Prohibition on direct or indirect import and export from/to DPRK (Democratic People’s Republic of Korea) in terms of UNSC Resolutions concerning DPRK – Para 2.17 of the Foreign Trade Policy 2015-20 - DGFT - TRADE NOTICE No. 16/2019-20

F. No. 01/91/180/991/AM07/PC.III Government of India Ministry of Commerce Industry Department of Commerce Directorate General of Foreign Trade Udyog Bhawan, New Delhi Dated 16th May, 2019 TRADE NOTICE No. 16/2019-20 To 1. Members of Trade 2. All Customs Commissioners 3. Federation of Indian Export Organisations, Delhi 4. Federation of Indian Chambers of Commerce and Industry (FICCI), New Delhi, 5. Indian Chemical Council, Mumbai 6. All Regional Authorities of DGFT Subject: Prohibition on direct or indirect import and export from/to DPRK (Democratic People s Republic of Korea) in terms of UNSC Resolutions concerning DPRK Para 2.17 of the Foreign Trade Policy 2015-20 regarding. Reference is invited to the enclosed DGFT Notification No. 52/2015-20 dated 07.03.2018 wherein Para 2.17 of the Foreign Trade Policy 2015-20 , on imports and exports to Democratic People s Republic of Korea (DPRK), which was notified to implement UNSC Resolution No. 2397(2017) dated 22.12.2017 passed under Chapter VII of the Charter of the United Nations on DPRK. 2. The UNSC Resolution No. 2397(2017) reaffirms the previous DPRK-related UNSC resolutions namely, 1718 (2006), 1874 (2009), 2087 (2013), 2094 (2013), 2270 (2016), 2231 (2016), 2356 (2017), 2371 (2017) and 2375 (2017). 3. Subsequent to the issue of DGFT Notification No. 52/2015-20 dated 07.03.2018 , it has been noticed that export and import of sanctioned items from/to DPRK may have been taking place due to lack of clarity on items /HS codes covered under prohibition. 4. To facilitate the industry, the item description and corresponding HS Codes relevant to DGFT Notification No. 52/2015-20 dated 07.03.2018 is attached at Annex-I and II , purely for reference. 5. Members of trade and industry are hereby advised to adhere to the DGFT Notification No. 52/2015-20 dated 07.03.2018 and the UNSC resolutions referred to therein and Trade Notice No. 15/2019-20 dated 16.05.2019. 6. This issues with the approval of competent authority. (Arunoday Goswami) Joint Director General of Foreign Trade Tele No. 23063419 e-mail : arunoday.goswami @nic.in Government of India Ministry of Commerce Industry Department of Commerce Directorate General of Foreign Trade Udyog Bhavan Notification No. 52/2015-20 New Delhi, Dated: 7 March 2018 Subject: Amendment in Para 2.17 of the Foreign Trade Policy 2015-20 on Prohibition on direct or indirect import and export from/to DPRK (Democratic People's Republic of Korea) in terms of UNSC resolutions concerning DPRK. S.O.1019 (E). - In exercise of the powers conferred by Section 5 and Section 14A of the Foreign Trade (Development and Regulation) Act, 1992, as amended, read with Para 1.02 of the Foreign Trade Policy (FTP) 2015-20 , the Central Government hereby makes amendment to the Paragraph 2.17 of FTP 2015-20 as notified vide Notification No. 35/2015-20 dated 18th October 2017 , with immediate effect. Consequently, the Appendix I of FTP 2015-20 also stands amended. 2. Paragraph 2.17 of the FTP 2015-20 stands substituted as under: (changes made are in bold letters, except bold letters used in Para heading and sub-headings) . 2.17 Prohibition on direct or indirect import and export from/to Democratic People's Republic of Korea (DPRK) Prohibition on export: (A) The direct or indirect supply, sale, transfer or export of the following items to Democratic People's Republic of Korea (DPRK) is prohibited:- (i) any battle tanks, armoured combat vehicles, large calibre artillery systems, combat aircraft, attack helicopters, warships, missiles or missile systems as defined for the purpose of the United Nations Register on Conventional Arms, or related materiel including spare parts; (ii) all arms and related materiel, including small arms and light weapons and their related materiel; (iii) all items, materials, equipment, goods and technology as set out in the United Nations Security Council (UNSC) and International Atomic Energy Agency (IAEA) documents, namely, 1. S/2006/853*; 2. S/2006/853/Corr.1; 3. Part B of S/2009/364; 4. Annex III of Resolution 2094 (2013); 5. S/2016/1069; 6. Annex A