Companies in the United States have imported nearly 1,600 tonnes of teak from military-ruled Myanmar. Following the coup attempt, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed multiple targeted sanctions with the aim to block trade with Myanmar that benefits the illegal military junta, according to Justice For Myanmar.
Sanctions were placed on the state-owned Myanma Timber Enterprise (MTE), which solely manages the sale of timber in Myanmar, auctioning logs to private companies for export.
Despite sanctions, from February to the end of November last year, US businesses continued to import timber from Myanmar, according to data from the global trade database, Panjiva.
The timber arrived in 82 different shipments between February 1 and November 30, 2021, largely consisting of teak board and scantling that are used for shipbuilding, outdoor decking, and furniture.
Multiple US timber wholesalers and manufacturers are involved, including East Teak Fine Hardwoods, J. Gibson McIlvain, Kingsley Bate Warehouse, Lumberbest, World Panel Products and others.
Justice For Myanmar said, the data indicates that companies are circumventing sanctions by trading via intermediaries, keeping the link to MTE indirect. It appears that only the intermediaries’ details are included on the documentation required for US imports, allowing potentially illegal imports to pass under the radar of US authorities, according to Justice For Myanmar.
Sanctions imposed by the United States on MTE prohibit “the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person”.
In addition, Justice For Myanmar says, considering that sanctions aim to block trade with MTE, and the timber exported from Myanmar is originally auctioned by MTE, the military junta still receives funds from the trade no matter who officially exports the timber.
Justice For Myanmar spokesperson Yadanar Maung says: “Sanctions must be enforced in order to be effective. We urge OFAC to investigate US imports of timber from Myanmar since sanctions were imposed on MTE. We call on the US Government to ban all Myanmar timber imports to prevent further revenue from reaching the illegal military junta.”
Justice For Myanmar is a Myanmar-based human rights group.
