2007/01/26

By: John Black

Bottom Line:

This new export licensing requirement that the United States is implementing consistent with a United Nations decision is good for a laugh. Now that North Korean Government officials can’t get I-Pods and stereos, they most certainly will end their nuclear weapons program. (OK, I am not so naïve as to think this new requirement will keep Kim Il Jung from getting an I-Pod.) Seems like the United Nations is developing a taste for useless symbolic export controls so long favored by the United States just because it’s better to do something that doesn’t help than to do nothing.

Due to the flagrant and defiant actions of North Korea over the past year relating to missile testing and the detonation of a nuclear device, the United States is imposing new export and reexport controls on North Korea. This new rule is in accordance with UN Security Council Resolution 1718 which prohibits the direct or indirect sale of arms and other specified items to North Korea by UN Member States.


Under the new rule, the Bureau of Industry and Security (BIS) will require a license for all items subject to the Export Administration Regulations (EAR) with the exceptions of food and medicines not on the Commerce Control List (CCL).

Luxury items to North Korea will generally be denied. Examples are yachts, gems, art, designer clothing and collectible items.

Non-food and non-medical humanitarian items intended for the benefit of the North Korean people will generally be approved by BIS

BIS will continue to generally deny applications for the export or reexport of arms and related materials controlled on the CCL and items controlled under the Missile Technology Control Regime, the Nuclear Suppliers Group, the Australia Group, and the Wassenaar Arrangement.

All other items subject to the EAR will be reviewed by BIS on a case-by-case basis.

The effective date of this rule is January 26, 2007. Items that did not require a license prior to the publication of this rule which are on dock for loading, on lighter, laden aboard an exporting carrier, or en route aboard a carrier to a port of export on January 26th may be exported or reexported without being subject to the new rule as long as they are exported or reexported before midnight on February 9, 2007.