Blocking Sudanese Government Property and Prohibiting Transactions With Sudan

This executive order declares a national emergency and imposes comprehensive economic sanctions on Sudan, blocking all Sudanese government property in U.S. jurisdiction and prohibiting trade, investment, financial transactions, and transportation services between the United States and Sudan. The sanctions take effect immediately with a limited 30-day wind-down period for pre-existing trade contracts.

Federal Register Open PDF 62 FR 59989

Impact dates

Dec 4, 1997
Wind-down period ends for pre-existing trade contracts and associated financing
Nov 4, 1997
Order takes effect; blocking and prohibitions become active

Key directives

Block all property and interests in property of the Government of Sudan in U.S. jurisdiction
Prohibit importation of Sudanese-origin goods and services (excluding informational materials)
Prohibit exportation/reexportation of U.S. goods, technology, or services to Sudan (with humanitarian exemption for food, clothing, medicine)
Prohibit facilitation by U.S. persons of trade involving Sudan
Prohibit U.S. person performance of contracts supporting projects in Sudan
Prohibit credits or loans to Government of Sudan by U.S. persons
Prohibit cargo transportation transactions to/from Sudan involving U.S. persons or Sudanese carriers
Prohibit evasion or attempted evasion of sanctions
Authorize Secretary of Treasury to promulgate implementing regulations in consultation with Secretary of State
Trade contracts in force as of November 4, 1997 may be performed through December 4, 1997

Who is ordered

Timeline

Immediate

Blocking of all Sudanese government property and interests in U.S. jurisdiction effective 12:01 a.m. EST November 4, 1997
Prohibitions on imports, exports, financial transactions, and transportation take effect
Pre-existing trade contracts allowed to continue performance

Near term (90d)

Wind-down period for pre-existing trade contracts ends December 4, 1997
Letters of credit and financing agreements for pre-existing contracts must be completed
Treasury Department expected to issue implementing regulations

Long term

Ongoing sanctions regime against Sudan until lifted or modified by subsequent presidential action
Potential expansion through Treasury regulations and licensing
Structural impact on U.S.-Sudan bilateral economic relations

Risks & tensions

Humanitarian exemption for donations of food, clothing, and medicine may create implementation complexity for aid organizations
Broad definition of 'United States person' including foreign branches of U.S. entities creates extraterritorial compliance burden
Vague 'as appropriate' consultation language with other agencies in Section 5 creates uncertainty about interagency coordination
Prohibition on 'facilitation' and 'brokerage' activities may have chilling effect on indirect commercial relationships
National emergency declaration based on terrorism, destabilization, and human rights grounds combines multiple policy rationales with different constituencies