United States: President Bush Signs Bill Strengthening U.S. Economic and Trade Sanctions Against the Government of Burma

On July 28, 2003, President George W. Bush signed into law the Burmese Freedom and Democracy Act of 2003 (H.R. 2330) and issued an Executive Order (Exec. Order No. 13,310) substantially strengthening U.S. economic and trade sanctions against the Government of Burma (also known as Myanmar). These measures were adopted in response to the Government of Burma's continued repression of the democratic opposition in Burma. Among the major changes to the U.S. economic and trade sanctions against the Government of Burma are:

• Import ban on Burmese products. Beginning 30 days after the date of enactment of the Burmese Freedom and Democracy Act of 2003, it shall be unlawful for any person to import into the United States any article that is a product of Burma. This import ban will expire after one year unless renewed by the United States Congress and may be renewed for a maximum of three years.
• Prohibition against providing financial services to Burma. Effective immediately, U.S. persons and U.S. companies (including their overseas branches) are prohibited from providing any financial service to any individual or entity, whether governmental or nongovernmental, in Burma. Prohibited financial services include, but are not limited to, sending remittances to Burma, issuing, advising, confirming or paying a letter of credit for or benefiting any individual or entity in Burma, and issuing or reinsuring an insurance policy for any individual or entity located in Burma.
• Blocking property of the Government of Burma. Effective immediately, U.S. persons and U.S. companies (including their overseas branches) are required to block, or "freeze," all assets and other property of the Government of Burma and of any senior official of the Government of Burma, the State Peace and Development Council of Burma, the Union Solidarity and Development Association of Burma, and of any individual or entity acting or purporting to act for or on behalf of, directly or indirectly, any of the above. Any such assets or other property that come within the possession or control of a U.S. person or U.S. company (including a foreign branch of a U.S. company) must be blocked immediately and may not be transferred, paid, exported, withdrawn or otherwise dealt in. A non-exhaustive list of individuals and entities in Burma whose assets and other property must be blocked is included in the list of "Specially Designated Nationals and Blocked Persons" published by the U.S. Department of the Treasury's Office of Foreign Assets Control ("OFAC").

It is important to note that the prohibitions contained in the Burmese Sanctions Regulations (31 C.F.R. Part 537) prior to the enactment of the Burmese Freedom and Democracy Act of 2003 remain in full force. Specifically, U.S. persons and U.S. companies (including their foreign branches) continue to be prohibited from engaging in new investment in Burma. New investment in Burma is defined as a contract with the Government of Burma or a nongovernmental entity in Burma for the development of resources (including natural, agricultural, commercial, financial, industrial and human resources) located in Burma. In addition, U.S. persons and U.S. companies (including their foreign branches) continue to be prohibited from "facilitating" new investment in Burma, such as by aiding or supporting a foreign person's investment in Burma, if the foreign person's activity would constitute prohibited new investment if engaged in by a U.S. person.

Violation of the U.S. economic and trade sanctions against Burma may result in substantial civil and criminal penalties, including civil penalties of up to $11,000 and criminal fines of up to $55,000 and/or 10 years imprisonment.