Posts in category: TRADING

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

The value of border trade through Myawady between Myanmar and Thailand doubled to US$881.24 million between 1 October and 4 February in the current mini-budget period 2021-2022, indicating a sharp increase of $476.507 million as against a year ago period, according to the statistics released by the Myanmar Customs Department. The trade through the Myawady border stood at over $404.7 million in the corresponding period of the last FY2020-2021.

Myawady-Mae Sot border trade remains normal amid the COVID-19 restrictions, according to the Myawady Chamber of Commerce. Myanmar ships tonnes of corn to Thailand through the Myawady border. 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 were delivered to Thailand in the FY2020-2021.

Next, Thailand is suppressing Intellectual Property infringements at cross-border points to strengthen the trust with the trading partners and create a better investment climate. There are seven border posts between Myanmar and Thailand-Tachilek, Myawady, Kawthoung, Hteekhee, Myeik, Mawtaung and Maese. The majority of the border trade with Thailand is conducted via the Myawady border post. Myanmar primarily exports corn, natural gas, fishery products, coal, tin concentrate (SN 71.58 per cent), coconut (fresh and dry), beans, and bamboo shoots to Thailand. It imports capital goods such as machinery, raw industrial goods such as cement and fertilizers, consumer goods such as cosmetics and food products from the neighbouring country.

Source: The Global New Light of Myanmar

India imposed import restrictions on green gram which were previously traded with the relaxations, according to Notification S.O 624 (E) of India’s Ministry of Commerce and Industry issued on 11 February.
For black gram and pigeon pea, India extended relaxations of conditions regarding clearance consignment until 31 March 2022. However, import restriction on the green gram as per the notification has been effective starting from 11 February.

The policy changes will wreak havoc on those green gram imported from Myanmar that have the bill of lading after 11 February. To tackle this problem and unnecessary price drop, Myanmar’s Ministry of Commerce held a coordination meeting on 14 February to govern the market and have a steady export to India. Union Minister for Commerce Dr Pwint San gave a remark that they will negotiate with Indian counterparts through the government-to-government relations.

Furthermore, the association concerned must strive for market stability and penetrate more external markets including European Union, which can offer a better price, he added. There are approximately 9.9 million acres of various beans and pulses across the country, with an annual production of 4.1 million tonnes. Myanmar shipped about 700,000 tonnes of green gram to 64 foreign trade partners in the 2020-2021 financial year. Between 1 October 2021 and 4 February 2022 of the mini-budget period, 147,326 tonnes of green gram were delivered to the global market. Of them, 18,842 tonnes were sent to the Indian market, constituting 12 per cent of overall green gram exports. 

Source: The Global New Light of Myanmar

Myanmar has been delivering a large supply of corn to Thailand through the Myawady border under the preferential zero tariff. The price of corn is estimated at over K800 per viss (a viss equals 1.6 kilogrammes),
said corn traders. Thailand gives the green light to corn imports through Mae Sot under zero tariff (with Form-D), between 1 February and 31 August. Thailand has granted tax exemption on corn imports between February and August. However, Thailand imposed a maximum tax rate of 73 per cent on corn import to protect the rights of their growers if the corn is imported during the corn season of Thailand.

From 1 February 2022, more than 100 trucks carrying corn have been conveyed to Thailand. The corn traders have a fullinventory in the warehouses in Myawady border city, U Min Khaing, Chair of the Myanmar Corn Industrial Association said. Myanmar is targeted to deliver 1.5 million tonnes of corn to the external market in the current 2021-2022 corn season. Last 2020-2021 financial year, the country shipped more than 1.7 million tonnes of corn to Thailand, U Min Khaing was quoted as saying.

