International Law Advisory - General Licenses Issued Pursuant to Burmese Sanctions Regulations

On August 15, 2003, the US Treasury Department, Office of Foreign Assets Control ("OFAC") issued the following five new General Licenses under the Burmese Sanctions Regulations (31 C.F.R. Part 537): General License No. 2, "Third Country Diplomatic and Consular Funds Transfer;" General License No. 3, "Importations for US Diplomatic and Consular Officials;" General License No. 4, "Importations for Foreign Diplomatic and Consular Officials;" General License No. 5, "Diplomatic Pouches;" and General License No. 7, "Transactions Incident to Certain Imports."

General License Nos. 2 through 5 impact diplomatic or consular activities. Particularly noteworthy, General License No. 7 authorizes certain financial transactions related to the importation of Burmese products prohibited by Executive Order 13310, provided the importation occurs prior to 12:01 a.m. eastern daylight time on August 28, 2003.  General License No. 7 is further qualified by the requirement that the importation not be from a person whose property is blocked pursuant to the order.  Financing agreements associated with imports that were in place before the Executive Order may be performed according to their terms, but may not be extended or renewed.  Furthermore, payments and financial transfers are permitted, including those to or from the account of a financial institution whose property is blocked by section 1 of the Executive Order, unless the account is contained on the books of a financial institution that is a United States person.

Please find attached Executive Order 13310, as well as the five new general licenses. Companies should update their OFAC compliance screening mechanisms to ensure that any existing business relationships or future transactions are in compliance with the Burmese Sanctions Regulations.

We will continue to keep you apprised of sanctions and export control developments.  If you have any questions, please feel free to contact Ed Krauland at 202.429.8083 or Meredith Rathbone at 202.429.6437.