Explanatory Statement
Select Legislative Instrument 2006
Issued by the Authority of the Minister for Foreign Affairs
Charter of the United Nations Act 1945
Charter of the United Nations (Sanctions – Democratic Republic of Korea) Luxury Goods List 2006
The Charter of the United Nations (Sanctions – Democratic People’s Republic of Korea) Regulations 2006 (‘the Regulations’) entered into force on 10 November 2006. The purpose of the Regulations is to implement Australia’s obligations under United Nations Security Council Resolution (UNSCR) 1718, adopted on 14 October 2006, to impose a range of sanctions against the Democratic People’s Republic of Korea (DPRK). UNSCR 1718 was adopted under Article 41 of Chapter VII of the Charter of the United Nations, and the measures are binding on Australia pursuant to Article 25.
Under UNSCR 1718, Australia was required to take necessary measures to prevent the direct or indirect supply, sale or transfer to the DPRK of, inter alia, luxury goods. This prohibition applies extraterritorially, including to Australian nationals abroad, and the use of Australian vessels and aircraft.
Regulation 19 of the Regulations provides that the Minister for Foreign Affairs may, by legislative instrument, determine a list of goods (the luxury goods list) that are to be treated as luxury goods for the purposes of these Regulations. By this instrument, the Minister for Foreign Affairs has determined a list of goods to be included on the luxury goods list for the purposes of Regulation 19.
Once this legislative instrument comes into effect, the Regulations make it an offence, inter alia, to engage in conduct which assists, or results in, the sale, supply or transfer of specified goods on the luxury goods list to the DPRK, or any recipient in the DPRK, or any person or entity acting on behalf of, or owned or controlled by, the DPRK. This prohibition does not extend to resident or visiting DPRK diplomats entitled to privileges and immunities under the Diplomatic Privileges Act 1967, or the DPRK Embassy, for use in Australia.
The relevant United Nations Security Council Resolutions can be found on the UN website (www.un.org). Australia has an obligation under Article 25 of the United Nations Charter to carry out decisions of the Security Council. All relevant Commonwealth Government Departments were consulted prior to the drafting of this instrument.
(initialled by the Hon. Alexander Downer, Minister for Foreign Affairs)
Overview
The Charter of the United Nations (Sanctions – Democratic People’s Republic of Korea) Regulations 2006 were enacted to fulfil Australia's commitment under United Nations Security Council Resolution 1718, which mandates sanctions against the Democratic People's Republic of Korea (DPRK). These sanctions, including a prohibition on the supply, sale, or transfer of luxury goods to the DPRK, were established to address the issues posed by the DPRK's actions, as outlined in the resolution. Authorised by the Minister for Foreign Affairs, the Regulations are designed to implement Australia's obligations under the Charter of the United Nations Act 1945, specifically Article 25, which requires the nation to adhere to Security Council decisions. This legislative measure ensures Australia's compliance with international efforts to exert pressure on the DPRK through economic sanctions, while also safeguarding the interests of Australian nationals and entities abroad.
Scope and Application
The Charter of the United Nations (Sanctions – Democratic People’s Republic of Korea) Regulations 2006 apply to all persons and entities within Australia, including Australian nationals and those operating under the Australian flag, wherever they are located. The Regulations are designed to implement Australia's commitments under United Nations Security Council Resolution 1718, which mandates sanctions against the Democratic People’s Republic of Korea. These sanctions include prohibiting the supply, sale, or transfer of specified luxury goods to the DPRK, its nationals, or entities acting on its behalf. The Regulations extend their reach extraterritorially, impacting activities conducted by Australians abroad and using Australian vessels or aircraft. The Minister for Foreign Affairs has the authority to determine a list of luxury goods, which is now set out in the accompanying Luxury Goods List 2006. Exemptions exist for DPRK diplomats in Australia who are entitled to privileges and immunities under the Diplomatic Privileges Act 1967, as well as for the DPRK Embassy in Australia. Failure to comply with these Regulations constitutes an offence under Australian law, reinforcing Australia's adherence to international obligations under the United Nations Charter.
Key Provisions
The Charter of the United Nations (Sanctions – Democratic People’s Republic of Korea) Regulations 2006 (Regulations) implement Australia’s obligations under United Nations Security Council Resolution (UNSCR) 1718. This resolution, adopted on 14 October 2006, mandates a series of sanctions against the Democratic People’s Republic of Korea (DPRK). One of the primary measures involves prohibiting the sale, supply, or transfer of luxury goods to the DPRK, including by Australian nationals abroad and using Australian vessels and aircraft. This is in line with Regulation 19, which allows the Minister for Foreign Affairs to designate a list of luxury goods (Regulation 19(1)). This list is intended to clarify which items are considered luxury goods under the Regulations.
Under the Regulations, several obligations are imposed on parties and entities governed by these measures. Firstly, any person or entity subject to Australian jurisdiction must refrain from engaging in activities that facilitate the sale, supply, or transfer of luxury goods to the DPRK or any person or entity acting on behalf of, or owned or controlled by, the DPRK. This prohibition extends to the use of Australian assets, such as vessels and aircraft, to conduct such activities. Furthermore, it is essential to note that the sanctions do not apply to DPRK diplomats who are entitled to privileges and immunities under the Diplomatic Privileges Act 1967, nor to the DPRK Embassy for use within Australia.
The Regulations also establish specific consequences for non-compliance. Engaging in conduct that assists, or results in, the sale, supply, or transfer of specified luxury goods to the DPRK or any person or entity acting on behalf of, or owned or controlled by, the DPRK is an offence. While the specific penalties are not detailed in the explanatory statement, it is common for such offences to carry significant penalties under Australian law, including fines and imprisonment. These measures are in place to ensure Australia adheres to its obligations under Article 25 of the United Nations Charter, which requires member states to implement Security Council decisions.