Posts in category: TRADING

Myanmar’s border trade totalled US$8.57 billion in the 2022-2023 financial year. Myanmar’s exports outperformed imports in border trade, with the exports worth $6.086 billion and imports valued at $2.484 billion, according to the Ministry of Commerce.
The value of border trade was estimated at $7.75 billion in the FY 2021-2022, including exports worth $5.413 billion and imports valued at $2.338 billion.
The figures showed an increase of $818.268 million in the FY2022-2023 compared to that recorded in the FY 2021-2022.
Myanmar conducts cross-border trade with neighbouring countries (China, Thailand, Bangladesh and India). Of them, Thailand was ranked first with exports worth $3.479 billion and imports worth $1.876 billion. China was placed second in border trade with exports worth $2.5 billion and imports worth $561.938 million.
Myanmar exports agricultural products, livestock products, fishery products, minerals, forest products, manufacturing goods and other goods to the neighbouring countries.
Myanmar imports capital goods, consumer goods, intermediate goods and raw materials from the CMP enterprises. 

Source: The Global New Light of Myanmar

Myanmar generated an income of US$765.947 million from fishery exports between 1 April 2022 and 31 March 2023 in the 2022-2023 Financial Year, according to the Ministry of Commerce.
The figures dropped from $824.513 million in the 2021-2022 FY, showing a decrease of $58.566 million.
Myanmar sends fishery products to foreign markets by sea and border trade.
At present, fishery export is underway. The export volume is still declining.
Myanmar’s fishery products are delivered to Japan, European countries, China, Thailand and neighbouring countries by maritime trade. Fish, shrimp, crab and fishery products are sent to neighbouring countries through Muse, Myawady, Kawthoung, Sittway, Myeik and Maungtaw borders.
More than 20 fish species including hilsa, rohu, catfish, and seabass are exported to foreign markets, according to the Myanmar Fisheries Federation.
Myanmar ships fishery products to over 40 countries, mostly to Thailand and China. 

Source: The Global New Light of Myanmar

The Ministry of Commerce made over 10,000 commodities lines mandatory for export/import licences.
The MoC released this directive dated 31 March, in the exercise of the power conferred by Section 4 (C) and Section 13 (B) of the Export and Import Law. According to Notification 84/2022 dated 12 October, under the Customs Tariff of Myanmar 2022, 1,556 commodities lines with 10 digits HS Code for export and 8,774 for import are required to be applied for export/import licences on the Myanmar TradeNet 2.0 portal.

Only after traders of those items have received a licence first in line with the export/import regulations through the non-automatic licencing process, the shipment by air, sea and road will be given the green light. This directive came into effect starting on 1 April. It is an amendment of directive 51/2020 dated 8 July 2020. Similarly, directive 32/2022 dated 2 May 2022 was cancelled with this amendment incorporated.

Those who have sought export and import licence and permits on TradeNet 2.0 platform through TradeNet 2.0 system are mandatory to withdraw licences within set periods and they will be fined for late withdrawal, the Trade Department under the Ministry of Commerce released Notification 5/2023 dated 27 February. The licence applicants need to make payment and withdraw the licence within seven days of approval by the department. Those who fail to do so will be cancelled automatically, according to the Export/Import Notification 4/2022.

However, the timeline for striking off from the system will be changed to three months instead of seven days. In addition to licence fees, fines are to be paid K45,000 for eight to 14 days, K90,000 for 15 to 30 days, K180,000 for two months and K360,000 for third months. During the auto cancellation period for licence/permit processing, the applicants will have their licence temporarily suspended for six months if they fail five times in three months, Notification (20/2020). Exporters and importers are therefore suggested to withdraw their licences within seven days. Auto cancellation of licence seeking process and temporary suspension of licence commenced from 1 March, the Trade Department stated. 

Source: The Global New Light of Myanmar

The prices of rice that are mainly consumed locally continued to rise, according to the Wahdan Rice Wholesale Centre. At the end of March 2023, Pawsan rice prices moved in the range between K72,000 and K90,000 per bag depending on the producing areas (Shwebo, Myaungmya, Dedaye, Pyapon and Pathein).

