Posts in category: TRADING

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

The wholesale reference rate of palm oil in the Yangon market continued to rise at K4,330 per viss (a viss equals 1.6 kilogrammes) this week, according to the Supervisory Committee on edible oil import and distribution. The Supervisory Committee on edible oil import and distribution under the Ministry of Commerce has been closely observing the FOB prices in Malaysia and Indonesia including transportation cost, tariff and banking service, and issuing the wholesale market reference rate for edible oil on a weekly basis. The reference prices of palm oil in the Yangon market were set at K4,330 per viss for this week from 8 to 13 November, and K4,225 per viss for the previous week ending 7 November.

The figure was up by over K150 per viss this week. Despite the reference price, the current market price is rocketing. If those retailers and wholesalers are found overcharging, storing inventory intentionally and attempting unscrupulous action to manipulate the market, they will face legal action under the Special Goods Tax Law, MoC released a statement. The Ministry of Commerce is striving for consumers not to worry over the supply of edible oil. The ministry is also trying to secure edible oil sufficiency, supervise the market to offer reasonable prices to consumers and maintain price stability.

At present, mobile market trucks operated by oil importing companies, in coordination with Myanmar Edible Oil Dealers’ Association, were back to business in some townships on 17 July in order to offer palm oil at a subsidized rate. They sell palm oil at K4,550 per viss to consumers directly. However, there are limited sources of supply although they directly sell palm oil at a reference rate depending on the volume quota. The domestic consumption of edible oil is estimated at one 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

Starting from 1 November, imports are to be allowed based on the export earnings or flows of funds and the initial stage of this move will commence in Myanmar-Thailand border areas, according to 31 October 2022 of the Trade Department under the Ministry of Commerce. To improve Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) measures and follow the Action Plan of the Financial Action Task Force (FATF), banking will be utilized in settling border transactions.

Imports will be allowed only with the banking system. The importers are permitted to use export earnings and foreign salary remittances of Myanmar citizens and can make transactions at the relevant banks with those earnings and flows of funds. The initial stage of this move will commence in the Myanmar-Thailand border areas, as per the statement. The Trade Department will grant an import licence after screening export earnings and flows of funds and making sure the import value does not exceed the bank account balance.

The export earnings and the flows of funds deposited after 1 April 2022 will be accepted. Those importers who seek the permit as of 31 October 2022 are not entitled to this. Those importers who were granted import licences before 31 October 2022 must bring in the goods by 30 November 2022. If they fail to do so, they will get their licences revoked. In the cross-border trade between Myanmar and Thailand, the exporting companies can import with their export earnings or transfer the earnings to other companies for imports. Moreover, they can import with their export earnings at the other border posts as well. 

Source: The Global New Light of Myanmar

More than 20,000 tonnes of rice have been sent to Bangladesh by up to October 2022, according to the Ministry of Commerce. Myanmar and Bangladesh inked a Memorandum of Understanding (MoU) on rice trade in September this year. According to this MoU, Bangladesh has agreed to buy 250,000 tonnes of rice and 50,000 tonnes of parboiled rice from Myanmar between 2022 and 2027.

Following the MoU, Bangladesh’s Directorate-General of Food and MRF signed a sales contract for 200,000 tonnes of Myanmar’s rice to be exported to Bangladesh. As per the sales contract, Myanmar has shipped over 20,000 tonnes of rice to Bangladesh up to 31 October 2022. Furthermore, over 15,000 tonnes of rice are being loaded onto the vessel for now. The remaining over 150,000 tonnes of rice will be exported during the set period.

Since 7 September 2017, Myanmar and Bangladesh have engaged in rice trade under the government-to-government pact. That MoU stated that Bangladesh has agreed to buy Myanmar’s white rice (250,000 tonnes) and parboiled rice (50,000) tonnes between 2017 and September 2022. Bangladesh’s Directorate General of Food and MRF signed the sales contracts as per the MoU and Myanmar sent 100,000 tonnes of rice to Bangladesh each in 2017 for the first time and 2021 for the second time, as per the sales contract. 

Source: The Global New Light of Myanmar

A total of 1,480 tonnes of pharmaceuticals, with an estimated value of over US$13 million, were imported from foreign countries in the second week of October, according to the trad data released by the Ministry of Commerce. Myanmar brought in 980 tonnes of medicines worth $12.706 million by sea and 500 tonnes of medicine worth $1.003 via the border posts between 8 and 14 October. They are primarily imported from China and Thailand.

