Bhutan

Compliance/Financial Considerations

If you intend to do any of the following in Bhutan, please contact Risk Services at risk@berkeley.edu or 642-5141:

  • Hire a local to work for you as an employee
  • Purchase or lease office or research space
  • Purchase or lease an automobile
  • Establish a long-term (over 90 days) or ongoing project
  • Conduct a clinical trial 

U.S. GOVERNMENT COMPLIANCE CONSIDERATIONS 

Foreign activities may trigger many U.S. laws, including:

  • Import Controls
  • Export Controls
  • Tax Reporting
  • Foreign Bank Account Reporting
  • Country Embargoes and Targeted Sanctions
  • Foreign Corrupt Practices Act
  • Anti-Boycott Laws 

Import Controls. UC employees must adhere to U.S. import requirements, and may need to enlist the services of a customs broker, especially for shipments arriving by sea and subject to the Importer Security Filing 71730, also known as ISF 10+2. 

Export Controls. Export controls may apply to advanced software and technology, research data, and other sensitive assets. UC’s Export Compliance FAQ contains useful information and can be found here.  Go here for the University of California plan for compliance with federal export controls. If you plan on taking or sending potentially export-controlled materials to Bhutan, consult the campus Research Administration Compliance Office at 642-0120. 

Tax Reporting. The University and its employees may be taxed in foreign countries. The United States does not have a tax treaty with Bhutan. For more information about double taxation issues, contact the Controller’s Office at:

Foreign Bank Account Reporting. The U.S. Treasury Department requires U.S. citizens with a financial interest in or signatory authority over a financial account in a foreign country, where accounts exceed $10,000 at any point during a calendar year, to report such accounts on a Report of Foreign Bank and Financial Accounts (FinCen Report 114). Those needing to complete the form should contact the Controller’s Office at cashiers@berkeley.edu or 643-9803 for assistance. An IRS 1040 Schedule B form (Part III–Foreign Accounts and Trusts) must be filed by the signatory for any foreign bank account, regardless of the account balance. 

Country Embargoes and Targeted Sanctions. In general, collaborations between University personnel and scholars at foreign institutions or organizations do not require export licenses unless they involve export-controlled or -restricted research or involve scholars in sanctioned countries. Before engaging in an international collaboration, the University needs to determine whether export licenses are required and to verify that the foreign collaborator is not blocked or sanctioned. The Office of Foreign Assets Control (OFAC) is responsible for enforcing all U.S. embargoes and sanctions. Depending on each country’s embargo or sanction program, activities may be prohibited without specific authorization or license. UC’s International Collaborations webpage contains additional information on this topic.   

The Foreign Corrupt Practices Act (FCPA) is intended to stop bribery. It prohibits offering to pay, paying, promising to pay, or authorizing the payment of money or anything of value to a foreign official. The term “foreign official” generally includes any employee or contractor of a foreign government, and may include individuals employed by foreign universities. It is also unlawful to make a payment to a third party knowing that all or part of the payment will go to a foreign official. For more information, review the federal government’s Resource Guide to the U.S. Foreign Corrupt Practices Act. If you need further clarification, contact the UC Berkeley Office of Legal Affairs at 642-7122. Transparency International’s 2018 survey of perceived public sector corruption rated Bhutan at 68 out of 100 (25th out of 180 countries reviewed, i.e. relatively clean).

Anti-Boycott Laws.  The U.S. Department of Commerce is responsible for oversight of laws prohibiting individuals and entities from participating in boycotts not approved or sanctioned by the U.S. government. The Export Administration Act requires that requests to participate in such boycotts or to conduct activities in any of the boycotting countries be formally reported to the Department of Commerce and/or IRS.

For other compliance-related issues, refer to UC’s International Compliance webpage.  

ADDITIONAL CONSIDERATIONS FOR DOING BUSINESS INTERNATIONALLY

Foreign Bank Accounts. Employees wishing to open a foreign bank account should contact the Controller’s Office at cashiers@berkeley.edu or 643-9803. Requests to open accounts must be made through the Office of the President’s Banking and Treasury Services Group by the Chancellor or the Chancellor’s designee. 

