Home » UN sanctions: Definitions of “luxury goods” (2018)

UN sanctions: Definitions of “luxury goods” (2018)

Last updated 7 August 2018 at 1600 GMT (V6)

Introduction – The ban on the export of luxury goods to the DPRK

On 9 October 2006 the DPRK carried out its first test of a nuclear weapon, thus breaking the de-facto moratorium on such tests which was put in place by the Comprehensive Nuclear-Test-Ban Treaty (CTBT).

The test was met with universal condemnation. The UN Security Council described it as a “clear threat to international peace and security” and unanimously adopted Resolution 1718 (2006) which imposed an obligation on all UN member states to apply a number of restrictive measures against the DPRK.

The restrictive measures were set out in operative paragraph (OP) 8 of UNSCR 1718. OP 8(a) and (b) required all UN Member States to prevent the supply, sale or transfer to the DPRK, or the procurement from the DPRK, of certain conventional military goods, nuclear-related, WMD-related and missile-related items. Further, OP 8(a)(iii) of the resolution required all Member States to prevent the supply of luxury goods to the DPRK.

The UN definition of “luxury goods” – Annex IV of UNSCR 2094

Crucially, however, UNSCR 1718 did not provide any definitions of what constituted a “luxury good” for the purposes of the sanctions it imposed. That remained the situation for the next five years but it did not prevent some UN Member States from drawing up their own national lists of luxury goods and immediately implementing into local legislation the prohibition on their export to the DPRK.

For example, when the European Union (EU) implemented into EU law in March 2007 the restrictive measures set out in UNSCR 1718, it defined 22 categories of luxury goods for the purposes of sanctions against the DPRK.

The lack of any definition of a “luxury good” by the UN was initially addressed in December 2011 when the UN Security Council 1718 Sanctions Committee published an “Implementation Assistance Guide” for measures regarding “luxury good”. However these definitions were not enforceable as would be definitions contained in a UN Security Council resolution. This was finally fixed on March 7, 2013, when the UN Security Council unanimously adopted Resolution 2094 (2013) in response to the DPRK’s third nuclear test carried out the previous month.

UNSCR 2094 (2013) reaffirmed the measures imposed in operative paragraph 8(a)(iii) of UNSCR 1718 (2006) regarding luxury goods [that is, all Member States shall prevent the direct or indirect supply, sale or transfer to the DPRK of such items], and clarified for the first time that the term “luxury goods” includes, but is not limited to, the items specified in Annex IV of the resolution. Annex IV of UNSCR 2094 (2013) provides the following list:

  1. Jewelry:
    • Jewelry with pearls;
    • Gems;
    • Precious and semi-precious stones (including diamonds, sapphires, rubies, and emeralds);
    • Jewelry of precious metal or of metal clad with precious metal.
  2. Transportation items, as follows:
    • Yachts;
    • Luxury automobiles (and motor vehicles): automobiles and other motor vehicles to transport people (other than public transport), including station wagons;
    • Racing cars.

UN Security Council Resolution 2270 (March 2016) reaffirmed the measures imposed in paragraph 8(a)(iii) of UNSCR 1718 (2006) regarding luxury goods, and further clarified that the term “luxury goods” includes, but is not limited to, the items specified in Annex [IV] of UNSCR 2270. The items were:

  1. Luxury watches: wrist, pocket, and other with a case of precious metal or of metal clad with precious metal
  2. Transportation items, as follows:
    • aquatic recreational vehicles (such as personal watercraft)
    • snowmobiles (valued greater than USD 2,000)
  3. Items of lead crystal
  4. Recreational sports equipment

This list was further updated by UN Security Council Resolution 2321 (November 2016) which reaffirmed all the above and added:

  1. Rugs and tapestries (valued greater than USD 500), and
  2. Tableware of porcelain or bone china (valued greater than USD 100)

UN Member States can define and publish definitions of additional luxury goods whose export they prohibit. They are encouraged when making such definitions to take into account the principles and factors concerning the application of controls on “luxury goods” as set forth in the four resolutions discussed above. To assist Member States in those efforts the UN Security Council 1718 Sanctions Committee published in January 2017 its

Implementation Assistance Notice No. 3: “Guidelines for the implementation of measures regarding ‘Luxury Goods’ under Security Council resolutions 1718 (2006), 1874 (2009), 2087 (2013), 2094 (2013), 2270 (2016) and 2321 (2016).”

This updates the information in the original “Implementation Assistance Guide” published in December 2011.

The claimed importance of luxury goods in the DPRK

The measures set out in UNSCR 1718 on the supply of luxury goods to the DPRK appear to be an afterthought that was imposed as a punitive sanction aimed at the elite in the DPRK by removing a source of pleasurable experience from those who are well placed in the regime.

However other commentators have suggested that luxury goods have a more important role because they help in strengthening the elite’s allegiance to the leader and his regime. They believe that the consumption and display of luxury goods enables the North Korean elite to show off their power and status and that luxury goods can thus be used as bribes by high-level officials. Perhaps behind this view is an element of wishful thinking, a belief that it shows a vulnerability among the ruling elite; that Kim Jong-un sees satisfying his personal tastes, and the practical interests of maintaining his grip on power, as being more important than ideology.

Both views get some implicit support from the UN Sanctions Committee “luxury goods” guidelines cited above. They use the Meriam-Webster Dictionary definition of “luxury”:

a habitually sumptuous environment or way of life; an elegant appointment or material aid to the achievement of luxury; a non essential item or service that contributes to luxurious living: an indulgence in ornament or convenience beyond the indispensable minimum; a means or source of pleasurable experience or personal satisfaction.

