Posts in category: TRADING

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

The coordination meeting of the Myanmar-China Commodity Reversal Working Committee was held at 9:30 am on March 22 to increase the number of vehicles carrying goods through the Kanpokti border gate in Kachin State and to systematically export vehicles.

At the meeting, Chairman of the Working Committee U Myo Swe, State Minister for Economy, urged the members of the State Committee and Working Committee to monitor and control the export of goods to China, despite the resumption of border trade due to efforts to normalize the flow of goods along the Myanmar-China border.

Then, the Vice-Chairman of the Working Committee, the Minister for Ethnic Affairs U Kyaw Min Khaing and state level officials, border trade post officials, State Freight Forwarders Association and Crop Producers’ Association officials spoke about the recent export situation. The Kovis-19 test is being carried out for the goods, including the driver and the driver of the truck, as agreed between the two countries. They also discussed the need to coordinate the timely export of agricultural products, including bananas, and to increase the number of vehicles, and the measures to control the loading and unloading of vehicles in a systematic manner.

Source: Daily Eleven

The value of trade via the Muse border trade zone was on the decline as of 4 March in the mini-budget financial period, according to the official statistics of the Ministry of Commerce. The value of trade via Muse in this mini-budget year amounted to US$579.48 million, whereas in the same period of last FY the figure was $3.09 billion, a slump of over $1.92 billion.

Between 1 October 2021 and 4 March 2022, Myanmar’s exports to China through the Muse land border were valued at $555.52 million, while imports are worth $23.9 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, Mang Wein (Kyalgaung), Kyinsankyawt-Wang Ding and Panseng- Wang 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. Exports to China through Muse are made up largely of agricultural produce like rice, beans and fruits, while Myanmar imports medicines, electronics and construction materials via the overland route.

Source: The Global New Light of Myanmar

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