Free Antiboycott, Export Controls, Sanctions and FCPA Compliance Training Programs Now Available From Lawline

October 08, 2012 Free Antiboycott, Export Controls, Sanctions and FCPA Compliance Training Programs Now Available From Lawline

Lawline, a leading provider of continuing legal education (CLE) programs, has opened up their entire library of online training courses so that anyone can view the courses for free. 

Included in Lawline's course catalog are four one-hour international trade compliance programs presented by international trade attorney Doug Jacobson on the following topics:
An Introduction to U.S. Antiboycott Laws and Compliance An Introduction to U.S. Export Controls and Sanctions International Traffic in Arms Regulations (ITAR): What You Need to Know The U.S. Foreign Corrupt Practices Act: Compliance and EnforcementThese four programs, which are highly rated by those that have seen them, can be accessed here. The entire Lawline catalog of courses can be accessed here. 
Only attorneys wanting to obtain CLE credit will have to pay a fee to Lawline. CLE credit is available to attorneys that are members of the bars of numerous states, including Texas, California and New York. 

 

Update on U.S. Sanctions on Burma/Myanmar

June 12, 2012 Update on U.S. Sanctions on Burma/Myanmar

It has now been nearly four weeks since President Obama and Secretary of State Clinton announced a change in U.S. policy that will lead to the "easing" and "suspension" of the existing sanctions on Burma (Myanmar). (See our original May 17th report here.)

Despite various media reports to the contrary, no changes in U.S. sanctions laws or regulations have actually occurred to date.

While there has been a great deal of interest by the business community in reengaging with Burma, the State Department and OFAC have yet to make any further public announcements on when changes to U.S. law actually will occur.

However, a Department of State spokesperson recently provided the following update:

“Implementationof the easing, in line with our calibrated approach, requires several generallicenses, an executive order, and revisions to existing designation criteria.An interagency process to finalize these complicated steps is well underway.” 

Unlike some other sanctions programs, the U.S. sanctions on Burma are very complex since they are included in five federal laws, four Executive Orders, one Presidential Determination and one Presidential Proclamation.

Further complicating matters is that many businesses and government entities in Burma are included on OFAC's List of Specially Designated Nationals (SDN List) and determinations will have to be made on how to handle those parties in terms of the general licenses and other authorizations that are issued.

Finally, the Obama Administration is also trying to figure out how to implement the various Corporate Social Responsibility initiatives that were mentioned in Secretary of Clinton's May 17th statement.

While no timetable has been announced on when the required changes to U.S. law will be announced, it could still be several weeks before these changes are made.

In the meantime, U.S. companies and U.S. persons should be reminded that no changes in the U.S. sanctions on Burma have actually occurred and that they should seek guidance before making any changes in their current business policies or practices.

 

U.S. to "Suspend" Sanctions on Burma

This afternoon Secretary of State Clinton announced that the U.S. is “suspending” the existing financial and investment sanctions on Burma (Myanmar).

However, the details on how the existing sanctions will be suspended are still being worked out and the existing Burmese Sanctions Regulations (31 CFR. Part 537) (BSRs) administered by the Treasury Department's Office of Foreign Assets Control (OFAC) will remain in effect until further notice.

It appears likely that OFAC will issue a general license that will amend the BSRs to enable U.S. companies to enter into contracts relating to the "economic development of resources in Burma" and other investment activities. In addition, the general license will also authorize financial institutions and other parties to provide financial services to Burma.

In today's announcement, Secretary Clinton indicated that U.S. companies doing business in Burma will be expected to implement certain Corporate Social Responsibility measures and U.S. companies will be expected, but not required to "to conduct due diligence to avoid any problems, including human rights abuses . . . create a grievance process that will be accessible to local communities; to demonstrate appropriate treatment of employees, respect for the environment; to be a good corporate citizen; and to promote equitable, sustainable development that will benefit the people."

Senior Administration officials today also reminded U.S. companies of the extensive corruption in Burma. Given the Burmese Government's extensive role in the company's business sector, particularly in the oil and gas sector, U.S. companies will have to take additional steps to ensure compliance with the U.S. Foreign Corrupt Practices Act. 

Existing U.S. Sanctions on Burma

The current U.S. sanctions on Burma are unique and are far less restrictive than the broad sanctions imposed by the U.S. Government on Cuba, Iran, North Sudan, Syria and North Korea. Unlike the other broad-based U.S. sanctions programs, the BSRs generally do not prohibit U.S. companies or U.S. citizens from exporting goods classified as EAR99 to Burma and receiving payment for such goods.

The BSRs currently prohibit U.S. persons and companies from engaging in the following activities involving Burma:

1. Exportation of Financial Services to Burma - No U.S. company or U.S. citizen, wherever located, can make any payment, directly or indirectly, to Burma.

2. New Investment in Burma - No U.S. person or company can enter into any contracts with the Government of Burma or nongovernmental entities in Burma for the "economic development of resources in Burma". The phrase "economic development of resources located in Burma" is defined to mean, among other things, activities pursuant to a contract that involves the development or exploitation of natural resources in Burma, such as contracts conferring rights to explore for, develop, extract or refine petroleum or natural gas in Burma. A "nongovernmental entity in Burma" include most types of business organizations that exist for engaging in economic development of resources in Burma.

3. Facilitation of Prohibited Transactions in Burma - U.S. companies and U.S. citizens are prohibited from approving, 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. This prohibition does not apply to contracts involving the sale of goods, services or technology to Burma or for use in Burma.

4. Prohibited Importation of Burmese Origin Goods - Most goods of Burmese origin are prohibited from being imported into the U.S.

Existing Export Controls on Burma 

U.S. exports of commercial goods to Burma will remain subject to export control requirements administered by the Commerce Department's Bureau of Industry and Security (BIS). Currently, exports of goods, technology and software on the Commerce Control List (i.e., not classified as EAR99) typically require a BIS export license.

Burma has been subject to a U.S. arms embargo since 1993 and therefore no "defense articles" or "defense services" subject to the jurisdiction of the International Traffic in Arms Regulations can be exported to Burma. Today's announcement will not have any impact on this aspect of U.S. law.