BIS Final Rule Increases Restrictions, Imposes License Requirement for Exports, Reexports, and Transfers to Burma
The Bureau of Industry and Security has issued a final rule, effective October 24, 2007, which amends the Export Administration Regulations to move Burma into more restrictive country groupings and impose a license requirement for exports, reexports or transfers of most items subject to the EAR to persons1 listed in or designated pursuant to Executive Orders (EOs) 13310 and 13448.
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Burma's Computer Tier, Country Group Changed to Increase Access Restrictions
In 15 CFR Part 740 of the EAR (License Exceptions), this final rule moves Burma from Computer Tier 1 to Computer Tier 3, restricting access to high-performance computers and related technology and software under License Exception APP (15 CFR 740.7).
In Supplement No. 1 to 15 CFR Part 740 (Country Groups), this rule moves Burma from Country Group B (countries raising few national security concerns) to Country Group D:1 (countries raising national security concerns), which further limits the number of license exceptions available for exports to Burma. Burma will also remain in Country Group D:3 (countries raising proliferation concerns related to chemical and biological weapons).
License Requirement for Exports, Etc. to Designated Persons in Burma
The final rule adds a new 15 CFR 744.22 to add a license requirement which applies to the export, reexport, or transfer of any item subject to the EAR (except for agricultural commodities, medicine, or medical devices classified as EAR99 and destined for entities listed in or designated pursuant to EOs 13310 and 13448) to (1) persons listed in the annexes to EO 13310 or EO 13448, or (2) persons designated pursuant to EO 13310 or EO 13448. U.S. persons and non-U.S. persons must seek authorization from BIS for such exports, reexports, and transfers.
BIS adds that no License Exceptions or other BIS authorizations are available for such exports, reexports, or transfers.
(BIS notes that U.S. persons are not required to seek separate BIS authorization for an export, reexport, or transfer to a person identified in 15 CFR 744.22(a) of any item subject to both the EAR and regulations maintained by OFAC.)
BIS Will Review Applications Under a General Policy of Denial
According to BIS, applications for licenses for the export, reexport, or transfer to an identified person under 15 CFR 744.22(a) of any item subject to the EAR (except for agricultural commodities, medicine, or medical devices classified as EAR99 and destined for entities listed in or designated pursuant to EOs 13310 and 13448) will generally be denied. Exporters should consult with OFAC concerning transactions subject to OFAC licensing requirements.
Saving Clause
Shipments of items removed from eligibility for export or reexport under a license exception or without a license (i.e., under the designator "NLR") as a result of this final rule that were on dock for loading, on lighter, laden aboard an exporting carrier, or en route aboard a carrier to a port of export, on November 23, 2007, pursuant to actual orders for export or reexport to a foreign destination, may proceed to that destination under the previously applicable license exception or without a license (NLR) so long as they are exported or reexported before December 10, 2007. Any such items not actually exported or reexported before midnight, on December 10, 2007, require a license in accordance with this regulation.
1According to EO 13448, the term "person" means an individual or entity.
(See ITT's Online Archives or 07/30/03 news, 03073010, for BP summary of EO 13310 banning certain Burmese imports and blocking certain Burmese property, etc.
See today's issue of ITT, 07102599 4, for BP summary of the enactment of Public Law 110-52, which renews import restrictions contained in the Burmese Freedom and Democracy Act for another year.See ITT's Online Archives or 06/26/07 news, 07062630, for BP summary of an OFAC final rule allowing specific licenses for imports of certain Burmese animals and specimens.)
BIS contact - Joan Roberts (202) 482-4252
BIS final rule (D/N 071018609-7611-01, FR Pub 10/24/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-20962.pdf
White House fact sheet on additional Burmese sanctions (dated 10/19/07) available at http://www.whitehouse.gov/news/releases/2007/10/20071019-15.html