The guidelines add that:

“Luxury goods are considered to be superior to the comparable substitutes in terms of design, quality, durability or performance. Luxury goods are often associated with certain brands whose names are preferred by those consumers with strong purchasing power. Thus, luxury goods are sometimes considered to play a role of status symbols.”

Problems with the implementation of the UN’s luxury goods ban

The 2015 report of the UN Panel of Experts (PDF file) provides detailed evidence of how the DPRK manages to procure luxury items from multiple countries, including by making use of its diplomatic missions. The report notes that the DPRK also exploits the different definitions ascribed to the term “luxury goods” by various Member States of the UN.

The luxury goods acquired by the DPRK generally travel through multiple countries first, with the manufacturers/companies having no idea about their final destination. Or exporters who deliberately wants to avoid legal scrutiny may claim a different country of destination for their merchandise. These are reasons to be skeptical of any official statistics about trade with the DPRK.

Sections 99-101 of the 2015 report of the UN Panel of Experts devoted to the Masikryong ski resort in the DPRK provides a good illustration of the methods the DPRK uses to evade the luxury goods ban.

The fact that each UN Member State is permitted to interpret the same UN luxury goods category to include different things is a further problem as it “creates a situation of uneven practice” the report concludes. While the United States, Canada, Australia and the European Union, for example, have all published detailed lists (see below) of embargoed luxury goods, China has not done so and nor does it honour the luxury goods lists of other countries when it exports to the DPRK.

This is a serious loophole in the UN’s luxury goods sanctions regime. It is exploited in particular by Chinese businesses, apparently with the support of the Chinese government. The UN Panel of Experts report said Beijing acknowledges that Chinese companies provided design services, ski lifts and other equipment to the Masikryong ski resort, but said Beijing was “of the view that skiing is a popular sport for people, and ski equipment or relevant services are not included in the [UN] list of prohibited luxury goods.”

Country-by-country interpretations of the UNSCR 2094 Annex IV list of prohibited luxury goods

The following is a list of individual countries and country groupings (e.g. European Union) and the luxury items whose export or re-export to the DPRK they prohibit. Note that some of the lists have been translated into English from the language in which they are maintained on their home web sites.

Along with the list of luxury goods defined by each country below, we have included in some cases information about the evolution of legislative measures by that country to implement and expand its controls on the export to the DPRK (and import from it, in the case of the EU) of luxury goods.

European Union (28 Member States, including the United Kingdom) – list current as of January 2018

The main categories of luxury goods defined by the EU for the purposes of sanctions against the DPRK

  1. Horses
  2. Caviar and caviar substitutes
  3. Truffles and preparations thereof
  4. Wines (including sparkling), beers, spirits and spirituous beverages
  5. Cigars and cigarillos
  6. Perfumes, toilet waters and cosmetics, including beauty and make-up products [for men and women]
  7. Leather, saddlery and travel goods, handbags and similar articles of a value exceeding EUR 50 each
  8. Coats of a value exceeding EUR 75 each, or other garments, clothing accessories and shoes (regardless of their material) of a value exceeding EUR 20 each [for men, women and children]
  9. Carpets, rugs and tapestries, hand-made or not
  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. Tableware of porcelain, china, stone- or earthenware or fine pottery
  14. Items of lead crystal
  15. Electrical/electronic items and appliances for domestic use of a value exceeding EUR 50 each
  16. Electrical/electronic or optical apparatus for recording and reproducing sound and images, of a value exceeding EUR 50 each
  17. Vehicles for the transport of persons on earth, air or sea of a value exceeding EUR 10,000 each, teleferics, chairlifts, ski-draglines, traction mechanisms for funiculars, motorbikes of a value exceeding EUR 1,000 each, as well as their accessories and spare parts
  18. Clocks and watches and their parts
  19. Musical instruments
  20. Works of art, collectors’ pieces and antiques
  21. Articles and equipment for sports, including skiing, golf, diving and water sports
  22. Articles and equipment for billiard, automatic bowling, casino games and games operated by coins or banknotes

For full details of the current EU luxury goods list (13 November 2017), including all the sub-categories within each of the 22 main categories, see Annex VIII in Council Regulation (EU) 2017/2062.

The European Union (EU) provides a particularly interesting case study in the interpretation and implementation of a luxury goods export ban. Its list of luxury goods is among the most comprehensive and detailed, and the processes of its decision making in the area of sanctions policy are transparent and well documented.

As we noted in the introduction, the ban on the export of luxury goods to the DPRK was imposed on 14 October 2006 when the UN Security Council adopted Resolution 1718 (2006).

Not long after this decision by the UN Security Council, a meeting of the Council of the European Union (“the Council” or Consilium) was convened on 20 November 2006 to decide how the EU countries would apply these restrictive measures against the DPRK. This meeting of the Council comprised representatives of the Foreign Ministeries of the 28 member states of the EU and was chaired by the EU’s High Representative. The meeting adopted Common Position 2006/795/CFSP [Common Foreign and Security Policy] which set out the EU’s committment to implement the restrictive measures set out in operative paragraph 8 of UNSCR 1718 including, among many others, a ban on exports of luxury goods to North Korea.

Meanwhile individual Member States of the European Union, being also Member States of the United Nations, had in that latter role an obligation to report to the Security Council 1718 Sanctions Committee within 30 days of the adoption of UNSCR 1718, how they were implementing, or planning to implement, the restrictive measures against the DPRPK required by operative paragraph (OP) 8 of the Resolution, OP 8(a)(iii) being the section that covered luxury goods.

