31 CFR § 510.317 - Luxury goods.

Date issued: Apr. 10 2020

TURBOFAC Commentary (238 words)

Notes:

1) The term "luxury goods" is relevant with respect to the designation criterion at 510.201(a)(3)(ii)(C) and 510.201(a)(3)(vii)(C) sanctioning persons found to have "directly or indirectly, imported, exported, or reexported luxury goods to or into North Korea,” as well as the GL at 510.510 (North Korean mission to the United Nations and employees of the United Nations). See comments to 510.510 concerning the "luxury goods" carve out to that GL.

With respect to at 510.201(a)(3)(ii)(C) and 510.201(a)(3)(vii)(C), note that these provisions have no "significance" threshold, and that "luxury goods" is defined so broadly in the EAR so as to encompass many ordinary goods that, in developed countries, are ordinary consumer goods.

2) This provision was amended on Apr. 10, 2010, to add the following language:

“…and items so designated under an applicable United Nations Security Council resolution (as defined by the North Korea Sanctions and Policy Enhancement Act of 2016, as amended by the Countering America's Adversaries Through Sanctions Act and the National Defense Authorization Act for Fiscal Year 2020), except as specifically approved by the United Nations Security Council for import, export, or reexport to or into North Korea.”

Evidently, everything on the UNSC list will be carved out of the definition of “luxury goods,” irrespective of the status of the item in the EAR.