Posts in category: TRADING

Myanmar’s export / import routes by land is 19.25% within 10 months; 56.78% are exported by sea and more than 16% are imported by land. 79.39% was imported by sea. Ministry of Finance and Industry According to the team that compiled the export / import statistics completely and quickly. From October to July of the 2019-2020 fiscal year, Myanmar’s exports / imports increased by 19.25% by land; 56.78% by sea; 3.90% by air and 20.07% by gas pipeline.

Imports accounted for 16.20% by land from October to July of the 2019-2020 fiscal year. 79.39% by sea; 4.41% by air. In the first four months of the 2020-2021 fiscal year, exports earned more than $ 5.5 billion, down more than $ 880 million from the same period last year, according to the Ministry of Commerce. In the four months from October 1 to February 12 of the 2020-2021 fiscal year, it earned $ 5.531 billion from exports. In the same period last year, it earned $ 6.417 billion.

In the first four months of the current fiscal year, exports fell $ 886.341 million from the same period last year. Myanmar exports agricultural products Animal products; Fishery products; Minerals; Forest products; Finished industrial products; It is mainly exporting to other exports. In the two months from October 1 to November 27 of the 2020-2021 fiscal year, the total export / import trade exceeded $ 4.3 billion, down by more than $ 1.5 billion from the same period last year, according to the Ministry of Commerce.

The main priority areas of the National Export Strategy 2020-2025 are agro-based food production; Textile and clothing sector; Industry and electronics; Fisheries sector; Forest products; Digital products and services; Logistics services; Quality management sector; Trade Information Services; And innovation and entrepreneurship. Despite the outbreak of the COVID-19 epidemic in the last fiscal year 2019-2020, the total foreign trade volume exceeded $ 36.6 billion, more than $ 3 billion more than planned, according to the Ministry of Commerce.

Source: Daily Eleven

Rice, onion, 37 export routes such as garlic and petrol; From March 8 to April 9, 72 import goods lines, including diesel, will be temporarily exempted from applying for licenses, according to the Ministry of Commerce. Published by Department of Commerce. The Ministry of Economy and Commerce shall comply with the relevant laws and regulations regarding import and export. According to policies; In order to comply with the WTO Import Licensing Procedures Agreement, the list of 1224 product lines that need to apply for export licenses has been relaxed in accordance with the WTO Import Licensing Procedures Agreement. 

A list of 3931 product lines that need to apply for import licenses has been published by Notification No. 68/2020. However, in the current situation, importers and exporters need to make their business more convenient. In order to reduce the import license fee, the main import lines of goods that need to apply for a license are: Materials to support the health sector; Basic foodstuffs; In order to support the export sector, the licensing process will be temporarily relaxed for major agricultural products.

Of the goods lines that need to apply for import and export licenses, 37 export lines and 72 import lines are exempted from applying for licenses. Onion, garlic, rice, refined with raw sugar; natural rubber raw materials; 37 export goods lines such as cotton goods; Fish, meat (salmon, tuna); Wheat and flour products; Soybean products Palm oil products; Food raw materials, cement products, Gasoline Diesel products; Medical supplies Fertilizer There are 72 lines of imported goods such as industrial lubricants. The exemption from applying for licenses for these cargo lines will be temporary from March 8 to April 9.

Source: Daily Eleven

With the Chinese Yuan appreciating, Myanmar’s exports of rice
and broken rice are so strong that the exporters are receiving
handsome benefits, said U Min Thein, vice-chair of Muse Rice Wholesale Centre. At present, the Chinese Yuan is gaining, and a Yuan is over K200. As a result of this, the exporters are financially doing well. The stronger the Chinese Yuan, the better the exporters earn. There is good potential for rice and broken rice among the goods exported to China. The rice prices stand at 129 Yuan per bag for broken rice, 133 Yuan for Ngasein rice variety, 135 Yuan for Thuka variety and 142 Yuan for Htonepu variety, Muse rice
depot stated. Last 26 February, China gave green lights to some Myanmar export companies to deliver the rice to China through the Muse land border.

It is also said that the authorized companies for rice export to China have increased this year as against last year. Myanmar traders have
started shipping rice to China under new permits through the Muse border.
Nevertheless, the private banks’ closure disrupted the transaction problem in the rice trade, he elaborated. Myanmar shipped more than 720,000 tonnes of rice and broken rice to foreign countries between 1 October and 15 January of the current financial year, earning over US$275 million, Myanmar Rice Federation stated. The country sent over 308,000 tons to neighbouring countries via border trade, and maritime trade saw over 418,000 tonnes. Myanmar has exported rice to 31 foreign markets so far. China is the main buyer of Myanmar rice with over 340,000 tonnes, followed by the Philippines (36,000 tonnes) and Poland (14,000 tonnes).

