The Bureau of Industry and Security (BIS) has imposed export and reexport controls on certain transactions involving designated persons, including officials of the government of Burma (Myanmar) and commercial entities located in Burma.  These controls are applicable to all items “subject to the Export Administration Regulations” (EAR), and therefore would encompass both domestically-produced items as well as certain products produced abroad using controlled U.S.-origin hardware, software, and/or technology.  To the extent that a United States company, its foreign subsidiaries or affiliates, and/or independent distributors or resellers, are conducting business in or with Burma, they should ensure compliance with the new restrictions.

Background

In 2003, the United States imposed import and financial sanctions on Burma and certain named Burmese persons pursuant to Executive Order (E.O.) 13310 (July 28, 2003).  On October 18, 2007, E.O. 13448 expanded the sanctions and authorized U.S. government agencies to take additional measures against Burmese persons engaged in political repression.  Pursuant to this authority, on October 24, 2007, BIS has adopted a regulation, effective immediately, imposing export and reexport controls on the persons named in E.O. 13310 and E.O. 13448.  The new regulation also moves Burma from country group B to country group D:1, subjecting it to more stringent national security-based controls, and imposes further controls on exports and reexports of high performance computers to Burma.

Potential Applicability to U.S. Exporters and Their Products

The regulation prohibits unlicensed exports, reexports, or transfers of nearly all items subject to the EAR to designated persons in Burma.  Items produced in the United States, as well as foreign-produced items that incorporate certain controlled U.S.-origin content (including encryption software), are subject to the EAR, and therefore would be included in the prohibition.  The prohibition on transfers would cover sales within Burma to designated parties in that country. 

The new BIS regulation is available here:
http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-20962.pdf

 

 

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