to INFCIRC/254/Rev.12/Part1 (IAEA document); 7. Annex to INFCIRC/254/Rev.9/Part2 (IAEA document); 8. S/2014/253; 9. S/2016/308; 10. Annex III of Resolution 2321 (2016); and 11. other items, materials, equipment, goods and technology, as determined by the Central Government, which could contribute to DPRK's nuclear related, ballistic missile-related or other weapons of mass destruction related programmes; (iv) luxury goods, including, but not limited to, the items specified in Annex IV of Resolution 2094 (2013), Annex IV of Resolution 2270 (2016) and Annex IV of Resolution 2321 (2016); (v) items as determined by the Central Government, except food or medicine, that could directly contribute to the development of the Democratic People's Republic of Korea's operational capabilities of its armed forces. This measure is subject to the exemptions set out in paragraph 8 (a) and (b) of Resolution 2270 (2016); Prohibition on import (B) The direct or indirect procurement or import from DPRK, of items, whether or not originating in DPRK, covered in sub-paragraphs (A)(i), (A)(ii), (A)(iii) and (A)(v) above is prohibited. Sectoral prohibitions (export) (C) The direct or indirect supply, sale, transfer or export of the following items to DPRK is prohibited: (i) new helicopters and new or used vessels, except as approved in advance by the Committee on a case-by-case basis; (ii) aviation fuel, including aviation gasoline, naptha-type jet fuel, kerosene-type jet fuel, and kerosene-type rocket fuel. This measure is subject to the provisions of paragraph 31 of Resolution 2270 (2016) and paragraph 20 of Resolution of 2321 (2016); (iii) condensates and natural gas liquids; (iv) refined petroleum products. This measure is subject to the limits, exceptions and procedures set out in paragraph 5 of Resolution 2397 (2017); (v) crude oil. This measure is subject to the limits, exemptions and procedures set out in paragraph 4 of Resolution 2397 (2017); (vi) all industrial machinery [ Chapter 84 and 85 of ITC(HS) ], transportation vehicles [ Chapter 86 to 89 of ITC(HS) ], and iron, steel, and other metals [ Chapter 72 to 83 of ITC(HS) ]. This measure is subject to the exemptions set out in paragraph 7 of Resolution 2397 (2017); Sectoral prohibitions (import) (D) The direct or indirect procurement or import from DPRK, of the following items is prohibited: (i) coal, iron and iron ore. This measure is subject to the exemptions and procedures set out in paragraph 8 of Resolution 2371 (2017); (ii) gold, titanium ore, vanadium ore, and rare earth minerals; (iii) copper, nickel, silver and zinc; (iv) statues, unless the Committee approves on a case-by-case basis in advance; (v) seafood (including fish, crustaceans, mollusks, and other aquatic invertebrates in all forms). This measure is subject to the exemptions, clarifications and procedures set out in paragraph 9 of Resolution 2371 (2017) and paragraph 6 of Resolution 2397 (2017); (vi) lead and lead ore. This measure is subject to the exemptions and procedures set out in paragraph 10 of Resolution 2371 (2017); (vii) textiles (including but not limited to fabrics and partially or fully completed apparel products). This measure is subject to the exemptions and procedures set out in paragraph 16 of Resolution 2375 (2017); (viii) food and agricultural products [ Chapters 12 , 08 , 07 of ITC(HS) ], machinery [ Chapter 84 of ITC(HS )], electrical equipment [ Chapter 85 of ITC(HS) ], earth and stone including magnesite and magnesia [ Chapter 25 of wood [ Chapter 44 of ITC(HS) ], and vessels [ Chapter 89 of ITC(HS) ]. These measures are subject to the procedures set out in paragraph 6 of Resolution 2397(2017). Explanation.- a) UNSC means the United Nations Security Council; b) IAEA means the International Atomic Energy Agency; c) Committee means the Committee of the UNSC set up in terms of paragraph 12 of Resolution 1718 (2006); d) Resolution, as the case may be, means the UNSC Resolutions under Chapter VII of the Charter of the United Nations on Democratic People's Republic of Korea, namely, 1718 (2006), 1874 (2009), 2087 (2013), 2094 (2013), 2270 (2016), 2231 (2016), 2356 (2017), 2371 (2017), 2375 (2017) and 2397(2017) . 