Issues & Insights Vol. 19, WP 16 – Myanmar’s Future STC System

October 18, 2019

Abstract

Myanmar, with the help of the United States, European Union and World Customs Organization, is currently working to establish a strategic trade control (STC) system. It is establishing controls on dual-use items as a first step. To implement an effective STC system, Myanmar needs to have appropriate legislation, licensing procedures, enforcement practices, and industry outreach in place. Myanmar currently has a “negative list” for exports and imports (items prohibited from import/export), but in the future, will release a dual-use control list. Currently, there are no penalties or enforcement mechanisms related to STC. Myanmar needs to establish a dual-use control law and continue to cooperate with international organizations on this and other efforts.

Introduction

Development and implementation of a Strategic Trade Control (STC) system is needed to ensure effective management of dual-usegoods in Myanmar. An effective STC system is an important consideration for national security and for enhanced cooperation with international organizations. Myanmar is situated between two nuclear countries, China and India, and Myanmar’s economy has developed more in recent years than it has over the past two decades. The more a country exports or imports, the more international organizations and other countries expect it to have an STC system to control the movement of sensitive goods.

STC systems prevent the proliferation of weapons of mass destruction (WMD) by controlling the transfer of sensitive goods and technologies. To control the flow of strategic goods requires a regulatory system and related enforcement actions to control the transfer of goods with strategic importance at the border, including transit and trans-shipment facilities. STC includes not only control lists and licensing, but also incorporates related government agencies and industry outreach efforts by governments

Dual-use items are goods, software and technology that can be used for both civilian and military applications.