Search for:
Sanctions

United States: OFAC issues new determination related to Burma sanctions and related FAQs

By , and 2 Mins Read

On August 23, 2023, the US Treasury Department’s Office of Foreign Assets Control (“OFAC“) issued the first Determination Pursuant to Section 1(a)(i) of Executive Order (“EO“) 14014 (the “Determination“), which extends the application of section 1(a)(i) of EO 14014 to the jet fuel sector of the Burmese economy.  On the same day, OFAC also published two related Frequently Asked Questions (“FAQs“): FAQ 1132 and FAQ 1133.  Our blog post on the issuance of EO 14014 is available here.

The Determination

Section 1(a)(i) of EO 14014 (“Blocking Property With Respect to the Situation in Burma”) imposes sanctions on any person determined by the Secretary of the Treasury, in consultation with the Secretary of State, to operate in the defense sector of the Burmese economy or any other sector as may be determined.  Pursuant to that authority, the Determination identifies the jet fuel sector of the Burmese economy as subject to these sanctions, effective August 23, 2023.

New FAQs

  • FAQ 1132 clarifies that not all persons operating in the jet fuel sector of the Burmese economy are subject to sanctions but only those persons who have been determined as such.  Sanctioned persons will be listed on the Specially Designated Nationals and Blocked Persons List (“SDN List“) with the program tag [BURMA-EO14014].
  • FAQ 1133 clarifies that the “jet fuel sector of the Burmese economy” includes activities related to the importation, exportation, reexportation, sale, supply, or transport, directly or indirectly, of jet fuel in or involving Burma.  The FAQ further explains that the Determination is specifically intended to target activities related to military regime end users in Burma, wherever situated, including, for example, jet fuel used for military resupply aircraft, state-owned aircraft used by members of the military regime, and combat vehicles, including jets and attack helicopters, used in both offensive and defensive military operations inside Burma.  OFAC does not intend to target persons engaging in civil aviation-related activities in Burma, including the sale, provision, or purchase of jet fuel in connection with commercial airlines for air transportation to or from Burma but cautions that anyone wishing to supply jet fuel to persons in Burma should exercise extreme care to avoid military regime end users.  
Categories:
Author

Bart McMillan leads the Chicago Office’s International Trade Compliance Subpractice within the North American International Commercial Practice. He advises US and non-US companies on international trade compliance matters arising under US export controls, trade sanctions, and antiboycott rules, as well as under US customs laws with respect to classification, valuation, country of origin, free trade agreements, and the protection of intellectual property at the US border. His practice also covers anti-bribery and specialized commercial compliance issues in sales and sales promotion under the US Foreign Corrupt Practices Act (FCPA), non-US anti-bribery law, and non-US commercial laws. Mr. McMillan has been practicing with Baker McKenzie for the entirety of his legal career, and during 2004 he was located in the Washington, DC office. He is a frequent speaker on international trade compliance matters at seminars, conferences, and company training events. While pursuing his J.D. at NYU School of Law, Mr. McMillan was Staff Editor (1997-98) and Associate Editor (1998-99), New York University Law Review; and he participated in a semester exchange to the Central European University (Budapest) (Legal Studies Dep’t).

Author

Lise Test is an of counsel in the Firm’s International Trade Group in Washington, DC and practices in the area of international trade regulation and compliance — with emphasis on US export control laws (Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR)), trade sanctions, and anti-boycott laws. Ms. Test advises clients on issues relating to product classifications, licensing, regulatory interpretations, risk assessments, enforcement actions, internal investigations and compliance audits, as well as the design, implementation, and administration of compliance programs. Ms. Test works regularly with companies across a wide range of industries, including the pharmaceutical/medical device, telecommunications, manufacturing, and technology sectors. She joined the Firm as a summer associate in 2007 and became a full-time associate in 2008. Prior to joining Baker McKenzie, Ms. Test served as a lawyer at the Danish Ministry of Defence.

Author

Orfeh is an associate in the Firm's international trade practice in Washington, DC, advising companies on export controls, sanctions, and supply chain compliance. She advises US and multinational companies on trade compliance programs, risk assessments, licensing, review of proposed transactions, and enforcement matters.

Related Posts

Write A Comment