Import_Exporting2

Myanmar exports up by $115.99 mln over one month

The Customs Department’s statistic indicated that Myanmar’s exports between 1 April and 6 May in the current financial year from April 2022 to March 2023 soared to US$1.34 billion from $1.2 billion recorded
in the corresponding period of last year. The figures reflected an increase of over $115.99 million compared with a year-ago period, according to data from the Ministry of Commerce.

The negative pandemic consequences deal a severe blow to the agriculture, livestock and mineral sectors during the past mini-budget period. As China eases some virus rules and regulations, the export sees a slight increase in agriculture sector this FY. At present, the CMP garment sector raises its head again after the vaccination programme to the factory workers as well. Of the seven export groups, fisheries, forest and other exports showed a small increase compared to the year-ago period.

Over one month, export values were registered at $423.3 million for agro products, $2.77 million for livestock, $56.137 million for fishery products, $69.66 million for minerals, $12.15 million for forest products, over $750.69 million for manufactured goods, and $26.24 million for other goods. Myanmar’s top export countries are listed China, Thailand, Japan, India, USA, Spain, Germany, UK, ROK and the Netherlands. The country’s export sector relies more on the agricultural and manufacturing sectors. The Ministry of Commerce is focusing on reducing trade deficit, export promotion, import substitution and market diversification.

Source: The Global New Light of Myanmar

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Sino-Myanmar bilateral trade plunges by 32.9 per cent in April

The statistics released by the Ministry of Commerce indicated that the value of border trade between Myanmar and a major trade partner China dropped by 32.9 per cent (US$69.307 million) in April 2022 compared to the corresponding period last year. The value of Myanmar-China border trade in all five bor der areas touched a low of $141.343 million in April, comprising exports worth $128.94 million and imports worth $12.399 million The figure significantly plummeted from over $210.65 million recorded in the year ago period. Last month, border trade values amounted to $100.9 million through Muse border, $17.424 million via Lweje, $5.3 million via Chinshwehaw, $16.259 million via Kampaiti, and over $1.43 million via Kengtung.

The Commerce Ministry’s data showed a drop in trade value through Muse and Chinshwehaw border areas between Myanmar and China. China banned Myanmar trucks and drivers to enter its side because of the COVID-19 protocols and only Chinese short-haul drivers are allowed to transport the goods. Another trade barrier is the red tape of the COVID regulations, causing trade delays, according to Muse Rice Wholesale Centre. The transport delays caused damage to the quality of the goods and hike up the transportation rate, said a trader from the Muse border.

Only if China lifted COVID restrictions can Muse border trade revive, said U Min Thein, vice-chair of the Muse Rice Wholesale Depot. China shut down all the checkpoints linking to a major border post Muse amidst the COVID-19 pandemic. Of the checkpoints, Kyinsankyawt has resumed trading activity from 26 November on a trial run. Myanmar daily delivers rubber, various beans and pulses, dried plum, watermelon, muskmelon and other food commodities to China through Kyinsankyawt post with about 30 trucks. Myanmar has opened five border trade zones with China; Muse, Lweje, Kampaiti, Chinshwehaw and Kengtung. The majority of the trade is carried out through the Muse land border, the Ministry of Commerce’s data showed.

Source: The Global New Light of Myanmar

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Mango association suggests quality control to maintain market share

Myanmar’s mango growers had better focus on quality control in order to maintain market share, in China said U Kyaw Soe Naing, general secretary of the Myanmar Mango Market and Technology Development Association (Mandalay). Approximately three to four truckloads of Seintalone mango are daily exported to China. Quality mango export is required to hold market share. “The growers must deliver mango that meets quality standards and norms. Some growers carried out early harvesting of the mangoes without reaching the maturity stage as they’re worried about possible damage in strong wind. Those fruits cannot assure market share in China. It could lead to negative impacts on other growers as well.

