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October 12, 2008 

U.S. Removal of North Korea as State Sponsor of Terrorism Likely to Have Little Effect on Export Control Requirements

Secretary of State Rice yesterday signed an order rescinding the designation of North Korea (officially the Democratic People’s Republic of Korea as a State Sponsor of Terrorism, effective immediately.

Even though North Korea’s designation as a state sponsor of terrorism is rescinded, certain U.S. export control requirements related to North Korea’s detonation of a nuclear device in October 2006, proliferation activities and human rights violations, will continue to apply on the basis of other laws and regulations, and in accordance with United Nations Security Council Resolution 1718.

While North Korea's change in status will require a number of changes to the Export Administration Regulations (EAR), such as removing North Korea from Country Group E:1, North Korea is still likely to remain in the four “D” Country Groups and thus subject to national security and/or conventional military; nuclear; chemical and biological; and missile technology controls.

The Department of Commerce's Bureau of Industry and Security (BIS) may also continue to require a license to export or reexport items subject to the EAR to North Korea, except food and medicine classified as EAR99.

In addition, North Korea still remains subject to an arms embargo. A complete list of current sanctions on North Korea can be found here.

Exporters and reexporters of U.S. products should be aware that the changes to U.S. export control laws and regulations will not take effect until published in the Federal Register and thus the status quo will remain until further notice.

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I smell a returned favor from North Korea to the US underway.

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