Posts in category: TRADING

The reference price of palm oil is set at K5,620 per viss (a viss equals 1.6 kilogrammes) on 1 May, and the Department of Consumer Affairs is controlling the market to ensure price stability. 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 MoC
announced on 25 April 2022 that the reference rate for a week from 25 April to 1 May is set at K5,620 per viss. “The Consumer Affairs Department carried out supervision of palm oil market. We issue the reference rate on a weekly basis through the state-run newspapers. The department set the gross profit not to exceed more than 2 per cent of the reference rate in Yangon. We govern this condition.

The traders might add transportation and labour charges for other regions and states. We are endeavouring to ensure the price stability,” said an official of the department. The price of palm oil rocketed up to over K7,000 per viss in the domestic market, tracking Indonesia’s palm oil export policy. Ministry of Commerce is striving for the consumers not to worry over the supply of edible Palm oil reference rate set at K5,620 per viss in Yangon until 1 May: CAD oil. The ministry is also trying to secure the edible oil sufficiency, supervise the market to offer a reasonable price to the consumers, maintain the price stability and prevent market manipulation.

MoC stated that 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. There are 31,090.98 tonnes of palm oil (19.03 million visses) remaining in the palm oil tanks. There is a sufficiency in the domestic market. The department is ensuring the daily distribution of palm oil to other regions and states. The shipments of palm oil from foreign countries are regularly seen, MoC stated. The domestic consumption of edible oil is estimated at one million tonne per year. The local cooking oil production is just about 400,000 tonnes. About 700,000 tonnes of cooking oil are yearly imported through Malaysia and Indonesia to meet the oil sufficiency in the domestic market.

Source: The Global New Light of Myanmar

According to the Myanmar Rice Federation, rice and broken rice exports through border trade channels drastically plummeted. Myanmar delivered more than 1.4 million metric tons of rice and broken rice in the past mini-budget period (October 2021-March 2022). Maritime trade performed the best with an export volume of over 1.3 million tonnes, while only 76,000 tonnes were sent to neighbouring countries via border.

Due to the virus strict policy, China restricted Myanmar trucks and drivers from entering its side through the Muse land border. Only Chinese short-haul service is available now to transport Myanmar goods to China through the Kyinsankyawt post. As a result, the cost of Chinese short-haul trucking tremendously rose to K10 million per truck, whereas the trucking was worth only K700,000-K800,000 when Myanmar truckers were allowed to enter China, rice traders stressed.

About 10,000 bags of rice and broken rice are daily delivered to China via the Muse cross-border post, whereas earlier, the export volume to China was approximately 60,000 bags per day. Consequently, exports of only 76,000 tonnes were seen in border trade in the past mini-budget period. China shut down all the checkpoints linking to the Muse border amidst the COVID-19 pandemic. Of the checkpoints, Kyinsankyawt has resumed trading activities from 26 November on a trial run.

Myanmar daily delivers rubber, various beans and pulses, dried plum, watermelon, muskmelon, pumpkin and other food commodities to China through the Kyinsankyawt border. Myanmar exported rice to 13 foreign markets, mainly to Ivory Coast with over 400,000 tonnes, followed by China with 220,000 tonnes and the Philippines with over 130,000 tonnes. Similarly, Myanmar shipped broken rice to 10 countries, primarily to China with 210,000 tonnes, followed by the Netherlands 160,000 tonnes and Belgium 79,000 tonnes. Myanmar exported two million tonnes of rice worth US$700 million to the foreign trade partners in the 2020-2021 Financial Year. 

Source: Global New Light of Myanmar

The first step is to pay the yuan in cross-border trade between the two countries. Union Minister Aung Naing Oo said he would continue to work on imports and exports. The first step is to use the Chinese currency RMB in border trade between the two countries. Chinese Investment It will be used for import and export business. 

Agricultural products are exported from Myanmar and imported from China. Myanmar has a manpower and China has technology and financial capital. The two countries will enjoy the benefits of cooperation. Therefore, Sino-Myanmar cooperation is very important. China will play an important role in strengthening future Asian economies, including Myanmar and ASEAN. Aung Naing Oo said that China is buying most of the exports of ASEAN raw materials and finished goods.

“I want to know the impact of Western sanctions on the Burmese economy,” he said. It only affects private entrepreneurs. The inability to use the US dollar easily; Unable to transfer money Difficulties for Myanmar businessmen; As a result of the sanctions, some factories have closed; The closure has resulted in the loss of job opportunities for Myanmar citizens. Nothing happened to the government. The government has already made the necessary arrangements. Aung Naing Oo added that the sanctions have improved Myanmar’s economic cooperation with neighboring countries.

Source: Daily Eleven

From May 1, 1131 product lines including yeast, general food, pet food, soap, raw materials, and general chemicals, will be considered as goods lines needed for import application according to the Customs Department. According to a press release issued by the Ministry of Commerce (5/2022) on yeast, general food, pet food, dyes, soap, raw materials, paints, general chemicals; Leather raw materials; Nylon All kinds of ropes; A total of 1,131 product lines, including machinery and equipment, have been declared as third-tier goods lines for import application.

