Export And Import Status Of The Burma Economics Essay
Introduction to the activities for import export done in Myanmar: –
Myanmar is non basking good trade traffics, peculiarly with the western states. The United states does non import anything from Myanmar. Australia and the European Union have besides imposed countenances on the state, curtailing the import of certain merchandises. Myanmar exports fell drastically during the planetary economic crisis of 2008-09.however. Myanmar is a member of the WTO, ASEAN and BIMSTEC. It portions healthy trade dealingss with its adjacent states, including India, Thailand and China.
The state ‘s hapless substructure is one of the chief hinderances to international trade. The primary path of is across the Thai boundary line, which is besides used to export many illegal drugs through the Avevarwady river. Burma has a wealth of cherished rocks and treasures. However, due to the ill-famed working conditions in the mines. International companies refuse to import these rocks.
Myanmar has a big trade shortage that has besides crippled its economic growing. in 2007, the state imported 18250 bbl/day, and exported merely 2200bbl/day of oil. The entire overall imports rose to $ 3.555 billion in 2009, from $ 3.388 billion in 2008 ( excepting the import of bootleg merchandises ) . The entire overall exports feel to $ 6.504 billion in 2009, from $ 6.677 billion in 2008 ( excepting export of bootleg merchandises ) .
Burma Imports: trade goods
The major trade goods imported by Myanmar are as follows:
Food merchandises and comestible oil
Cement and building stuffs
Petroleum merchandises and petroleum oil
Union of burma Imports: Spouses
Burma Exports: trade goods
The major trade goods Exports by Myanmar as follows:
Jade and treasures
Pulsations and beans
Myanmar exports: Spouses
Burma Export / Import Rules And Regulations
Export / Import Licensing system
The authorization to publish export / import licences and licenses is delegated to directorate of trade and section of boundary line Trade under the Ministry of commercialism. Directorate of Trade is authorized to publish export / import licences for cross boundary line trade.
Law Regulating Licensing:
The chief jurisprudence regulating the mandate of licensing is contained in the control of Imports and Export Act,1947, which has been amended when necessary and which is still in force. this jurisprudence is administered by the Ministry of commercialism which, from clip to clip, issues necessary orders, presentment, directives, refering to all export / import affairs including issue of licences and licenses every bit good.
All private concern endeavors, both local and foreign, co-operative societies, joint-venture organisations, wishful of transporting on export / import concern are required to use to the Directorate of Trade for enrollment as exporter / importer.
Registration of Exporter / Importer:
The undermentioned single / enterprises wishful of transporting on export / import concern may use to the, board of directors of Trade for enrollment as exporter / importer:
Co-operative societies registered under the co-operative Societies jurisprudence ;
Limited companies inclusive of foreign companies or subdivisions registered under Myanmar companies Act ;
A citizen or associate citizen or naturalized citizen if the applier is a exclusive owner ;
Term of enrollment, enrollment fee and extension fee:
Term of enrollment, enrollment fee and extension fee for exporter / importer are as follows:
Footings of enrollment 1 year,2 twelvemonth or 3 old ages
Registration fee or extension fee for one twelvemonth kyats 15000/-
Registration or extension fee for two old ages kyats 20000/-
Registration or extension fee for three old ages kyats 30000/-
Certificate of enrollment:
Effective from 1.4.94 the board of directors of Trade issued new signifier of certification of enrollment as appended.
Amendment of certification:
Change, add-on or amendment is allowed upon payment of kyats 300per entry.
Time period of extension:
Registered exporter / importer shall, at the termination of the term of enrollment, either one or two or three old ages as the instance may be, use for extension.
Application for extension of certification:
Application shall be made anterior to expiry of the term of enrollment ;
If applied after the termination, the following punishment shall be paid in add-on to the relevant extension fee:
Within one month from the expiry-kyats 500/-
Within two months from the expiry-kyats 1000/-
Within three months from the expiry-kyats 1500/-
Resignation of certification of enrollment:
Exporter / importer non wishful of go oning concern may give up the certification of enrollment.
Cancellation of enrollment:
As mentioned earlier in Para 5, the exporter / importer shall, at the termination of enrollment, use for extension. The enrollment will be cancelled if he fails to use for extension after three months from the day of the month of termination.