The response from France to the Security Council 1718 Sanctions Committee at this time was also typical of other EU Member States. In the Annex to its Note verbale dated 13 November 2006 from the Permanent Mission of France to the United Nations, addressed to the Chairman of the 1718 Sanctions Committee, the representative of France explained that the Council of the European Union was drawing up a regulation governing certain provisions of the Common Position that fall within the competence of the European Community. It noted that, legally, European Community regulations are directly applicable; that is, they are enforceable against nationals of all Member States of the EU from the time of their publication in the Official Journal of the European Communities, and therefore do not require any additional measures for implementation at the national level.

France also expressed its support for the embargo on luxury items and said it was meanwhile engaged in consultations with other EU Member States and the European Commission to establish a list of items that may be subject to the embargo and which could be included in the EU regulations that were being drawn up as noted above.

The Euopean Commission finally implemented that Common Position by drafting Council Regulation (EC) 329/2007 which was adopted on 27 March 2007 and came into force immediately. Annex III of this regulation set out a list of 22 categories of luxury goods which EU member states were prohibited from selling, supplying, transferring or exporting, directly or indirectly, to the DPRK. Council Regulation (EC) 329/2007 also empowered the Euopean Commission to amend this list of luxury goods if necessary in light of any definition or guidelines that the Security Council 1718 Sanctions Committee may promulgate in future and taking the lists of luxury goods produced by other jurisdictions into account.

That is how things remained for luxury goods sanctions in the EU until 2016 when, on 27 May 2016, the Council considered that the prohibition on the export of luxury goods to the DPRK should be extended to cover the import of such goods from the DPRK. To give effect to that decision, Article 4 of Council Regulation (EC) 329/2007 was amended to introduce a prohibition on the import of luxury goods from DPRK – for more details see Council Regulation (EU) 2016/841 amending Council Regulation (EC) 329/2007 and Council Decision (CFSP) 2016/849, which consolidated and replaced Council Decision 2013/183/CFSP.

This set of EU decisions and regulations on an import ban did not need to alter the list of 22 categories of luxury goods defined in Annex III of Council Regulation (EC) 329/2007. Soon after, however, the situation changed as a consequence of the EU’s response to the adoption by the UN Security Council of Resolution 2321 (2016) on 30 November 2016. This was the Security Council’s reaction to the DPRK’s fifth and most powerful nuclear weapons test, carried out on 9 September 2016. UNSCR 2321 (2016) provided for new measures against the DPRK, including an import ban for copper, nickel, silver, zinc and statues, an export ban for helicopters and vessels, the tightening of the prohibitions in the transport sector and new restrictions in the banking sector. UNSCR 2321 (2016) also further refined the list of luxury goods subject to an export ban thus implying a need for the EU to revise its luxury goods list set out in Annex III to Council Regulation (EC) No 329/2007.

The EU implemented the import and export bans required by UNSCR 2312 (2016) on 27 February 2017 when the Council of the European Union adopted Council Regulation (EU) 2017/330 amending Council Regulation (EC) 329/2007 accordingly. This added Annexes Ih, IIIa and IIIb. It did not, however, make any changes to the luxury goods list in Annex III.

The unfinished business of the luxury goods changes from UNSCR 2321 (2016) was eventually resolved when the Council of the European Union decided on 6 April 2017 to add four individuals to the EU’s list of persons and entities subject to restrictive measures. The EU took this opportunity to also implement the luxury goods changes in UNSCR 2321 and so ammended Annex III of Council Resolution (EC) 329/2007 accordingly. All these changes were made by the Commission Implementing Regulation (EU) 2017/661.

On 30 August 2017 the Council of the European Union completely overhauled the regulations relating to the restrictive measures against the DPRK. New Council Regulation (EU) 2017/1509 repealed and replaced the longstanding Council Regulation (EC) 329/2007. The categories of luxury goods listed in Annex III of Council Resolution (EC) 329/2007 underwent extensive technical edits with each of the 22 categories offering more detail by being broken down into sub-categories for a total of more than 300 items. Each item had the EU nomenclature codes added for easy identification. The edited Annex III (of 329/2007) became Annex VIII of new Council Regulation (EU) 2017/1509.

This did not complete the overhaul, however. On 16 October 2017 the Council of the European Union invited the European Commission to review the list of luxury goods in consultation with Member States. The outcome of the review required changes to Annex VIII. These, along with other changes to EU DPRK sanctions measures, were made by Council Regulation (EU) 2017/2062 amending Council Regulation (EU) 2017/1509.

USA – list current as of January 2018

The Code of Federal Regulations (CFR) Title 15 (Commerce and Foreign Trade), Subtitle B, Chapter VII, Subchapter C, Part 746, more commonly referred to as CFR 746 is the part of U.S. administrative law that implements broad based embargoes and other special controls for items and activities subject to the Export Administration Regulations (EAR) imposed to implement U.S. government policies.

Section CFR 746.4 deals with North Korea sanctions and within that, subsection 746.4(b)(1) sets out examples of “luxury goods” whose export or reexport to the DPRK are subject to a general policy of denial. The list of examples are:

  • luxury automobiles;
  • yachts;
  • gems;
  • jewelry;
  • other fashion accessories;
  • cosmetics;
  • perfumes;
  • furs;
  • designer clothing;
  • luxury watches;
  • rugs and tapestries;
  • electronic entertainment software and equipment;
  • recreational sports equipment;
  • tobacco;
  • wine and other alcoholic beverages;
  • musical instruments;
  • art;
  • antiques and collectible items, including but not limited to rare coins and stamps.