The price is on the rise on the back of strong foreign demand and Kyat depreciation on a US dollar in the local exchange market. The prevailing price of corn is K820 840 per viss in the Yangon market, the Yangon Region Chamber of Commerce and Industry. Myanmar exported 2.3 million tonnes of corn to foreign trade partners in the previous FY. The majority of them were sent to Thailand and the remaining went to China, India and Viet Nam. At present, corn is cultivated in Shan, Kachin, Kayah and Kayin states and Mandalay, Sagaing and Magway regions. Myanmar has three corn seasons – winter, summer and monsoon. The country yearly produces 2.5-3 million tonnes of corn.

Source: The Global New Light of Myanmar

The value of trade between Myanmar and China via the Muse land border in nearly four months of this current mini-budget period showed a drastic drop of nearly US$1,500 million compared to the last previous year, according to the Ministry of Commerce. From 1 October 2021 to 28 January 2022, Myanmar’s exports to China through the Muse land border were valued at $425.880 million, while imports were worth $20.801 million. The value of the Muse border trade touched $ 446.681 million in nearly four months of this mini-budget year 2021-22. The trade showed a fall in both exports and imports compared to the corresponding period of last year.

Compared with the same period last year, the value of trade via Muse amounted to $1,945.917 million, including $ 1,226.391 million in export and $719.526 million in imports. The annual trade through Muse border was $2,829.860 million in the FY2012-13, $3,517.684 million in the FY2013-14, $5,318.163 million in the FY2014-15, $5,377.877 million in the FY2015-16, $5,410.056 million in the FY2016-17, $5,841.879 million in the FY2017-18, $2,995.401 million in the mini budget year of 2018, $4,917.976 million in the FY2018-19, $4,890.587 million in the FY2019-2020 and $4,057.724 million in the FY2020-21.

In 2020-21 FY, China topped the list of the ten Myanmar’s exported counties with $4,905.80 million, followed by Thailand with $3,172.26 million, according to the Ministry of Commerce. The country also exported goods worth $944.21 million to Japan, $836.37 million to India, $620.59 million to the United States, $426.25 million to Germany, $411.71 million to Spain, $385.40 million to the United Kingdom, $366.18 million to the Netherlands and $305.76 million to South Korea, the Ministry’s figures said. The bilateral trade between Myanmar and China amounted to over $12.13 billion from October to September of the 2019-2020FY, including over $5.4 billion worth of exports and over $6.7 billion worth of imports, according to the data released by the Ministry.

Source: The Global New Light of Myanmar

The price of rubber remained upward trend as there is a steady demand by China and Kyat devaluation against the US dollar continues, according to rubber traders. The prices of Local 3 and Ribbed Smoked Sheet 3 varieties which is highly demanded by China hit above K1,100 per pound on 11 February. 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. 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 had earned US$ 390.895 million from the export of over 486,413 million tonnes of various beans and pulses through maritime and border routes from 1 October to 28 January during the mini-budget year of 2021-22 FY, according to the Ministry of Commerce.

Nearly four months of this mini-budget period, 453,684.109 tonnes of various beans and pulses worth $361.919 million were exported through a maritime trade route and 32,729.362 tonnes worth $28.976 million through a border trade route. In the 2019-2020 financial year, Myanmar earned over $1.57 million from the export which exceeded more than $374 million worth of beans and pulses through both maritime and border routes, the ministry’s data showed. During the 2019-2020FY, the country earned $966.407 million through maritime route and $604.300 million through border trade route from pulses export.

A memorandum of understanding was signed on 18 June to export a total of 350,000 tonnes of Myanmar pulses, including 250,000 tonnes of black bean and 100,000 tonnes of pigeon pea to India in five consecutive years (from the 2021-22FY to the 2025-26FY). Of various kinds of beans and pulses domestically grown, Myanmar mainly exports mung bean, pigeon pea and green gram. Mung bean and pigeon pea mainly go to India and green gram to China and some European Union countries. Myanmar has more than 11 million acres of plantations of 18 kinds of beans and pulses. The black bean plantations are yielding around 400,000 tonnes annually in Myanmar. Besides, Myanmar has also produced about 50,000 tonnes of pigeon pea yearly.

Source: The Global New Light of Myanmar