BIS Announces Increased Myanmar Export Restrictions, Additions to Entity List

The Bureau of Industry and Security issued new restrictions on exports to Myanmar and added four entities to the Entity List in response to the country’s military-led coup last month (see 2102110020). The restrictions, which take effect March 8, increase controls on certain “sensitive” items, remove certain license exceptions, impose a more strict licensing policy and subject Myanmar to BIS’s military end-use and end-user restrictions (see 2012220027), according to a final rule released March 4.

“We will not allow the [Myanmar] military to continue to benefit from access to items subject to the” Export Administration Regulations, the Commerce Department said in a statement. The agency said it is reviewing more export restrictions “as warranted by the military’s actions.”

The rule will move Myanmar from Country Group B to Country Group D:1. The move will impose a more “restrictive review” of export and reexport license applications for goods subject to the EAR and destined to Myanmar end-users, Commerce said, including certain microprocessors and aircraft. Myanmar end-users will also be ineligible for several license exceptions, including Shipments of Limited Value (LVS), Shipments to Group B Countries (GBS) and Technology and Software under Restriction (TSR). BIS will also impose a license requirement for exports or reexports “of foreign-produced direct products of certain U.S.-origin technology and software” to Myanmar.

Because Myanmar will be added to BIS’s military end-use and end-user restrictions, export applications for certain goods destined to a military end-user or for a military end-use will be subject to a presumption of denial. BIS clarified that it hasn't yet added any Myanmar entities to the MEU List but may add them “in the future.” The agency said the rule “enhances the U.S. Government’s efforts to ensure that items subject to the EAR are not available to Burma’s military and security services.

All exports and reexports that now require a license as a result of the increased export restrictions that were aboard a carrier to a port as of April 7 may proceed to their destinations under the previous eligibility, BIS said.

BIS also added Myanmar’s Ministry of Defence, the Ministry of Home Affairs, Myanmar Economic Corporation and Myanmar Economic Holdings Limited to the Entity List, according to a separate final rule. The agency said Myanmar’s defense and home affairs ministries were “responsible” for the coup and listed the other two entities for being owned by the defense ministry. BIS will impose a license requirement for exports to the four entities for all items subject to the EAR and a license review policy of presumption of denial. No license exceptions will be available for the entities.

All exports and reexports that now require a license as a result of the Entity List additions that were aboard a carrier to a port as of March 8 may proceed to their destinations under the previous eligibility, BIS said.