Supplement No. 1 to CFR 746 – Examples of Luxury Goods – expanded the list of examples above and provides the basis of the current (as of November 2017) list of “luxury goods” subject to a U.S. export ban to the DPRK:

  • Tobacco and tobacco products
  • Luxury watches: wrist, pocket, and other with a case of precious metal or of metal clad with precious metal
  • Apparel and fashion items, as follows:
    1. Leather articles
    2. Silk articles
    3. Fur skins and artificial furs
    4. Fashion accessories: leather travel goods, vanity cases, binocular and camera cases, handbags, wallets, designer fountain pens, silk scarves
    5. Cosmetics, including beauty and make-up
    6. Perfumes and toilet waters
    7. Designer clothing: leather apparel and clothing accessories
  • Decorative items, as follows:
    1. Rugs and tapestries
    2. Tableware of porcelain or bone china
    3. Items of lead crystal
    4. Works of art (including paintings, original sculptures and statuary), antiques (more than 100 years old), and collectible items, including rare coins and stamps
  • Jewelry:
    1. jewelry with pearls, gems, precious and semi-precious stones (including diamonds, sapphires, rubies, and emeralds), jewelry of precious metal or of metal clad with precious metal
  • Electronic items, as follows:
    1. Flat-screen, plasma, or LCD panel televisions or other video monitors or receivers (including high-definition televisions), and any television larger than 29 inches; DVD players
    2. Personal digital assistants (PDAs)
    3. Personal digital music players
    4. Computer laptops
  • Transportation items, as follows:
    1. Yachts and other aquatic recreational vehicles (such as personal watercraft)
    2. Luxury automobiles (and motor vehicles): automobiles and other motor vehicles to transport people (other than public transport),including station wagons
    3. Racing cars, snowmobiles, and motorcycles
    4. Personal transportation devices (stand-up motorized scooters)
  • Recreational items, as follows:
    1. Musical instruments
    2. Recreational sports equipment
  • Alcoholic beverages: wine, beer, ales, and liquor

Australia – list current as of January 2018

  1. Wine
  2. Spirits (all kinds)
  3. Tobacco Products
  4. Caviar
  5. Crustaceans (all), e.g. rock lobsters
  6. Abalone
  7. Molluscs and aquatic invertebrates, e.g. oyster in any form
  8. Automobiles and other vehicles to transport people, excluding snowmobiles (see Item 30 for a separate entry for snowmobiles)
  9. Yachts, pleasure craft and aquatic recreational vehicles (such as personal watercraft)
  10. Perfumes and toilet waters
  11. Cosmetics (all)
  12. Furs
  13. Silver
  14. Gold
  15. Jewellery
  16. Precious and Semi Precious Stones (including diamonds, sapphires, rubies, emeralds and pearls)
  17. Items of lead crystal
  18. Works of Art (all)
  19. Fountain Pens
  20. Watches & Clocks
  21. Carpets
  22. Precious Metals
  23. Leather travel goods, apparel and clothing accessories
  24. Consumer Electronics (televisions, videos, DVD players, PDAs, laptops, MP3 players – and any other relevant exports)
  25. Photographic equipment
  26. Electronic entertainment/software
  27. Sports Equipment
  28. Gems
  29. Racing Cars
  30. Snowmobiles (valued at greater than USD 2000)
  31. Tableware of porcelain or bone china (valued at greater than USD 100)
  32. Rugs and tapestries (valued at greater than USD 500)

The list above is set out in the Charter of the United Nations (Sanctions – Democratic People’s Republic of Korea) (Luxury Goods) Instrument 2017 (dated 25th May 2017) which replaced the previous list from 2006 when it repealed the Charter of the United Nations (Sanctions – Democratic People’s Republic of Korea) Luxury Goods List 2006 regulation.

As we noted in the introduction, the ban on the export of luxury goods to the DPRK commenced on 14 October 2006 when the UN Security Council adopted Resolution 1718 (2006) which imposed restrictive measures on the DPRK. Australia acted within one month of the adoption of UNSCR 1718 to implement through legislative changes the important operative paragraph (OP) 8 of the resolution. OP 8(a) and (b) of UNSCR 1718 required Australia (just as is did for all other UN Member States) to prevent the supply, sale or transfer to the DPRK, or the procurement from the DPRK, of certain conventional military goods, nuclear-related, WMD-related and missile-related items. Further, OP 8(a)(iii) of the resolution required Australia (and other countries) to prevent the supply of luxury items to the DPRK.

The annex to the note verbale dated 10 November 2006 from the Permanent Mission of Australia, to the United Nations to the Chairman of the Security Council 1718 Sanctions Committee, set out the legislative and administrative steps Australia had taken:

  • The promulgation of the Charter of the United Nations (Sanctions – Democratic People’s Republic of Korea) Regulations 2006. These were referred to as ‘the DPRK Regulations’ and took effect on 10 November 2006. Regulation 19 allowed the Minister for Foreign Affairs of Australia to determine by legislative instrument a list of goods to be treated as luxury goods for the purposes of the regulations. The Australian Goverment then set about defining the list of luxury goods.
  • The promulgation of amendments to the Customs (Prohibited Imports) Regulations 1959 and the Customs (Prohibited Exports) Regulations 1958. The amended regulations took effect on 3 November 2006. New Regulation 13CO of the Customs (Prohibited Exports) Regulations 1958 prohibited, among other things, the transfer to the DPRK of luxury goods defined by the DPRK Regulations above. The amended Customs (Prohibited Exports) Regulations 1958 of course also prohibited the transfer to the DPRK of much more important items such as military arms and any goods capable of being used in the development of WMDs, as was required by UNSCR 1718.

