Posts in category: TRADING

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

Myanmar delivered more than 1.07 million metric tons of rice and broken rice in the past four months of the current mini-budget period (October 2021-March 2022), according to the Myanmar Rice Federation (MRF). Myanmar has exported rice to 27 foreign markets so far. China is the main buyer of Myanmar rice. Meanwhile, Myanmar shipped broken rice primarily to China, followed by the Netherlands, Belgium, Spain, France and three other countries. The volume of rice and broken exports stood at over 216,375 MT in October 2021, 285,223 MT in November, 301,033.9 MT in December and 269.215.9 MT in January 2022, respectively, MRF’s data showed.

The prices of low-quality white rice varieties were approximately valued US$330-355 per MT depending on the different varieties and quality. The export price of Myanmar’s rice was relatively lower than the rates of Thailand and Viet Nam. Yet, the prices were higher than those market prices of India and Pakistan, MRF’s data showed. At present, traders turned to maritime trade for rice export as COVID-19 restrictions hindered the trading activity through the border posts. Myanmar shipped rice and broken rice to China, regional countries and European Union countries through maritime trade.

Trading in the domestic market is quite sluggish amidst the excess supply. The rice worth K43,000-K50,000 per bag is highly demanded in the domestic market. The prices of high-quality rice move in the range of K34,500-K58,000 per bag, the Bayintnaung Rice Wholesale Centre’s price data indicated. Myanmar generated over $800 million from rice exports in the financial year 2019-2020 ended 30 September, with an estimated volume of over 2.5 million tonnes. Myanmar generated US$700.13 million income from exports of 1.87 million tonnes of rice and broken rice in the past FY2020-2021 (October-September) amidst the border trade disruption triggered by the COVID-19 negative consequences, as per the statistics released by the Myanmar Customs Department.

Source: The Global New Light of Myanmar

Trade between Myanmar and its four neighbouring countries has reached over US$1.99 billion this mini-budget period to date, according to the statement of the Ministry of Commerce. Myanmar shares borders with China, Thailand, Bangladesh and India.

The country conducts border trade with neighbouring China through Muse, Lweje, Kampaiti, Chinshwehaw and Kengtung, with Thailand via Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Meisei checkpoints, with Bangladesh via Sittway and Maungtaw and with India through Tamu and Reed border crossings, respectively. Exports of these four countries from the start of October 2021 until 21 January 2022 generated $1.43 billion.

On the same period, the country imported $568.3 million worth of goods. From 1 October to 21 January of the 2021-22FY, the total border trade value amounted to $1.999 billion, down $1.36 billion compared with the same period last year. This time last year, the border trade was valued at $3.36 billion. Myanmar’s major export items are farm, animal, marine, forest, mining, CMP and other products. Myanmar mainly imports capital goods, industrial raw materials, personal goods and CMP raw materials. 

Source: The Global New Light of Myanmar

Myanmar’s lower import as of 21 January in the current six-month mini-budget period (Oct 2021-Mar 2022) resulted in a positive trade balance of US$299 million, according to data provided by the Ministry of Commerce. Myanmar’s exports surpassed imports in international trade although overall trade value declined compared to the same corresponding period of 2020-2021 financial year. Between 1 Oct and 21 January, the country’s exports were estimated at $4.68 billion, imports were valued at $4.38 billion this FY.

The external trade drastically sank to $9.06 billion from $9.95 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 border trade amid the coronavirus impacts and political changes. The neighbouring countries tightened the border security and restrict trading in certain border areas. 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

Ministry of Agriculture, Livestock and Irrigation and the General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China (AQSIQ) signed an agreement on 31 January 2022 regarding SPS Protocol (Sanitary and Phytosanitary Protocol) for biosecurity, for Myanmar to legally ship maize to China on a trial run. The SPS protocol is a must for legitimate export to China, the main trade partner of agricultural products with Myanmar.

According to the agreement, Myanmar can export maize grains to China through maritime route and border channels. This agreement will boost the legitimate agro trading between Myanmar and China and bring about the interest of the growers. MoALI and GACC officials signed the agreement to meet SPS protocol requirements on exports of rice and broken rice in January 2020 during Chinese President Xi Jinping’s visit to Myanmar, along with the fruitful negotiation of the live cattle trade.

