Directorate of Trade Ministry of Commerce

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1 Directorate of Trade Ministry of Commerce 1 st November

2 Economic Reform Process National Economic Policy and Basic Principles of Trade Rule and regulation of importation and exportation Trade liberalization measures Major Export and Import Foreign trade relations Myanmar integration into ASEAN 2

3 Trade - Liberalization and Facilitations Investment - New FDI Law 3

4 Sustainable development of agriculture towards industrialization and all round development; Equitable and proportionate development among Regions and States; Inclusive development of entire people; Improvement of Quality of statistics and statistical system; 4

5 1.To formulate and implement trade policy systematically inline with market economy. 2. To promote export industries. 3.To extend and enhance trade activities not only with regional trade partners but also with global trade partners. 4. To develop trade environment. 5. To ensure the sufficiency and price stability of essential commodities for domestic consumption and to fulfill demand of manufacturing sector. 5

6 To diversify and extand foreign market by utilizing natural and human resources effectively and to promote the export of traditional and value-added products. Type of Items given priority to import ; capital goods raw materials for essential goods. goods for Public Health care. goods support export-led manufacturing sector. goods support of Import substitution. 6

7 Control of Import/Export Temporary Act (1947) was effective up to September On 7 th September 2012, the Export and Import Law has been enacted to govern the export&import business of Myanmar. This law is administered by the Ministry of Commerce, from time to time, MOC issues necessary orders, notifications, directives, pertaining to all export/import activities. 7

8 The authority to issue export/import licenses and permits is delegated to the Department of Commerce and Consumer Affairs under the Ministry of Commerce (MOC). 8

9 License fees and customs duty are not payable on export of any commodity. All imports are subject to payment of license fees, customs duty and commercial tax. Import license fee is payable on CIF value.. 9

10 (a) (b) Agricultural Products Niger Oil Mustard, Mustard Oil Sun-flower seeds, Sun-flower oil All kinds of oil-extracted cakes Minerals and Metals Gold Diamond Petroleum 10

11 (c) (d) (e) Animal and Animal Products Ivory Buffalo, cow, elephant, horse and rare animals Marine Products Shrimp bran Miscellaneous Arms and ammunitions Antiques 11

12 Liquor Beer Cigarette Prohibited products as per existing laws and international conventions. 12

13 - Fertilizer - Farm Implements - Farm Machinery - Insecticides - Some medicines and pharmaceutical raw materials for the purpose of supporting the improvement of public health. 13

14 In order to promote trade, concerned ministries and trade related associatio are reviewing all possible trade liberalization on existing trade related rules, regulations and procedures to be inline with the international trade agreements, particularly to ASEAN Trade in Goods Agreements (ATIGA) and General Agreement on trade in goods of WTO. Ministry of Commerce is acting leading role of removing the barriers of trade such as liberalizing export/ import licensing procedures (to facilitate in line with the WTO Import Licensing Procedures Agreement together with the ASEAN Guideline on the implementation of import licensing procedures). 14

15 The commodities which were previously restricted to export such as rice, red sesame seeds and brown sesame seeds are allowed to export. Commercial tax previously levied on the export of rice, pulses and beans, corn, sesame, rubber, fishry products and some animal products, value added products of wood, cane, and bamboo are exempted in order to encourage export. 15

16 The import of edible oil, palm oil and fuel which were previously restricted can now be imported freely. The import of motor vehicles is also allowed and car sale centers are permitted to open for Myanmar Citizen Companies. 16

17 The commodities which are previously not allowed to be import such as - Mono Sodium Glutamate (MSG), Soft drinks, Assorted Biscuits, Canned Food, Instant Noodles can be imported now. 17

18 Ministry of commerce already announced Order No (16/2013) in 28 February, 2013,exemption for obtaining licence on (152) items of export commodities and (166) items of import commodities. 18

19 Natural Gas Pulses & Bean Garment Rice Fishery Products Jade Teak Rubber Sesame seed Hard Wood 19

20 Sr. Items Value ( US Dollar in Million) 1 Natural Gas Pulses and Bean Garment Rice Fishery Products Jade Teak Log Rubber Sesame Seed Hard Wood