3. Effect of the Notification This Notification seeks to update the Para 2.17 of the Foreign Trade Policy 2015-20 , on imports and exports to Democratic People's Republic of Korea (DPRK), to account for UNSC Resolutions under Chapter VII of the Charter of the United Nations n Democratic People's Republic of Korea, namely, 1718 (2006), 1874 (2009), 2087 (2013), 2094 (2013), 2270 (2016), 2231 (2016), 2356 (2017), 2371 (2017), 2375 (2017) and 2397(2017). (Alok Vardhan Chaturvedi) Director General of Foreign Trade E-mail: [email protected] (Issued from F.No.01/91/180/991/AM07/PC-III/EC) Annexure-I HS Codes for UNSC Resolutions 2270 (2016) and 2321(2016) HS Codes Description Resolutions 2270 and 2321 Coal 2701 Coal; briquettes, ovoids and similar solid fuels manufactured from coal Para 26 of Res. 2321 applies cap on exports and conditions for procurements under the cap. Livelihood exemption remains for Iron and Iron ore Iron Ore 2601 Iron Chapter 72 Iron and Steel 7301-7326 products Iron ores and concentrates, including roasted iron pyrites Iron and steel products (7201-7229) Iron and steel products Gold 261690 7108 710811 710812 710813 710820 Gold ores and concentrates Gold (including gold plated with platinum) unwrought or in semi-manufactured forms, or in powder form Gold Powder Gold in Other Unwrought Forms Gold in Other Semi-manufactured Forms Monetary Gold All exports from DPRK prohibited Titanium 2614 Titanium ores and concentrates Vanadium 2615 Vanadium ores and concentrates Rare Earth Minerals 2612 2617 2805 2844 Uranium or thorium ores and concentrates [261210 and 261220] Other Ores and concentrates [261790 Other Ores and Concentrates] Alkali metals etc, rare-earth metals etc, mercury Radioactive chemical elements isotopes etc Copper 7401-7419 2603 Copper ores and concentrates New minerals added in para 28 of resolution 2321 (2016) Zinc 7901-7907 2608 Zinc ores and concentrates Nickel 7501-7508 2604 Silver 7106, 7107 7114 Nickel ores and concentrates Silver ores and concentrates Articles of goldsmiths or silversmiths wares or parts thereof, of silver, whether or not plated or clad with other precious metal Annexure-II Harmonized System Codes for all sectoral bans in UNSC Resolutions 2270 (2016), 2321 (2016), 2371(2017), 2375 (2017) and 2397 (2017) Table 1: HS codes for Sectoral Bans on Imports from the DPRK Item HS Codes Description Resolutions Coal 2701 Coal; briquettes, ovoids and similar solid fuels manufactured from coal Para. 8 of res 2371(2017) 2702 Lignite, whether or not agglomerated, excluding jet coal 2703 Peat (including peat litter), whether or not agglomerated 2704 Coke and semi-coke of coal, of lignite or of peat, whether or not agglomerated; retort carbon Iron Ore 2601 Iron ores and concentrates, including roasted iron pyrites Iron Chapter 72 Iron and steel products (7201-7229) Iron and Steel products Chapter 73 Iron and steel products (7301-7326) Gold 261690 Gold ores and concentrates Para. 30 of res 2270 (2016) 7108 Gold (incl. put plated), unwrought, semi- manufactured forms or powder 710811 Gold Powder, Unwrought 710812 Gold in Other Unwrought Forms 710813 Gold in Other Semi-manufactured Forms 710820 Monetary Gold Titanium 2614 Titanium ores and concentrates Vanadium 2615 Vanadium ores and concentrates Rare Earth Minerals 2612 Uranium or thorium ores and concentrates [261210 and 261220] 2617 ores and concentrates, [Nesoi code 261790 Other Ores and Concentrates] 2805 alkali metals etc., rare-earth metals etc., mercury 2844 radioactive chemical elements isotopes etc. Copper Chapter 74 Copper and articles thereof (7401-7419) Para. 28 of res 2321 (2016) 2603 Copper ores and concentrates Zinc Chapter 79 Zinc and articles thereof (7901-7907) 2608 Zinc ores and concentrates Nickel Chapter 75 Nickel and articles thereof (7501-7508) 2604 Nickel ores and concentrates Silver 2616100 7106, 7107 Silver ores and concentrates Silver unwrought or semi manufactured forms, or in powdered forms; base metals clad with silver, not further worked than semi-manufactured 7114 articles of goldsmiths or silversmiths wares or parts thereof, of silver, whether or not plated or clad with other precious metal Seafood (incl fish, crustaceans, molluscs, and other aquatic invertebrates in all forms) Chapter 3 Fish and Crustaceans, Molluscs and other Aquatic Invertebrates (0301-0308) Para. 9 of res 2371( 2017 ) 1603 Extracts and juices of meat, fish or crustaceans, molluscs or other aquatic