The additional sanctions:

  1. Block the property and all interests in property of the Government of North Korea (GONK) or the Worker’s Party of North Korea (WPNK). This means that US persons are prohibited from engaging in all economic activities and transactions with or involving the GONK or the WPNK. Unless authorized by the US Treasury Department, this prohibits all business with, or involving, the GONK or the WPNK. The term "Government of North Korea" means the Government of the Democratic People's Republic of Korea and its agencies, instrumentalities, and controlled entities.

2. Provide for the designation of additional North Korean and other entities as sanctions targets or blocked entities (SDNs), which entities include but are not limited to:

a. North Korean entities in the transportation, mining, energy and financial services sector;

b. Persons or entities that have sold, supplied, transferred, or purchased, directly or indirectly, to or from North Korea or any person acting for or on behalf of the GONK or the WPNK metal, graphite, coal, or software, where any revenue or goods received may benefit the GONK or the WPNK, including North Korea's nuclear or ballistic missile programs;

c. Persons or entities that have engaged in, facilitated, or been responsible for the exportation of workers from North Korea, including exportation to generate revenue for the GONK or the WPNK; and

d. Persons or entities that have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, any person whose property and interests in property are blocked by the Additional Sanctions.

3. Prohibit:

a. the exportation or reexportation, direct or indirect, from the United States, or by a United States person, wherever located, of any goods, services, or technology to North Korea;

b. new investment in North Korea by a United States person, wherever located;

c. any approval, financing, facilitation, or guarantee by a United States person, wherever located, of a transaction by a foreign person where the transaction by that foreign person would be prohibited by the additional sanctions if performed by a United States person or within the United States;

d. the entry into the United States of blocked North Korean citizens.

As to their impact on the availability of the American Club cover for vessels trading with North Korea, the additional sanctions prohibit the American Club (a US person located in the United States) from providing insurance cover to vessels trading with North Korea. However, the Treasury Department may authorize the American Club to provide cover with respect to trade with North Korea as long as the underlying trade is not prohibited by US, UN or other sanctions in regard to North Korea.

American Club-circular

Source: The American P&I Club