Meanwhile, Myanmar sent broken rice mostly to China (over 210,000 tonnes), followed by Belgium (46,000 tonnes) and Thailand (over 6,300 tonnes). Broken rice was placed in 16 foreign markets. Myanmar set the rice export target at only 2 million tonnes in the current FY as summer paddy growing acreage drops, said the Chair of Myanmar Rice Federation (MRF). Weather changes affected irrigation water resource availability in agriculture. Consequently, the export figures showed a drop of 300,000 tonnes of rice in exports this year. Myanmar generated over $800 million from rice exports in the previous FY2019-2020 ended 30 September, with an estimated volume of over 2.5 million tonnes.

Source: The Global New Light of Myanmar

MYANMAR’S export of animal products between 1 October and 19 February in the current financial year 2020-2021 touched a low of US$15.857 million, a sharp drop of $35.8 million compared with the corresponding period of the 2019-2020 FY since China suspended livestock trading. In the previous FY, animal products export has registered at $51.69 million. The private sector solely drives animal products export. About 10,000 heads of cattle, owned by 150 companies, are now stranded in the Muse border as China stopped purchasing cattle. The labour wages and feedstuff cost burden
them. It costs K400,000-600,000 to take care of 100 heads of cattle every day.

Some traders brought the cattle from Muse back to their home owing to the burden of high feedstuff cost and labour wages. Some intentionally stated that they would return to the originally-designated place but conduct illegal trade in border areas. For legitimate trade, China permits live cattle import
only after ensuring the cattle is free from 20 diseases, including Foot and Mouth Disease, along with vaccination certificates, health certificates, and farming registration certificates. Therefore, the officials concerned from the two countries are negotiating the matter.

Earlier, 1,500-2,000 heads of cattle were daily traded through the Muse border. Chinese New Year holidays, preventive measures for the COVID-19, and other reasons contribute to the cattle trade suspension. Additionally, Myanmar’s live cattle export heavily relies on the China market due to a
reasonable price, although Myanmar has other external markets such as Laos, Thailand, Malaysia, and Bangladesh. The Ministry of Commerce grants a permit to each company for 100 cattle export, and the permit is valid for three months. The companies can be taken legal actions if they
do not sell the cattle during the three-month period.

Next, the officials from the Livestock Breeding and Veterinary Department (LBVD) under the Ministry of Agriculture, Livestock and Irrigation signed with China’s counterparts regarding cattle surveillance and health projects for live cattle export on 18 January 2021, intending to enhance livestock trading and ensure regular border trade through legitimate channel. The LBVD has been implementing the establishment of a foot-and-mouth-disease free zone, control zone and vaccination areas since 14 July 2020 to export live cattle to China through the land border.

Live cattle export was allowed in late 2017 to eradicate illegal exports, creating more opportunities for breeders and promoting their interests.
The country exports cattle above five years old, including
vaccination certificates, health certificates, and farming registration certificates. According to the 2018 cattle census, there are 11.5 million heads of cattle in the country. The authorities have issued cattle export licences to more than 300 companies in the Magway region. There are around 5,000 companies holding cattle export licences across the country. Myanmar can yearly export around 500,000 heads of cattle beyond domestic consumption, the association stated.

Source: The Global New Light of Myanmar

The value of Myanmar’s mineral exports has drastically fallen to US$447 million as of 19 February in the current financial year 2020-2021 since 1 October, reflecting a severe drop of $521 million as against a year-ago period, the Ministry of Commerce data indicated. The mineral exports hit 968.6 million in the corresponding period of last FY. The coronavirus impacts led to the slump in mineral exports this FY. The heightened COVID-19 measures also shut down the events like gem emporium and expo, a trader said. So far, excavation of over 1,250 mining blocks has been permitted on a manageable, small, medium, and large scale, according to the Ministry of Natural Resources and Environmental Conservation. Due to the limited extraction of natural resources, exports of forest products and minerals had dropped significantly in the previous years. Permits for mining blocks were suspended in 2016.

