Posts in category: TRADING

The COVID-19 Preventive Task Force in Ruili city notified Muse district-level task force to prevent the
spread of COVID-19 of the temporary suspension on the importation of seven items from Myanmar, including rice, according to the Muse-Namhkam Border Trade Chamber of Commerce. The importation of seven items; rice, broken rice, fresh chilli, goods shipped in the cold chain, frozen goods, fishery products, daily goods, and packaged food commodities will come to a halt through the Wanding-Mangman checkpoint.

This action is a temporary plan of the working group to prevent the cross-border spread of COVID-19, to prevent the infection with science-based tactics according to China’s FDA Law and a rule on export and import food safety, and resumption of the trade flow via Wanding-Mangman point, according to the notification. Amid the closure of cross-border posts with China and China’s policy changes, the value of border trade through a major trading hub Muse border post plunged to US$579.48 million as of 4 March 2022 of the current mini-budget period (Oct 2021- Mar 2022), Myanmar Customs Department’s statistics indicated.

The figure significantly dropped from $2.49 billion recorded in the corresponding period of last Financial Year, according to the Ministry of Commerce. Between 1 October 2021 and 4 March 2022, Myanmar’s exports to China through the Muse land border were valued at $555.5 million, while imports are worth $23.96 million. The trade showed a slump in both exports and imports against the year-ago period. China shut down all the checkpoints linking to the Muse border amidst the COVID-19 pandemic. The checkpoints next to the Muse border are Nantaw, Sinphyu, Man Wein (Kyalgaung), Kyinsankyawt-Wanding and Panseng- Wanding. Of the checkpoints, Kyinsankyawt has resumed trading activity from 26 November on a trial run.

Myanmar delivers rubber, various beans and pulses, dried plum, watermelon, muskmelon and other food commodities to China through Kyinsankyawt with the use of a Chinese short-haul trucking service. Myanmar trucks are restricted to enter China side. However, there is a shortage of Chinese truck drivers. As a result of this, the cost of Chinese short-haul trucking tremendously rose. Only when China eases the restriction can the trucking rate drop, a trader engaged in Muse trade zone elaborated.

Additionally, China’s new Customs Regulation and mandatory quarantine process posed some hurdles in the border market. Traders cannot expect trade facilitation according to the changes in China’s policy during the COVID-19 pandemic. Myanmar normally exports agricultural products including rice, beans and corns, and fishery products such as crab, prawn, etc. Furthermore, Myanmar’s natural gas export to China is also conducted through the Muse-Ruili border. The raw CMP materials, electrical appliances and consumer goods are imported into the country. The Muse border post witnessed $4.057 billion worth of Sino-Myanmar border trade last financial year2020-2021, including exports worth $2.9 billion and imports worth $1.15 billion.

Source: The Global New Light of Myanmar

China-Myanmar cross-border Kyinsankyawt post, after a temporary closure following the detection of the coronavirus, resumed its trade from 12 March and over 400 trucks stuck in Kyinsankyawt and Muse 105th-mile are given the green light for exports to China as per the health guidelines for the coronavirus, said U Min Thein, vice-chair of the Muse Rice Wholesale Centre. Following the detection of the COVID-19 cases in recent days, the short-haul drivers were isolated for two days and the disinfecting activities were carried out.

The China-Myanmar cross-border Kyinsankyawt post was temporarily shut down between 2 and 12 March 2022. The closure of the post negatively affected the watermelon, muskmelon, pumpkin, chilli, onion, rice and broken rice, rubber and other commodity trucks. More than 400 trucks were stranded in that road part for about a dozen days. Consequently, we asked the traders in lower Myanmar to halt for a while. Some trucks are stopped at 16 miles on Mandalay highway, while some have stayed on Lashio’s outer ring road. China gave the go-ahead to over 400 trucks along with Muse and Kyinsankyawt road parts in the afternoon of 12 March.

