Posts in category: TRADING

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

Myanmar conveys about 100 truckloads of watermelon to China every day, said U Min Thein, vice-chairman of the Muse Rice Commodity Depot. At present, Myanmar daily sends 140 truckloads of goods to China through the Kyinsankyawt checkpoint, including 100 trucks carrying the watermelon and 40 trucks loaded rice, broken rice, pulses, rubber, dried plum and other food commodities. The watermelon traders daily send them as they can afford to pay about 30,000 Yuan for freight transport, U Min Thein explained.

They can spend the high transport cost as watermelon is perishable, he was quoted as saying. Nonetheless, other traders cannot bear the high transport cost anyhow. Consequently, the number of truckers dropped. In a bid to contain the spread of coronavirus on the border, China banned border crossing. Only Myanmar goods can be exported to China through the Kyinsankyawt border using a Chinese short-haul trucking service. The pricing of short-haul trucking service has exorbitantly soared owing to the shortage of Chinese truckers, U Min Thein pointed out.

The cost of Chinese short-haul trucking tremendously rose to K10 million per truck, whereas the trucking was earlier worth only K700,000-K800,000 when Myanmar truckers were allowed to enter China, he elaborated. Therefore, the volume of rice and broken rice export plunges from 60,000 bags to 10,000 per day. China shut down all checkpoints linking to the Muse border amidst the COVID-19 pandemic. Of all 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.

Source: The Global New Light of Myanmar

The pricing of short-haul trucking service has exorbitantly soared owing to the shortage of Chinese truckers, said U Min Thein, vice-chairman of the Muse Rice Wholesale Centre. In a bid to contain the spread of coronavirus on the border, China banned border crossing. Only Myanmar goods can be exported to China through the Kyinsankyawt border 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. Approximately 300-400 short-haul trucks with a loading capacity of 1,000 rice bags are readied in the Myanmar side yet they are banned to pass the crossing. If the restriction is lifted, the trucking cost will fall for sure. At present, the traders are offering competitive prices for their goods, forcing Chinese drivers to manipulate the pricing.

Only Chinese drivers and operators can take advantage of this case. Myanmar truckers cannot help doing it,” U Min Thein stressed. As a result of this, 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, he was quoted as saying. Only when China eases the restriction can the trucking rate drop. Only 140 truckloads of goods, including 100 watermelon trucks, are shipped to China via the Kyinsankyawt checkpoint at the moment. Earlier, about 400 trucks went to China. Therefore, the volume of rice and broken rice export plunges from 60,000 to 10,000 per day. 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 and other food commodities to China through Kyinsankyawt. Myanmar has officially opened five cross-border posts with China; Muse, Lweje, Chinshwehaw, Kampaiti and Kengtung. Muse is a major trading hub with the neighbouring country, China. Between 1 October 2021 and 28 January 2022 in the current mini-budget period, the border trade between Myanmar and China amounted to US$446.68 million, comprising $425.88 million worth of exports and imports valued at $20.8 million, according to the Ministry of Commerce’s data. The Muse border post witnessed $4.057 billion worth of the Sino-Myanmar border trade last financial year 2020-2021, including exports worth $2.9 billion and imports worth $1.15 billion.

Source: The Global New Light of Myanmar

The value of Myanmar’s maritime trade between 1 October and 28 January 2022 of the current mini-budget period of 2021-2022 jumped to US$7.64 billion, according to the Ministry of Commerce. The figure reflected an increase of $485 million as against last financial year. Sea trade rose from $7.159 billion during the year-ago period, according to the Ministry of Commerce. While maritime exports were valued at $3.513 billion, imports registered $4.13 billion.

Compared to the same period in the 2020-2021FY, imports fell by $103.37 million, while exports registered an increase of $588.49 million. Meanwhile, the value of trade through the border this FY was estimated at $2.107 billion, which dropped drastically from $4 billion registered last FY. Myanmar’s sea trade generated $19.8 billion out of an overall trade value of $29.5 billion in the previous FY2020-2021, the Ministry of Commerce’s statistics indicated.

Myanmar exports agricultural products, fishery products, minerals, livestock, forest products, finished industrial goods, and other products, while it imports capital goods, consumer goods, and raw industrial materials. The country currently has nine ports involved in sea trade. Yangon Port is the main gateway for Myanmar’s maritime trade and includes the Yangon inner terminals and the outer Thilawa Port. Yangon inner terminals and the outer Thilawa Port received a higher number of larger ships of above 30,000 DWT (Deadweight tonnage) after the draft limit is extended up to 10 metres with the new navigation channel accessing to inner Yangon River.

Source: The Global New Light of Myanmar

Some food items Textile From March 1, 2022, the Ministry of Commerce and Industry has declared that goods lines containing bicycles and motor vehicle spare parts need to apply for import licenses. In the aftermath of the COVID-19 outbreak, businesses may need to be rehabilitated. The country’s exports; 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. In order to prepare the importers for the import license system, the first step is to apply for import licenses.

The second step is to get some food; Some basic plastic products and some home appliances, wood pulp, cotton carpets such as carpets and textile. According to the joint 2017 Customs Tariff of Myanmar, which includes a variety of glassware, bicycles and vehicle parts, 451 lines with HS.Code 6 digit or 826 lines with HS.Code 10 digit will be designated as import lines from March 1, 2022. 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. 

With the HS.Code 10 digit issued on the Import / Export Newsletter (18/2021), the products specified in the attached HS.Codes, including 3070 freight lines, can be used for any of the freight lines required to apply for an import license. From March 1, 2022, it will be allowed to import goods through air and border trade routes only after applying for an import license in accordance with the procedures. The Department of Commerce has announced that it will continue to issue a notification letter in accordance with the Import and Export Law on the list of goods in paragraph (3) above, which is required to apply for an import license.

Myanmar exports agricultural products Animal products Fishery products; Minerals; Forest products; Exports of manufactured goods (CMP) and other commodities. Imports include investment goods; Business raw materials; Consumer goods Mainly imports CMP raw materials. Myanmar’s annual foreign trade in the 2012-2013 fiscal year was $ 8977.015 million. Imports amounted to $ 9068.914 million and the trade volume was $ 18045.929 million. In the 2015-2016 financial year, exports were $ 11,136.878 million. Imports were $ 16,577.948 million and trade was $ 27714.826 million. In the 2016-2017 fiscal year, exports amounted to $ 11,998.545 million. Imports amounted to $ 17,211.062 million and trade reached $ 29,209.607 million, according to the Ministry of Commerce.

Source: Daily Eleven