Burma/Myanmar

Canada has released the implementation to the Special Economic Measures (Burma) Regulations applying sanctions against Burma.

The main measures taken by Canada prohibit:

1. The export from Canada to Burma of any goods, excepting only the export of humanitarian goods
2. The export of technical data
3. The provision of financial services to Burma

Canada implemented the new sanctions in light of resolutions by both the United Nations Commission on Human Rights and the General Assembly who condemned the human right violations in Burma at this time.

More information:

dfait-maeci.gc.ca/trade/eicb/notices/Ser155-en.asp

On December 14, 2007, Minister Maxime Bernier, Minister of Foreign Affairs, announced that Canada’s economic sanctions against Burma entered into force on December 13, 2007. Read More

More Burmese officials have been added to the Specially Designated Nationals list, 23 to be exact, blocking them from any U.S. contact. The list consists of Burmese persons that the US Government has determined have participated in “human rights abuses,” have been engaged in “activities that facilitate public corruption,” have “materially” supported the Government of Burma. The list also includes persons that are “owned or controlled by any blocked person. In fact, even the “spouse or child of” any person who is blocked can be listed too.

President Bush is not backing down either (hmm, that’s a surprise, President Bush isn’t backing down). “So, along the lines in Burma, we have sanctioned individuals within Burma and are considering additional sanctions,” President Bush explained in an interview on the subject. He also made a point of explaining, “[but] sanctions don’t mean anything if we’re the only sanctioner.” Bush made sure as to not give any clues about what is in store for the Burmese Sanctions, possibly there will be even more additions to the Specially Designated Nationals list, or even more bans on exports to Burma; it is hard to tell at this point.

More information available at:

Recent OFAC Actions

Recent OFAC Actions (2)

Executive Order from White House

The Bad Guys Can’t Visit the US

On September 25, 2007, President Bush spoke out about his outrage at the continued oppression of the people of Burma at the United Nations. He urged the United Nations and all nations to use both their economic and diplomatic leverage to help the Burmese people become free once again. Many people in Burmese have been arrested for peacefully expressing their views in opposition to the oppressive military junta.

President Bush announced that he will tighten the economic sanctions against Burma, since the issuance of Executive Order 10347 and the enactment of the Burmese Freedom and Democracy Act in 2003 the United States has been participating in an ongoing battle to keep the people of Burma free. With the newly tightened rules, members of the regime who are responsible for violations of human rights and for delaying Burma’s transition to democracy will be unable to get visas to the United States. The visa ban will also include any persons who benefit from the regime’s abuse.

Bush has also announced that the United States will review all existing policies regarding Burma and do all they can to help with humanitarian groups. Humanitarian groups are focusing on the issues of health and education in Burma at this time.

More information:

White House Fact Sheet

In the August 30, 2007 Federal Register, the Office of Foreign Assets Control (OFAC) made several amendments to the Cuban Assets Control Regulations, Burmese Sanctions Regulations, Sudanese Sanctions Regulations, and Iranian Transactions Regulations to extend the general licensing to cover services in connection with written publications. A key element of the amendments applies to electronic publications that are already exempt from OFAC jurisdiction. The amendments extend the exemption for informational materials to also apply to embedded software that is embedded in the informational materials and used to search, view or read the electronic publications.

On August 16, the Office of Foreign Assets Control reissued a thoroughly revised version of the Burmese Sanctions Regulations. OFAC says the extensive rewrite was needed in order to implement the Burmese Freedom and Democracy Act of 2003. One of the major provisions of the BFDA was to institute a ban on imports from Burma, a measure which remains in effect through today.

The revamped regulations do provide some important (and rather elementary) definitions, such as “exportation or reexportation of financial services to Burma” and “product of Burma”. They also codify a number of exemptions, including some for US citizens and diplomats in Burma and for certain humanitarian and publishing activities, some of which were previously permitted only under general licenses. It is also worth reminding our readers that OFAC’s sanctions on Burma remain somewhat less comprehensive than those applied to Cuba or Iran. For example, while imports and exports of financial services are generally banned, exports of goods and non-financial services are permitted, though exporters should proceed carefully to avoid transactions involving blocked property and the ban on new investment by US persons.

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.

Read More

Here is a rundown of changes to US Government trade control policy for certain countries:

India and Pakistan ITAR Licensing Policy

In a Federal Register Notice dated June 20, DDTC declared that defense export licenses to India and Pakistan would now be reviewed on a case-by-case basis. According to information posted on the www.pmddtc.state.gov website, the previous licensing policy had been one of denial.

Rwanda Licensing Policy Changes

Both DDTC and EAR changed their regulations to loosen restrictions surrounding the lifting of the UN Arms Embargo on Rwanda. The ITAR changes essentially enunciate a new case-by-case license policy for the Government of Rwanda only. For all non-Government exports, all other 126.1 ITAR proscribed country restrictions remain, including a policy of denial for licenses. Likewise, exemptions may not be used for non-Government end users.

Burma

On July 29, 2003, President Bush issued an Executive Order that place further trade restrictions on Burma (a.k.a. Myanmar). Previous to this order, the Foreign Assets Control regulations restricted investment by US firms in Burma. The Executive Order expands Burma trade restrictions. First the order freezes all assets of the Government of Burma that enter the US or are in the possession of US Persons (which includes US branch offices overseas). Second, all imports from Burma into the United States (but not exports or reexports to Burma) are prohibited effective August 28, 2003. The order also prohibits the export or import of financial services. The order contains restrictions of any facilitation of any activity by a third person that a US person could not engage in.

So you may continue to export commercial products to Burma, but dealing with the Government and Government entities will be tricky as Government assets are frozen and related financial services, such as confirming or negotiating a Letter of Credit, are restricted. No barter deals: imports into the US from Burma will soon be prohibited. Burma continues to remain an ITAR proscribed country, so defense article exports are prohibited.

Iraq

On June 27, OFAC formally amended its regulations on Iraq that now basically allow most EAR99 and “xx991″ export and reexports to Iraq under a General License. We described these changes last month, and this regulation adds nothing new.