New Zealand – list current as of January 2018

The current list of luxury goods designated by the Government of New Zealand can be found in the Schedule to the United Nations Sanctions (Democratic People’s Republic of Korea) Regulations 2017.

The list below is the text of the Schedule as of 4 January 2018.

  1. Alcoholic beverages
  2. Bone china
  3. Cameras and movie equipment
  4. Carpets and tapestries
  5. Cars, motorcycles, snowmobiles, aircraft, and their parts and accessories
  6. Caviar and its substitutes
  7. Chocolate
  8. Computers, audiovisual equipment, data or software (for example, films, music, or both, recorded or stored digitally), and things on which data or software is or may be recorded or stored
  9. Cosmetics
  10. Crustaceans, molluscs, aquatic invertebrates, and goods containing those species
  11. Crystal glassware
  12. Deer velvet
  13. Designer clothing
  14. Designer furniture
  15. Fountain pens
  16. Fur products and artificial fur products
  17. Honey and its derivatives
  18. Jewellery
  19. Leather bags and clothes
  20. Mobile telephones
  21. Musical instruments
  22. Perfumes
  23. Portable electronic devices (for example, digital audio players, activity trackers, and headsets)
  24. Precious metals of any kind, precious and semi-precious stones, and articles made from them
  25. Ships and their parts and accessories
  26. Sporting goods and equipment
  27. Tobacco
  28. Tuna, toothfish, salmon, and goods containing those species
  29. Works of art, collector’s pieces, and antiques
  30. Wristwatches

Japan – list current as of January 2018

  1. Beef – fresh, chilled, frozen [牛の肉(冷凍したものに限る。]
  2. Tuna fillets (as defined by the Ministry of Economy, Trade and Industry (METI) in a public notice) [魚のフィレ(冷凍したものであつて、経済産業大臣が告示で定めるものに限る。)]
  3. Caviar and caviar substitutes prepared from fish eggs [キャビア及び魚卵から調製したキャビア代用物]
  4. Alcoholic beverages [アルコール飲料]
  5. Tobacco products – factory-made cigarettes and cigarette substitutes (cigars and cigarillos?) [製造たばこ及び製造たばこ代用品]
  6. Perfumes and colognes [香水類及びオーデコロン類]
  7. Cosmetics – cosmetics, make-up or skin care products (including sunscreen and sunburn protection but excluding pharmaceutical preparations) and manicure and pedicure products [美容用、メーキャップ用又は皮膚の手入れ用の調製品(日焼止め用又は日焼け用の調製品を含み、医薬品を除く。)及びマニキュア用又はペディキュア用の調製品]
  8. Leather travel goods – trunks, suitcases, vanity case, makeup/toilet bags, executive cases, briefcases, school satchels and similar items (the outer surface of which is made of leather, composition leather or patent leather) [トランク、スーツケース、携帯用化粧道具入れ、エグゼクティブケース、書類かばん、通学用かばんその他これらに類する容器(外面が革製、コンポジションレザー製又はパテントレザー製のものに限る。)]
  9. Leather handbags – handbags whose outer surface is made of leather, composition leather or patent leather [ハンドバッグ(外面が革製、コンポジションレザー製又はパテントレザー製のものに限る。)]
  10. Leather wallets and purses – wallets/purses whose outer surface is made of leather, composition leather or patent leather [財布その他のポケット又はハンドバッグに通常入れて携帯する製品(外面が革製、コンポジションレザー製又はパテントレザー製のものに限る。)]
  11. Leather clothing and accessories – clothing and clothing accessories made of leather or composition leather [衣類及び衣類附属品(革製又はコンポジションレザー製のものに限る。)]
  12. Fur coats, other fur products and artificial fur products [毛皮製のオーバーコートその他の毛皮製品及び人造毛皮製品]
  13. Carpets, tapestries and tableware:
    1. Carpets, rugs and other floor coverings made of textile fibres [じゆうたんその他の紡織用繊維の床用敷物]
    2. Tapestries (as defined by the Ministry of Economy, Trade and Industry (METI) in a public notice) [つづれ織物(経済産業大臣が告示で定めるものに限る。)]
    3. Porcelaine tabelware (as defined by the Ministry of Economy, Trade and Industry (METI) in a public notice) [磁器製の食卓用品(経済産業大臣が告示で定めるものに限る。)]
  14. Lead crystal glassware (as defined by the Ministry of Economy, Trade and Industry (METI) in a public notice) [ガラス製品(鉛ガラス製のものであつて、経済産業大臣が告示で定めるものに限る。)]
  15. Natural or cultured pearls, precious or semi-precious stones, precious metals (silver, gold, platinum, iridium, osmium, palladium, rhodium and ruthenium and similar) and articles clad or plated with precious metals. [天然又は養殖の真珠、貴石、半貴石、特定金属(銀、金、白金、イリジウム、オスミウム、パラジウム、ロジウム及びルテニウムをいう。以下同じ。)及び特定金属を張つた金属並びにこれらの製品]
  16. Portable computing devices consisting of at least a central processing unit (CPU), a keyboard and a display [携帯用のデジタル式自動データ処理機械(少なくとも中央処理装置、キーボード及びディスプレイから成るものに限る。)]
  17. Microphones and stands, loudspeakers, headphones and earphones, a combination of microphone and loudspeaker, audio amplifiers and electric amplifiers for accosutic instruments [マイクロホン及びそのスタンド、拡声器、ヘッドホン及びイヤホン、マイクロホンと拡声器を組み合わせたもの、可聴周波増幅器並びに電気式音響増幅装置]
  18. Audio and video recording/reproduction equipment and parts and accessories thereof [音声再生機、録音機及びビデオの記録用又は再生用の機器並びにこれらの部分品及び附属品]
  19. Recording media (excluding that used for photographs or movies but including records and other recordings) [録音その他これに類する記録用の媒体(写真用又は映画用のものを除き、録音その他これに類する記録をしたものを含む。)]
  20. Video cameras and digital cameras [ビデオカメラレコーダー及びデジタルカメラ]
  21. Broadcast radio receivers (including those capable of receiving wireless telephony or wireless telegraphy signals) [ラジオ放送用受信機(無線電話又は無線電信を受信することができるものを含む。)]
  22. Colour television receivers (as defined by the Ministry of Economy, Trade and Industry (METI) in a public notice), colour video monitors and video projectors [テレビジョン受像機器(カラーのものであつて、経済産業大臣が告示で定めるものに限る。)並びにビデオモニター(カラーのものに限る。)及びビデオプロジェクター]
  23. Passenger vehicles and snowmobiles (snowmobiles are as defined by the Ministry of Economy, Trade and Industry (METI) in a public notice) [乗用自動車及び雪上走行用に特に設計した車両(雪上走行用に特に設計した車両にあつては、経済産業大臣が告示で定めるものに限る。)]
  24. Motorcycles, mopeds and bicycles with an electric motor [モーターサイクル(モペットを含む。)及び補助原動機付きの自転車]
  25. Yachts, pleasure craft, canoes and similar vessels used for recreational/sports purposes [ヨットその他の娯楽用又はスポーツ用の船舶及びカヌー]
  26. Single-lens reflex (SLR) cameras [写真機(一眼レフレックスのものに限る。)]
  27. Cinematography cameras and movie projectors [映画用の撮影機及び映写機]
  28. Projectors, photographic enlargers/reducers (excluding those for movies) [投影機、写真引伸機及び写真縮小機(映画用のものを除く。)]
  29. Projection screens [映写用又は投影用のスクリーン]
  30. Watches, pocket watches and other portable watches (including stopwatches) [腕時計、懐中時計その他の携帯用時計(ストップウォッチを含む。)]
  31. Musical instruments and exercise equipment:
    1. Musical instruments and parts and accessories thereof [楽器並びにその部分品及び附属品]
    2. Exercise equipment and parts and accessories thereof (as defined by the Ministry of Economy, Trade and Industry (METI) in a public notice) [運動用具並びにその部分品及び附属品(経済産業大臣が告示で定めるものに限る。)]
  32. Fountain pens [万年筆]
  33. Works of art, collectors’ pieces, antiques [美術品、収集品及びこつとう]