Real Estate Agreements. Only employees with delegated authority to sign contracts on behalf of The Regents may enter into agreements, leases, or other contracts.  Foreign affiliates or operations must submit to the Real Estate Services Office property management agreements, personal property leases, or contracts with a term longer than one year or in an amount greater than $25,000 per year. The campus then seeks approval from the University president or designee. For more information, consult the Guidelines for the Establishment and Operation of Foreign Affiliate Organizations and Foreign Operations

Articles

The US State Department's page on BHUTAN may be found HERE.

Personal Safety

AS OF OCTOBER 1, BHUTAN AUTHORITIES ARE MAINTAINING MEASURES INTRODUCED TO CURB THE SPREAD OF CORONAVIRUS DISEASE (COVID-19). ENTRY AND EXIT CONTROLS ARE IN PLACE. THE FOLLOWING NATIONWIDE RULES WILL APPLY FOR DOMESTIC TRAVELERS: BETWEEN LOW-RISK ZONES: ONLINE REGISTRATION IS COMPULSORY; SUCH REGISTRATION MAY ALSO BE DONE AT TRANSPORATION HUBS LIKE BUS STATIONS OR CHECKPOINTS. FROM LOW RISK-HIGH-RISK ZONES: NO QUARANTINE IS NECESSARY FOR ASYMPTOMATIC PASSENGERS. FROM HIGH-RISK TO LOW-RISK ZONES: TRAVELERS MUST UNDERGO A MANDATORY SEVEN (7) DAY QUARANTINE AT THE POINT OF ORIGIN, FOLLOWED BY A COVID-19 TEST. OTHER NATIONWIDE MEASURES WILL CONTINUE UNTIL FURTHER NOTICE. WEARING FACEMASKS IN PUBLIC IS COMPULSORY. CONTACT SPORTS AND SOCIAL GATHERINGS REMAIN PROHIBITED. AUTHORITIES ARE ADVISING RESIDENTS TO STAY AT HOME AND USE DELIVERY SERVICES TO THE EXTENT POSSIBLE.

Note: this page contains basic risk information. For more details, please contact the Risk Services Office at risk@berkeley.edu.

If you are traveling to Bhutan University-related business, please sign up for the University’s travel insurance program by going here. For more information on the travel insurance program, please go here.

Because everyone’s health is unique, we suggest seeking the advice of a medical professional before traveling internationally. Members of the campus community interested in protecting their health while abroad may schedule an appointment with the University Health Services International Travel Clinic. 

Protests rarely occur in Bhutan and seldom devolve into violence. Most demonstrations are related to economic conditions and social issues. Protests are most common in Thimphu and occasionally cause minor transportation delays.

Nonviolent crime poses a low threat to foreign nationals and expatriates in Bhutan. Despite modest standards of living among the populace, crime levels have historically been very low. Petty theft is a potential problem, but observing commonsense precautions should help minimize risk. Reasonable precautions should be taken when visiting major towns and, in particular, when going out at night. 

Gender-based violence poses a low threat to foreign nationals and expatriates in Bhutan. Though the numbers of reported rape cases have steadily increased in recent years, most of these incidents typically occur within the local community, and the rapist is almost always known to the victim. However, female travelers should remain vigilant in their personal security practices, especially at night. 

Homosexual activity is illegal in Bhutan, and the threat to members of the lesbian, gay, bisexual, and transgender (LGBT) community is moderate. Those convicted of engaging in same-sex relations could face imprisonment, though enforcement has generally been low. Social acceptance remains mixed, though conditions are improving. 

Legal/Political

CRIMINAL PENALTIES:  You must obey all Bhutanese laws while you are traveling in Bhutan.

  • If you violate them, even without knowing you did, you may be expelled, arrested, or imprisoned.
  • Penalties for possessing, using, or trafficking in illegal drugs in Bhutan are severe, including long jail sentences and heavy fines, or death.
  • You may be taken in for questioning if you don’t have your passport with you or if you take pictures of certain buildings.
  • Driving under the influence could land you immediately in jail.
  • Some laws are also prosecutable in the U.S., regardless of local law. 
  • Engaging in sexual conduct with children or using or disseminating child pornography in a foreign country is a crime prosecutable in the United States.

Arrest Notification: If you are arrested or detained, ask police or prison officials to notify the U.S. Embassy immediately.

LGBTI Travelers: Although there are no laws that explicitly prohibit consensual same-sex sexual activity, laws against “sodomy or any other sexual conduct that is against the order of nature” exist. Under the penal code, a person can be imprisoned for as long as one year for engaging in such acts.