Meanwhile, the prices stood at K77,000 per bag for Kyapyan, K64,500 for Khunni, K54,000 for Ngasein, K59,000 for short-mature rice (90 days), K54,000 for Emahta, K65,000 for Pawkywe and K53,000 for rice grown under intercropping season. The prices of Pawsan rice climbed up to K75,000-93,000 per bag on 3 April. The prices of various rice varieties were up by K1,000-3,000 per bag within three days.

An increase in paddy prices drove rice prices up. Starting from 3 August 2022, Myanmar Rice Federation, Myanmar Rice Producers and Planters Association, Myanmar Rice Millers Association, and traders and brokers engaged in Wahdan Rice Wholesale Centre and Bayintnaung Rice Wholesale Centre have been working together to offer fair prices for Shwebo Pawsan from K75,000-77,000 per bag and other rice varieties to the consumers at the Wahdan Wholesale Centre.

The offer prices are K52,000-55,000 per bag of Pawsan from the Ayeyawady area, K55,000-60,000 per bag of Kyapyan, and K35,000-37,000 per bag of short-mature rice varieties (90 days) at the Wahdan Rice Wholesale Centre. Each household can buy only one bag. Those traders and retailers are not entitled to buy them.

Source: The Global New Light of Myanmar

In accordance with the trademark law, the fees to be paid according to the types of service related to the trademark registration application were published on 1 April. According to sub-section (j) of Section 8 of the Trademark Law, the fees to be paid for the type of service in connection with the application for trademark registration in line with the agreement of the Union Government are: K150,000 for the examination of acceptance of trademark registration application (TM-1), K100,000 for the review of reinstatement of an application due to failure of prescribed rules (TM-3) and K50,000 for the amendment of request for correction of error in an application (TM-4).

In addition, K50,000 for the request to limit the list of goods/services in an application (TM-6), K100,000 for the request to divide an application for registration (TM-7), K150,000 for the application to oppose a trademark application (TM-8), K50,000 for the request for certified copy of registration certificate (TM-9), and K50,000 for the request for amendment of registration of a trademark (TM-10), will be charged.

Furthermore, K300,000 for the application for renewal of trademark registration (TM-11), K100,000 for the application to register a transfer of ownership (TM-12), K100,000 for the application to register a licence of trademark (TM-13), K150,000 for the application for invalidation of a registered trademark (TM-15), K100,000 for the application for cancellation of a registered trademark (TM-16), K20,000 for the request for change of representative or agent (TM-17), K50,000 for the request for extension of time (TM-18), and K500,000 for the application for appeal (TM-19) must be paid. It is announced that the fees for the types of services related to trademark registration applications will be revised and published from time to time. 

Source: The Global New Light of Myanmar

Myanmar’s trade gap widened to over US$754 million between 1 April and 17 March of the current financial year 2022-2023 compared to the year-ago period. Higher exports and lower imports resulted in a trade surplus of $524 million in the corresponding period of the 2021-2022 FY, according to data provided by the Ministry of Commerce. While exports were estimated at $15.95 billion, imports were valued relatively low at $16.7 billion over the past 11 and half months. Compared to the FY 2021-2022, exports showed an increase of over $1.368 billion, while import value was up by $2.647 billion. 

Myanmar aimed to achieve an export target of $15.5 billion and an import target of $14 billion for the 2022-2023 FY, totalling U$29.5 billion, according to the 2022-2023 Financial Year Budget. Myanmar’s external trade this year amounted to $32.659 billion as of 17 March this FY, which soared from $28.642 billion. The figures indicated a sharp rise of over $4 billion compared to the year-ago period. Myanmar’s maritime trade value edged up to $24.48 billion this FY from $21.359 billion recorded in the same period last year.

Similarly, the country witnessed an increase of $894.75 million in border trade as the cross-border posts with the main trade partner China was reopened. 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 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 materials and supporting products for export promotion and import substitution. 

