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Sanctions on North Korea – Luxury Goods

SANCTIONS ON NORTH KOREA – LUXURY GOODS

1.         United Nations Security Council Resolution 1718 (2006) introduced a ban on the supply of “luxury goods” to North Korea.  No definition of “luxury goods” is provided within the Resolution.

2.         The European Union, through Council Regulation  (EC) No 329/2007, has interpreted “luxury goods” to mean the items set out in the list at Annex A.  To sell, supply, transfer or export, directly or indirectly such items to North Korea requires a licence issued under the provisions of the Regulation (as supplemented by The Export Control (North Korea) Order 2007 (SI 2007/1334)).  The Regulation permits licences to be issued if the authorities in a Member State consider that such supply would be justified but only after they have received the specific approval of the UN Security Council to do so.

3.         Some of the descriptions used in the EU list of luxury goods are subjective.  The terms “high-quality”, “luxury” and “pure bred” precede the description of certain sanctioned items.  If you are clear that the items are “luxury items” as listed you will need to complete the standard licence application form

4.         However, if you wish to argue that the items would not be caught by sanctions you may wish to contact us for an opinion.  To do this you will need to supply information on the quantity, a description of the items (including brand names/manufacturer etc where applicable), the value of individual items and total contract value and the end-user.  If you wish to argue that the items are not for instance “high quality” when such a term is used you will need to include an explanation as to why, in your opinion, the items cannot be so considered.  We will then let you know, based on the information you have supplied, whether we are of the opinion that a licence would or would not be required.  Letters requesting such determinations should be sent to:-

Technical Assessment Unit,

Department of Trade & Industry,

Export Control Organisation,

Bay 352,

Kingsgate House

66-74 Victoria Street

London SW1E 6SW

Tel: 020 7215 8012

Fax: 020 7215 0680    

ANNEX A

Luxury goods

(1)           Pure bred horses

(2)           Caviar and caviar substitutes

(3)           Truffles and preparations thereof

(4)           High-quality wines (including sparkling wines), spirits and spirituous beverages

(5)           High-quality cigars and cigarillos

(6)           Luxury perfumes, toilet waters and cosmetics, including beauty and make-up products

(7)           High-quality leather, saddlery and travel goods, hand bags and similar articles

(8)           High-quality garments, clothing accessories and shoes (regardless of their material)

(9)           Hand knotted carpets, hand-woven rugs and tapestries

(10)         Pearls, precious and semi-precious stones, articles of pearls, jewellery, gold- or silversmith articles

(11)         Coins and banknotes, not being legal tender

(12)         Cutlery of precious metal or plated or clad with precious metal

(13)         High-quality tableware of porcelain, china, stone- or earthenware or fine pottery

(14)         High quality lead crystal glassware

(15)         High-end electronic items for domestic use

(16)         High-end electrical/electronic or optical apparatus for recording and reproducing sound and images

(17)         Luxury vehicles for the transport of persons on earth, air or sea, as well as their accessories and spare parts

(18)         Luxury clocks and watches and their parts

(19)         High-quality musical instruments

(20)         Works of art, collectors pieces and antiques

(21)         Articles and equipment for skiing, golf, diving and water sports

(22)         Articles and equipment for billiard, automatic bowling, casino games and games operated by coins or banknotes