US Updates Myanmar Business Advisory With New Supply Chain Risks
The Biden administration this week updated its guidance for companies doing business in Myanmar with new industry sectors and business activities that may lead to sanctions evasion, export control violations or other supply chain risks. The update now specifically mentions Myanmar’s rare earth elements; base metals and gold; timber; and aviation services industries, and warns companies about goods being diverted to military end uses and end users in the country; risks posed by financial services provided by state-owned banks; and ongoing forced labor and human rights abuses against Myanmar workers.
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Companies should be “wary of reputational, economic, and legal risks associated with conducting business and utilizing supply chains involving these sectors and activities because of their links to [Myanmar’s] military,” the U.S. said.
The latest information updates the January 2022 guidance released by the Office of the U.S. Trade Representative, Homeland Security Investigations and the State, Treasury, Commerce and Labor departments, which urged businesses to review and update their compliance programs to account for supply chain risks in Myanmar (see 2201260032). The new guidance outlines the various risks companies may face in each of the new industries named by the Biden administration, and it also includes a list of sanctions imposed against Myanmar over the last two years.