The above is the latest list of “luxury goods” as defined by the Japanese Government for DPRK sanctions purposes. It is only available in Japanese and is set out in Table 2-2 (別表第二の二) of the Export Trade Control Order (輸出貿易管理). It was last revised in February 2017 following a decision of the Cabinet who were responding to the new sanctions measures contained in UN Securiy Council Resolution 2321 (November 2016).

Switzerland – list current as of January 2018

  1. Caviar and caviar substitutes prepared from fish eggs
  2. Wine and spirit drinks
  3. Cigars
  4. Perfumes, toiletries and cosmetic preparations of high value
  5. Leather goods of high value
  6. Clothing, clothing accessories and high value shoes
  7. Carpet whose selling price is more than 500 francs each
  8. Tapestries with a selling price of over 500 francs each
  9. Pearls, precious stones and gems, jewelery (articles de bijouterie et de joaillerie)
  10. Coins and banknotes, not being legal tender
  11. Table cutlery of gold, silver or platinum
  12. Highly valuable electronic entertainment devices
  13. High value recording or reproducing apparatus, electronic or optical
  14. Luxury vehicles for air, land and sea transport, as well as their accessories and spare parts
  15. Watches and timepieces of high value
  16. High value musical instruments
  17. Works of art, collectibles and antiques
  18. Purebred horses
  19. Truffles
  20. Bakery specialties, such as butter buns, confectionery and pastry products
  21. Sporting goods and equipment, including skiing, golf, horse riding and water sports
  22. Articles and equipment for billiards, automatic games such as bowling, casino games and games operated by the introduction of a coin or a banknote
  23. Infrastructure and capital goods for luxury sports facilities, e.g. ski resorts and water sport facilities
  24. Lead crystal items
  25. Snowmobiles
  26. Porcelain whose selling price is more than 100 francs per unit
  27. Hunting and sporting weapons and their ammunition

The most recent list is found in Annexe 5 of Ordonnance instituant des mesures à l’encontre de la République populaire démocratique de Corée du 18 mai 2016. The list (in French) was last updated in February 2017.

Canada – list current as of January 2018

  1. Jewelry, gems, precious and semi-precious stones
  2. Precious metals
  3. Lead crystal
  4. Watches
  5. Cigarettes
  6. Alcoholic beverages
  7. Perfume
  8. Designer clothing and accessories
  9. Furs
  10. Sporting goods

  11. Private aircraft
  12. Gourmet foods and ingredients
  13. Lobster
  14. Computers, televisions and other electronic devices
  15. Yachts
  16. Racing cars
  17. Personal watercraft
  18. Snowmobiles
  19. Automobiles and other motor vehicles, except those that are used for public transportation, that are used to transport people

Latest list of luxury goods (articles de luxe) is found in Regulations Implementing the United Nations Resolutions on the Democratic People’s Republic of Korea (DPRK) (SOR/2006-287) (last amended on 21 October 2016).