They are delivered the goods in line with the COVID-19 protocol. Of 400 trucks, trucks loaded with those perishable goods are prioritized to pass the checkpoint. Additionally, the freight forwarders in lower Myanmar do not need to rush the transport and they have to carefully consider the supply and cross-border trade situation, said U Sai Khin Maung from the Khwanyo Fruit Trade Depot. 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 on a trial run. Myanmar daily delivers rubber, various beans and pulses, dried plum, watermelon, muskmelon, pumpkin and other food commodities to China through Kyinsankyawt and construction materials, electrical appliances, household goods and industrial raw materials are imported into the country. 

Source: The Global New Light of Myanmar

On March 9, 2022, the Department of Commerce announced that commodity lines containing corn mills, including cornstarch, would be allowed to export only after applying for export licenses from April 1, 2022. The Ministry of Commerce and Industry (MOEC) Department of Commerce Published by Import Newsletter (3/2022). Some of the exported goods are subject to national security and food security. In order to protect the environment, 778 lines of goods with HS Code 6 Digit or 1224 lines of goods with HS Code 10 Digit are designated as goods lines that need to apply for export license by Notification No. (51/2020).

According to the joint 2017 Customs Tariff of Myanmar, which includes corn mills, including cornstarch, 11 additional lines with HS Code 6 Digit or 12 lines with HS Code 10 Digit are required to apply for export licenses. Therefore, any of the goods lines required to apply for a license under paragraph 2 above may be imported from overseas. The Department of Commerce has announced that from April 1, 2022, exports will be allowed only after applying for export licenses in accordance with the regulations. From March 2, the Department of Commerce announced that 141 lines of goods containing wheat and plastic raw materials will be added to the list of goods that need to apply for import licenses. In the aftermath of the COVID-19 outbreak, businesses may need to be rehabilitated.  

In order to streamline imports and regulate the use of foreign currency for the import of goods, some imported goods will be subject to the import license system. Therefore, according to the Notification No. 68/2020 issued on October 22, 2020, there are 3931 product lines with HS Code 10 Digit which need to apply for import license. HS Code 10 Digit issued by Newsletter on Import and Export (18/2021) with 3070 product lines; The HS Code 10 Digit issued by the Newsletter (1/2022) states that the goods specified in the joint HS Code, including 826 product lines, including 826 product lines, are the goods lines that need to apply for import licenses. Importing from the air and border trade routes will be allowed from March 2, 2022 only after applying for an import license in accordance with the procedures.

Source: Daily Eleven

Myanmar delivered US$556 million worth of over 710,616 tonnes of various pulses to foreign trade partners between 1 October 2021 and 25 February 2022 in the half of the current six-month mini-budget period (October 2021-March 2022), according to statistics released by the Ministry of Commerce. Nearly the past five months, the country shipped $515.656 million worth of 662,169 tonnes of pulses and beans to foreign markets through sea routes, and $40.3 million valued 48,446 tonnes were sent to the neighbouring countries through the land borders. India is the main buyer of Myanmar beans, especially black beans, green grams and pigeon peas.

Besides India, Myanmar’s beans are purchased by Bangladesh, Pakistan, Nepal, UAE, Malaysia, Indonesia, China (Taipei), Japan, and European countries. But, the volume of demand by those countries is small, according to the domestic beans market. India’s Ministry of Agriculture and Farmers Welfare approved to import of not only black gram but also other pulses from Myanmar, with relaxations of conditions regarding clearance consignment up to 31 March 2022. The prices of beans are positively related to the exchange rate. Last September, the bean price reached an exorbitant high tracking the Kyat weakening in the local forex market.

The price of black gram hit an all-time high of K2 million per tonne on 29 September 2021 following Kyat weakening against the US dollar (K3,000) in the local forex market. At present, the exchange rate of a US dollar is over K2,000. The price of black beans (Fair Average Quality) stands at K1.428 million per tonne. Similarly, the price of pigeon peas rises slightly to K1.415 million per tonne. More than two million tonnes of various pulses and beans were delivered to foreign markets in the previous financial year 2020-2021 (October-September), with an estimated value of US$1.57 billion, the Commerce Ministry’s data indicated.

