Updated: US State Department Revokes Sudanese Sanctions | Practical Law

Updated: US State Department Revokes Sudanese Sanctions | Practical Law

The Office of Foreign Assets Control (OFAC) has published a final rule to amend the Sudanese Sanctions Regulations and authorize all prohibited transactions, including transactions involving property in which the Government of Sudan has an interest.

Updated: US State Department Revokes Sudanese Sanctions

Practical Law Legal Update w-005-3858 (Approx. 4 pages)

Updated: US State Department Revokes Sudanese Sanctions

by Practical Law Commercial Transactions
Published on 12 Oct 2017 • USA (National/Federal)
The Office of Foreign Assets Control (OFAC) has published a final rule to amend the Sudanese Sanctions Regulations and authorize all prohibited transactions, including transactions involving property in which the Government of Sudan has an interest.
This resource was updated on October 12, 2017 to reflect the permanent revocation of sanctions against Sudan. It was previously updated on July 17, 2017 to reflect Executive Order 13804.
On January 13, 2017, the Office of Foreign Assets Control (OFAC) published a final rule to amend the Sudanese Sanctions Regulations (SSR) (31 C.F.R. pt. 538) by:
  • Authorizing all transactions prohibited by the SSR and by Executive Orders 13067 and 13412.
  • Unblocking previously blocked property in which the Government of Sudan has an interest.
OFAC is issuing this general license as a result of:
  • Ongoing US-Sudan bilateral engagement.
  • Recent positive developments in Sudan related to bilateral cooperation, the ending of internal hostilities, regional cooperation, and improvements to humanitarian access.
OFAC has also issued a fact sheet and updated Frequently Asked Questions related to this new final rule and general license. This final rule becomes effective on January 17, 2017.
For more information on OFAC sanctions and general trade regulations, see Practice Notes, Export Regulation: OFAC Economic and Trade Sanctions and Export Regulations: EAR, ITAR, and FTR.

Executive Order 13804

On July 11, 2017, President Trump issued a new executive order related to the SSR: Presidential Executive Order on Allowing Additional Time for Recognizing Positive Actions by the Government of Sudan and Amending Executive Order 13761 (Executive Order 13804).
Executive Order 13804 amends President Obama's January 13, 2017 executive order (Executive Order 13761) by extending the deadline for when the Secretary of State must submit a report to the President on whether Sudan's government has sustained certain positive actions that led to the above general license, including:
  • Carrying out its pledge to maintain a cessation of hostilities in conflict areas in Sudan.
  • Continuing to improve humanitarian access throughout Sudan.
  • Maintaining its cooperation with the US on addressing regional conflicts and the threat of terrorism.
President Trump has extended the deadline from July 12, 2017 to October 12, 2017. As a result, US sanctions against Sudan will remain largely suspended until the government revisits this issue over the next three months.

Update

On October 6, 2017, the US Department of State issued a press release and accompanying report announcing that the US Government is revoking its economic sanctions against Sudan. Following this announcement, on October 11, 2017, the Secretary of State issued a notice in the Federal Register (82 Fed. Reg. 47287) formally revoking the Sudanese sanctions, effective on October 12, 2017.

Permanent Revocation of Previously Suspended Sanctions

The State Department's decision to revoke the sanctions, put in place by the SSR and Executive Orders 13067 and 13412, comes in response to the earlier actions of President Obama conditionally lifting the sanctions for a trial period of six months, followed by President Trump's extension of the deadline for three additional months.