Myanmar imported medicines from China, India, Pakistan, Indonesia, the Republic of Korea, Bangladesh, Germany, Singapore, Slovakia and Spain through maritime trade. China is the main exporter of pharmaceuticals to myanmar with 900 tonnes, followed by India (250), Thailand (100), Pakistan and Indonesia (50 each), the ROK (30), Bangladesh (20), Germany (20), Singapore (20), Slovakia (20) and Spain (20).

Eighteen types of imported pharmaceuticals are granted for Customs tariff exemption, according to the notification (19/2022) of the Myanmar Automated Cargo Clearance System (MACCS) division under the Myanmar Customs Department, dated 19 October. They are Aspirin, Paracetamol, Chlorpheniramine maleate, Diazepam, Mebendazole, Gentamicin, Metronidazole, Propranolol, Oral Rehydration Salt, Chlorpromazine, Salbutamol, Intravenous Glucose, Rifampicin, Ethambutol, Isoniazid, Frusemide, Digoxin and Prednisolone.

Source: The Global New Light of Myanmar

The Trade Department under the Ministry of Commerce will issue Certificate of Origin (CO) Form RCEP to the products that originated in Myanmar and are designated to be exported to China so that the authorized traders can enjoy customs tariff relief, starting from 1 November. The Regional Comprehensive Economic Partnership-RCEP, a free trade agreement between the ten member states of ASEAN, Australia, China, Japan, the Republic of Korea and New Zealand has come into effect since January 2022.

According to the RCEP agreement, the CO form will be issued for the products that originated in Myanmar and that are to be sent to China to be free from customs duty from 1 November 2022. The exporters can apply for CO Form RCEP in compliance with the rules and regulations. Those traders can earn approved exporter status through an online CO application system https://onlineco.myanmartradenet.com from 1 November 2022. There are many trade benefits of being a member of RCEP. As per the agreement, tariff incentives are based on the development status of the states. They have agreed especially for Cambodia, Laos and Myanmar to have access to preferential tariffs and grant moderate tariffs to Viet Nam.

Additionally, the least developing countries will enjoy more exemptions according to a charter of the United Nations to support the Least Developed Countries (LDCs). For instance, the agreement stated Cambodia, Laos and Myanmar to be granted preferential tariffs over other states. The members of RCEP have to grant 65 per cent of custom tariff exemption in line with the agreement. However, Myanmar, Cambodia and Laos are entitled to give only 30 per cent tax-exempt to other entities. Afterwards, the members have to grant 80 per cent tax exemption ten years after the agreement is effective. Meanwhile, Myanmar is given a transition period for the trade sector of up to 15 years.

Moreover, the needs of the LDCs will be considered to implement the commitments under this agreement and enjoy customs duty relief while making efforts to spur trade and investment opportunities and participate in the regional and global trade and value chains. Myanmar, being a member of RCEP and the ASEAN, will get access to great opportunities to step up the international level in amending laws, policy framework and regulations for its trade and investment promotion and in the capacity of the governmental and private institutions. Likewise, Myanmar’s exports see vast foreign markets as the developed and technologically advanced countries are part of the RCEP (Japan, the ROK, Australia, New Zealand, and Singapore). In line with the agreement, responsible and accountable large investments will flow into the country for sure. 

Source: The Global New Light of Myanmar

The wholesale reference rate of palm oil in the Yangon market increased again to K4,000 per viss (a viss equals 1.6 kilogrammes), according to the Supervisory Committee on edible oil import and distribution. The Supervisory Committee on edible oil import and distribution under the Ministry of Commerce 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 reference prices of palm oil in the Yangon market were set at K4,175 per viss for this week from 25 and 30 October and K3,960 per viss for the week ending 24 October.

The reference price this week was up by over K200 per viss. Nevertheless, the current market price is too high compared to the reference price. If those retailers and wholesalers are found overcharging, storing inventory intentionally and attempting unscrupulous action to manipulate the market, they will face legal action under the Special Goods Tax Law, MoC released a statement. The Ministry of Commerce is striving for consumers not to worry over the supply of edible oil. The ministry is also trying to secure edible oil sufficiency, supervise the market to offer reasonable prices to the consumers and maintain price stability.

At present, mobile market trucks operated by oil importing companies, in coordination with Myanmar Edible Oil Dealers’ Association, were back to business in some townships on 17 July in order to offer palm oil at a subsidized rate. They sell palm oil at K4,400 per viss to consumers directly. However, there are limited sources of supply although they directly sell palm oil at a reference rate depending on the volume quota. 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