Monthly Archives: March 2023

Myanmar aims to deliver 100,000 tonnes of onions to external markets in the 2023-2024 financial year, according to the Ministry of Commerce. The country has planned to ship 300,000 tonnes of onions during the April-June period, 15,000 tonnes during the July-September period, 20,000 tonnes during October and December 2023 and 35,000 tonnes during January-March 2024 period to external markets. The onion output is estimated at over 1 million tonnes per year. Beyond self-sufficiency, the onions are exported to foreign countries.

More than 80,000 tonnes have been shipped to global markets so far. Myanmar’s onions are purchased from Viet Nam, Thailand, Bangladesh and China. The supply of new onions in the markets brings down the prices. The onion prices moved in the range between K1,000 and K1,750 per viss depending on the producing areas (Seikphyu and Myittha), according to Yangon Region Chambers of Commerce and Industry (Bayintnaung Commodity Depot). On 14 February, the Union Minister for Commerce gave a remark at the coordination meeting on the promotion of onion exports and price stability in the domestic market.

There are over 170,000 acres of onions across the country, with an estimated production of 1 million tonnes. He also talked about promoting interest for the growers, having fair prices for the consumers and boosting exports in harmony with domestic consumption. Officials from Myanmar Onion, Garlic and Culinary Crop Producers and Exporters Association also discussed the export barriers and export conditions through the seaborne and land borders and called for the government’s support for market expansion.

Additionally, to effectuate sustainable development in the onion export sector, government-to-government pacts to the potential markets including the Philippines, getting easy and quick access to the phytosanitary certificates, raising awareness of Good Agricultural Practices (GAP) among the growers, promoting onion exports and domestic market stability were also highlighted at the meeting. According to the Ministry of Agriculture, Livestock and Irrigation’s 2018-2019 FY statistics, onion cultivation covered over 170,000 acres. The yield rate was over 3,600 viss per acre. Mandalay Region accounts for 36 per cent of onion outputs in the country, while Sagaing Region, 32 per cent and Magway Region, 26 per cent. 

Source: The Global New Light of Myanmar

China announced that the average daily trade value through the Wang Ding border is 24.23 million yuan and that in 2022, more than one billion was traded. Therefore, the daily trade value of the China-Myanmar border is US$3.5 million. The Shweli (Ruili) border is the largest inland port important for trade between China and Myanmar, with automatic inspection lanes (16).

There are reportedly 44 manual inspection routes and 22 vehicle inspection routes. According to Chinese statistics, the Wang Ding-Manman crossing on the border of Myanmar traded more than 7,000 tonnes of goods in 2023, and about 500 vehicles pass through it every day.

According to China’s accounting records, from 2022 to 7 February 2023, the amount of cross-border freight was 0.637 million tonnes, and the total number of incoming and outgoing vehicles was 44,874. The main force in exports and imports with household electrical appliances, machinery, daily items rubber including fruits, etc., it is stated that it is worth 1.65 billion Chinese yuan. According to these factors, trade increased more in 2023 than in 2022.

Source: The Global New Light of Myanmar

Myanmar has been bringing in electric vehicles (EVs) under the customs tariff relaxation through seaborne and border trade routes, according to the Ministry of Commerce. On 3 March, a fleet of 30 Dongfeng EVs imported by Asia Pacific Automaker Corporation Co Ltd arrived in the Muse 105th mile trade zone in northern Shan State. They are allowed to be withdrawn following the rules and regulations. Furthermore, 19 EVs (BYD) imported by Earth Renewable Energy Co Ltd also arrived at the Hteedan port. They were also claimed in line with the procedures.

Chindwin Shan Co Ltd also took out 7 kW GB AC five chargers for EVs on 21 February 2023 from the port terminal. The importation of the EV charger is exempted from Customs tariffs to enhance the EV sector in the domestic auto market. Myanmar Investment Commission also released a statement on 15 February that electric vehicles and related businesses will be promoted as the priority sector as per its notification dated 15 February. In the exercise of the power conferred by Sections 43 and 100 (B) of the Myanmar Investment Law, the MIC issued this statement with the approval of the Union government.

Enterprises executing installation, manufacturing and restoration services of the EVs, renewable electricity generation, EVs charging service businesses, electric vehicle battery production, EV battery and related service business, electric bus operation services, electric taxi and transportation service businesses and scientific research development business are included in those priority sectors.

During the establishment and ideation phase for incorporation and operations, those businesses can seek a permit from the MIC to enjoy tariff relief or zero-Customs tariff status and the exemption for other taxes levied in the country under Section 77 (A) of the Myanmar Investment Law and income tax exemption under Section 75 (C) of the Myanmar Investment Law for the importations of machinery, essential equipment and accessories, spare parts and construction raw materials that cannot be found in domestic markets.

Electric vehicles (EVs) are entitled to zero-Customs tariff status, according to the notification released in early November 2022 by the Ministry of Planning and Finance. To encourage the number of EV users and improve the related business, tariffs of battery electric vehicles (BEVs) imported under Completely Built Up (CBU), Completely Knocked Down (CKD) and Semi-Knocked Down (SKD) in Customs Tariff of Myanmar 2022 were reduced to zero per cent in line with the decision of the Union Government.

Types of BEVs include road tractors for semi-trailers, buses or motor vans for the transport of ten or more people including the driver, truck, motor vehicle for personal use, three-wheeled vehicles for the transport of persons, three-wheeled vehicles for the transport of goods, electric motorcycles, electric bicycles, ambulances, prison vans and hearses. According to this directive, the imports of spare parts (for instance, charging station equipment and device) with the recommendation of the Ministry of Electric Power and the Ministry of Energy and the spare parts with the recommendation of the Department of Industry can be done between 2 November 2022 and 31 March 2023. 