invertebrates) 1604 Prepared or preserved fish; caviar and caviar substitutes prepared from fish eggs 1605 Crustaceans, molluscs and other aquatic invertebrates, prepared or preserved Lead Chapter 78 Lead and articles thereof (7801-7806) 1 Lead ore 2607 Lead ores and concentrates Para. 10 of res 2371 (2017) Condensates and natural gas liquids 2709 Oils; petroleum oils and oils obtained from bituminous minerals Para. 13 of res 2375 (2017) 2711 Petroleum gases and other gaseous hydrocarbons Refined petroleum products 2710 Petroleum oils and oils from bituminous minerals, not crude; preparations n.e.c, containing by weight 70% or more of petroleum oils or oils from bituminous minerals; these being the basic constituents of the preparations; waste oils Para. 14 of res 2375 (2017) 2712 Petroleum jelly; paraffin wax, micro-crystalline petroleum wax, slack wax, ozokerite, lignite wax, peat wax, other mineral waxes, similar products obtained by synthesis, other processes; coloured or not. 2713 Petroleum coke, petroleum bitumen; other residues of petroleum oils or oils obtained from bituminous minerals. Crude Oil 2709 Oils; petroleum oils and oils obtained from bituminous minerals, crude Para. 15 of res 2375 (2017) Textiles (including but not limited to fabrics and partially or fully completed apparel products) Chapters 50 63 Para. 16 of res 2375 50 (2017) Silk, including yarns and woven fabrics thereof 51 Wool And Fine Or Coarse Animal Hair, Including Yarns And Woven Fabrics Thereof; Horsehair Yarn And Woven Fabric 52 Cotton, Including Yarns And Woven Fabrics Thereof 53 Vegetable Textile Fibers Nesoi; Yarns And Woven Fabrics Of Vegetable Textile Fibers Nesoi And Paper 54 Manmade Filaments, Including Yarns And Woven Fabrics Thereof 55 Manmade Staple Fibers, Including Yarns And Woven Fabrics Thereof 56 Wadding, Felt And Nonwovens; Special Yarns; Twine, Cordage, Ropes And Cables And Articles Thereof 57 Carpets And Other Textile Floor Covering 58 Fabrics; special woven fabrics, tufted textile fabrics, lace, tapestries, trimmings, embroidery 59 Textile fabrics; impregnated, coated, covered or laminated; textile articles of a kind suitable for industrial use; 61 Apparel and clothing accessories; knitted or crocheted; 62 Apparel and clothing accessories; not knitted or crocheted; 63 Textiles, made up articles; sets; worn clothing and worn textile articles; rags Agricultural products 07 Vegetables and certain roots and tubers; edible Para. 6 of res. 2397(2017) 08 Fruit and nuts, edible; peel of citrus fruit or melons 12 Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit, industrial or medicinal plants; straw and fodder Machinery 84 Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof Para. 6 of res. 2397(2017) Electrical equipment 85 Electrical machinery and equipment and parts thereof; sound recorders and reproducers; television image and sound recorders and reproducers, parts and accessories of such articles Earth and stone including magnesite and magnesia 25 Salt; sulphur; earths, stone; plastering materials, lime and cement Wood 44 Wood and articles of wood; wood charcoal Vessels 89 Ships, boats and floating structures Table 2: Harmonized System Codes for Sectoral Bans on Exports to the DPRK according to paragraph 7 of UNSC Resolution 2397 (2017) Item HS Codes Description Resolutions Industrial Machinery Chapters 84 Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof Para. 7 of res. 2397(2017) 85 Electrical machinery and equipment and parts thereof; sound recorders and reproducers; television image and sound recorders and reproducers, parts and accessories of such articles Transportatio n vehicles 86 Railway, tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro- mechanical) traffic signaling equipment of all kinds Para. 7 of res. 2397(2017) 89 Ships, boats and floating structures Iron, steel and other metals Chapters 72 83 Para. 7 of res. 2397 72 (2017) Iron and steel 73 Articles of iron or steel 74 Copper and articles thereof 75 Nickel and articles thereof 76 Aluminum and articles thereof 77 Reserved for possible future use 78 Lead and articles thereof 79 Zinc and articles thereof 80 Tin and articles thereof 81 Other base metals; cermets; articles thereof 82 Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal 83 Miscellaneous articles of base metal