US Sanctions on Imports from Burma Hit US Exporters

So, you read the new Burma sanctions with interest and breathed a sigh of relief when you did not see any new restrictions on exports to Burma.  Before you conclude you don’t need to make any changes to your export compliance procedures, consider this:  Whoa, whoa, whoa.  The sanctions on Burma prohibit imports from Burma, which includes any products being sent from Burma to the United States for service, repair or replacement.

Yep, that’s right.  If somebody in Burma sends your 100% US-origin product to you for service, you are going to have a major problem, unless you have a license from the Office of Foreign Assets Control for the import from Burma.  So, you do have to implement some compliance procedures after all.

Step 1 is to find out the likelihood of items being sent from Burma to you for service.  That could include your customers, resellers and distributors.  But it also could include somebody who purchased your stuff from a third party.

If there is a chance that could happen, now it is time to take Step 2:  Take immediate measures to notify everybody (as far as you can tell) in Burma who might sent items to you-tell them not to send anything to you without getting your written permission first.  Theoretically, when they warn you they are sending a commercial aircraft pump back for service, you can double check the most recent Burma sanctions general licenses and tell them whether you need to get an import license.  (I said theoretically because I wouldn’t be surprised if somebody in Burma would send something to you for service without warning you in advance, no matter how many times you ask them not to.)  If you need to get an import license, you can get the license process started, but in the meantime you can go ahead and immediately export a replacement or loaner unit to Burma because the sanctions on Burma do not include any export restrictions.

The Office of Foreign Assets Controls (OFAC) is administering the sanctions on Burma and has published several general licenses that authorize certain transactions.  Unfortunately for exporters, the majority of the general licenses apply to things like diplomatic pouches and imports of informational materials.  OFAC is aware that its Burma sanctions cause this difficult situation for exporters and is considering implementing a general license for the return of US origin goods to the United States.  Let’s hope that OFAC does this soon.