U.S. Treasury and State Departments in their joint press release announced that “the United States would begin the process of easing restrictions on imports of Myanmar goods in response to the substantial and significant reforms that have taken place in that country over the past decade.”1) The ease on the U.S. ban on imports from Myanmar is the result of the U.S. government’s promise during President Thein Sein’s visit to the U.S. last September. Secretary of State Hillary Clinton told Thein Sein that the U.S. will take the next step in normalizing the commercial relationship between the U.S. and Myanmar by easing restrictions on imports from Myanmar in recognition of the continued progress toward reform."2)
In light of these changes, the Treasury Department has issued General License 18 (GL 18)3) on November 16, 2012 authorizing the importation into the United States of any article that is a product of Myanmar, subject to certain limitations. GL 18 does not authorize the importation into the United States of jadeite or rubies mined or extracted from Myanmar, or of articles of jewelry containing jadeite or rubies mined or extracted from Myanmar. As a result of GL 18 taking effect, U.S. importers are now allowed to import any product produced in Myanmar except for products containing jadeite or rubies.
Until now, the U.S. economic restrictions on Myanmar were mainly (i) restrictions on exportation of financial services, (ii) restrictions on new investments, (iii) restrictions on importation of products of Myanmar, (iv) restrictions on dealings with individuals and entities listed in Treasury Department’s Specially Designated Persons (SDN) list and their assets, and (v) promotion of transactions prohibited by the above restrictions.
The issuance of General License 16 (GL 16)4) and General License 17 (GL 17)5) authorizes the exportation of financial services to Myanmar from the U.S. or by a U.S. person (GL 16, ease of restriction (i) above) as well as new investment in Myanmar by U.S. persons (GL 17, ease of restriction (ii) above). The taking effect of GL 18 on November 16, 2012 authorizes the importation of any product of Myanmar except for products containing jadeite or rubies (ease of restriction (iii) above). Therefore, the U.S. restrictions on Myanmar (i), (ii) and (iii) above have been eased, and restrictions (iv) and (v) are still in effect.
Restriction (iv) prohibits transactions with individuals and companies included on the “List of Specially Designated Nationals” (SDN list)6) by the Treasury Department. Generally, senior government officials or entities that have violated laws or human rights, etc. as well as any entity in which such a person owns, directly or indirectly, a 50 percent or greater interest are included on the SDN list. A significant number of banks and major companies located in Myanmar are on this list. U.S. persons are prohibited from engaging in transactions with persons included on the SDN list, and the U.S. government must block their assets.