As we noted in the introduction, the ban on the export of luxury goods to the DPRK commenced on 14 October 2006 when the UN Security Council adopted Resolution 1718 (2006) which imposed restrictive measures on the DPRK. Canada notified the Security Council 1718 Sanctions Committee within thirty days from the adoption of UNSCR 1718 that it was effectively implementing the restrictive measures set out in operative paragraph (OP) 8 of the resolution. OP 8(a) and (b) of UNSCR 1718 required Canada and other Member States to prevent the supply, sale or transfer to the DPRK, or the procurement from the DPRK, of certain conventional military goods, nuclear-related, WMD-related and missile-related items. Further, OP 8(a)(iii) of the resolution required Canada and the other Member States to prevent the supply of luxury items to the DPRK.

The annex to the letter dated 13 November 2006 from the Permanent Representative of Canada to the United Nations, addressed to the Chairman of the 1718 Sanctions Committee, informed the Committee that Canada was doing this through the application of the Regulations Implementing the United Nations Resolution on the Democratic People’s Republic of Korea (the “DPRK Regulations”) made under the United Nations Act, the Export and Import Permits Act and the Immigration and Refugee Protection Act.

With respect to OP 8(a) of UNSCR 1718, the following applied:

  • Section 3 of the DPRK Regulations prohibited Canadians and Canadian entities from exporting to the DPRK any items covered by OP 8(a)(i) to 8(a)(iii), the last covering “luxury goods”;
  • Section 4 of the DPRK Regulations prohibited ships and aircraft registered in Canada from carrying such items.

Republic of Korea – list and updates are current as of February 2017

Under the Inter-Korean Exchange and Cooperation Act, the South Korean Government’s authorisation is required for the direct transfer of all items between the Republic of Korea and the Democratic People’s Republic of Korea. Under the Act, the Ministry of Unification may prohibit the transfer of luxury goods to the DPRK.

The Government of the Republic of Korea designated a list of 13 luxury good categories for this purpose and published it in the Government Journal on 10 July 2009. That initial list is available in English (see below) and can be found in the Report of the Republic of Korea on the implementation of Security Council resolution 1874 (2009) which is the annex to the note verbale dated 27 July 2009 from the Permanent Mission of the Republic of Korea to the United Nations, addressed to the Chairman of the Security Council 1718 Sanctions Committee.

  1. Alcoholic beverages:
    • Wines
    • Ethyl Alcohol, spirituous liquors, and other alcoholic beverages
  2. Cosmetics:
    • Perfumes
    • Cosmetics, including foundations and manicure-related, and pedicure-related products
  3. Leather goods:
    • Trunks, suitcases, cosmetic cases, executive cases, briefcases, satchels, and other similar bags
    • Handbags
    • Pockets or other products that may be carried in handbag
    • Clothing and accessories
  4. Fur items:
    • Fur clothing, accessories, and other fur products
  5. Carpeting goods:
    • Carpeting products and other textile carpets
  6. Pearls and jewelry:
    • Natural or hatchery pearls
    • Diamonds
    • Jewelry
    • Silver
    • Gold
    • Gilded products
    • White gold,white gold-plated products
    • Ornaments and their accessories
    • Products that contain jewelry
  7. Electronic goods:
    • Transmitter products for radio or televisions, television cameras, digital cameras, and videocassette recorders
    • Monitors, projectors, and related products excluding television transmitterproducts
  8. Automobiles:
    • Passenger cars and other vehicles
    • Motorcycles and bicycles or sidecars with assistant motors
  9. Vessels:
    • Yachts, other vessels for excursion or exercise, boats with paddles, and canoes
  10. Optical instruments:
    • Cameras
    • Movie cameras and projectors for movies
  11. Timepieces:
    • Wristwatches, pocket watches, and other wearable timepieces
  12. Musical instruments:
    • Pianos, harpsichords, and other stringed keyboard instruments
    • String instruments
    • Wind instruments
    • Electronic musical instruments
  13. Artwork and curios:
    • Collections and specimens
    • Curios
  14. Rugs and tapestries (added in 2017)
  15. Tableware made of porcelain or bone china (added in 2017)

The list above has been reviewed and revised a number of times in the light of Security Council resolutions adopted subsequent to 1718 (2006):

  • UNSCR 2094 (2013) clarified for the first time that the term “luxury goods” includes, but is not limited to:
    1. Jewelry:
      • Jewelry with pearls;
      • Gems;
      • Precious and semi-precious stones (including diamonds, sapphires, rubies, and emeralds);
      • Jewelry of precious metal or of metal clad with precious metal.
    2. Transportation items, as follows:
      • Yachts;
      • Luxury automobiles (and motor vehicles): automobiles and other motor vehicles to transport people (other than public transport), including station wagons;
      • Racing cars.
  • UNSCR 2270 (March 2016) further clarified that the term “luxury goods” includes, but is not limited to:
    1. Luxury watches: wrist, pocket, and other with a case of precious metal or of metal clad with precious metal
    2. Transportation items, as follows:
      • aquatic recreational vehicles (such as personal watercraft)
      • snowmobiles (valued greater than USD 2,000)
    3. Items of lead crystal
    4. Recreational sports equipment
  • UNSCR 2321 (November 2016) which reaffirmed all the above and added:
    1. Rugs and tapestries (valued greater than USD 500), and
    2. Tableware of porcelain or bone china (valued greater than USD 100)

