image_6483441 (18)

Official motorcycle importers face difficulties due to announcement of temporary suspension of motorcycle import from border areas

Currently, motorcycle importers are facing difficulties due to the announcement of the temporary suspension of the import of official motorcycles through the Myawaddy border. The Ministry of Commerce has sent a letter of notification to Myawaddy border traders on May 8 and is inspecting motorcycle showrooms.

The statement said that the import of motorcycles, including the ITC Card, would be suspended from May 8, 2021, until further notice. Currently, there are no losses, but the work has stopped. When businesses stop, there are job losses. Some of them are buying in advance, and most traders are losing money when the import ban on foodstuffs, including soft drinks, has recently been suspended from the border.

Thailand Vietnam Motorcycles made in Laos are officially imported by motorcycle dealers, as well as from Thailand and Vietnam. Japanese used motorcycles were also imported by private entrepreneurs.  The sudden ban on motorcycle imports has hurt Myawaddy border businesses and local motorcycle dealers. Motorcycles imported from Myawaddy border; Border traders warn that the suspension of official imports of soft drinks and four foodstuffs could reduce trade volume significantly.

Source: Daily Eleven

image_6487327

Revocation of withholding tax exemption on corn exports causes price downtrend

According to the Myanmar Corn Industrial Association, Myanmar revoked a two per cent withholding tax exemption on corn exports during the new wave of coronavirus, and so the corn price is expected to fall. The withholding tax exemption status for corn exports to Thailand duly expired amid the pandemic. The two per cent WHT had to be paid starting from 1 May. The two per cent WHT was levied on corn exports through the land border. During the pandemic, the tax was temporarily exempted.

At present, the exempt status is revoked. Consequently, the lower commodity price is likely to happen. Myanmar is conveying corns to Thailand through the land border, with a tonne of corn fetching up about 8,000 baht.
Myanmar intends to ship 1 million tonnes of corn to Thailand this year. About 600,000 tonnes of corn have been delivered so far, the association stated. Thailand gives the green light to corn imports through Maesot under zero tariff (with Form-D) between 1 February and 31 August. Thailand has granted tax exemption on corn imports between February and August.

However, Thailand imposed a maximum tax rate of 73 per cent on corn import in order to protect the rights of their growers for the corns are imported during the corn season of Thailand as per the notification of the World Trade Organization regarding corn import of Thailand, a corn exporter said. Myanmar exported 2.2 million tonnes of corns to the external market in the past financial year 2019-2020 with an estimated value of $360 million, the Ministry of Commerce’s data indicated. Corn is cultivated in Shan, Kachin, Kayah and Kayin states and Mandalay, Sagaing and Magway regions. Myanmar has three corn seasons—winter, summer and monsoon. The country yearly produces 2.5-3 million tonnes of corns.

Source: The Global New Light of Myanmar

image_6483441 (13)

The global dollar price index is around 90 points and the exchange rate is around 1695 kyats per dollar

The global dollar index hit around 90 points on May 10, and on May 10, the local exchange rate was around 1,695 kyats per dollar, according to foreign currency traders. The global dollar index, the highest in six months, was 94.12 points in October. 94.24 points in November; 89.93 points in December; 91.02 points in January; 91.59 points in February; In March, it was 90.93 points. The lowest and highest monthly foreign exchange rates in the domestic market were 1297-1340 kyats in October 2020; In November 1306-1327 kyats; In December 1326-1405 kyats; In January 2021, it was 1333-1355 kyats. In February, it was 1340-1475 kyats. On May 10, 2021, the exchange rates of other foreign currencies in the local market were 1,780 Euro, 1,175 Singapore dollar, 350 Malaysian Ringgit, 50.5 Thai baht, 219 219 Chinese yuan 219 and Japanese Yen.

Source: Daily Eleven

image_6483441 (20)

Myanmar kyat holders lose up to ten thousands MMK as record high in Thai baht

In Myawaddy, on the Myanmar-Thai border, the Thai baht has hit a record high against the dollar, leaving more than 10 lakh kyats in a day, according to money changers. On May 10, the exchange rate of the Thai baht was changed to 100,000 baht per 100,000 kyats, but by 12:30 pm on May 11, it had risen to 1,970 baht per 100,000 kyats, leaving a gap of 50 baht in two days.

At the Myawaddy border, the kyat is converted into Thai baht when buying goods, and the loss of more than 2,000 kyat for every 100,000 kyat converted from the Thai kyat to the Thai baht is high, depending on the amount of money. There is also a difference of about 50 baht between the Thai baht and the Thai baht transfer fee. You only have to pay 1970 baht to get 100,000 kyats in cash, but you only have to pay 1920 baht to get it in your account. 

Despite the baht’s appreciation against the dollar and gold, prices are twofold. In addition, Myanmar Bank Account The cash exchange market is huge. The Thai baht has risen sharply as the Thai baht has been suspended from importing four Thai food items, including soft drinks. Banks are also hitting financial markets and affecting cross-border trade, said a border trader. Even though the goods have been sold, it is difficult to transfer money. As a result of the appreciation of the Thai baht, remittances from Burmese migrant workers to their parents in Thailand have increased since last month.

Source: Daily Eleven