Source: The Global New Light of Myanmar

The prices of palm oil have fallen unexpectedly during the two weeks before the Thingyan holidays (Myanmar New Year Festival), said edible oil sellers. The delivery order prices were K6,400-6,500 per viss on 27 March in the Yangon market, decreasing from K6,600-6,700 per viss recorded on 24 March. The majority of the sellers purchased palm oil at above K7,000 per viss. They are making losses due to the decrease in market price. Before the Thingyan holidays, approximately 20,000-30,000 tonnes of palm oil are expected to be brought into the country.

Demand outstrips supply. There were only 10 days remaining to sell them to customers from regions outside Yangon. Malaysian palm oil price is around 3,504 ringgit per tonne. The international oil price was still low at US$930 per tonne on 24 March. The price decline is attributed to the large volume of supply although the holidays are approaching. However, the DO price is still K2,000 higher than the wholesale reference price for Yangon.

The mobile market scheme has been carried out in the respective townships over months. The sellers stored the stocks at a high price yet the price moved down. The traders who send the oil to regions outside Yangon pointed out that it is hard to guess the price fluctuation in the domestic market. In the last week of December 2022, the price difference between the reference price and the market price was only K800 per viss. In early March, the difference widened to K2,000 per viss. Some vendors still generate profit from it. 

Source: The Global New Light of Myanmar

Seeking import licence for all types of goods including ones stored under customs warehousing before the goods arrive at the port is obligatory, according to the notification released by the Trade Department under the Ministry of Commerce. The department apprised the importers of the rules and regulations for imports that need import licences as per the Export/Import Notification 7/2023 dated 22 March.

Earlier, the Trade Department under the Ministry of Commerce released Notification 50/2020 stating that all import items except goods stored in the Customs warehouse that need import licences were not allowed to arrive at the port before the port arrival processing permit to comply with the customs regulation stipulated in Notification 68/2019 of the Ministry Planning and Finance.

Additionally, importers were notified to face legal actions in line with the Export and Import Law if early arrival of the goods without import licence or permit of the departments concerned was found, as per export/import news letter 6/2022. Therefore, an import licence is required for all items including goods to be stored at the Customs warehouse before arrival, intending to steer trading activities and maintain the quality of the goods due to failure to claim the goods from the Customs bonded warehouse for a long period. Thus, the statements in Notification 50/2020 will cease to be in effect for six months from 1 April 2023 and suspension might extend, if necessary, the Trade Department notified.

Source: The Global New Light of Myanmar

The wholesale reference rate of palm oil for the Yangon market slid again this week ending 27 March compared to that of the previous week, according to the Supervisory Committee on edible oil import and distribution. The reference price stood at K4,635 per viss in the week from 13 to 19 March. For the week ending 27 March, the price was set slightly lower at K4,570 per viss, showing a small decrease of K65 per viss this week.

The Supervisory Committee on edible oil import and distribution under the Ministry of Commerce has been closely observing the FOB prices in Malaysia and Indonesia including transport costs, tariffs and banking services, and issuing the wholesale market reference rate for edible oil every week.
Regardless of the reference price, the current market price is too high at over K6,000-7,000 per viss.

If those edible oil retailers and wholesalers are found overcharging, storing inventory intentionally and attempting unscrupulous action to manipulate the market, they will face legal action under the Essential Supplies and Service Act, MoC released a statement. The Ministry of Commerce is striving for consumers not to worry over the supply of edible oil. The ministry is also trying to secure edible oil sufficiency, supervise the market to offer reasonable prices to the consumers and maintain price stability.

At present, mobile market trucks operated by oil importing companies, in coordination with Myanmar Edible Oil Dealers’ Association, were back to business in some townships on 17 July in order to offer palm oil at a subsidized rate. They offer palm oil at a fairer price to the consumers directly depending on the reference price. However, there are limited sources of supply although they directly sell palm oil at a reference rate depending on the volume quota. The domestic consumption of edible oil is estimated at 1 million tonnes per year. The local cooking oil production is just about 400,000 tonnes. To meet the oil sufficiency in the domestic market, about 700,000 tonnes of cooking oil are yearly imported through Malaysia and Indonesia. 

Source: The Global New Light of Myanmar