Trade Sanction
Definition of 'Trade Sanction'
A trade penalty imposed by one nation onto one or more other nations. Sanctions can be unilateral, imposed by only one country on one other country, or multilateral, imposed by one or more countries on a number of different countries. Often allies will impose multilateral sanctions on their foes.
Investopedia explains 'Trade Sanction'
Import tariffs, licensing costs and administrative hurdles are often enforced, making it more difficult if not impossible for the nation(s) bearing the sanction to trade with the nation imposing it. An example of a trade sanction is the set of stringent penalties the United States' imposed against Cuba from 1963 to 2000. In the year 2000 some of the sanctions were repealed, specifically those on medical and agriculture goods.
Office of Foreign Assets Control, U.S. Department of the Treasury
BURMA: WHAT YOU NEED TO KNOW ABOUT U.S. SANCTIONS AGAINST BURMA
tle 31 Pa
(Myanmar)
n overview of the Burmese Sanctions Regulations -- T
Airt
537 of the U.S. Code of Federal Regulations
ssued Executive Order 13047
(E.O. 13047) determining that the Government of
INTRODUCTION - On May 20, 1997, the President
iBurma has committed large-scale
repression of the democratic opposition in Burma and declaring a national
authority of section 570(b) of the Foreign
Operations, Export Financing and R
emergency with respect to the actions and policies of the Government of Burma.
E.O. 13047, issued under th
eelated Programs Appropriations Act, 1997
(Public Law 104-208), and the International Emergency Economic Powers Act (50
tment in Burma by foreign persons.
On July 28, 2003, the President signed into
U.S.C. 1701-1706) (IEEPA), prohibits new investment in Burma by U.S. persons and
U.S. persons' facilitation of new inve
slaw the Burmese Freedom and
Democracy Act of 2003 (BFDA) to restrict the financial resources of Burma's
ruling military junta. The BFDA requires the President to ban the importation
n in Burma, the President issued Executive Order
13310 (E.O. 13310) on July
into the United States of products of Burma. To implement the BFDA and take
additional steps with respect to the Government of Burma's continued repression
of the democratic oppositi
o 28, 2003. E.O. 13310 blocks all property and
interests in property of the persons listed in its Annex and of certain persons
determined by the Secretary of the Treasury, in consultation with the Secretary
tation to Burma of financial
services from the United States or by U.S. persons,
of State, to meet the criteria set forth in E.O. 13310 (as described in the next
section). E.O. 13310 also prohibits the importation into the United States of
products of Burma and the exportation or reexpo
r wherever located.
On October 18, 2007, the President issued Executive Order 13448 (E.O. 13448)
expanding the scope of the national emergency declared in E.O. 13047 and
blocking all property and interests in property of the persons listed in its
utive Order 13464 (E.O. 13464) to
take additional steps with respect to the nat
Annex and of certain persons determined by the Secretary of the Treasury, after
consultation with the Secretary of State, to meet the criteria set forth in E.O.
13448 (as described in the next section).
On April 30, 2008, the President issued Exe
cional emergency declared in E.O.
13047 and expanded in E.O. 13448. E.O. 13464 blocks all property and interests
in property of the persons listed in its Annex and of certain persons determined
by the Secretary of the Treasury, after consultation with the Secretary of
hings, imposes mandatory blocking sanctions on certain
categories of persons
State, to meet the criteria set forth in E.O. 13464 (as described in the next
section).
On July 29, 2008, the President signed into law the Tom Lantos Block Burmese
JADE (Junta's Anti-Democratic Efforts) Act of 2008 (Public Law 110-286) (JADE
Act) which, among other
tenumerated in the JADE Act (as described in the next
section), prohibits the importation of jadeite and rubies mined or extracted
from Burma (and of articles of jewelry containing such jadeite and rubies), and
establishes conditions for the importation of jadeite and rubies mined or
amending the BSR to implement E.O. 13448, E.O. 13464, and the
JADE Act.
Any pe
extracted from a country other than Burma (and of articles of jewelry containing
such jadeite and rubies).
The Department of the Treasury's Burmese Sanctions Regulations, 31 CFR part 537
(the BSR), implement E.O. 13047, E.O. 13310, and the BFDA. The Department of the
Treasury will b
erson who willfully commits, willfully attempts to commit, or willfully
conspires to commit, or aids or abets in the commission of, a violation of any
license, order, regulation, or prohibition of the BSR, E.O. 13448, E.O. 13464,
or the blocking provisions of the JADE Act shall, upon conviction, be fined not
of the
JADE Act shall be subject to all applicable seizure and forfeiture la
more than $1,000,000, or if a natural person, may be imprisoned for not more
than 20 years, or both. A civil penalty of $250,000, or twice the amount of the
transaction, whichever is greater, may be assessed for each violation. Articles
that are imported into the United States in violation of any prohibition
ws and
criminal and civil laws of the United States to the same extent as any other
violation of the customs laws of the United States.
