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OFAC Issues New Determination Related to Burma Sanctions and Related FAQs

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On August 23, 2023, the US Treasury Department’s Office of Foreign Assets Control (“OFAC“) issued the first Determination Pursuant to Section 1(a)(i) of Executive Order (“EO“) 14014 (the “Determination“), which extends the application of section 1(a)(i) of EO 14014 to the jet fuel sector of the Burmese economy.  On the same day, OFAC also published two related Frequently Asked Questions (“FAQs“): FAQ 1132 and FAQ 1133.  Our blog post on the issuance of EO 14014 is available here.

The Determination

Section 1(a)(i) of EO 14014 (“Blocking Property With Respect to the Situation in Burma”) imposes sanctions on any person determined by the Secretary of the Treasury, in consultation with the Secretary of State, to operate in the defense sector of the Burmese economy or any other sector as may be determined.  Pursuant to that authority, the Determination identifies the jet fuel sector of the Burmese economy as subject to these sanctions, effective August 23, 2023.

New FAQs

  • FAQ 1132 clarifies that not all persons operating in the jet fuel sector of the Burmese economy are subject to sanctions but only those persons who have been determined as such.  Sanctioned persons will be listed on the Specially Designated Nationals and Blocked Persons List (“SDN List“) with the program tag [BURMA-EO14014].
  • FAQ 1133 clarifies that the “jet fuel sector of the Burmese economy” includes activities related to the importation, exportation, reexportation, sale, supply, or transport, directly or indirectly, of jet fuel in or involving Burma.  The FAQ further explains that the Determination is specifically intended to target activities related to military regime end users in Burma, wherever situated, including, for example, jet fuel used for military resupply aircraft, state-owned aircraft used by members of the military regime, and combat vehicles, including jets and attack helicopters, used in both offensive and defensive military operations inside Burma.  OFAC does not intend to target persons engaging in civil aviation-related activities in Burma, including the sale, provision, or purchase of jet fuel in connection with commercial airlines for air transportation to or from Burma but cautions that anyone wishing to supply jet fuel to persons in Burma should exercise extreme care to avoid military regime end users.  
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Mr. McMillan's practice involves compliance counseling; compliance programs; licensing; compliance reviews; internal investigations; voluntary disclosures; administrative enforcement actions; criminal investigations; customs inquiries, audits, detentions, and seizures; and trade-compliance due diligence and post-acquisition integration in mergers and acquisitions. His practice includes matters that implicate the US International Traffic in Arms Regulations (ITAR), US Export Administration Regulations (EAR), US National Industrial Security Program (NISP), the US Committee on Foreign Investment in the United States (CFIUS), and equivalent non-US laws. Mr. McMillan regularly advises on and represents clients in matters involving technology, including its control, protection, accidental disclosure, diversion, or unauthorized collection. Mr. McMillan has extensive experience working with companies in the aerospace and defense industry, as well as companies in the Middle East and other parts of Asia.

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Ms. Test advices clients on issues relating to licensing, regulatory interpretations, enforcement actions, internal investigations and compliance audits, as well as the design, implementation and administration of compliance programs. She also advises clients on the extra-territorial application of trade compliance-related regulations in cross-border transactions.

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Orfeh's practice focuses on advising multinational companies on cross-border commercial transactions, particularly technology transactions and compliance with international trade law, including US export controls, trade and economic sanctions, and US foreign investment restrictions.

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