21 Petroleum Products Motor Vehicles and spare parts Machines and Machineries Iron and steel construction material Iron and steel Plastic Raw Materials Palm Oil Pharmaceutical Products Vessel and Ship Building Spare Parts Fertilizer Cement 21

22 Sr. Items Value (US Dollar in Million) 1 Petroleum Products Motor Vehicles & Spare Parts Machines and Machineries Iron and Steel Construction Materials Iron and Steel Plastic Raw Materials Palm Oil Pharmaceuticals Vessel and Ship Building Materials Fertilizers

23 USD in million Sr. Fiscal Years Export Import Volume of Trade Source: CSO and Border Trade Department 23

24 USD in million Sr. Country Export Import Volume of Trade 1 China Thailand Singapore Japan India South Korea Malaysia Indonesia Germany Vietnam Source: Custom Data and DOBT 24

25 Sr. Fiscal Years Export Import Volume of Trade Source: Custom Department 25

26 Natural Gas Fishery Products Teak Mineral and Ironore Broken Rice Ground Nut Shrimp Rice Rubber Fish Meal USD in million 26

27 USD in million Seament Auto Mobile and Auto parts Petroleum Products Plastics Raw Materials Medicine Machine and Machinery Products Dry Battery Cosmetics Tare and Tube Mineral (Construction Material)

28 Sr. Border Post Export Import Volume of Trade 1 Tarchilaike Myawaddy Kawthaung Myeik

29 (1) Trade agreement between Union of Myanmar and Kingdom of Thailand ( ) (2) MOU on Joint Trade Committee ( ) (3) Border Trade Agreement ( ) 29

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32 Member of WTO Member of ASEAN, BIMSTEC, GMS, ACMECS Myanmar has bilateral trade agreement with the Republic of Korea, People Republic of China, Thailand, Bangladesh, India, Pakistan, Vietnam, Laos, Philippines, Malaysia in the Asian region, and with six countries in Eastern Europe on the principle of equality of rights and mutual benefits. 32

33 Myanmar believes in trade liberalization and also wants free and fair trade in the world. Myanmar was a founder member of the GATT, and a member of WTO. Our foreign trade policies are generally governed by the rule-based multilateral trading system. 33

34 Myanmar has signed 4 Border Trade Agreements with its neighboring countries. With China in August 1988, with India in January 1994, with Bangladesh in May 1994 and with Thailand in March 1996, with a view to legalize and normalize the increasing border trade is an integral part of Myanmar foreign trade. Myanmar participates in various FTAs in the region, such as ASEAN FTA, ASEAN-China, ASEAN India,ASEAN- Japan, ASEAN-Korea, ASEAN-Australia-New Zealand Regional comprehensive economic programm(rcep)and BIMSTEC. 34

35 Myanmar as a member of ASEAN, Ministry of Commerce is playing leading role in Free Flow of Goods, Consumer Protection, Competition Policy within the region. For this purpose, Ministry of Commerce is working in cooperation with the Ministry of Finance and Revenue for trade facilitation, customs procedures, tariff reduction and also cooperation with Ministry of Science and Technology and Ministry of Health for standard and conformity assessment matters and also cooperation with the Ministry of Agriculture and Irrigation for sanitary and pythosanitary measures. Tariff reduction commitments of Myanmar met the timeline of ASEAN and Myanmar already reduced the 80% of all tariff lines by

36 Ministry of Commerce is issuing authority for preferential Certificate of Origin within ASEAN and its dialogue partners such as China, Korea, India, Japan, Newszealand and Australia. Other preferential certificate of origin such as GSP Scheme (Form A) given by developed countries, Preferential Tariff for LDCs by Republic of Korea and DFTP Scheme for LDCs by India are also issued by Ministry of Commerce. In contrast, Customs Department is a receiving authority for the Certificate of Origin from all other ASEAN member states and partners. 36

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