BLOCKING OF PROPERTY - E.O. 13310, E.O. 13448, and E.O. 13464 each block
property and interests in property of the persons listed in the Annexes to these
Executive orders. In addition, these Executive orders authorize the blocking of
oing; (ii) to be responsible
for, or to have participated in, human rights abus
property and interests in property of any person determined by the Secretary of
the Treasury, after consultation with the Secretary of State: (i) to be a senior
official of the Government of Burma, the State Peace and Development Council of
Burma (the SPDC), the Union Solidarity and Development Association of Burma (the
USDA), or any successor entity to any of the fore
ges related to political
repression in Burma; (iii) to be engaged, or to have engaged, in activities
facilitating public corruption by senior officials of the Government of Burma;
(iv) to be a spouse or dependent child of any person whose property and
interests in property are blocked pursuant to E.O. 13310 or E.O. 13448; (v) to
be owned or controlled by, directly or indirectly, the Government of Burma or an
t to E.O. 13310, E.O. 13448, or E.O. 13464; or (vii)
to be owned or contr
official or officials of the Government of Burma; (vi) to have materially
assisted, sponsored, or provided financial, material, logistical, or technical
support for, or goods or services in support of, the Government of Burma, the
SPDC, the USDA, any successor entity to any of the foregoing, any senior
official of any of the foregoing, or any person whose property and interests in
property are blocked pursua
nolled by, or to have acted or purported to act for or on
behalf of, directly or indirectly, any person whose property and interests in
property are blocked pursuant to E.O. 13310, E.O. 13448, or E.O. 13464.
The Department of the Treasury's Office of Foreign Assets Control (OFAC)
publishes and frequently updates a list of such persons whose property and
interests in property are blocked (blocked persons), called the Specially
's SDN List, and all property in which any
blocked person has an interest is bl
Designated Nationals and Blocked Persons List (SDN List). The SDN List includes
persons named in the Annexes to E.O. 13310, E.O. 13448, and E.O. 13464, and
certain persons determined by the Secretary of the Treasury, after consultation
with the Secretary of State, to meet the criteria set forth in E.O. 13310, E.O.
13448, or E.O. 13464. With certain exceptions, U.S. persons are prohibited from
dealing with persons listed on OFA
Cocked if it is in the United States or in
the possession or control of a U.S. person, wherever located. A blocked person
is considered to have an interest in all property and interests in property of
an entity in which it owns, directly or indirectly, a 50% or greater interest.
The property and interests in property of such an entity are blocked regardless
of whether the entity itself is listed in the Annex to an Executive order or
otherwise placed on OFAC's SDN List.
SPDC; (iii) any other Burmese persons who provide substantial economic
and
In addition, the JADE Act blocks property and interests in property of: (i)
former and present leaders of the SPDC, the Burmese military, or the USDA; (ii)
officials of the SPDC, the Burmese military, or the USDA involved in the
repression of peaceful political activity or in other gross violations of human
rights in Burma or in the commission of other human rights abuses, including any
current or former officials of the security services and judicial institutions
of th
e political support for the SPDC, the Burmese military, or the USDA; and (iv)
the immediate family members of any person described in categories (i)-(iii).
With certain exceptions, U.S. persons are prohibited from dealing with such
persons, and all property in which any blocked person has an interest is blocked
if it is in the United States or in the possession or control of a U.S. person,
wherever located.
NO IMPORTATION OF PRODUCTS OF BURMA - With certain exceptions, goods of
nder heading 7113 of the
Harmonized Tariff Schedule of the United Stat
Burmese origin, pursuant to rules of origin of U.S. Customs and Border
Protection, may not be imported into the United States.
The JADE Act amended the BFDA to prohibit, with certain exceptions, the
importation into the United States of jadeite mined or extracted from Burma,
rubies mined or extracted from Burma, or articles of jewelry containing such
jadeite or rubies. The BFDA, as amended by the JADE Act, defines articles of
jewelry to include articles of jewelry classifiable
ues (HTS) that contain jadeite or
rubies and articles of jadeite or rubies classifiable under heading 7116 of the
HTS.
In addition, the JADE Act amended the BFDA to establish certain conditions for
the importation into the United States of jadeite mined or extracted from a
country other than Burma, rubies mined or extracted from a country other than
Burma, or articles of jewelry containing such jadeite or rubies.
