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Kyalgaung border post, which performed the majority of trade between Myanmar and China, has not resumed even after one and a half years, said U Min Thein, vice chair of Muse Rice Wholesale Centre.
China has restricted border access through the Muse-Kyalgaung (Mang Wein) border post between Myanmar and China amid the COVID-19 cases, since 30 March 2021. On 18 October, Myanmar’s officials and counterparts from Dehong, Yunnan Province negotiated the promotion of bilateral cross-border trade through a video conferencing.

“The Kyalgaung border crossing is yet to resume. We are ready for trade resumption,” said U Min Thein. Prior to the pandemic, Kyalgaung was the busiest and biggest trade post and it performed the highest trade in the China-Myanmar border. Those traders involved in Muse trade zone are relying on the Ruili city. There is a direct trade channel to Ruili through Kyalgaung point so the traders have a smooth transport. This route brings easier and better access to Ruili from Muse border post. Only when the Kyalgaung border post is reopened can the trade boost, traders elaborated.

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 2021. Myanmar daily delivers rice, broken rice, rubber, fishery products, chilli pepper and other food commodities to China through Kyinsankyawt with the use of about 70 trucks and building materials, electrical appliances, pharmaceuticals, fertilizers, household goods and industrial raw materials are imported into the country with the use of 30 trucks. Myanmar has opened five border trade zones with China; Muse, Lweje, Kanpaiti, Chinshwehaw and Kengtung. The majority of the trade is carried out through Muse land border, Ministry of Commerce’s data indicated.

Source: The Global New Light of Myanmar

The Ministry of Commerce released a directive (62/2022) dated 11 November 2022 regarding the import rules for electric vehicles (EV) in the pilot project. The importers must abide by the standards and import quota set by the national-level leading committee on development of electric vehicles and related business. The ministry stated that the importing companies must comply with the following facts if they do not hold business licences for showrooms in the pilot project to help support the electric vehicle and related businesses.

The companies must register with the Directorate of Investment and Company Administration whether it is a joint venture or wholly citizen-owned business. They must show the salescontracts with exporting companies. They have to be sought approval from a national-level leading committee on the development of electric vehicles and related business. There must be an EV warranty, spare parts availability, and service and maintenance of those vehicles.

The companies must seek permission from the MoC to register with the Road Transport Administration Department. The directive takes effect on the bus or motor van for the transport of ten or more persons including the driver and motor vehicle for personal use. They must be Battery Electric Vehicles (BEVs). The rules in the directive are effective between 1 January 2023 and 31 December 2023. Further amendments are to be made if necessary.

Source: The Global New Light of Myanmar

More than 60 traders signed a petition on 14 November to call for Yuan transactions in exports through the Muse border between Myanmar and China. Foreign Exchange Supervisory Committee notified the traders of the dollar payment for agricultural exports such as rice, corn, oil crops, beans and pulses, according to a directive dated 30 June. Yet, rice and broken rice exports are proceeding with Yuan at present. Rice and broken rice exports are given green light to proceed with Yuan as before.

However, transactions of rice and broken rice exports are found to be made only in US dollars in cross-border posts like the seaborne trade these days. That is why traders including rice and broken rice dealers signed a petition to request the authority to give the go-ahead for the Yuan payment in Muse border post. “At present, the official letter has not been released yet. The traders request them not to confirm the dollar payment for rice and broken rice in the border trade channel. Those exporters involved in banking, fishery and agricultural sectors joined this petition last Monday (14 Nov),” said a rice trader.

“Rice trade has not been good for two years at the Muse border with China. It has returned to the business at the present moment. If dollars are confirmed as cross-border payments, Muse trade is possibly to come to a halt. Consequently, the cons are expected to outweigh the pros. The traders are therefore begging for opposition to dollar payment,” said a rice trader. On 14 December 2021, the Central Bank of Myanmar released a notification that the use of Yuan or Kyat in the bilateral transaction was officially allowed in the border areas between Myanmar and China to boost bilateral cross-border trade, facilitate trading and bilateral transaction, increase the use of domestic currency in line with the objectives of the ASEAN Financial Integration. 

Source: The Global New Light of Myanmar

The Yunnan provincial government launched the China-Myanmar new freight transport model with
one bill of lading for 20 land border points, according to the statement released by the Chinese Embassy in Myanmar. Starting on 3 November, the first-ever bill of lading (BL) endorsement with BL financing of the China-Myanmar multimodal joint transport project was held at the Bank of China (Kunming branch). This trading system was started on China-Laos Railway.

For the second time, China-Myanmar cross-border trade flow, border crossing, the restriction measures of the pandemic, combined transport from road to rail, bonded zone area with tax incentives for import of raw materials for production of the finished goods and cargo withdrawal permit can be conducted altogether.

One bill of lading system for the combined transport can be used from rail to cross-border road access, covering 370 kilometres long roads and 850 kilometres long railway (totalling a1,220 kilometres long trip with 20 checkpoints). With this freight transport mode, the traders have to pass those stages; goods loading, monitoring, Chinese Customs and multimodal transport. The goods are to be loaded to the Lancang-Chinshwehaw border with road access and those goods are to be delivered to bonded zone area through a rail link at the Lancang railway station.