Issue of duplicate transcript of certification of enrollment and individuality card:
The exporter / importer has the right to use for the issue of duplicate transcript of certification of enrollment or place card issued to him by the board of directors of trade upon payment of kyats 300/-as service charges.
Rights of the registered exporter / importer:
To have the foreign invitee for concern dialogue ;
To use for issue of concern pass-port ;
To administer by whatever agencies available in the local market ;
To make border trade concern in conformity with the prescribe regulations and ordinances but registered exporter / importer should non be a foreign house.
To import all merchandises in conformity with the prescribed regulations and ordinances, with the foreign exchange or by utilizing any other permitted methods of import ;
To export all merchandise in conformity with the prescribed regulations and ordinance except for those which are prohibited by the province and the merchandises, prescribed to be entirely undertaken by the state-owned economic endeavors ;
Export / import licences:
By and large every export / import by private concern Enterprises and province endeavors are capable to export / import licences / license issued by the licensing governments concerned. The cogency of export / import licences /permit issued by the board of directors of trade is usually six months from the day of the month of issue, and can be extended for three months period at a clip.
Items allowed for Import:
Policy dictum as to import include, inter alia, to provide the basic demands of the state ‘s economic sectors, viz. , agribusiness, farm animal genteelness, transit, fabrication, excavation, piscary, forestry and so on, while consumer pick can be fulfilled every bit at the same clip. These are reflected in the categorization of import points which are now divided into two classs: –
Priority points [ A ] – which include machinery and trim parts, agricultural machinery and farm implements, pesticide, fertilisers, high output quality seeds, oil and industrial natural stuffs, comestible oil, building shops and edifice stuffs ;
Priority points [ B ] – about 60 points grouped under house clasp goods, fabric merchandises, electric and electric merchandises, personal goods, grocery, building stuffs and general merchandises.
The private importer is required to import 80 % precedence [ A ] – points, if he wishes to import precedence [ B ] -items. He could besides import 20 % precedence [ B ] -items, together with precedence [ A ] -items and transport them at the same clip. By and large no quota or ceiling is fixed for imported points so long as the demand to import the prescribed sum of precedence points is fulfilled, with the exclusion of comestible oil.
Merchandise allowed for import which is excluded from prohibited points, restricted points and precedence points.
Some trade goods, which are non in the list of forbidden points, restricted points, precedence points are allowed to import as in the list of precedence [ B ] within the right of 20 % ratio for import.
Items non allowed for import:
At the present, the under mentioned points are non allowed to be imported both by abroad and boundary line. The trade goods prohibited to import shall be from clip to clip amended in conformity with the latest state of affairs of local market state of affairs.
Commodities ( nutrient Stuffs )
Commodities ( groceries )
Seasoning pulverization ( MSG )
Seasoning pulverization ( MSG )
Fruits ( fresh )
Fruits ( fresh )
Canned nutrients ( meat & A ; fruits )
Canned nutrients ( meat & A ; fruits )
Prohibited merchandises as per bing Torahs
Prohibited merchandises as per bing Torahs
Items allowed for export:
Normally, the registered exporter / importer has the right to export all trade goods, except for rice and rice merchandise which are prescribed to be entirely exportable by the province – owned Economic Enterprises.30 /31 points including Rice, tick, etc.
The registered exporters / importer are allowed to bask 100 % export keeping money for the export of goods. There exists neither export quota nor ceiling for any exportable merchandise or any single or organisation with the exclusion of fabric merchandise which are capable to quota fixed by the importing state.