EXPORTATION OF GOODS AND NON-FINANCIAL SERVICES TO BURMA - There is no general
rohibited. The
term exportation or reexportation of financial services to
prohibition on the exportation of goods and services other than financial
services to Burma. However, other restrictions may affect these transactions,
such as the prohibition on the exportation of financial services to Burma, the
blocking of the property and interests in property of certain persons in Burma,
and the prohibition on new investment in Burma.
EXPORTATION OF FINANCIAL SERVICES TO BURMA - With certain exceptions, the
exportation or reexportation of financial services to Burma is
p Burma is defined
broadly to mean: (i) the transfer of funds, directly or indirectly, from the
United States or by a U.S. person, wherever located, to Burma; or (ii) the
provision, directly or indirectly, to persons in Burma of insurance services,
investment or brokerage services, banking services, money remittance services;
loans, guarantees, letters of credit or other extensions of credit; or the
service of selling or redeeming traveler's checks, money orders and stored
value. This defined term is unique to the Burma sanctions program.
otherwise prohibited, and
does not involve a transfer directly or indirectly to
Although there are limited exceptions to the ban on the exportation of financial
services, under no circumstances can payments be made from blocked accounts on
the books of a U.S. bank.
OPERATION OF ACCOUNTS FOR INDIVIDUALS IN BURMA - U.S. financial institutions
can operate accounts for an individual ordinarily resident in Burma, provided
that the individual is not a blocked person and further provided that each
transaction processed through the account is of a personal nature and not for
use in supporting or operating a business, is not
Burma or for the benefit
of individuals ordinarily resident in Burma unless authorized pursuant to
General License No. 15 (as described in the next section).
TRANSFER OF PERSONAL REMITTANCES TO/FROM BURMA - Pursuant to General License
No. 15, certain noncommercial, personal remittances to Burma are authorized.
U.S. depository institutions, U.S. registered brokers or dealers in securities,
and U.S. registered money transmitters are authorized to process transfers of
funds to or from Burma or for or on behalf of an individual ordinarily resident
in Burma in cases in which the transfer involves a noncommercial, personal
ons to nongovernmental organizations in support of certain activities in
Burma,
remittance, provided that the transfer is not by, to, or through a person whose
property and interests in property are blocked. Such transfers of funds are
authorized even though they may involve transfers to or from an account of a
financial institution whose property and interests in property are blocked,
provided that the account is not on the books of a financial institution that is
a U.S. person. Noncommercial, personal remittances do not include charitable
donations to or for the benefit of any entity or funds transfers for use in
supporting or operating a business. However, U.S. persons may make charitable
donat
i provided that the donations are made pursuant to Amended General License
No. 14-B (as described in the next section).
NGO ACTIVITY IN BURMA - Pursuant to Amended General License No. 14-B, the
exportation and reexportation of financial services to Burma in support of
not-for-profit humanitarian or religious activities in Burma are authorized,
provided that the exportation or reexportation is not, directly or indirectly,
to the Government of Burma, and the exportation or reexportation is not to or
for the benefit of any person whose property and interests in property are
blocked.
In certain situations and on a case-by-case basis, OFAC issues specific licenses
randfathered activities are not exempt from the importation
prohibitions d
to export or reexport financial services not authorized by Amended General
License No. 14-B to nongovernmental organizations in Burma. OFAC's Licensing
Division may be contacted at (202) 622-2480.
NEW INVESTMENT - The BSR prohibit new investment in Burma by U.S. persons on
or after May 21, 1997, unless such investment is pursuant to an agreement in
place prior to that date. A number of criteria are used to determine whether or
not a specific activity is "grandfathered," including the clarity of the scope
of the agreement, the degree of specificity with which the activity is
described, and the extent to which the terms of the agreement are legally
enforceable.
Gescribed above.
New investment in Burma is defined as a contract with the Government of Burma or
a nongovernmental entity in Burma that includes the economic development of
resources (including natural, agricultural, commercial, financial, industrial,
and human resources) located in Burma. The prohibition includes purchasing a
share of ownership (an equity interest) in a project or entering into an
agreement that provides for a participation in royalties, earnings, or profits
from the economic development of resources located in Burma. The BSR also
prohibit a U.S. person from entering into a contract that provides for the
general supervision and guarantee of another person's performance of a contract
of
that foreign person's investment in Burma, such a divest
for the economic development of resources located in Burma.
U.S. persons with pre-May 21, 1997 agreements for the economic development of
resources located in Burma may contact OFAC for a determination as to whether or
not their activity is grandfathered.
FACILITATION - With certain exceptions, U.S. persons are prohibited from
approving, financing, facilitating, or guaranteeing a foreign person's
transaction, including its investment in Burma, if the foreign person's activity
would be prohibited if performed by a U.S. person or within the United States.