With the HS Code 10 Digit, 1,131 product lines have been changed in the MACCS system. According to the Import / Export Newsletter (5/2022), 1131 HS lines required to apply for import licenses, pre-import declarations submitted before May 1, will be effective. In order to regulate some imported goods under the import license system, some commodity lines have been declared as import lines that need to apply for import licenses. Newsletter on Import and Export 826 and 141 (18/2021); (1/2022) and (2/2022) respectively.

Now the third step is yeast. General food Pet food Dyes Soap raw materials Lightening oil; General chemicals; Leather raw materials; Nylon All kinds of ropes; Machinery and equipment; Electric motor; According to the 2017 Customs Tariff of Myanmar, which covers products such as generators, electronics and its accessories, 536 lines with HS Code 10 Digit or 1131 lines with HS Code 10 Digit have been added as import lines from May 1, 2022.

Therefore, according to the Notification No. 68/2020 issued on 22.10.2020, it is necessary to apply for the import license with HS Code 10 Digit. HS Code 10 Digit issued by Newsletter (18/2021) with 3070 product lines; Attach 826 product lines with HS Code 10 Digit issued by Newsletter (1/2022) and 141 product lines with HS Code 10 Digit issued by Newsletter (2/2022). The goods specified in the S Code are the goods lines that need to apply for an import license, and any of the goods lines that need to apply for a license under paragraph (2) above can be imported from overseas seas. Importing from air and border trade routes will be allowed from May 1, 2022 only after applying for an import license in accordance with the procedures.

Source: Daily Eleven

Import license after arrival of goods at the port; The Department of Commerce of the Ministry of Commerce has issued a press release (6/2022) stating that applications for permits will not be granted from April 20, 2022. Ministry of Economy and Commerce Due to various difficulties in applying for import permit quickly, import license, Pre-shipment is allowed before import permit is granted. On the day of arrival at the airport, import license; Import permits must be obtained by the deadline. Previously, the permit was issued on a Valid for Prior Arrival basis if the import permit had not been obtained.

However, taking advantage of this program, some businesses have applied for import licenses only when the goods arrive at Yangon Port. In addition, in order to comply with the customs clearance procedures issued by the Ministry of Planning and Finance in Notification No. 68/2019, the Ministry of Economy and Commerce.The Order No. (50/2020) dated 2020 stipulates that “goods not to be imported to the port before importation except for goods imported for import license to be imported into the Customs Warehouse” shall be permitted. It was announced that action would be taken.

Despite this announcement, the company, Some businesses are applying for import licenses only when they arrive at the port without complying with the order issued by the Ministry. Shipment should be done only after obtaining import permit. Import license after goods arrive at the port; The Department of Commerce will take action in accordance with the rules and regulations of the Notification No. 50/2020 if it is found that the permit application will not be granted from April 20, 2022 and if the relevant departments arrive at the port before the import license permit.

Source: Daily Eleven

A BOD member from the companies applying for foreign purchase must submit an import license, amount to be purchased, company to be transferred, bank account, etc. in person according to the Ministry of Commerce. Exporters and importers must submit the following information in order to purchase foreign currency in order to purchase foreign currency. A BOD member must be present in person. 

The import license must be valid from March 28, 2022 to April 4, 2022. Must have a list of three priority banks that want to buy money. The amount of money you want to buy; Company Foreign Exchange Account No. / Bank Name; Invoice Bill of Landing; Name of company to be transferred / Bank account number / Bank name; Delivery status Once the customs clearance has been completed, the release order must be attached to the release order, the statement said.

The central bank’s directive (6/2022) issued on April 5 states that AD-licensed banks should be able to sell foreign currency at a fixed rate of only three kyats per dollar for foreign exchange transfers. The directive states that AD-licensed banks, if approved by the committee to transfer foreign currency to foreign countries, should sell foreign currency to the recipient at the exchange rate set by the Central Bank of Myanmar and charge a service fee of three kyats per dollar.

According to the Notification No. (12/2022) dated (3.4.2022) dated (3.4.2022), foreign exchange trading (AD) licensed banks are required to comply with the following within one working day regarding the entry into foreign currency account of the foreigner resident in foreign currency. In case of export earnings, transfer to the account of the relevant company on the day of foreign exchange receipt. 

The AD licensed bank will purchase at the exchange rate set by the central bank and deposit into the kyat account. In case of other income including service, the relevant company, To transfer to a person’s foreign currency account; The AD licensed bank will purchase at the exchange rate set by the central bank and deposit into the kyat account. Sending dividends for foreign investment; Remittances; transfers for overseas investment; These include repayment of foreign loans and interest, and the transfer of expenses set forth in Article 27 of the Foreign Exchange Management Code.

Source: Daily Eleven

After the Central Bank of Myanmar notified that foreign exchange deposits must be converted into local currency at its reference rate of K1,850 and India extended the import deadline, the prices of black gram (urad called in India) have decreased. On 29 March, India released a statement about extending of the import deadline. The price of black gram fell from K1.5 million to K1,430,000 per tonne on 6 April, with a sharp drop of over K67,000 per tonne within ten days.

