Posts in category: TRADING

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

Authorities from Myanmar and China discussed the reopening of the Kyalgaung border post. China has restricted border access through the Muse-Kyalgaung (Mang Wein) border posts, which is a major border crossing between Myanmar and China amid the COVID-19 cases since 30 March 2021. On 18 October, Myanmar’s officials and counterparts from Tathong, Yunnan Province negotiated the promotion of bilateral cross-border trade through videoconferencing.

The meeting highlighted the resumption of the Kyalgaung border post, implementation of container transport to facilitate the trade along the Muse-Ruili route, the direct Yuan-Kyat trade, seeking the permit for legitimate exports of avocado, pineapple, pomelo, lemon and sweet potato from the General Administration of Customs of the People’s Republic of China (GACC) at the soonest, giving green light to Myanmar trucks carrying sugarcane as the sugarcane season is approaching and the ease of the COVID-19 restriction measures in the border areas.

Before the pandemic, Kyalgaung was the busiest and biggest trade post and it performed the highest trade on the China-Myanmar border. Those traders involved in the Muse trade zone are relying on 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 the Muse border checkpoint. Only when the Kyalgaung border post is reopened can the trade boom, traders elaborated. China shut down all the checkpoints linking to the 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 about 70 trucks and building materials, electrical appliances, pharmaceuticals, fertilizer, household goods and industrial raw materials are imported into the country with 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, Ministry of Commerce’s data indicated.

Source: The Global New Light of Myanmar

Myanmar shipped 983,782.7 metric tons of rice and broken rice to foreign trade partners in the first half (April-September) of the current financial year 2022-2023, with an estimated income of US$339 million, according to Myanmar Rice Federation (MRF). In the past six months, more than 40 exporter companies delivered over 773,446.7 MT of rice and broken rice to external markets by sea, whereas over 210,335 MT were sent to neighbouring countries via border trade camps.

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. Myanmar exported rice to over 20 foreign markets in the past months, mostly to China (123,520 MT) and the Philippines (101,259 MT). Additionally, Myanmar primarily conveyed over 191,967 MT of broken rice to China and 140,893 MT to Belgium. The prices of high-grade rice varieties stood at K60,000-90,000 per bag and K35,500-45,000 per bag for low-grade rice varieties.

The prices of low-quality white rice varieties were approximately US$340-360 per MT depending on the different varieties and quality in September. The export price of Myanmar’s rice was relatively lower than the rates of Thailand and Viet Nam, according to MRF. Myanmar has shipped more than 1.4 million tonnes of rice and broken rice to foreign trade partners between 1 October and 31 March in the past mini-budget period (2021-2022), the Myanmar Rice Federation stated. Myanmar bagged US$700 million from two million tonnes of rice exports to foreign countries in the past 2020-2021 financial year. 

Source: The Global New Light of Myanmar

Myanmar’s external trade in the first half of the 2022-2023 Financial Year tremendously edged up to US$17.08 billion, reflecting a sharp increase of $3 billion as against the year-ago period, according to the Ministry of Commerce.

The figures surged from $14.078 billion in the corresponding period last year. Myanmar’s export was worth over $8.56 billion whereas the country’s import was valued at $8.52 billion over the past two months. The border trade dropped owing to China’s strict virus rules and security in transport amid the political changes, with a decrease of $89.8 million in cross-border trade as against the year-ago period.

However, the maritime trade registered a significant rise of $2.257 billion in nearly four months. The external trade stood at $15.5 billion in the past mini-budget 2021-2022 (Oct-March) period and $29.58 billion in the 2020-2021 FY, as per the Commerce Ministry’s statistics.

Source: The Global New Light of Myanmar

The value of Myanmar’s imports between 1 April and 23 September of the current financial year 2022-2023 surged to US$8.159 billion, which reflects a sharp rise of $1.55 billion compared to the year-ago period, the Ministry of Commerce’s data indicated. The import value stood at $6.6 billion in the corresponding period of the past 2021-2022 mini-budget period.

The imports of capital goods and consumer goods declined, while the other import groups (intermediate goods and CMP businesses) witnessed a slight increase. The capital goods, such as auto parts, vehicles, machines and steel were brought into the country. The import value was estimated at $1.46 billion as of 23 September this FY. The figure was over $332 million lower than the value registered in the same period of the previous mini-budget period.

Meanwhile, Myanmar imported consumer products worth $1.49 billion, including pharmaceuticals, cosmetics, and palm oil. The imports of consumer products showed a slight decrease of $207.9 million compared with the same period in the previous FY. Intermediate goods make up the largest share of Myanmar’s imports, with petroleum products and plastic raw materials being the main import items.

This year, imports of raw materials climbed up to $3.8 billion from $2.399 billion registered during the year-ago period. During the same period, raw materials worth over $1.34 billion were also imported for the garment sector on the cut-make-pack (CMP) basis, showing an increase of $626.45 million compared with the same time of the last mini-budget period, as per data from the Ministry of Commerce.

Source: The Global New Light of Myanmar

The value of Myanmar’s goods exports was relatively higher than those of imports between 1 April and 23 September in the current financial year 2022-2023, according to statistics provided by the Ministry of Commerce. Myanmar’s trade gap significantly shrank to US$0.024 million this FY from $234 million registered in the corresponding period of the 2021-2022 FY. In the nearly a half of the FY, the value of Myanmar’s external trade soared to $16.3 billion from $13.45 billion recorded in the year-ago period.

