BIS clamps down on certain exports to Myanmar (Burma)

Yesterday we wrote about the easing of restrictions on exports of articles to Sudan. We also noted that is important to always review your export transactions in accordance with your export compliance system because things can change quickly. As if to illustrate our point, the Bureau of Industry and Security yesterday promulgated rules clamping down on certain exports to Myanmar, referred to by the U.S. as Burma. This is in direct response to the actions of the Burmese military, which “perpetrated a coup wresting control of the democratically-elected government of Burma.”

The restrictions imposed by BIS are targeted at certain entities: Burma’s Ministry of Defense, Ministry of Home Affairs, armed forces, and security services. Sensitive items that require a license for export or reexport to these entities–previously reviewed on a case-by-case basis–will now be subject to a presumption of denial. Further, certain license exceptions–LVS, GBS, TSR, and APP–will no longer be available. (These exceptions are not commonly used in our industry.) This means that exports to those entities of articles that require licenses will be very challenging for the foreseeable future.

Fortunately, it appears that exports of articles to support civil aviation that do not ordinarily require an export license remain unaffected by this rule. Additionally, the more common license exceptions in our industry–RPL (Servicing and Replacement of Parts) and AVS (Aircraft, Vessels, and Spacecraft) remain available. If you are using a license exception to export remember to always review it carefully because they often have limitations.

If you are exporting to Myanmar it is very important to carefully review the facts of your transaction to ensure compliance with the latest export regulations. If you are currently exporting to any of the above-mentioned entities or otherwise shipping Myanmar pursuant to a BIS license, you should also review the special conditions on the license to determine whether the license has been affected by these regulations. As always, if you have questions you should consult your export compliance attorney.

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