India extended relaxations of conditions regarding clearance consignment for black gram (urad called in India) and pigeon pea until 31 March 2023. Following that, the prices of black gram gradually declined as there was no need for traders to sell under the time limit. Nevertheless, as India has a monthly consumption of 200,000 tonnes of black gram, the requirement for black gram has been growing.

This being so, the price drop is likely to happen for a while, and the bean traders shared their opinions. The CBM’s policy change notified on 3 April 2022 had a considerable impact on the exporters. As a result of this, the trade is sluggish. The trade of various beans and pulses almost came to a halt, despite the price drop. Prices will rise on the back of India’s demand and the yield of Myanmar’s black gram. However, prices will fall owing to the policy changes and export slowdown. Those factors influence market price, and price fluctuation is happening.

Nevertheless, there are no changes in cost and freight (CFR) and Free on board (FOB) prices despite the policy change. The exporters have to negotiate the prices with the suppliers. The observers analyzed the export prices are likely to remain bearish and it will deal a huge blow to the bean and pulses market. Myanmar produces approximately 400,000 tonnes of black gram and about 50,000 tonnes of pigeon peas yearly. Myanmar is the top producer of the black gram, which is primarily demanded by India, while pigeon peas, green grams and chickpeas are cultivated in Australia and African countries besides Myanmar.

Source: The Global New Light of Myanmar

The Ministry of Economy and Commerce has issued a press release (5/2022) announcing that 1131 product lines, including machinery and equipment, have been classified as the third level of goods to be applied for import. In order to regulate some imported goods under the import license system, some commodity lines are required to apply for import licenses. Lines 826 and 141 were issued in the Import and Export Newsletter (18/2021), (1/2022) and (2/2022) respectively.

Now the third step is yeast. General food Pet food Dyes, raw materials, soaps, varnishes, general chemicals, Leather raw materials; Nylon All kinds of ropes; All kinds of machines and equipments, electric motors, According to the 2017 Customs Tariff of Myanmar, which covers products such as generators, electronics and its accessories, 536 lines with HS Code 6 Digit or 1131 lines with HS Code 10 Digit have been added as import lines from May 1, 2022.

Therefore, according to the Notification No. 68/2020 issued on 22.10.2020, 3931 product lines with HS Code 10 Digit required to apply for import license; HS Code 10 Digit issued by Newsletter (18/2021) with 3070 product lines; HS Code 10 Digit issued by Newsletter (1/2022) 826 product lines; Attach H. including 141 product lines with HS Code 10 Digit issued by Newsletter (2/2022). 

The goods specified in the S Code are the goods lines that need to apply for an import license, and any of the goods lines that need to apply for a license under paragraph (2) above can be imported from overseas. Importing from air and border trade routes will be allowed from May 1, 2022 only after applying for an import license in accordance with the procedures. In order to regulate some imported goods under the import license system, some commodity lines are required to apply for import licenses. Some basic plastic products and some home appliances; Textile All kinds of glassware; According to the 2017 Customs Tariff of Myanmar, which includes bicycles and car parts, 451 product lines or H. with HS Code 6 Digit.

Source: Daily Eleven

Hundreds of thousands of Myanmar have lost their livelihoods since the March 27 halt on the Myawaddy-Dona-Taung-Kyaw Road, an important trade route on the Burma-Thailand border, according to border traders. More than 1,000 small and large vehicles, including passenger cars, were stopped on March 27 while transporting goods to and through Thailand through the Myawaddy border trade point, which trades most with Thailand.

According to a border trader, the shootings at the border trade route cause hundreds of thousands of damage to Burmese agricultural products every day. Myanmar agricultural products from Myawaddy to Thailand, such as raw peppers, peanuts and onions, cannot be stored for long. Onions are shipped to Vietnam and Laos.

Myanmar maize crop is also unaffordable and the Thai market is understaffed. Imports of soft drinks and foodstuffs to the domestic market were reduced two months ago due to restrictions on imports, but imports of steel, tin, cement and other urgent necessities were reduced. Traffic on the Dona Taung Kyaw trade route, which carries about 300 trucks daily, has been suspended since March 27 and is awaiting reopening.

Source: Daily Eleven

Cross-border restrictions between Myanmar and major top importing country China resulted in nearly 20 per cent drop of agricultural export group over the past five and a half months, according to the statistics released by the Customs Department. The value of agricultural exports shrank to US$2.17 billion as of 18 March in the current mini-budget period (Oct 2021-March 2022), indicating a significant drop of $541.3 million as against the year ago period. The agricultural exports topped $2.7 billion in the corresponding period of the 2020-2021 FY.

Following the closure of Sino-Myanmar border posts triggered by COVID-19 impacts and changes in China’s Customs regulations, the export sees a drastic drop in agriculture sector this year. At present, some border posts are operating trade activities 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 region 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 endeavouring to help farmers deal with challenges such as high input costs, procurement of quality seeds, high cultivation costs, and erratic weather conditions. The agricultural exports jumped to $4.6 billion last financial year 2020-2021, despite the downward trend in other export groups.

Source: The Global New Light of Myanmar