However, after two years, Myanmar’s mining sector has now been opened to local and foreign investors, according to the ministry. Within two years of implementing the Myanmar Mines Law, the Mines Department has approved more than 140 out of 3,000 proposed mining blocks. Many more blocks are to be granted the permit. The Myanmar Mines Law was enacted on 24 December 2015. However, the law came into force when the rules were issued on 13 February 2018. The ministry undertakes the screening process of the proposals for medium and large-scale mining blocks. As per the regulatory changes in 2018, regional and state governments are given the power to process applications for artisanal and small-scale mining blocks.

Under the new regulations, foreign firms can invest in large blocks which cover up to 500,000 acres (about 202,000 hectares). In contrast, local firms can invest in all kinds of blocks. Investors can seek a permit to mine minerals such as gold, copper, lead and tin. The licences cover prospecting, exploration, and production. Myanmar’s mineral exports have shown a marked increase in the previous FY2019-2020, touching $1.87 billion, an increase of $405.48 million compared with the year-ago period, according to the data from the Ministry of Commerce. In the FY2018-2019, mineral exports were pegged at just $1.465 billion. Myanmar’s mineral products constitute 10 per cent of overall exports. About 80 per cent of mineral products are shipped to external markets through sea trade. At the same time, 20 of them are sent to neighbouring countries through border trade channels.

Source: The Global New Light of Myanmar

The agricultural exports have touched a high of US$2.25 billion as of 19 February 2021 in the current financial year since 1 October 2020 on the back of strong global demand for agricultural products amid the coronavirus impacts. The figures reflect a significant rise of $781.5 million this FY. According to the trade figures released by the Ministry of Commerce, the ago exports soared from $1.47 billion in the corresponding period of the 2019-2020 FY. Myanmar’s agricultural exports rose regardless of the coronavirus’s impact on foreign demand for other export groups. However, some ocean liners suspended cargo transport from Myanmar in recent days.

The cargo transport will double or triple if we conduct the trade with small ships. It could harm the export sector somehow, according to Myanmar Mercantile Marine Development Association. In the exports sector, the agriculture industry performed the best, accounting for over 22 per cent of overall exports. The agricultural industry’s chief export items are rice and broken rice, pulses and beans, and maize. Fruits and vegetables, sesame, dried tea leaves, sugar, and other agro products are also shipped to other countries. Myanmar agro products are primarily exported to China, Singapore, Malaysia, the Philippines, Bangladesh, India, Indonesia, and Sri Lanka.

Sometimes, the export market remains uncertain due to unsteady global demand. The country requires specific export plans for each agro product, as they are currently exported to external markets based upon supply and demand. Contract farming systems, the involvement of regional and state agriculture departments, exporters, traders, and some grower groups, are required to meet production targets, said an official from the Agriculture Department. The Commerce Ministry is working to help farmers deal with challenges such as high input costs, procurement of pedigree seeds, high cultivation costs, and unpredictable weather conditions. 

Source: The Global New Light of Myanmar

The value of Myanmar’s maritime trade for the period between 1 October and 12 February in the 2020-2021 financial year touched a low of US$7.997 billion, a drastic drop of over $2.28 billion compared to the year-ago period, according to the Ministry of Commerce. While maritime exports were valued at $3.28 billion, imports were registered at $4.7 billion. Compared to the same period in the 2019-2020 budget year, imports fell by $1.53 billion, while exports decreased by $751 million.

Meanwhile, the value of trade through the border this FY was estimated at $3.9 billion, a decrease of $56 million as against a year-ago period. Both sea trade and border trade dropped amid the coronavirus impacts. The neighbouring countries tightened border security and limited trading time to contain the virus’s spread. Pandemic-induced container shortage pushed up the freight rates to almost triple in Myanmar, causing delays for traders.

Additionally, according to the Myanmar Mercantile Marine Development Association, some ocean liners suspended cargo transport from Myanmar.
The halt of ocean liners will undoubtedly affect the maritime trade. The cargo transport will double or triple if we conduct the trade with small ships, said an official of the association. The country’s total external trade reached $11.987 billion, which plunged from $14.3 billion recorded in a year-ago period.

Myanmar’s sea trade generated $26 billion from an overall trade value of $36 billion in the last FY2019-2020, the Ministry of Commerce’s statistics indicated. Myanmar exports agricultural products, fishery products, minerals, livestock, forest products, finished industrial goods, and other products. At the same time, 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. It includes the Yangon inner terminals and the outer Thilawa Port.

Source: The Global New Light of Myanmar

The value of Myanmar’s imports between 1 October and 12 February in the current financial year 2020-2021 stood at US$5.967 billion, a sharp drop of $1.7 billion from $7.67 billion registered in the year-ago period, according to the data released by the Ministry of Commerce. The value of imports in the consumer, capital, intermediate goods, and CMP businesses groups dropped in the current FY. Over the past four months of the current FY, capital goods, such as auto parts, vehicles, machines, steel, and aeroplane parts, were brought into the country. Their import value was estimated at $2 billion.