The mango growers should ensure quality to have a sustainable export market and maintain market reputation,” said U Kyaw Soe Naing. The prices of mango touched a high of 120-160 Yuan per 16-kilogramme. As mango is perishable good and delay can harm fruit quality, the authorities concerned are making efforts to transport the mango as soon as possible. It takes only three days for shipment, U Kyaw Soe Naing continued. Myanmar’s mango exporters are facing challenges such as delays triggered by the virus policy, customs policy impeding the exports and high transport costs to enter China. Therefore, some growers are enthusiastic to distribute them only in the domestic market, said Sai Khin Maung from the Khwanyo fruit depot.

Good Agricultural Practices are required for mango exports to China. Moreover, the growers and workers have to strictly adhere to COVID-19 preventive measures such as washing hands, wearing masks and gloves, and sanitation in the packaging process, according to the Khwanyo fruit depot. Of about 200 mango varieties that originated in Myanmar, Seintalone, Shwehintha, Padamyar Ngamauk, Yinkwe, and Machitsu varieties are primarily grown. The foreign market prefers Seintalone varieties. Ayeyawady Region possesses the largest mango plantation acres, having about 46,000 acres. Bago Region is the second-largest producer with 43,000 acres and Mandalay has 29,000 acres of mango. There are over 24,000 acres in Kayin State, over 20,400 acres in Shan State and over 20,000 acres in Sagaing Region, according to the association.

Source: The Global New Light of Myanmar

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Peanut, sesame exports temporarily suspended
to secure local consumption

The exports of peanut and sesame seeds came to a temporary halt in order to ensure self-sufficiency in the domestic market, according to the Trade Department under the Ministry of Commerce. Among the agricultural products that are allowed to be exported through the border posts, oil crops (peanut and sesame seeds) except black sesame are temporarily suspended for exports. The Trade Department released a statement on 9 May to discuss with the related organizations to ensure peanut and sesame export ban. The export ban over peanut and sesame except black sesame was effective starting from
9 May 2022. The slowdown of businesses from the consequences of the COVID-19, palm oil export ban
by the leading exporting country Indonesia, a drop in the sunflower oil export because of the escalating Russia-Ukraine crisis and international edible oil market conditions negatively affected the edible oil market.

As a result of this, export restrictions on oil crops are required to promote food security in the domestic market, the Trade Department stated. The majority of the HS codes of oil crops and cooking oils are not included in the list of goods that need an export licence. Therefore, for a temporary stop of cooking oil and crops, Customs Department also ceased matters regarding the export declaration and customs clearance process for the oil crops except for black sesame and edible oil in line with the existing rules and regulations from 9 May 2022. The world-leading palm oil-producing country Indonesia banned exports of palm oil to reduce the shortage of palm oil and control the volatile market prices from 28 April. Consequently, it prompted Myanmar to temporarily block the exports of peanut and sesame seeds for
self-sufficiency, and oil traders shared their opinions. Additionally, under the directive of the Ministry of Commerce, it is forbidden to withdraw oil from oil tanks without notification of the Myanmar Edible Oil Dealers’ Association, according to the association’s statement released on 10 May.

There are 18,097.16 tonnes of palm oil remaining in the palm oil tanks so far, according to a report on 9 May. The statement highlighted the inventory to remain unchanged. The Supervisory Committee on edible oil import and distribution under the Ministry of Commerce has been issuing a weekly reference rate to govern the market in line with the changes in international rates. The reference rate for a week from 9 to 15 May is set at K6,025 per viss (a viss equals 1.6 kg). The committee has been closely observing the FOB prices in Malaysia and Indonesia including transport costs, tariffs and banking services and issuing the wholesale market reference rate for edible oil on a weekly basis. The domestic consumption of edible oil is estimated at 1 million tonnes per year. The local cooking oil production is just about 400,000 tonnes. To meet the oil sufficiency in the domestic market, about 700,000 tonnes of cooking oil are yearly imported through Malaysia and Indonesia.

