In an update to our prior alert published last month, the Bureau of Industry and Security (BIS) has taken several additional actions further restricting Myanmar (Burma)’s access to items subject to the Export Administration Regulations (EAR). Last month, BIS publicly stated it was considering additional export control restrictions and as predicted, on March 4, 2021, announced the following actions in two separate rules (here and here):
- Military End User (MEU) Rule: First, and most notably, BIS has expanded the MEU rule to include an additional country, Burma, that is now subject to the enhanced end-use and end-user controls subject of the MEU rule in § 744.21 of the EAR. This actions also opens up Burmese entities to be identified on the MEU List in Supplement No. 7 to Part 744 of the EAR. Previously, this rule was limited to only end-users and end-uses in China, Russia, and Venezuela.
- Entity List: BIS added the following entities to the Entity List imposing a license requirement with a presumption of denial for all items subject to the EAR – the Burmese Ministries of Defence and Home Affairs, the Myanmar Economic Corporation, and the Myanmar Economic Holding Limited. In the Federal Register notice, BIS explained “this rule enhances the U.S. Government’s efforts to ensure that items subject to the EAR are not available to Burma’s Ministry of Defence and the Ministry of Home Affairs, the entities responsible for the coup, or the two commercial entities owned and operated by the Ministry of Defence, Myanmar Economic Corporation and Myanmar Economic Holdings Limited, which provide revenue for the Ministry of Defence.”
- Country Group: BIS downgraded Burma’s country group status from Country Group B to the more restrictive Country Group D:1. This move drastically limits the use of license exceptions, including Shipments of Limited Value (LVS), Shipments to Group B Countries (GBS), and Technology and Software under Restriction (TSR) among others.
- Computer Tier 3: Finally, Burma was reclassified from Computer Tier 1 to Computer Tier 3 under the License Exception Computers (APP).