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MOFCOM and GACC Announcement No.4 of 2018 on Implementation of United Nations Security Council Resolution 2397

MOFCOM

2018-01-18

 

For the purpose of the implementation of the United Nations Security Council Resolution 2397 (the "Resolution"), the following management measures are hereby taken for some products involved in the import-export trades with North Korea pursuant to the Foreign Trade Law of the People's Republic of China:

I. Commodities Exported to North Korea

 

(I) The export of iron, steel, other metals, industrial machinery and transport vehicles to North Korea (see Appendix 1 for the product catalogue) shall be comprehensively prohibited as of the date of the implementation of the MOFCOM and GACC Announcement No.4 of 2018 on Implementation of United Nations Security Council Resolution 2397 (the "Announcement").

 

(II) Restriction on Export of Crude Oil to North Korea.

 

During the period from December 23, 2017 to December 22, 2018 and each subsequent period of 12 months, the crude oil (commodities with the first four digits of the customs code of 2709, excluding condensate oil) exported from all countries to North Korea shall not exceed 4,000,000 barrels or 525,000 tons.

 

The export of crude oil to North Korea beyond the above quantity must meet the following conditions: it shall be approved by the Sanctions Committee of the United Nations Security Council (the "UNSC") on a case-by-case basis and identified to be for the purpose of the people's livelihood only in advance and not be involved in North Korea's Nuclear Program or Missile Program or other acts prohibited by the Resolutions 1718 (2006), 1874 (2009), 2087 (2013), 2094 (2013), 2270 (2016), 2321 (2016), 2356 (2017), 2371 (2017), 2375 (2017) and 2397 (2017).

 

(III) Restriction on Export of Refined Petroleum Products to North Korea.

 

From October 1, 2018 to December 31, 2018, the refined petroleum products (commodities with the first four digits of the customs code of 2710, 2712 or 2713) exported by member countries of the United Nations to North Korea shall not exceed 500,000 barrels (total of 60,000 metric tons). When the export quantity is close to the upper limit thereof, the competent authorities of Chinese government will issue an announcement based on the export situation to suspend the export of refined petroleum products to North Korea in the current year. The export of refined petroleum products to North Korea in 2018 must meet the following conditions:

 

1. The supply, sales or transfer of refined petroleum products shall not involve the individual or entity associated with North Korea's Nuclear Program or Ballistic Missile Program or other activities prohibited by the United Nations Security Council Resolutions 1718 (2006), 1874 (2009), 2087 (2013), 2094 (2013), 2270 (2016), 2321 (2016), 2356 (2017), 2371 (2017), 2375 (2017) and 2397 (2017), including the individual or entity designated, the individual or entity acting as a representative or acting as instructed, the entity directly or indirectly owned or controlled, or the individual or entity providing assistance to avoid the sanctions.

 

2. The supply, sales or transfer of refined petroleum products shall be only for the purpose of the people's livelihood of North Korea, and shall be irrelevant to the income creating for supporting North Korea's Nuclear Program or Ballistic Missile Program or other activities prohibited by the Resolution 1718 (2006), 1874 (2009), 2087 (2013), 2094 (2013), 2270 (2016), 2321 (2016), 2356 (2017), 2371 (2017), 2375 (2017) or 2397 (2017).

 

3. The enterprise exporting refined petroleum products to North Korea must submit the letter of commitment (see the sample in Appendix 3) signed by the legal representative or principal of the enterprise and sealed with the official seal of the enterprise to the customs at the time of export declaration.

 

II. Commodities Imported from North Korea

 

As of the date of implementation of the Announcement, the import of part of grains and agricultural products, earth and stone materials including magnesite and magnesium oxide, timber, machinery, electric equipment and ships from North Korea (see the product catalogue in Appendix 2) shall be comprehensively prohibited. Where a written trade contract has been signed prior to the date when the Resolution is adopted (December 23, exclusive) and the customs import formalities have been completed prior to 12:00 p.m. on January 22, 2018, the customs clearance may be permitted. As of 0:00 a.m. on January 23, 2018, the import formalities for the aforesaid products (including the commodity of which declaration has been accepted by the customs but for which port clearance formalities have not yet been handled) shall no longer be handled, and the aforesaid products imported hereafter shall be handled as the commodity subject to import prohibition.

 

III. Please see the appendices for details about the forbidden products.

 

The Announcement shall come into force as of January 6, 2018.

 

Appendix 1.HS Codes of Commodities Prohibited from Export to North Korea according to United Nations Security Council Resolution 2397.doc

 

2.HS Codes of Commodities Prohibited from Import from North Korea according to United Nations Security Council Resolution 2397.doc

 

3.Letter of Commitment (Sample).doc

 

 
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