The figure was $829 million lower compared to the same period in the previous FY. Meanwhile, Myanmar imported consumer products worth $1.25 billion, including pharmaceuticals, cosmetics, and palm oil. The imports of consumer products showed a slight decrease of $34.9 million compared with the same period in the previous FY. Intermediate goods make up a large share of Myanmar’s imports, with petroleum products and plastic raw materials being the main import items. This year, imports of raw materials plunged to $1.95 billion from $2.62 billion registered during the year-ago period.

During the same period, raw materials worth $728.7 million were also imported for the Cut-Make-Pack (CMP) garment sector, showing a decrease of $172.75 million compared with last fiscal year. At present, the CMP garment sector, which contributes to 30 per cent of Myanmar’s export sector, is struggling because of the cancellation of order from the European countries and suspension of the trade by western nations during the COVID-19 pandemic. Therefore, import values of raw materials by CMP businesses have been dropping. The top 10 import countries to Myanmar are China, Singapore, Thailand, Malaysia, Indonesia, India, Viet Nam, Japan, the Republic of Korea and the US, as per data of the Ministry of Commerce.

Source: The Global New Light of Myanmar

Personal goods are being imported through the Myawady land border trade zone. The personal goods consist of electronic items, foodstuffs, clothes and shoes, Nivea, Mistine, Bella, Promina, Karmart, Arche, C’Care, Lolane and Berina’s facial foam, cosmetics and hair colour and shampoo. Under the World Trade Organization (WTO)’s Agreement on Import Licencing Procedures, cosmetics are permitted to import without requiring an export licence. Upon production of the import declaration form at the Customs Department, the goods can be imported.

Nevertheless, the chemicals needed for the production of the cosmetics can be imported only with the approval of the relevant ministry after obtaining an import licence. According to the prevention of Hazard from Chemicals and Related Substances Rules issued under Notification 85/2015-2016 by the Ministry of Planning, Finance and Industry (formally The Ministry of Industry) on 12 January 2016, the cosmetic raw materials applied for import licence are the chemicals. So, the licences are being issued only with the approval of the Ministry of Industry.

The raw materials to produce the cosmetics are needed to systematically scrutinize that they are not harmful to the customers. To enable issuance of the import licence by the Ministry of Industry, these chemical products will be sent to the Department of Research and Innovation under the Ministry of Education to carry out the safety test for the manufacturers to be issued with the letters of recommendation that guarantee the safety of consumption if the test results are appropriate. Although the cosmetic importers could import without having an import licence, the raw materials to produce the cosmetics are allowed to import only with the approval of the relevant department. 

Source: The Global New Light of Myanmar

The value of Myanmar’s imports between 1 October and 22 January in the current financial year 2020-2021 stood at US$4.968 billion, a sharp drop of $1.47 billion from $6.44 billion registered in the year-ago period, according to the data released by the Ministry of Commerce. The value of imports in the consumer, capital, intermediate goods, and CMP businesses groups dropped in the current FY. Over the past three months of the current FY, capital goods, such as auto parts, vehicles, machines, steel, and aeroplane parts, were brought into the country. Their import value was estimated at $1.7 billion.

The figure was $629.6 million lower compared to the same period in the previous FY. Meanwhile, Myanmar imported consumer products worth $1.04 billion, including pharmaceuticals, cosmetics, and palm oil. The imports of consumer products showed a slight decrease of $57.363 million compared with the same period in the previous FY. Intermediate goods make up a large share of Myanmar’s imports, with petroleum products and plastic raw materials being the main import items. This year, imports of raw materials plunged to $1.588 billion from $2.224 billion registered during the year-ago period.

During the same period, raw materials worth $613 million were also imported for the Cut-Make-Pack (CMP) garment sector, showing a decrease of $148.363 million compared with last fiscal year. At present, the CMP garment sector contributing to 30 per cent of Myanmar’s export sector is struggling because of the cancellation of order from the European countries and suspension of the trade by western countries amid the COVID-19. Therefore, import values of raw materials by CMP businesses have been dropping. The top 10 import countries to Myanmar are China, Singapore, Thailand, Malaysia, Indonesia, India, Viet Nam, Japan, the Republic of Korea and the US, as per data of the Ministry of Commerce. 

Source: The Global New Light of Myanmar