At present, the demand for green gram slips due to border trade restrictions amid the COVID-19, with an estimated value of around K125,000 per three-basket bag. Myanmar’s agriculture sector is the backbone of the country’s economy and it contributes to over 30 per cent of Gross Domestic Products. The country primarily cultivates paddy, corn, cotton, sugarcane, various pulses and beans. Its second-largest production is the pulses and beans, counting for 33 per cent of agro-products and covering 20 per cent of growing acres. Among them, black beans, pigeon peas and green grams constitute 72 per cent of bean acreage. Other beans including peanut, chickpea, soybean, black-eyed beans, butter bean and rice bean are also grown in the country. 

Source: The Global New Light of Myanmar

The value of cross-border trade between Myanmar and China via a major trading hub Muse border post plunged to US$549.8 million as of 25 February 2022 of the current mini-budget period (Oct 2021- Mar 2022), indicating a sharp drop of $1.78 billion as against the year-ago period, Myanmar Customs Department’s statistics indicated. The figure significantly dropped from $2.3 billion recorded in the corresponding period of last Financial Year, according to the Ministry of Commerce. Between 1 October 2021 and 25 February 2022, Myanmar’s exports to China through the Muse land border were valued at $525.9 million, while imports are worth $23.9 million.

The trade showed a slump in both exports and imports against the year-ago period. At present, the traders are anticipated for the resumption of the Kyalgaung post which performed the largest trade volume between Myanmar and China in the previous years. The post has been shut down since March 2021. China shut down all the checkpoints linking to the Muse border amidst the COVID-19 pandemic. The checkpoints next to the Muse border are Nantaw, Sinphyu, Man Wein (Kyalgaung), Kyinsankyawt-Wan Ding and Panseng- Wan Ding. Of the checkpoints, Kyinsankyawt has resumed trading activity from 26 November on a trial run. Myanmar daily delivers rubber, various beans and pulses, dried plum, watermelon, muskmelon and other food commodities to China through Kyinsankyawt with the use of a Chinese short-haul trucking service.

Only when China ease the restriction can the trucking rate drop, U Min Thein, vice chairman of Muse Rice Wholesale Centre said. Additionally, China’s new Customs Regulation and mandatory quarantine process posed some hurdles in the border market. Traders cannot expect trade facilitation according to the changes in China’s policy during the COVID-19 pandemic. Myanmar exports agricultural products including rice, beans and corns, and fishery products such as crab, prawn, etc. Furthermore, Myanmar’s natural gas export to China is also conducted through the Muse-Ruili border. The raw CMP materials, electrical appliances and consumer goods are imported into the country. Muse border post witnessed $4.057 billion worth of Sino-Myanmar border trade last financial year2020-2021, including exports worth $2.9 billion and imports worth $1.15 billion.

Source: The Global New Light of Myanmar

China-Myanmar cross-border Kyinsankyawt post, after a temporary closure following the detection of the coronavirus, resumed its trade however over 200 fruit trucks have been stuck in Wamding area, U Sai
Khin Maung from the Khwanyo fruit warehouse stated. The cross-border trade via China’s Wamding port is pretty complex. Additionally, China’s Customs regulations cause the delay. Moreover, the health inspection team seems to wait for guidance. At present, almost all the buyers of watermelon and muskmelons are quarantined for seven days at the hostels in Changhaw yard. If the melon trucks pass the coronavirus test, they can enter the market on 10 March.

Over 200 trucks are still stuck in the Wamding restricted zone. If the trucks remain stranded in the Wamding area, they cannot expect to resume the trade for now. Despite the closure of the Kyinsankyawt checkpoint, the goods are not given nod to enter the market as the customs clearance process and the COVID tests are being undertaken, he continued. At present, China’s inspection and quarantine mechanism is still processing for the imports of fruits, beans and pulses, corns, and rice, Khwanyo fruit warehouse stated.