At present, the establishment of an animal quarantine station is underway in the respective border posts to continue the live cattle trade. One station has been set up in Kutkai Township. Furthermore, a series of negotiations between MoALI and Chinese counterparts are being undertaken for soybean, cassava and sweet potato. Additionally, SPS measures for pineapple, avocado, pomelo, lime and areca nuts are still under negotiation for now. Myanmar conveyed agricultural products, livestock and fisheries worth of US$5.427 billion to China in the 2020-2021 financial year. 

Source: The Global New Light of Myanmar

The Forest Department under the Ministry of Natural Resources and Environmental Conservation called for competitive bidding to seek a three-year working permit for harvesting the edible bird nests which were out of stock during the spike of COVID-19 cases in Myanmar. “The islands of Myeik Archipelago in Taninthayi coastal region are habitats of swiftlets. The Forest Department has been managing those islands for years. Earlier, it granted the work permit once a year. Starting from 2020, the department gave green light to this business once every three years,” said an official of Taninthayi Region Forest Department.

The winner of the auction for harvesting the bird nests on the islands of Taninthayi Region can collect the edible bird nests between the 2021-2022 financial year and 2023-2024FY. Bidding will commence soon. The islands to harvest the edible bird nests are located in Dawei, Myeik and Kawthoung districts. According to open tendering rules and regulations, an individual businessperson must handle the work. Edible-nest swiftlets dwell in the Southeast Asian coastal region and they can be found in Taninthayi Region.

The work permit is changed from a yearly basis to once every three years for the sustainable production of bird nests. The edible bird nests production businesses boomed in the COVID-19 pandemic. Last year, the market saw an exorbitant price of bird nests. Moreover, with the price of edible birds’ nests rising, the number of breeders of edible nest swiftlets has increased in Myeik Township. Edible nest swiftlets are induced into making nests using bird-noise techniques at houses along the Strand Road in Myeik. This breeding business has become popular in the region, and many breeders are thriving, said breeders. Two types of nests are sold at the market: those from islands and those collected from breeding houses. 

Source: The Global New Light of Myanmar

The Ministry of Commerce has declared HS code lines for imports which need licence starting from 1 March 2022. This action aims to respond to the post COVID-19 recovery, ensure systematic import and export process and manage foreign capital inflows. The ministry has already notified the importers of the compulsory licensing for some import items. Import licence can be sought from 1 February 2022.

Those HS code lines include the following import items; bicycles, other cycles, parts and accessories of bicycle, cycle and vehicles, glass fibres, glass wares and other articles of glass, knitted or crocheted fabrics, textile materials, cotton and silk yarn, plastic, chemical, coffee substitutes and extracts, pharmaceutical products and equipment, sunglasses, hand clock, arms and ammunition, pistols, furniture, mattress, cushion, chandelier, electrical appliance, game machines, extraction from animals, stamps and antiques, vessel and parts, telecommunication materials, household goods, air-conditioner, cold storage and refrigeration machines, washing machine, hot air balloons, iron, steel, aluminum and gems and jewellery, ceramic, construction materials, printing materials, rubber, leather, flammable items, fuel oil, food products, tobacco and related products, preserved food, raw materials for food processing industry, animal products, aquatic animals, live animals and decoration materials.

Starting from 1 March, those items included in the HS code lines declared by the Ministry of Commerce are obligatory for import licensing. More items which need import licence will be notified as well, in compliance with the Export and Import Law. Myanmar imports the consumer, capital, intermediate goods, and materials used by CMP businesses. The value of Myanmar’s imports as of 21 January in the current mini-budget period (Oct 2021-Mar 2022) sank to US$4.38 billion from $4.94 billion recorded in the same corresponding period of last FY, the Ministry of Commerce’s data indicated. The top 10 import countries to Myanmar are China, Singapore, Thailand, Indonesia, Malaysia, India, Viet Nam, Japan, the Republic of Korea and the US, as per data of the ministry.

Source: The Global New Light of Myanmar