Archive for the ‘Burma Sanctions’ Category

Will Burma Sanctions Get Shaved?

Tuesday, May 5th, 2009

Shwedagon TempleWith all the talk of relaxing Cuba sanctions and possible talks with Iran, it’s not surprising that Burma is showing up at the “me too” table asking for service. Today at Bloomberg, Frank Smithius, Burma country director for Médecins Sans Frontières, is quoted saying this:

Because of sanctions there is a lot of suffering, and we see that particularly in the humanitarian-aid field. There’s definitely hope in the aid community that the policy will be reconsidered. The Myanmar people are victims of a humanitarian boycott. There is enormous pressure on politicians in the West to look politically correct, and they get human rights brownie points by being very strict on aid.

In the same article, Bloomberg provides a chart showing that Burma ranked dead last in foreign aid per capita in 2007, receiving $4.07 per capita, which compares to the $52.32 per capita aid received by Sudan. Indeed, in February, Secretary Clinton stated that the Obama administration’s policy toward Burma’s military junta was undergoing a “major review.”

The EU at the end of April renewed its sanctions against Burma for another year. The EU foreign ministers voting to extend the sanctions indicated that they were nonetheless willing to hold consultations with the junta during the Asia-Europe Meeting (ASEM) in Hanoi, Vietnam, in May.

The current EU sanctions involve visa restrictions, asset blocking and an arms embargo. U.S. sanctions are broader and include, in addition to asset blocking and an arms embargo, a ban on imports, a ban on new investment, and a ban on exports of “financial services” which are broadly defined to include funds transfers, insurance services and investment and brokerage services. The U.S. regulations provide for a general license permitting exports of financial services in support of NGO activity in Burma.

Give Pearls Away and Rubies

Thursday, May 1st, 2008

Burmese RubiesToday the Office of Foreign Assets Control (“OFAC”) added three Burmese entities to the Specially Designated Nationals and Blocked Persons List, i.e., the SDN List. Among the three entities was the Myanmar Gem Enterprise, the state-owned monopoly that is in charge of gem sales in Burma. As you may know, Burmese rubies are especially prized and the sale of these rubies is thought to constitute a significant part of the revenues to the military junta that controls Burma.

Current OFAC regulations forbid the import into the United States of Burmese-origin goods. OFAC, however, refers to U.S. Customs rules for determining whether a good is of Burmese-origin, as can be seen from this OFAC guidance letter on Burmese teak sawn into planks in third countries. Most Burmese rubies are exported in uncut form to Thailand where they are processed and cut for sale to jewelers. In December 2004, Customs ruled that rough rubies mined in Burma that were processed and cut into gemstone rubies in another country underwent a “substantial transformation” and were no longer considered to be of Burmese origin. Notwithstanding this ruling, the 11,000 member association Jewelers of America urges its members not to traffic in blood rubies.

It is not clear that the designation of the Myanmar Gem Enterprise will have any substantial effect. Because the Burmese rubies must be processed in Thailand or elsewhere in order to be imported into the United States, no U.S. persons have any dealings with Myanmar Gem Enterprise but, rather, deal exclusively with companies in Thailand that process and cut the rough stones.

OFAC also designated the Myanmar Pearl Enterprise, hence the opportunity to swipe a line from an A.E. Housman poem as the title of this post.