Moreover, China’s short-haul trucking cost remains the upward trend. It pointed out greed and grievance in the difficult times. truck-loaded goods worth 40,000 Yuan (estimated at nearly K12 million) will cost over K10 million for general expenses. There is uncertainty for the resumption of trade in cross-border trade. Traders are concerned over the general expenses instead of foreign currency earnings.

Following the detection of the COVID-19 cases in recent days, the short-haul drivers were isolated for two days and the disinfecting activities were carried out. China-Myanmar cross-border Kyinsankyawt post was shut down on 2 and 3 March 2022. China shut down all the checkpoints linking to the Muse border amidst the COVID-19 pandemic. Of the checkpoints, Kyinsankyawt resumed trading activity from 26 November on a trial run. Myanmar daily delivers rubber, various beans and pulses, dried plum, watermelon, muskmelon, and other food commodities to China through Kyinsankyawt and construction materials, electrical appliances, household goods, and industrial raw materials are imported into the country.

Source: The Global New Light of Myanmar

From March 2, the Department of Commerce announced that 141 lines of goods containing wheat and plastic raw materials will be added to the list of goods that need to apply for import licenses. Import Newsletter (2/2022). In the aftermath of the Kovis-19 outbreak, businesses may need to be rehabilitated. The country’s exports; According to the Ministry of Commerce, some imported goods will be licensed under the import license system in order to streamline imports and regulate the use of foreign currency for imports.

In order to regulate some imported goods under the import license system, some goods lines are required to apply for import licenses as the first step. The second step is to import some food items with the Import / Export Newsletter (1/2022). Some basic plastic products and some home appliances; Wood pulp, cotton carpets and rugs; Textile All kinds of glassware; According to the 2017 Customs Tariff of Myanmar, which includes bicycle and vehicle spare parts, Hs.

Currently, Hs. As of March 2, 2022, 57 product lines with Code 6 Digit or 141 product lines with Hs Code 10 Digit have been added to apply for import licenses. Therefore, according to Notification No. 68/2020 issued on October 22, 2020, 3931 product lines with Hs Code 10 Digit are required to apply for import license. Hs Code 10 Digit issued by Newsletter on Import and Export (18/2021) with 3070 product lines; Hs Code 10 Digit issued with Newsletter (1/2022) Attached Hs, including 826 product lines. 

The goods specified in the codes 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 in paragraph 2 above may be imported by sea. It has been announced that the import of goods by air and border trade will start from March 2, 2022 only after applying for an import license in accordance with the procedures. The list of goods in paragraph (3) above, which is required to apply for an import license, will be issued in accordance with the Import and Export Law. Myanmar imports investment goods, Business raw materials; Consumer goods According to the Ministry of Commerce, CMP raw materials are mainly imported.

Source: Daily Eleven

The prices of raw natural rubber hit a record price of K1,200 per pound in Thuwanawady town, Thaton Township, Mon State. Traders sell only sundried rubber at the moment without processing ribbed smoked sheets. This year, the price is pretty high. The rubber fetches up to K1,100 per pound at the beginning of the season and then, it slightly decreases to K950 per pound. Yet, the price has rebounded to K1,200, which is the highest in ten years. Rubber businesses are thriving this year, said a rubber farmer working on a manageable scale in Wiyaw village.

The price is high on the back of steady demand from Kawthoung city. The prices range between K1,015 and K1,230 per pound depending on rubber varieties,” Daw Htar Shwe, a seller from Theinseik Ward, Thuwanawady town quoted in her sayings. All the stakeholders in the supply chain including rubber farmers and workers are doing well financially. After the suspension of trade between Myanmar and China amidst the COVID-19 consequences last year, the trade channel has been reopened again in the present.

