Daily Archives: January 31, 2022

The Ministry of Commerce has declared HS code lines for imports which need licence starting from 1 March 2022. This action aims to respond to the post COVID-19 recovery, ensure systematic import and export process and manage foreign capital inflows. The ministry has already notified the importers of the compulsory licensing for some import items. Import licence can be sought from 1 February 2022.

Those HS code lines include the following import items; bicycles, other cycles, parts and accessories of bicycle, cycle and vehicles, glass fibres, glass wares and other articles of glass, knitted or crocheted fabrics, textile materials, cotton and silk yarn, plastic, chemical, coffee substitutes and extracts, pharmaceutical products and equipment, sunglasses, hand clock, arms and ammunition, pistols, furniture, mattress, cushion, chandelier, electrical appliance, game machines, extraction from animals, stamps and antiques, vessel and parts, telecommunication materials, household goods, air-conditioner, cold storage and refrigeration machines, washing machine, hot air balloons, iron, steel, aluminum and gems and jewellery, ceramic, construction materials, printing materials, rubber, leather, flammable items, fuel oil, food products, tobacco and related products, preserved food, raw materials for food processing industry, animal products, aquatic animals, live animals and decoration materials.

Starting from 1 March, those items included in the HS code lines declared by the Ministry of Commerce are obligatory for import licensing. More items which need import licence will be notified as well, in compliance with the Export and Import Law. Myanmar imports the consumer, capital, intermediate goods, and materials used by CMP businesses. The value of Myanmar’s imports as of 21 January in the current mini-budget period (Oct 2021-Mar 2022) sank to US$4.38 billion from $4.94 billion recorded in the same corresponding period of last FY, the Ministry of Commerce’s data indicated. The top 10 import countries to Myanmar are China, Singapore, Thailand, Indonesia, Malaysia, India, Viet Nam, Japan, the Republic of Korea and the US, as per data of the ministry.

Source: The Global New Light of Myanmar

The value of agricultural exports sank to US$1.25 billion as of 21 January in the current mini-budget period (Oct 2021-March 2022), indicating a significant drop of $375.5 million as against the year ago period, as per the statistic of the Ministry of Commerce. The agro exports topped $1.6 billion in the corresponding period of the 2020-2021 FY. China constitutes 90 per cent of Myanmar’s fruit and vegetable export. During the previous financial year, the closure of border posts by China adversely affected the fruit producers. Additionally, China’s import regulations and prevention measures for the COVID-19 caused delay, exporters said.

At present, some border posts are operating trade activities on a trial run. During the mini-budget period, the coronavirus pandemic impacted the foreign demand for agricultural products, livestock, mineral and finished industrial goods. In contrary, the exports of fishery, forest products and other goods rose slightly. In the exports sector, the agriculture industry performed the best, accounting for 37 per cent of overall exports. The chief items of export in the agricultural sector are rice and broken rice, pulses and beans and maize. Fruits and vegetables, sesame, dried tea leaves, sugar, kitchen crops and other agro products are also shipped to other countries.

Myanmar agro products are primarily exported to China, Singapore, Malaysia, the Philippines, Bangladesh, India, Indonesia, and Sri Lanka. The country requires specific export plans for each agro product, as they are currently exported to external markets based upon supply and demand. The G to G pact also ensures the strong market for the farmers. Contract farming systems, involvement of regional and state agriculture departments, exporters, traders, and some grower groups, are required in order to meet production targets, the Agriculture Department stated. The Commerce Ministry is endeavouring to help farmers deal with challenges such as high input costs, procurement of pedigree seeds, high cultivation costs, and erratic weather conditions. The agricultural exports jumped to US$4.6 billion last financial year 2020-2021, despite the downward trend in other export groups.

Source: The Global New Light of Myanmar