Singapore – list current as of January 2018

  1. Recreational sports equipment
  2. Carpets and tapestries
  3. Caviar
  4. Cigars, cheroots and cigarillos
  5. Cosmetics and perfumes
  6. Cutlery of gold, silver or platinum (collectively called in this paragraph precious metal) or clad or plated with precious metal
  7. Items of lead crystal
  8. Electronic items as follows:
    • Computers (including desktop computers, laptop computers, notebook computers, personal digital assistants (PDAs), portable computers, tablet computers and wearable computers)
    • Digital cameras
    • DVD (digital video disc) players and Blu ray disc players
    • Personal digital music players
    • Smart phones
    • Televisions
    • Video camera recorders
    • Web cameras
  9. Equipment used for producing movies or in home theatre systems (including amplifiers, Hi-Fi sound systems, speakers, projectors, projection screens, headphones and microphones)
  10. Fur products
  11. Gold, silver and platinum
  12. Articles of goldsmiths’ and silversmiths’ wares, and parts of such articles, made of precious metal or of metal clad or plated with precious metal
  13. Jewellery (including jewellery with pearls, and jewellery of precious metal or of metal clad or plated with precious metal)
  14. Leather bags, apparel and clothing accessories
  15. Luxury household fittings (including taps clad or plated with precious metal, whirlpool baths, crystal chandeliers, steam baths and saunas)
  16. Motor vehicles (including motor cars, motor cycles, station wagons, racing cars and snow mobiles)
  17. Musical instruments
  18. Precious and semi-precious stones (including diamonds, sapphires, rubies and emeralds)
  19. Watches
  20. Wines and spirits
  21. Works of art, collectors’ pieces and antiques
  22. Aquatic recreational vehicles (including yachts and pleasure crafts)
  23. Tableware and kitchenware, of porcelain or china

Latest list of luxury goods is found in the Seventh Schedule of the Regulation of Imports and Exports Act (Chapter 272A, Section 3) – Regulation of Imports and Exports Regulations. Note that with effect from 8 November 2017, Singapore has prohibited all commercially traded goods from or to the DPRK, whether they are imported, exported, transhipped or brought in transit through Singapore.

Hong Kong – list current as of June 2018

A Hong Kong Trade and Industry Department circular (see below) announced a probibition against the supply, sale, transfer and carriage of additional luxury goods to the DPRK without a licence, that includes:

  • aquatic recreational vehicles
  • snowmobiles
  • luxury watches
  • lead crystal items
  • luxury rugs or tapestries
  • porcelain or bone china tableware

This list is provided by Hong Kong Trade and Industry Department circular TRA CR 1006/12 United Nations Sanctions (Democratic People’s Republic of Korea) (Amendment) Regulation 2018.

Russia

In response to UN Security Council Resolution 2321 (November 2016), Russian President Vladimir Putin signed Decree No. 484 [Decree of the President of the Russian Federation of 14.10.2017 No. 484 “On measures to implement UN Security Council Resolution 2321 of November 30, 2016”].

The decree came into force on 14 October 2017. The text of the decree is only accessible in Russian but among its provisions are a number of appendices listing materials, technologies and products that are banned from being exported to the DPRK.

Appendix No. 5 lists luxury goods whose export to the DPRK were prohibited from November 30, 2016 [sic] until further notice. It is a short list:

  1. Carpets and tapestries (costing more than USD 500)
  2. Tableware made of porcelain or bone china (costing more than USD 100)

In translation, the full text of the appendix reads:

APPENDIX No. 5 to the Decree of the President of the Russian Federation of October 14, 2017 No. 484

The list of luxury goods, the movement of which through the territory of the Russian Federation (including by air), the export from the territory of the Russian Federation to the Democratic People’s Republic of Korea, and the transfer to the Democratic People’s Republic of Korea outside the Russian Federation using ships and aircraft flagged in the Russian Federation, are banned from November 30, 2016 until further notice.

  1. Carpets and tapestries (cost codes from groups 57, 58, 63, more than 500 US dollars)

  2. Tableware made of porcelain or bone china (6911, 6914 00 000 0 costing more than 100 US dollars)

Note: For the purposes of applying this list, it is necessary to be guided both by the name of the goods, and by the code of the single Commodity Nomenclature for Foreign Economic Activity of the Eurasian Economic Union (TNEA of the EEA).

In Russian the full text of the appendix reads:

ПРИЛОЖЕНИЕ № 5 к Указу Президента Российской Федерации от 14 октября 2017 г. № 484

Список предметов роскоши, транзитное перемещение которых через территорию Российской Федерации (в том числе воздушным транспортом), вывоз с территории Российской Федерации в Корейскую Народно-Демократическую Республику, а также передача Корейской Народно-Демократической Республике вне пределов Российской Федерации с использованием морских и воздушных судов под флагом Российской Федерации запрещены с 30 ноября 2016 г. и впредь до особого распоряжения

  1. Ковры и гобелены (стоимостью коды из групп 57, 58, 63, более 500 долларов США)

  2. Посуда из фарфора или костяного фарфора (6911, 6914 00 000 0 стоимостью более 100 долларов США)

Примечание. Для целей применения настоящего списка необходимо руководствоваться как наименованием товара, так и кодом единой Товарной номенклатуры внешнеэкономической деятельности Евразийского экономического союза (ТН ВЭД ЕАЭС).

The original Russian text of Appendix No. 5 can be found here on the Kremlin’s Official Internet Portal for Legal Information. It is the last Appendix on the page.

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