On July 2, 2021, the Bureau of Industry and Security (BIS) added four more Burmese entities to the Entity List for their relation to the Burmese military and its February coup. In doing so, BIS limits the four entities’ ability to access commodities, software, and technology subject to the Export Administration Regulations (EAR).
One of the entities is King Royal Technologies Co., Ltd., which is a telecommunication company that provides satellite communication services in support of the Burmese military. The other three entities are Wanbao Mining and its two subsidiaries – Myanmar Wanbao Mining Copper, Ltd. and Myanmar Yang Tse Copper, Ltd. The latter three entities were added to the Entity List due to their revenue-sharing agreement with Myanmar Economic Holdings Limited (MEHL). MEHL provides revenue to Burma’s Ministry of Defence – which is linked to the coup – and was also added to the Entity List in March 2021. This decision by BIS builds on previous actions to increase restrictions on the Burmese military, which include:
- Expanding the Military-End User (MEU) Rule to include Burma. This decision made Burma subject to the enhanced end-uses and end-user controls under the MEU rule in § 744.21 of the EAR. Previously, this rule was limited to only end-users and end-uses in China, Russia, and Venezuela.
- Adding the Burmese Ministries of Defence and Home Affairs, the Myanmar Economic Corporation, and MEHL to the Entity List.
- Downgrading Burma’s country group status from Country Group B to Country Group D:1. This move drastically limits the use of license exceptions, including Shipments of Limited Value (LVS), Shipments to Group B Countries (GBS), and Technology and Software under Restriction (TSR).
- Reclassifying Burma from Computer Tier 1 to Computer Tier 3 under the License Exception Computers (APP).
The Entity List is a tool used by the BIS to restrict the export, reexport, and transfer (in-country) of items subject to the EAR to entities believed to be participating in actions that go against the interests of the United States’ national security or foreign policy. Additional licenses are required for the exportation, re-exportation, and transfer of commodities, software, and technology to any listed entities. No license exceptions apply and license applications are subject to a presumption of denial.
The Press Release is available here.
For more information on Burma (Myanmar) and the EAR, contact our team and see previous posts below.