Source: The Global New Light of Myanmar

Myanmar exports rice to Bangladesh from Yangon port and the Ayeyawady International Industrial Port (AIIP) in Pathein Industrial City in the Ayeyawady Region under a G-to-G agreement for 200,000 tonnes of rice. The third ship carrying 2,650 tonnes of rice will leave for Bangladesh soon. The country directly exported 2,650 tonnes of rice by MV MCL-7 on 2 November, and 2,615 tonnes by MV MCL-21 on 7 November from the AIIP. On 8 November, 50-kilogramme Emahta rice bags were loaded onto MV MCL-12, which will carry 2,650 tonnes of rice as the third ship direct to Bangladesh.

“We are making procedures to export 2,650 tonnes of rice by MV MCL-12 to Bangladesh. We load 53,000 rice bags onto the ship. There are ample job opportunities as we can export rice from Pathein to Bangladesh directly. The regional chief minister also gave instructions to cooperate with departmental officials and businesspersons so as to develop the economy of the region. The ship will leave soon,” said U Tun Tun, deputy director of the Consumer Affairs Department of Ayeyawady Region. The Ayeyawady Region, which is described as a rice bowl of Myanmar, possesses about 5.1 million acres of monsoon and summer paddy and produces over 330 million baskets of paddy and about 3.3 tonnes of rice per year.

There are 6.4 million population in Ayeyawady with a rice consumption rate of 1 million per year. A total of 1.4 million tonnes of rice are consumed by 300,000 visitors to Chaungtha, Ngwe Saung and Ngapali beaches and transported to Yangon, Bago and Magway, and it is estimated to export the remaining 900,000 tonnes to earn foreign incomes. Previously, it cost hugely in exporting rice from Yangon port to Bangladesh due to high transport charges and labour costs from Ayeyawady Region to Yangon. Currently, it can export from Ayeyawady International Industrial Port in Pathein directly and so it brings benefits to the State, private business people and residents. It is also set to increase the export volume between 30,000 and 100,000 tonnes of rice from AIIP in Pathein to Bangladesh directly depending on the local production and rice surplus.

Source: The Global New Light of Myanmar

More than 600 companies including rice, broken rice, corn and banana exporting firms are making efforts to register with the General Administration of Customs of the People’s Republic of China to export over 1,600 items. At present, 62 rice and broken rice companies, 112 corn exporting companies and 32 banana exporters have already registered with GACC. Other companies are making efforts to register for pineapple, avocado, pomelo and soybeans.

The competent authorities of the Plant Protection Division under the Department of Agriculture are helping the exporting companies, organizations and individuals to register with GACC for agricultural products such as rice, broken rice, corn and banana. The agricultural products that have a government-to-government agreement grasp a strong market share. The relevant authorities for the registration with GACC are the Agriculture Department, the Livestock Breeding and Veterinary Department, the Fisheries Department and the Food and Drug Administration.

Only the goods from the registered businesses will be allowed for export to China starting from 1 Jan 2022, according to Notifications 248 and 249 of the GACC. As of 30 September, 1,022 companies and factories submitted 1,850 applications to the GACC, according to the GACC’s statement. The individuals executing edible oil, oilseeds, stuffed pastry products, edible bird’s nest and related products, edible grains, grains milling industrial products and malt, fresh and dehydrated vegetables, dried beans, plant species, nuts and seeds, dried fruits, unroasted coffee and cocoa bean, special dietary food excluding milk-based formula, functional foods, bee products, aquatic products including farm products, animal products and animal feed and livestock animals businesses need to apply for GACC licences to place their goods in China’s market. 

Source: The Global New Light of Myanmar

Myanmar’s export has been surpassing imports in the cross-border trade with Bangladesh and 8,620.7 tonnes of exports to Bangladesh was estimated at US$10.733 million between April and October in the 2022-2023 financial year. Myanmar’s fishery export accounted for 65 per cent and dried groceries constituted 35 per cent in Myanmar’s two border posts with Bangladesh; Sittway and Maungtaw border posts. The fishery products include farmed rohu, hilsa, mackerel, dried anchovy and dried fish powder. Tamarind, onion, ginger, dried jujube powder, jaggery, longyi and clothes are also exported.

The values of fishery products to Bangladesh via two border posts stood at $6.318 million (7,093.413 tonnes) in the 2019-2020FY, $4.76 million (5,010.7 tonnes) in the 2020-2021FY and $13.987 million (11,362.97 tonnes) in the 2021-2022 six-month mini-budget period (October-March). “Bangladesh increasingly purchases locally farmed rohu. Myanmar’s border trade with Bangladesh sees a trade surplus. The import is extremely less. The traders called for a legitimate trade of cattle as well. There are many steps to do if that normal trade can generate revenue for the two countries and curb inflation in border areas.

Myanmar’s border export with Bangladesh amounted to $10.733 million in the past seven months this FY. The surplus of trade can increase the interest of the entrepreneurs, fish farmers and growers,” U Thet Oo, head of the Rakhine State Fisheries Department, said. The Maungtaw border post in Rakhine State has been suspended since the end of September. The export is flowing out of the Sittway border post to Bangladesh. Trade via the Maungtaw border saves time and trade flow is smooth. It takes about five hours to reach the Bangladesh border through Sittway. Myanmar bagged a total of $10.733 million from exports of 8,620 tonnes to Bangladesh in the past seven months. The State also received revenue of $24,100 from licence fees of 26 vessels plying to Bangladesh’s Port. 

Source: The Global New Light of Myanmar