While exports were estimated at $8.159.057 billion, imports were valued relatively low at $8.159.033 billion during April-Sept period. Compared to the FY 2021-2022, exports showed an increase of over $1.3 billion, while import value was up by $1.55 billion. Myanmar’s maritime trade value edged up to $12.5 billion in the nearly past six months from $9.5 billion recorded in the same period last year yet the country witnessed a small drop of $135 million in border trade as cross-border trade with the main trade partner China has not returned to normal amid the strict virus policy.

Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, raw industrial materials, and consumer goods.  The country’s export sector relies more on the agricultural and manufacturing sectors. The Ministry of Commerce is trying to reduce the trade deficit by screening luxury import items and boosting exports. The country mainly imports essential goods, construction materials, capital goods, hygienic material and supporting products for export promotion and the import substitution.

Source: The Global New Light of Myanmar

The prices of peanut and sesame seeds dip owing to the high supply and low demand in the markets. However, the palm oil price showed a slight increase despite oil tankers unloading the palm oil. Although two oil tankers carrying 9,740 tonnes of palm oil docked terminals in Kyimyindine and Thilawa ports on 21 September 2022, the wholesale prices slightly increased in Yangon markets.

The prices stood at K8,200 per viss on 20 September, K7,900-K8,000 on 21 September, K7,200 on 22 September, K7,500 on 23 September and K7,600-K7,700 on 24 September. The reference prices in Yangon were set at K4,730 per viss for a week from 12 to 18 September and K4,690 for a week ending 25 September. During the harvest of peanut and sesame, the prices significantly dropped. The bulk supply from various regions drove the price down to K1,000 per viss of peanuts when both Chinese supply and purchase volume of the local millers were pretty low.

As Yuan value against local currency slides a bit, the price of sesame was down by K20,000 per bag. Approximately 40 ticals of peanut oil are produced if a viss of peanut is milled. A basket of sesame seeds can produce 6.5 viss of sesame oil on the average. The peanut oil prices declined from K13,500-K14,500 per viss on 12 September to K11,000-K12,000 per viss on 25 September. The sesame oil consumption is low in the market so the price remains unchanged at K10,000-K11,000 per viss in the wholesale market.

Source: The Global New Light of Myanmar

Myanmar’s 105th-mile Muse trade zone for cross-border trade with China accumulated US$60.178 million in August. Exports surpassed imports with exports valued at $37.856 million and $22.322 million worth of imports. Myanmar exported agricultural produce, forest products, fishery products, minerals, finished industrial goods and other goods to China, while capital goods and intermediate goods were imported into the country.

Figures showed $10.992 million, a slump in trade compared to that of July, with a decrease of $1.841 million worth of exports and $9.151 million worth of imports as exports of agricultural produce including kidney bean, green gram, rice bean, various sesame seeds and dried tea leaf declined in August. However, exports grew in the manufacturing and mining sectors. The imports of intermediate goods, capital goods and consumer goods also fell, according to the Muse Trade Zone.

The value of trade was up by $46.468 million compared to the corresponding period last year with an increase in exports worth $36.228 million and imports valued at $10.240 million. Myanmar sent rice, various pulses, onion, cashew nut, natural rubber and other agricultural produce, forest products, fishery products, livestock products, minerals, finished industrial goods and other goods to China through the Muse border trade zone.

Source: The Global New Light of Myanmar

The value of trade at the Myawady border trade zone is estimated at US$171.069 million, according to the Ministry of Commerce’s statistics. Myanmar ’s export via the Myawady border to neighbouring country Thailand was valued at $51.221 million and import was worth $120.848 million. Myanmar’s exports through the Myawady border were 1,195 tonnes of broken rice, over 20,165 tonnes of corn, 451 tonnes of black gram, green gram and black-eyed peas, over 6,700 tonnes of onion, 513 tonnes of rubber, 26 tonnes of dried ginger and other goods.

Vehicle and auto parts, machines and equipment, construction materials, petroleum products, fertilizer, plastic raw materials, cotton, pharmaceuticals and other items were also imported through the Myawady border post. The trade value was down by $37.158 million compared to that of the corresponding period last year, with a decrease of $31.596 million in exports and $5.562 million in imports. The export was $8.038 million less and the import $3.121 million more than the trade volume last July, a decrease of $5.17 million in toto in August. Myanmar ships tonnes of corn to Thailand through the Myawady border as Thailand gives green light to corn imports through Mae Sot under zero tariff (with Form-D), between 1 February and 31 August.

Myanmar exported approximately 1.6 million tonnes of corn delivered to Thailand in FY2020-2021. There are seven border posts between Myanmar and Thailand — Tachilek, Myawady, Kawthoung, Hteekhee, Myeik, Mawtaung and Meisei. The majority of the border trade with Thailand is conducted via Hteekhee and Myawady borders. Between 1 April and 9 September of the current financial year 2022-2023, Myanmar’s exports surpassed imports in trade with Thailand via those seven border posts, with exports reaching over $1.594 billion and imports valued at over $712.196 million, totallinag $2.3 billion, the Commerce Ministry’s data showed.

Source: The Global New Light of Myanmar