Source: The Global New Light of Myanmar

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Myanmar-Thailand border trade down by $12.79 mln in April

The value of Myanmar’s bilateral trade with the neighbouring country Thailand through land border has registered a decrease of US$12.798 million in April of the current financial year 2022-2023 as against a year ago period, statistics issued by the Ministry of Commerce indicated. The ministry reported that exports surpassed imports in trade with Thailand this year, with exports reaching over $240.4 million and imports valued at over $92 million, totalling $332.47 million.

During the corresponding period of the past FY2020-2021, Myanmar-Thailand border trade touched a high of $345.27 million. There are seven border posts between Myanmar and Thailand through Tachilek, Myawady, Kawthoung, Hteekhee and Myeik. Except for Kawthoung, Myeik and Myawady, the remaining border crossings showed a slight increase in the trade this FY. The value of border trade stood at $10.677 million via Tachilek, $134.848 million via Myawady, $18.1 million via Kawthoung, $4.655 million via Myeik and $163.4 million via Hteekhee.

Myanmar exports the corn to Thailand through Myawady and Tachilek land border. Additionally, exports of natural gas from the Taninthayi Region contributed to the enormous increase in border trade with Thailand in the previous years. Myanmar primarily exports natural gas, fishery products, coal, tin concentrate (SN 71.58 per cent), coconut (fresh and dried), beans, and bamboo shoots to Thailand. It imports capital goods such as machinery, raw industrial goods such as cement and fertilizers, and consumer goods such as cosmetics and food products from the neighbouring country.

Source: The Global New Light of Myanmar

The Internal Revenue Department issued to submit income tax return, annual salary statement and annual trade tax declarations

The Internal Revenue Department issued to submit income tax return, annual salary statement and annual trade tax declarations. Year of Revenue, Year of Sales / Revenue The year of sales and revenue (accounting period) is from October 1, 2021 to March 31, 2022. Offices that will receive the declaration must submit it to the tax assessment office of the current taxpayer. If the company is not yet a taxpayer, the application must be submitted to the Central Tax Service Office for registration and tax assessment office, and the declaration must be submitted to the tax office designated by the Central Office for Taxation Services. 

If it is an individual who is not yet a taxpayer, it must be submitted to the relevant Township Revenue Office. If the submission is made in person, it will be considered as submission by the Department on the date of receipt of the receipt. In case of sending by post, it will be considered as delivery on the date stamped. In case of electronic submission, the Department will consider the submission on the date of receipt of the electronic form. When filling out the declaration, you must use the relevant forms prescribed by the Internal Revenue Department, and the tax declaration forms can be obtained from the relevant tax offices and the department’s website  at www.ird.gov.mm. The taxpayer is responsible for the accuracy and completeness of the tax declarations, so it is necessary to complete the prescribed declaration forms. 

The declaration form must be signed by the taxpayer himself, and if the tax declaration or part of the tax declaration is amended for a fee, the person making the amendment must also co-sign the declaration. The declaration must be submitted by June 30, 2022 at the latest. Failure to submit tax returns on time will result in a fine of one of the following two fines: (A) one percent of the amount of tax to be paid for each month or part of the month which continues to fail to submit the declaration from the date stipulated to be submitted by the Director-General in addition to five percent of the tax payable; (B) One hundred thousand kyats. If for some reason it is difficult to submit the declaration on time, you can apply to the relevant tax office in advance to extend the tax filing deadline.

Source: Daily Eleven

4 enterprises pump $5.99 mln of FDI into manufacturing sector in April

Only the manufacturing sector attracted foreign direct investment in April 2022 of the 2022-2023 financial year, as per the statistics released by the Directorate of Investment and Company Administration (DICA).
Four enterprises from China and Hong Kong SAR put an estimated capital of US$5.99 million into the manufacturing sector last month. Manufacturing enterprises and businesses that need a large labour force are prioritized to create job opportunities for the local community, according to the Myanmar Investment Commission.

