July 11, 2017: Australia changes sanctions on North Korea

On Tuesday, the government enacted changes to the sanctions imposed on the DPRK through 3 pieces of legislation:

  • Charter of the United Nations (Sanctions—Democratic People’s Republic of Korea) Amendment (2017 Measures No. 1) Regulations 2017

The Charter of the United Nations (Sanctions-Democratic People’s Republic of Korea) Amendment (2017 Measures No. 1) Regulations 2017 (the Regulation) amends the Charter of the United Nations (Sanctions‑Democratic People’s Republic of Korea) Regulations 2008(the 2008 Regulation) in order to give effect to certain provisions of United Nations Security Council Resolution 2321 (2016) (UNSCR 2321), to align the 2008 Regulation with certain provisions of United Nations Security Council Resolution 2270 (2016) (UNSCR 2270) and UNSCR 2321, and to clarify some of the provisions in the 2008 Regulation. 

 

UNSCR 2321 was adopted by the Security Council on 30 November 2016. UNSCR 2270 was adopted by the Security Council on 2 March 2016. Both intensified sanctions on the DPRK in an attempt to modify the behaviour of the DPRK and to illustrate the international community’s condemnation of the DPRK’s actions. Both were decisions by the UNSC under Chapter VII of the Charter and Australia is required to carry them out under Article 25 of the Charter.

 

UNSCR 2321 intensified sanctions on the DPRK. The Regulation implements certain of those intensified sanctions into Australian law, including by:

 

1.         prohibiting the export of new helicopters and vessels to the DPRK;

 

2.         prohibiting the import of copper, nickel, silver, zinc and statues from the DPRK;

 

3.         prohibiting the procurement of vessel and aircraft crewing services from the DPRK; and

 

4.         prohibiting certain scientific and technical cooperation involving persons or groups officially sponsored by or representing the DPRK.

 

The Regulation also establishes certain exceptions to the sanctions measures and a power to issue permits to allow certain activities that would otherwise be prohibited.

  • Autonomous Sanctions Amendment (Democratic People’s Republic of Korea) Regulations 2017

The Autonomous Sanctions Amendment (Democratic People’s Republic of Korea) Regulations 2017 (the Regulations) amend the Principal Regulations by imposing additional sanctions in respect of the DPRK in accordance with the media releases of the Minister for Foreign Affairs dated 2 December 2016 and 28 February 2017.

 

The Regulations:

 

·                     permit the Minister for Foreign Affairs to designate for targeted financial sanctions and/or declare for the purposes of a travel ban, a person or entity:

 

o        that the Minister is satisfied has been associated with the DPRK’s weapons of mass-destruction program or missiles program (previously, the criteria required that the Minister for Foreign Affairs be satisfied that the person or entity is associated with the DPRK’s weapons of mass-destruction program or missiles program); and

 

o        that the Minister is satisfied is assisting, or has assisted, in the violation, or evasion, by the DPRK of certain United Nations Security Council Resolutions that relate to the DPRK and subsequent resolutions relevant to those resolutions.

 

·                     establish each of the following as a service for the DPRK that are prohibited without a permit:

 

o        the provision of any service to Air Koryo;

 

o        the provision to any person or entity of any service that assists with, or is provided in relation to, an extractive or related industry in the DRPK;

 

o        the provision to any person or entity of any service that assists with, or is provided in relation to, the creation, construction, installation, development, maintenance or decommissioning of infrastructure associated with an extractive or related industry in the DPRK; and

 

o        the provision to a DPRK person or entity, a person or entity acting on behalf of (or at the direction of) a DPRK person or entity, or an entity owned or controlled by a DPRK person or entity, of any service that assists with, or is provided in relation to, an extractive or related industry outside the DPRK.

 

·                     establish a number of activities that each constitute a commercial activity prohibited without a permit:

 

o        obtaining of any asset that is a tenement or permission (however described) in relation to an extractive or related industry in the DPRK or in relation to the creation, construction, installation, development, maintenance or decommissioning of infrastructure associated with an extractive or related industry in the DPRK;

 

o        using, dealing with or making available any asset for the purpose of obtaining any tenement or other permission (however described) in relation to an extractive or related industry in the DPRK or in relation to the creation, construction, installation, development, maintenance or decommissioning of infrastructure associated with an extractive or related industry in the DPRK;

 

o        obtaining, directly or indirectly, any tenement or permission (however described) in relation to an extractive or related industry in the DPRK or in relation to the creation, construction, installation, development, maintenance or decommissioning of infrastructure associated with an extractive or related industry in the DPRK from a DPRK person or entity, a person or entity acting on behalf of (or at the direction of) a DPRK person or entity, or an entity owned or controlled by a DPRK person or entity;

 

o        selling or making available (otherwise than by sale) an interest in a commercial activity in an extractive or related industry in Australia to a DPRK person or entity, a person acting on behalf of (or at the direction of) a DPRK person or entity, or an entity owned or controlled by a DPRK person or entity;

 

o        acquiring or extending an interest in a person or entity mentioned in the table below;

 

o        establishing or participating in a joint venture, partnership or other business relationship with a person with a person or entity mentioned in the table below; and

 

o        granting a financial loan or credit to a person or entity mentioned in the table below

 

Item

Person or entity

1

A person or entity, wherever located, that is engaged in an extractive or related industry in the DPRK.

2

A person or entity, wherever located, that is engaged in the creation, construction, installation, development, maintenance or decommissioning of infrastructure associated with an extractive or related industry in the DPRK.

3

A person or entity acting on behalf of, or at the direction of, a person or entity mentioned in item 1 or 2.

4

An entity owned or controlled by a person or entity mentioned in item 1 or 2.

5

A person or entity, wherever located, that:

(a) is engaged in an extractive or related industry outside the DPRK; and

(b) is any of the following:

 

(i) a DPRK person or entity;

 

(ii) a person or entity acting on behalf of, or at the direction of, a DPRK person or entity;

 

(iii) an entity owned or controlled by a DPRK person or entity.

  • Autonomous Sanctions (Classes of Sanctioned Vessels – Democratic People’s Republic of Korea) Designation 2017

The Autonomous Sanctions (Classes of Sanctioned Vessels – Democratic People’s Republic of Korea) Designation 2017 (the Instrument) defines the ‘DPRK vessel class’, and designates each vessel that comes within the ‘DPRK vessel class’ as a ‘sanctioned vessel’ under paragraph 8(1)(b) of the Regulations.

 

The Instrument does not affect the operation of the Autonomous Sanctions (Sanctioned Vessels – Democratic People’s Republic of Korea) Designation 2015, which remains in effect.

 

The three categories of individuals referred to in item 7 of the table in section 4 of the Instrument are not intended to be mutually exclusive. For example, an individual could be a resident of the DPRK and a citizen of the DPRK.

Links:

Charter of the United Nations (Sanctions—Democratic People’s Republic of Korea) Amendment (2017 Measures No. 1) Regulations 2017

Autonomous Sanctions Amendment (Democratic People’s Republic of Korea) Regulations 2017

Autonomous Sanctions (Classes of Sanctioned Vessels – Democratic People’s Republic of Korea) Designation 2017

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