Source: The Global New Light of Myanmar

Myanmar achieved its rice export target of two million tonnes for the current 2022-2023 financial year, Myanmar Rice Federation’s data showed. The country delivered more than two million metric tons of rice and broken rice to foreign trade partners by sea and border channels in the past 11 months (April-February) of the current FY. The federation aimed to export 150,000 tonnes of rice each in February and March respectively. The volume of rice exported last month totalled 191,404 MT, surpassing its expectation. Myanmar has been endeavouring to have 10 per cent growth in the rice export sector year over year, MRF stated.

The export values were recorded at $82 million from 250,947 tonnes in April 2022, $51 million from 153,507 tonnes in May, $50 million from 146,094 tonnes in June, $66 million from 182,550 tonnes in July, $53 million from 156,893 tonnes in August, $37 million from 93,792 tonnes in September, $65 million from 163,189 tonnes in October, $106 million from 264,038 tonnes in November, $90 million from 228,445 tonnes in December, $107 million from 268,835 tonnes in January 2023 and $76 million in February, totalling $783 million from 2,099,693 tonnes in the past 11 months till February 2023.

Myanmar shipped rice and broken rice to regional countries, countries in Africa and European Union member countries through maritime trade. It is also exported to neighbouring countries, China and Thailand through cross-border posts. China is still the main buyer of Myanmar’s rice in the past 11 months, purchasing over 365,000 tonnes of rice and over 410,000 tonnes of broken rice. Myanmar exported rice to nearly 30 foreign markets in the past months, mostly to China (365,958 MT), followed by Bangladesh, the Philippines and other European countries such as Italy, Spain, Poland, Belgium, the Netherlands and France.

Additionally, Myanmar primarily conveyed 411,329 MT of broken rice to China and 276,438 MT to Belgium. It is also sent to the Netherlands, Spain, the UK, Poland, Lithuania and other countries. The export price of Myanmar’s rice was relatively lower than the rates of neighbouring Thailand and Viet Nam, according to the MRF. Myanmar bagged US$700 million from 2 million tonnes of rice exports to foreign countries in the past 2020-2021 financial year. Next, the rice prices stood at over K75,000-K100,000 per bag for high-grade Pawsan rice varieties and K50,000-K62,000 per bag for low-grade rice varieties in the domestic market. Meanwhile, the prices of broken rice moved in the range between K41,000 and K46,000 per bag depending on different qualities.

Source: The Global New Light of Myanmar

Those who have sought export and import licence and permits on Tradenet 2.0 platform through Tradenet 2.0 system are mandatory to withdraw the licence within set periods and they will be fined for late withdrawal, according to the Trade Department under the Ministry of Commerce. The licence applicants need to make payment and withdraw the licence within seven days of approval by the department.

Those who fail to do so will be cancelled automatically, according to Export/Import Notification 4/2022. However, the timeline for striking off from the system will be changed to three months instead of seven days. In addition to licence fees, fines are to be paid K45,000 for eight to 14 days, K90,000 for 15 to 30 days, K180,000 for two months and K360,000 for three months.

During the auto cancellation period for licence/permit processing, the applicants will have their licence temporarily suspended for six months if they fail five times in three months, according to the notification (20/2020). Exporters and importers are, thus, advised to withdraw their licence within seven days, the Trade Department notified on 27 February. Auto cancellation of licence seeking process and temporary suspension of licence commenced from 1 March, the Trade Department stated. 

Source: The Global New Light of Myanmar

The trade volume at the Myawady Trade Zone and the Tachilek Trading Post (Maeyang) stood at US$40.718 million within the second week of February, statistics of the Ministry of Commerce indicated.
From 11 to 17 February, $17.012 million worth of goods were exported and $20.561 million worth of goods imported through the Myawady Trade Zone, the trade volume totalling $37.573 million. Compared to the performance of the previous week, the value of exports and imports decreased by $0.411 million and $0.433 million respectively, and the value of trade dropped by $0.844 million as well. The Tachilek Trading Post (Maeyang) has been trading with the neighbouring countries China and Thailand.

Between 11 and 17 February, it carried out an export value of $1.421 million, an import value of $1.724 million and the trade value of $3.145 million. Compared to the previous week’s trading status, $0.475 million in export value increased and $0.081 million in import value decreased. This week, the Myawady Trade Zone sent fewer exports of peanuts, tamarind, white sesame, black sesame, rice flour, other agricultural products, metals and ores, other mineral products, crab and eel. Imports of motorcycle and spare parts, agricultural trailers and other vehicles, electricity distribution and installation equipment, wires, engines, finished metal construction materials, lace and embroidered textiles, bicycle accessories and other items are low.

At the Tachilek Trading Post (Maeyang), although items of dried prawn shells, old plastic cans, old cardboard paper, tangerines and tobacco leafs decreased, more brooms were exported than the previous week. Although tractors, machinery and equipment, glass building materials, electricity distribution and installation equipment, mineral building materials, iron and steel construction materials, petroleum products, paints, polish, metal raw materials, galvanized iron sheet, tyres and inner tubes, pharmaceutical products, soap, sports equipment, ready-made clothes, kitchen appliances and other items were imported more, cement, commercial vegetable oils, chemicals, plastic raw materials, iron and steel products were imported less. Such fluctuations influenced the trade volume, according to the trade list. 

Source: The Global New Light of Myanmar