Ed. Note: if you’re new to TURBOFAC, please take note that the text string filtration function generally shouldn’t be used for terms such as “ordinarily resident,” “causing” or “new debt”. For research on the meaning of words and phrases such as those, i.e. terms central to the key legal issues in sanctions law that appear on a cross-programmatic basis, you’re typically better off locating and checking the appropriate box in the “Key Legal Issues” search category, which will limit the results to those that have been manually assessed as being relevant for the interpretation of the terms at issue.
Try typing your search term (“ordinarily resident,” “new debt,” or something else) in the “Find a Search Filter” box at the top of the page, and the corresponding “Key Legal Issues” check box will pop up instantly, if one exists. Once you check the box (e.g. “new debt,” with ~55 results), you can always use the text string filtration function to further refine your search (e.g. by typing “invoice” and narrowing the ~55 results to ~10).
Note in addition that the same applies to text string searches such as “14071” (if you’re looking for items related to EO 14071). By typing “14071” in the “Find a Search Filter” field up top, you will be able to instantly narrow the results down to items manually assessed as relating to EO 14071. Ditto terms such as “515.204” or “Iran General License G” (try the “Discrete Legal Provision” search category).
Please contact [email protected] or [email protected] with any questions on search results and efficiency.
Please click "Apply Text String Filters" again after clicking the "Close" button immediately below.
1) The substance of this provision dates back to 2006, when U.S. sanctions on North Korea were relatively sparse (i.e. no embargo, government not blocked). It has been mandated since 2008 by Sec. 2 of EO 13466. Now that the Government of North Korea is blocked, and all imports of services are prohibited, much of what is prohibited here is also prohibited by 510.201 and/or 510.205.
2) This prohibition only applies on its face to U.S. persons, but note the secondary sanctions risk involved with virtually anything related to North Korean entities involved in the shipping industry, including those involved with the flagging of vessels. [1]
3) Query whether OFAC would consider any vessel flagged (but not owned or operated) by North Korea (or any other blocked person) to be "property" in which that Government has an "interest." If so, then this provision substantially understates the extent to which North Korean-flagged vessels are off limits to U.S. persons, because simply having goods shipped on blocked vessels constituted "dealing" in property in which the blocked person has an interest. See e.g. Civil Enforcement Information - Grand Resources USA, Inc. (d/b/a GR-Duratech Texas, Inc.) (2012). Foreign Assets Control Regulations and the Insurance Industry (brochure) (2012) is useful in this respect.
4) See related guidance: North Korea Sanctions Advisory (February 23, 2018)
[1] https://www.treasury.gov/press-center/press-releases/Pages/jl2594.aspx
5) Relevant enforcement action: Civil Enforcement Information - Navigators Insurance Company (2015).