Posts in category: TRADING

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

At the Muse 105-mile border trade, delays in applying for import licenses for Chinese-imported goods have led to a link between the Bank of China and the Bank of Myanmar, which has made jurisdiction difficult for traders and traders, according to traders. “To bring Judy,” he said. I have to apply for a license. It took a Fri time for the license to expire, so it was not possible to carry it. It has been almost a month since I was able to connect with the Chinese bank. I had to wait again to connect again. It’s a long time to tell if it’s okay yet. “When the Chinese side entered the Burmese side of the Qing Dynasty, it was not like before, but all kinds of problems started,” said Ko Toe Naing, a trader.

At the Muse 105 Mile, the jute license was reopened in December last year during the transition period from the beginning of the dollar payment to the kyat. Importers are still lagging behind in obtaining licenses due to difficulties in obtaining copies of documents from the Bank of China and the Chinese Customs. “From the first month of this year until now, The license was suspended at the end of last 12 months. Jute’s implementation has been delayed due to policy requirements and requirements. The current situation is not like the import of cars at Shwe Lwe In Stadium, but some warehouses are down. Some do not pay; Some go their own way. 

The Muse Namkham Chamber of Commerce did not even dare to present a real problem. If the goods are delayed, think of it as a loss, ”said a trader from Muse, 105 miles away. China and Myanmar are gradually shifting from Boder Trade to Normal Trade. In one move, changes in licensing and jute policy have led to difficulties in applying for import licenses and performing jute. There are a lot of imported cars at Kyin San Kyaw Shwe Lwe In Car Exchange and other car parks. Manibet (Chinese Customs Inspection Certificate) and which bank will transfer the value of the goods. The Chinese side will have to go to the bank legally with a bank transfer from the Myanmar government bank.

“The application for a Chinese import license is obvious,” he said. In the meanwhile, the price was too high and my arms and legs could not move. RMB exchange rate change It is very difficult to change the policy of the Ministry of the State. It would be good to settle the bank transfer letter. So I think it will be convenient for the imported cars that are stuck in Kyin San Kyaw, ”said a trader from Muse. “The Myanmar side demanded the withdrawal (item on the vehicle); The Chinese side could not provide the full details of the Manibet (Chinese Customs Inspection Certificate). They can only deliver most of the goods on board. Translated into English, they said they could not provide it. From the Myanmar side, it is difficult to apply for a license because of these. 

Due to the delay in importing and exporting goods due to the Shanting system, the one month given by the Burmese side does not work. The truck could not be reached immediately today with the jute applied for a license.  The truck could not get out immediately because we had to wait for the disinfection system to be started. This is also a problem. Some cars can be released in just over a month or two, but after a few days there is a change in policy. Commodity on this The meaning of the flow is stagnant. If these problems occur, traders will make the most of it, and the end result will be limited to the basic consumer, ”said Ko Naing, the owner of the gate.

Rice, broken rice, including rice being exported to China through the Muse-Wanding-Qingshan checkpoint on the Burma-China border. Green pepper Goods transported by refrigerated system; Fishery products; Exports to China have been temporarily restricted since March 15, with seven items, including daily necessities and foodstuffs, and a slight change in export licensing policy in Burma has also caused all kinds of problems for exporters. “In terms of exports, the situation is like a pipe trap,” he said. Under the current policy system, most rice and other agricultural products are no longer profitable. The cost is high. It’s hard to get to the bottom because you can no longer send the balance. 

China has long banned frozen meat and seafood. Of these, the biggest ones are rice, peppers are hit hard. The rest did not go. The peppers do not bite after a few days. This Shantin system is no longer suitable for them. Both sides requested complete documents, but both sides were incomplete. This is where Boder Trade comes in as a normal trade, which is a bit of a challenge. The Chinese side is also confused. It’s not easy for me to work on it because I’m experimenting. This is because a truck can carry a variety of goods. The gates are not the property of one merchant; I added three or four letters. In normal trade, each trader’s product is not difficult to apply for a license, but it is difficult for a monopoly trader, ”said Ko Than, a trader.

With the new policy and the direct exchange rate of the yuan, there are many difficulties for entrepreneurs to withdraw money. “China pays in yuan,” he said. The government bank transfers at a fixed rate. It is not issued in cash, it is typed in a bank book. I changed my personal account from company account. Only 510,000 personal accounts can be issued per week. There is a downside to that, especially if all this money can’t be withdrawn at once. If you have money in the bank, it is the biggest problem in the transaction. Exporters are also considering this, ”said Ko Than, a trader. Most traders in Muse Namkham say that officials need to re-evaluate the ministry’s liaison over such policy changes, and that traders are concerned that Sino-Burmese border trade will continue to falter if border trade difficulties arise.  

Source: Daily Eleven

In Longchang Province, China, the whole province has been locked down due to the COVID virus, and the Lweje and Shweli border gates have been closed indefinitely, according to border traders. According to a border trader in Bhamo District, the lockdown in Longchaung District was due to the high number of people infected with the omega virus, which has been on the rise since March 10. The first block is bananas. Since March 18.

On the evening of March 21, rice, Corn Cane closed again. More than 400 cars were blocked all the way. The only victims are the banana farmers. Banana trucks are dumping bananas in warehouses and returning the bananas, drivers said. The Loije-Larin border gate was closed on July 11, 2021 for more than six months and reopened on January 17, 2022. Currently, the Kandawgyi border gate was opened in mid-December. 

Due to inspections and inspections of goods, only ten vehicles can be traded per day. Most Chinese banana growers have been unable to repay their loans to the Chinese government after losing money for two years in a row, and will have to suspend operations if the capital is not repaid during the current banana season, said a member of the Crop Entrepreneurs Association. On the way, the Burmese-Chinese border gate could not be opened in time and many banana carts were abandoned. 

More than 3,000 to 5,000 tissue bananas were traded over the past three years at the Lweje border gate. At present, there are a lot of entrepreneurs in Kachin State who are involved in the banana plantation cultivation from China. Workers The credit system is high among sellers; Lack of specific workplace conditions; Village elders near the tissue banana plantation said that many problems were being solved on a daily basis due to improper operation.

The Kanbai border trade point is 85 miles from Myitkyina, adjacent to Hteinchong Township, Pauksan County, Yunnan Province, China, 51 miles from Hteinchong. The Loije border gate is located 56 miles from Bhamo and is a border trade point adjacent to Laing Yin Village, Jiangphone Township, Liaoning Province, People’s Republic of China. The main official gateways between China and Kachin State are the Kanpai Gate and the Lweje Gate. Mainly used for Pangwa entrances. In addition, Laiza; Man Win Gyi entrances are also being used.

Source: Daily Eleven