U.S. COMMERCIAL ACCESS TO SUDAN: SUDAN IS OPEN FOR BUSINESS!

Recent Regulatory Changes

Sudan is once again open to U.S. businesses.  U.S. persons are no longer prohibited from engaging in transactions with respect to Sudan or the Government of Sudan that were previously prohibited by the Sudanese Sanctions Regulations and previous Executive Orders have been revoked.  On June 29, 2018, the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) officially removed the Sudanese Sanctions Regulations from the Code of Federal Regulations.

Sudan was removed from the State Sponsor of Terrorism (SSOT) list on December 14, 2020.  Sudan is no longer subject to prohibitions under the Terrorism List Governments Sanctions Regulations and specific elements of the Trade Sanctions Reform and Export Enhancement Act of 2000.

A link to OFAC’s May 2021 final ruling regarding Sudan’s removal from the SSOT list can be found here:

https://www.federalregister.gov/documents/2021/05/20/2021-10586/terrorism-list-governments-sanctions-regulations

Which Sanctions Remain Applicable to Sudan and the Government of Sudan?

Sanction authorities remain in effect on certain individuals and entities in connection with the conflict in Sudan’s Darfur region.  Additional information, including frequently asked questions, on any existing authorities can be found here:

https://home.treasury.gov/policy-issues/financial-sanctions/faqs/836

OFAC’s sanctions list search page contains a searchable consolidated database of sanctioned companies and individuals in Sudan (and worldwide) to assist businesses and investors to comply with the remaining targeted sanctions in effect, including those in Darfur.  The page can be found here:

https://sanctionssearch.ofac.treas.gov/

The Bureau of Industry and Security (BIS) Amends Its Export Administration Regulations

On January 19, 2021, the Department of Commerce’s Bureau of Industry and Security (BIS) removed Anti-Terrorism (AT) controls and implemented other regulatory changes consistent with Sudan’s removal from the SSOT list.  These changes include removing the license requirement for the export and reexport of items controlled for AT-only reasons to Sudan and permitting the reexport to Sudan of foreign-manufactured items with up to 25% controlled U.S.-origin content by value (up from the level of 10% that applies to SSOT countries). In addition, exporters and reexporters will now have access to a greater range of license exceptions under the Export Administration Regulations (EAR) to utilize pursuant to Sudan’s new placement in Country Group B.  However, License Exceptions Shipments to Country Group B countries (GBS) and Technology and Software under Restriction (TSR) are not available for exports and reexports that are destined for Sudan.  Additionally, whole aircraft may now be exported or reexported to Sudan without a license, whereas previously, there was a general policy of denial that limited exports and reexports of aviation-related items to aircraft parts and components.

BIS’s January 19, 2021, actions do not alter multilateral or other unilateral export controls, as well as end-user or end-use controls, as specified in the EAR, on items that are destined for Sudan.  All license requirements based upon such controls remain in place for Sudan, as they are for other destinations.

A link to BIS’s January 2021 final ruling regarding Sudan’s removal from the SSOT list can be found here:

https://www.federalregister.gov/documents/2021/01/19/2020-29037/implementation-in-the-export-administration-regulations-of-the-united-states-rescission-of-sudans

Department of State Trade Oversight

The Department of State’s Directorate of Defense Trade Controls (DDTC) ensures commercial exports of defense articles and defense services advance U.S. national security and foreign policy objectives.  It is charged with controlling the export and temporary import of defense articles and defense services covered by the United States Munitions List.  Additional information on DDTC policies can be found here:

https://www.pmddtc.state.gov/ddtc_public?id=ddtc_public_portal_about_us_landing

Other Considerations

This is not an exhaustive list of U.S. international trade regulations.  Businesses considering Sudan as a potential export market or investors seeking to invest in Sudan are encouraged to visit the Department of Commerce’s International Trade Administration’s website, the premier resource for American companies competing in the global marketplace. A link to that page can be found here:

https://www.trade.gov/