Fees and revenue enhancements on Export / import:
No export licenses fee is collectible on export of any trade good including agricultural harvests. All imports are capable to payment of licences fees, imposts responsibility and commercial revenue enhancement. Import licences fee is collectible on CIF value at a lower limit of K 250 up to a upper limit of K 50000. On CIF value over K 1 million licences fee collectible is K 50000 merely. The rates are shown in the undermentioned tabular array:
Ratess of import licences fees:
C.I.F value ( of the licence/permits )
Up to 10,000
From 10,001 to 25,000
From 25,001 to 50,000
From 50,001 to 1,000,00
From 1,000,01 to 2,00,000
From 2,000,01 to 4,000,00
From 4,00,001 to 10,000,00
From 10,00,001 and above
Customss responsibility together with the commercial revenue enhancement collected at the point of entry and the clip of clearance of imported goods. Import duty covers 21 subdivisions of 98 chapters, dwelling of 1241 headers and 6062 sub – headers based on the Harmonized trade good Description and coding system. There are 22 sets of import duties runing from 0 to 40 % . Raw stuff and other indispensable imports are taxed at really low rates, while the highest rate is applied to luxury points.
Commercial revenue enhancement is levied harmonizing to the agendas appended to the commercial Tax Act 1991, and the rates vary depending on the types of goods and services. For the points non exempted from commercial revenue enhancement, the rates of revenue enhancement on imported goods are 5 % , 10 % ,20 % ,25 % harmonizing to the several agenda of goods. Another agenda represents specific types of nutrients such as spirits, coffin nail, etc. transporting rates above 25 % .
Appraisal of import responsibility is based on the assessable value, which is the amount of CIF value and the landing charge ( .5 % of the CIF value ) for the goods imported. The commercial revenue enhancement together with the usage responsibility is collected at the point of entry and the clip of clearance of imported goods.
Commodities, imported temporarily for inward processing, such as industrial natural stuffs, packing stuffs are exempted from imposts responsibility for a period of two old ages under bond to re export within clip bound.
Exemption from the payment of responsibilities:
under subdivision 23 of the sea imposts Act freedom from the sum or payment of responsibilities may be allowed in such instance as required by the Head of State. But the authorization for the freedom lies with the Ministry of finance and Revenue on behalf of the Head of State. In the instance of joint ventures and houses established under foreign investing programme, the Foreign Investment committee may authorise the freedom from the payment of responsibilities in exerting the power conferred by the subdivision 22, of the Foreign Investment Law.
Export / Import policy for private Sector:
Commodities which are restricted for the clip being are the undermentioned ;
Truck, Bus, barroom – Shall be allowed to import upon reception of Vehicles, Motorcycle permission from trade council.
Restricted grocery, – shall be allowed to import merely for Hotels & A ; liquor, Beer, Cigarette Duty Free stores with the recommendation of the Ministry of Hotel and Tourism.
Cement, M.S.Rods -Shall be allowed to import upon reception of certification from the Housing commission and Foreign capital Evaluation Committee.
Galvanized Corrugated – prohibited.
Type of foreign exchange to be allowed for Import:
Import shall be allowed against the undermentioned type of foreign exchange: –
Foreign capital brought in to Myanmar.
Foreign currency which is sent either by a foreign company or a individual in abroad to a company / individual in Myanmar to make concern.
The returns from Export.
Foreign Exchange income from services such as house rent, wages, howitzer auto lease and other service charges.
Commodities for which import license fee is exempted:
Import license fee is exempted on the undermentioned trade goods:
Commodities imported for departmental usage by the province organisations.
Materials used in the during the building and production period under the foreign investing license issued by the Union of Myanmar investing committee.
Commodities transported through the district of the Union of Myanmar under the Transit Trade System.
67 sorts of Medicines and pharmaceutical natural stuffs used in the industry of drugs and medical specialties for the intent of back uping the betterment of public
Health and the public assistance of the people in having medical intervention.
The undermentioned trade goods imported for the development of the agribusiness sector.
The trade goods which are restricted to be exported from clip to clip. ( Kitchen, consumable such as onion, chili murphy, garlic, etc ; )
Although rice and other restricted harvests and gum elastic are restricted to export by private sector, the agribusiness green goods from the big house leased to the private sector under the land renewal programme of the authorities are permitted to export as follows:
Rubber – After 45 % of manufacturer has been sold to Myanmar perennial harvests Enterprises, the remainder 55 % shall be exported.
Rice and other restricted -50 % of green goods harvests ( except comestible oil seeds )
Commercial revenue enhancement and income revenue enhancement:
8 % commercial revenue enhancement and 2 % income revenue enhancement shall be collectible in foreign currency for all export from private sector.