§510.405 Exportation and reexportation of goods, services, or technology.
(a) The prohibition on the exportation and reexportation of goods, services, or technology contained in §510.206 applies to services performed on behalf of a person in North Korea or the Government of North Korea or where the benefit of such services is otherwise received in North Korea, if such services are performed:
(1) In the United States; or
(2) Outside the United States by a U.S. person, including by a foreign branch of an entity located in the United States.
(b) The benefit of services performed anywhere in the world on behalf of the Government of North Korea is presumed to be received in North Korea.
(c) The prohibitions contained in §510.201 apply to services performed in the United States or by U.S. persons, wherever located, including by a foreign branch of an entity located in the United States:
(1) On behalf of or for the benefit of the Government of North Korea, the Workers' Party of Korea, or any other person whose property and interests in property are blocked pursuant to §510.201(a); or
(2) With respect to property interests of the Government of North Korea, the Workers' Party of Korea, or any other person whose property and interests in property are blocked pursuant to §510.201(a).
(d)(1) For example, U.S. persons may not, except as authorized by or pursuant to this part, provide legal, accounting, financial, brokering, freight forwarding, transportation, public relations, or other services to any person in North Korea or to the Government of North Korea, the Workers' Party of Korea, or any other person whose property and interests in property are blocked pursuant to §510.201(a).
(2) For example, a U.S. person is engaged in a prohibited exportation of services to North Korea when it extends credit to a third-country firm specifically to enable that firm to manufacture goods for sale to North Korea or the Government of North Korea.
Note 1 to §510.405: See §§510.507 and 510.509 on licensing policy with regard to the provision of certain legal and emergency medical services.
1) This provision is substantively similar to a like provision contained in all non-abbreviated sanctions regulations, except that (i) the versions found in IEEPA-based embargo regulations (560.410 ITSR, 510.405 NKSR, 542.405 SySR, 589.405 Crimea) cover services exported to an embargoed country, in addition to the provision of services to blocked persons and with respect to blocked property, and (ii) versions of this provision implemented 1-21-22 and thereafter are titled "Provision and receipt of services," instead of just "Provision of services," and there is a subsection specifying that "[t]he prohibitions on transactions contained in § [5XX].201 apply to services received in the United States or by U.S. persons, wherever located, where the service is performed by, or at the direction of, a person whose property and interests in property are blocked pursuant to § 5XX.201." This language should be “read into” all of the pre-existing ordinary “provision of services” provisions. The "at the direction of" in the more recent version is a notable interpretation of the scope of the blocking prohibition that did not appear in OFAC's regulations, in this provision or elsewhere, prior to 1-21-22.
For comments on the scope and significance of the provision, see Notes Common to “Provision of services” Interpretive Provisions.