of Foreign Assets Control (OFAC) license is still required for certain exports and re-exports to Sudan of agricultural commodities, medicine, and medical devices as a result of Sudan’s inclusion on the State Sponsors of Terrorism List (SST List). However, as of 12 October 2017, General License A authorizes exports and re-exports of certain TSRA items to Sudan. No OFAC license is required for financing of these exports and re-exports.
US persons and non-US persons will still need to obtain any licenses required by the Department of Commerce’s 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 (CCL) of the Export Administration Regulations (EAR). In limited circumstances, US persons and non-US persons may also need to obtain licenses from BIS to export or re-export to Sudan items that are subject to the EAR but not specifically listed on the CCL (EAR99 items) if such transactions implicate certain end-use or end-user concerns.
The OFAC general license that took effect on 17 January 2017 will no longer be needed to authorize US persons to engage in transactions that were previously prohibited under the SSR. As of 12 October 2017 US persons may engage in these transactions without a general or specific OFAC license.
The above revocation of sanctions does not:
- terminate the national emergency declared with respect to Sudan in EO 13067;
- affect OFAC sanctions related to the conflict in Darfur (imposed pursuant to EO 13400 of 26th April 2006); and
- affect OFAC designations of any Sudanese persons pursuant to sanctions authorities other than EOs 13067 and 13412.
Because Sudan remains on the SST List, the Terrorism List Governments Sanctions Regulations (TLGSR) prohibit US persons from engaging in transfers from the Government of Sudan that would constitute a donation to a US person, or with respect to which a US person knows, or has reasonable cause to believe, would pose a risk of furthering terrorist acts in the US. Notwithstanding this prohibition, a general license in the TLGSR authorizes US persons to engage in financial transactions with respect to stipends and scholarships covering tuition and related educational, living, and travel expenses provided by the Government of Sudan to Sudanese nationals who are enrolled as students in an accredited educational institution in the US.
The above revocations will not affect past, present, or future OFAC enforcement investigations or actions associated with any apparent violations of the SSR relating to activities that, effective 12 October 2017, will no longer be prohibited but that occurred prior to that date.OFAC has published new Frequently Asked Questions regarding this revocation.
The new general license A authorizing certain transactions pursuant to the TSRA can be found here.
