The U.S. and allies must “enhance” their sanctions enforcement against Myanmar to better cut off revenue streams to the country’s military, a bipartisan group of lawmakers said in a Jan. 31 letter to the State Department. The administration should also make sure “existing and future sanctions are enforced to the fullest extent possible,” the lawmakers said, adding that there is “no indication” that U.S. sanctions against Myanmar’s State Administrative Council have affected its ability to receive funds.
The Office of Foreign Assets Control sanctioned seven people and two entities connected to Myanmar's military, the agency said Jan. 31. The sanctions target KT Services & Logistics Co., which operates the TMT Port in Yangon and leases it from the U.S.-sanctioned Myanmar Economic Holdings, and the Directorate of Procurement of the Commander-In-Chief of Defense Services, which buys arms and equipment for the country’s military. OFAC also designated government officials Thida Oo, Tun Tun Oo and Tin Oo, along with Jonathan Myo Kyaw Thaung, Tay Za, Htoo Htet Tay Za and Pye Phyo Tay Za, all of whom have ties to business dealings with the government.
Out of all the government’s export control regulations, two aerospace industry officials said they are spending the most time trying to comply with the Bureau of Industry and Security’s military end-user and end-use rule.
Several federal government agencies issued guidance for doing business in Myanmar Jan. 26. The advisory issued by the departments of State, the Treasury, Commerce, Labor and Homeland Security and the Office of the U.S. Trade Representative warns of "heightened risks associated with doing business in the country, and in particular with the military regime." The advisory document warns that businesses and individuals with ties to the military regime may face significant risks, including violations of U.S. anti-money laundering laws and sanctions. The warning strongly suggests that the business community should further review and update their risk assessments associated with continuing to do business with Burma’s state-owned enterprises.
The State Department called on the “international community” to stop selling arms and dual-use technology to Myanmar’s military in light of increasing violence across the country in recent days. The U.S. earlier this year added Myanmar to its list of countries subject to military and military intelligence end-use and end-user controls (see 2103040075 and 2104080026), which imposed stricter licensing policies over a range of dual-use goods, and has urged allies to do the same. “The international community must also do more to advance this goal and help prevent the recurrence of atrocities” in Myanmar, a State Department spokesperson said Dec. 28. “We will continue to work with our partners and allies to promote accountability for human rights abuses.”
Singapore Customs released two sets of guidance documents for traders looking to claim preferential tariff benefits for imports and exports under the Regional Comprehensive Economic Partnership Agreement that will take effect on Jan. 1. The RCEP trade agreement was signed by Australia, China, Japan, South Korea, New Zealand and the 10 Association of Southeast Asian Nations member states -- Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. Preferential treatment for Singapore-originating goods begins on different dates, depending on the destination country involved. The guidance from Singapore Customs details procedures for claiming preferential tariff treatment from RCEP countries and documentation procedures. The latter step involves submitting Proof of Origin documentation.
Myanmar recently issued a new list of goods that require import licenses before entering the country, USDA said in a Foreign Agricultural Service report Dec. 16. The new list, which takes effect Jan. 1, imposes restrictions on various food items, including apples, grapes, oranges, pears and butter and milk products. It also includes electronic devices, cosmetics and consumer products, paper and paperboard and goods related to construction, the report said. The imposition of license requirements could further delay U.S. shipments to the country, the report said, especially due to the already slow customs procedures and staffing shortages resulting from the military-led coup earlier this year (see 2107120011).
The United Kingdom added four entities to its Myanmar sanctions regime, the Office of Financial Sanctions Implementation said in a Dec. 12 notice. The new entries are the Directorate for Defence Industries, the Directorate for Defence Procurement, the Myanmar War Veterans Organisation and the Quarter Master General Office. All four entities sit under the Myanmar Ministry of Defence, an entity responsible for the February coup in the Southeast Asian nation and for generally undermining democracy and the rule of law in Myanmar. The four are subject to an assets freeze.
The Office of Foreign Assets Control imposed investment restrictions on SenseTime Group Ltd., a major Chinese technology company, and sanctioned 15 people and 10 other companies for human rights abuses, the agency said Dec. 10. SenseTime, which had prepared to price shares Dec. 10 in its initial public offering in Hong Kong, will now be subject to a U.S. investment ban and added to OFAC’s list of companies with ties to China’s military (see 2106030067).
The U.S this week imposed an arms embargo and new, broad export restrictions on Cambodia in response to government corruption and human rights abuses. The restrictions, released Dec. 8 by the Commerce and the State departments and effective Dec. 9, will apply more stringent controls on a range of dual-use and military-related exports to the country (see 2112020015).