Although contracting to sell to a foreign person a U.S. person's equity or
income interest in a development project in Burma constitutes facilitation
iture is authorized by
general license. If the transaction is valued at more than $10,000, a report
must be filed with OFAC for statistical purposes within ten business days of the
signing of such an agreement.
The following are examples of prohibited facilitation of a foreign person's new
investment in Burma:
* The foreign subsidiary of a U.S. company wishes to bid on a project to develop
a coal mine in Burma. The U.S. parent cannot approve, supervise, guarantee, or
otherwise be involved in the foreign subsidiary's investment in this project.
* A U.S. oil company holds a pre-May 21, 1997 contract to develop a Burmese oil
field. It wishes to sell its rights under the contract to a foreign company. It
to relinquish its shares, but may not
purchase additional shares. If the U.S.
is authorized to sell an interest without prior authorization from OFAC, but if
the agreement is valued at more than $10,000, the seller must file a report with
OFAC within ten business days of the signing of the agreement.
INVESTMENT IN THIRD COUNTRY COMPANIES - U.S. persons are prohibited from
purchasing shares in a third-country company if the company's profits are
predominantly derived from its economic development of resources located in
Burma. If a person holds shares in an entity that subsequently engages
exclusively or predominantly in the economic development of resources in Burma,
or subsequently derives its income exclusively or predominantly from such
activity, the U.S. person is not require
dperson sells shares valued at more than
$10,000, the seller must file a report with OFAC for statistical purposes within
ten business days of the sale.
If you have information regarding a possible violation of these sanctions,
please contact OFAC's Enforcement Division at (202) 622-2430. Your call will be
handled confidentially.
This document is explanatory only and does not have the force of law.
The Executive Orders and implementing Burmese Sanctions Regulations
(31 CFR Part 537) contain the legally binding provisions governing the
sanctions against Burma described above. This document does not
supplement or modify the Executive Orders or 31 CFR Part 537.
The Office of Foreign Assets Control also administers sanctions
programs involving Libya, Cuba, North Korea, Iran, Iraq, Syria,
Sudan, Zimbabwe, Liberia, certain targets in the Western Balkans,
highly enriched uranium transactions, diamond trading, designated
terrorists and international narcotics traffickers, Foreign
Terrorist Organizations, and designated foreign persons who have
engaged in activities relating to the proliferation of weapons of
mass destruction. For additional information about these
programs or about the Burmese sanctions program, please contact
the:
OFFICE OF FOREIGN ASSETS CONTROL
U.S. Department of the Treasury
Washington, D.C. 20220
202/622-2520
12-5-08
...............................................................................
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What laws, rules and regulations provide the legal framework for the sanctions?
|
| Executive Orders |
| | | 13619 Executive Order Blocking Property of Persons Threatening the Peace, Security, or Stability Of Burma (Effective Date - July 11, 2012) |
| | 13464 Blocking Property And Prohibiting Certain Transactions Related To Burma (Effective Date - May 1, 2008) |
| | 13448 Blocking Property and Prohibiting Certain Transactions Related to Burma (Effective Date - October 19, 2007) |
| | 13310 Blocking Property of the Government of Burma and Prohibiting Certain Transactions (Effective Date - July 29, 2003) |
| | 13047 Prohibiting New Investment in Burma (Effective Date - May 21, 1997) |
|
Statutes |
| | Burma Freedom and Democracy Act of 2003, PL 108-61 (50 U.S.C. § 1701 note)(as originally enacted, without subsequent amendments, including by the JADE Act) |
| | Section 570 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1997, PL 104-208, §§ 570 |
| | International Emergency Economic Powers Act (IEEPA), 50 U.S.C. §§ 1701-1706 |
| | National Emergencies Act (NEA), 50 U.S.C. §§ 1601-1651 |
| | Tom Lantos Block Burmese Jade (Junta's Anti-Democratic Efforts) Act Of 2008, PL 110-286 (50 U.S.C. § 1701 note) |
|
Waivers |
| | Limited Waiver of Certain Sanctions Imposed by, and Delegation of Certain Authorities Pursuant to, the Tom Lantos Block Burmese JADE (Junta’s Anti-Democratic Efforts) Act of 2008 |
|
Code of Federal Regulations |
| | 31 CFR Part 537 - Burmese Sanctions Regulations |
|
Federal Register Notices |
| | 72 FR 50047-07 - Revision to the general license for certain publishing activities |
| | 72 FR 34376-07 - Amendment related to the issuance of specific licenses for the importation of animals and specimens |
| | 71 FR 29251-06 - Revisions to the International Emergency Economic Powers Act (IEEPA) made by the Combating Terrorism Financing Act of 2005 |
| | 70 FR 48240-05 - Burmese Sanctions Regulations |
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