Myanmar daily delivers rubber, various beans and pulses, dried plum, watermelon, muskmelon and other food commodities to China through the Kyinsankyawt border. Mon State is the top producer of rubber in the country, accounting for over 240 million pounds of rubber per year, as per data of Mon State Agriculture Department. The National Enlightenment Institute (NEI), a non-profit organization based in Mon State, has been receiving technical assistance from PUM Netherlands Senior Experts to enhance the rubber industry since May 2021, according to Mawlamyine Commodity Centre.

Rubber is commonly produced in Mon and Kayin states and Taninthayi, Bago, and Yangon regions in Myanmar. As per 2018-2019 rubber season’s data, there are over 1.628 million acres of rubber plantations in Myanmar, with Mon state accounting for 497,153 acres, followed by Taninthayi region with 348,344 acres and Kayin state with 270,760 acres. About 300,000 tonnes of rubber is produced annually across the country. Seventy per cent of rubber produced in Myanmar goes to China.

It is also shipped to Singapore, Indonesia, Malaysia, Viet Nam, the Republic of Korea, India, Japan, and other countries, according to the Myanmar Rubber Planters and Producers Association. About 300,000 tonnes of rubber is produced annually across the country. Seventy per cent of rubber produced in Myanmar goes to China. It is also shipped to Singapore, Indonesia, Malaysia, Viet Nam, Korea, India, Japan, and other countries. Myanmar shipped 303,293 metric tons of rubber to the foreign trade partners and generated more than US$449 million in revenue in the previous financial year 2020-2021, which is an increase of $184.6 million worth of 89,880 MT compared to the FY2019-2020, according to Myanmar Customs Department’s statistics. 

Source: The Global New Light of Myanmar

Myanmar’s lower import as of 18 February in the current six-month mini-budget period (October 2021 March 2022) resulted in a positive trade balance of US$249.3 million, according to data provided by the Ministry of Commerce. Myanmar’s exports exceeded imports in international trade although overall trade value declined compared to the same corresponding period of 2020-2021 Financial Year. Between 1 Oct and 18 February, the country’s exports were estimated at $6.103 billion, imports were valued at $5.85 billion this FY. The external trade drastically sank to $11.958 billion from $12.72 billion recorded in the year-ago period.

Myanmar witnessed a slump in exports and imports triggered by the coronavirus impacts. Myanmar’s maritime trade climbed up yet the country witnessed a drop in the border trade following the closure of some border posts by main trade partner China. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, raw industrial materials, and consumer goods. Moreover, import fall led to the largest trade surplus of $677 million in the last FY2020-2021, with $15.36 billion worth of exports outperforming $14.69 billion worth of imports.

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 import substitution. The ministry has already notified the importers of the compulsory licencing for some imported items. Import licence can be sought from 1 February 2022, with an aim to respond to the post-COVID-19 economic recovery, ensure systematic import and export process and manage foreign capital inflows.

Source: The Global New Light of Myanmar

Myanmar’s external trade as of 18 February in the current six-month mini-budget 2021- 2022 (Oct-March)
financial year period slid to US$11.95 billion, which shows a drastic drop of $765.9 million as against the year-ago period, the Ministry of Commerce’s data showed. The international trade stood at over $12.72 billion in the corresponding period of last FY 2020-2021, according to the data released by the ministry.

Between 1 October 2021 and 18 February 2022, Myanmar’s export was worth over $6.1 billion whereas, the country’s import was relatively low at $5.85 billion. The border trade drastically fell by $1.9 billion as against the year-ago period owing to the closure of some border posts by the main trade partner China. However, the maritime trade was registered a significant increase of US$1.15 billion.

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 focusing on reducing trade deficit, export promotion, import substitution and market diversification. The external trade stood at $29.58 billion in the 2020-2021 FY, as per the Commerce Ministry’s statistics.

Source: The Global New Light of Myanmar