Although some labour-intensive enterprises faced financial hardship amid the COVID-19 negative impacts and the political changes, the industry is now returning to normal after the COVID-19 vaccination programme for workers, as per the HIS Markit’s September report. Myanmar’s manufacturing sector is largely concentrated in garments and textiles produced on the Cutting, Making, and Packing basis, and it contributes to the country’s GDP to a certain extent. Myanmar has drawn foreign direct investment of more than $647.127 million from 49 enterprises during the October-March period.

Of them, 40 foreign enterprises put investments in the manufacturing sector, pumping the estimated capital of $202.667 million in the past mini-budget period (October 2021-March 2022). Additionally, the agriculture sector drew one project worth of $5 million. The livestock and fishery sector attracted two enterprises with investments of more than $19 million. Power, construction and hotels and tourism sectors have one new project each in the past mini-budget period and three other enterprises invested in other service sectors. 

Source: The Global New Light of Myanmar

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Agricultural export value sees slight decline in April

The value of agricultural exports shrank to US$325.6 million in April in the current financial year 2022-
2023, indicating a small decrease of $11.9 million as against the year ago period. The figures topped $337.58 million in the corresponding period last year. Cross-border restrictions between Myanmar and major top customer country China resulted in a sharp drop of agricultural export group in the mini-budget period (Oct 2021- Mar 2022), according to the statistics released by the Customs Department.

Following the closure of Sino-Myanmar border posts triggered by COVID-19 impacts and changes in China’s Customs regulations, the export saw a drastic drop in agriculture. China shut down all the checkpoints linking to Muse border amidst the COVID-19 pandemic. Of the checkpoints, Kyinsankyawt has resumed trading activity from 26 November on a trial run.

Myanmar agricultural products are primarily exported to China, Singapore, Malaysia, the Philippines, Bangladesh, India, Indonesia, and Sri Lanka. The country requires specific export plans for each agricultural 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 endeavoring 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 were valued at $2.4 billion in the past mini-budget period.

Source: The Global New Light of Myanmar

Central Bank of Myanmar
Notification No 27/2022

7th Waxing of Kason 1384 ME
6 May 2022

  1. Under the Foreign Exchange Management Law, Foreign Exchange Management Regulations, and Notification No 46/2021 dated 10-11-2021 of the Central Bank of Myanmar, exporters must deposit their export earnings to their accounts in foreign currency within three months from the date of shipment of their goods. The holder of a foreign currency trading licence (AD banks) shall inspect whether exporters receive export earnings within three months from the shipment of their goods according to the evidence of actual exports.
  2. All export earnings received from the exports to Asian countries must deposit into the accounts of exporters in foreign currency in Myanmar within 45 days from the date of the shipment while within 90 days for the exports to other countries except for Asian countries. If the exporters fail to do so, they will be taken action under Section 42-a of the Foreign Exchange Management Law.

Than Nyein
Governor

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Myanmar Seintalone mango fetches good
price in China

The export price of Myanmar’s Seintalone mango to China this year inched higher than that of last year, according to U Kyaw Soe Naing, general secretary of Myanmar Mango Market and Technology Development Association (Mandalay). At present, export to China is on a trial run. After the goods pass COVID tests at the use 105th-Mile Post, mangoes are delivered to China.

The mango prices touched a high of 130-140 Yuan per 16-kg basket this year, which rose from 80-100 Yuan recorded last year. “Myanmar started to export mango to China. Sanitizing fruits harmed quality in the first batch. As a result, only the COVID test will be run later. Only two to three trucks are daily conveyed to China for now. China’s market will come to a halt once the virus is detected on the truck.

Chinese buyers come to the Muse 105th Mile Post and set the price. They offer a high price this year. A basket of 16-kg mango fetches over K50,000,” he elaborated. If the virus is not detected, the market is likely to raise its head. Negotiations with China’s counterparts are still undertaken to facilitate the trade. In addition to the Seintalone variety, Maethi, Shwehinthar, Padamyar Ngamauk, and Yinkwe varieties will also be sent to China. The weather condition wreaked havoc on the yield this year, yet the price is pretty good.

Source: The Global New Light of Myanmar