Posts in category: TRADING

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

The Road Transportation Administration Department has announced that it will issue Yangon licences to electric vehicles (EVs) imported for surrendering old cars with Yangon licences.

RTAD will register EVs under the existing laws, regulations, orders and directives. Some of the first-batch EV cars are used as taxis in Yangon Region and Nay Pyi Taw. As a pilot project, some domestic vehicle-importing companies are allowed to import 3,000 EVs without having to pay duties and taxes.

The construction of EV charging stations is underway in Yangon, Nay Pyi Taw, Mandalay and along the Yangon-Mandalay Expressway, and is slated to be completed by the end of March.

Source: The Global New Light of Myanmar

Myanmar’s cross-border trade with neighbouring Thailand through Tachilek and Kawthoung points was estimated at US$32.549 million, the Ministry of Commerce’s statistics indicated. Last month, the trade value through the Tachilek border totalled $12.573 million, including exports worth $6.268 million and imports valued at $6.305 million.

Tachilek border achieved 83.82 per cent of the trade target. The figures showed a decrease of $1.282 million in exports and an increase of $0.653 million compared to those registered in the corresponding period last year.

The border trade through the Kawthoung checkpoint amounted to $19.976 million in February, with exports worth $17.537 million and imports worth $2.439 million. The trade value was down by $9.003 million from the year-ago period. Myanmar saw a rise of $5.785 million in the Tachilek border last month from January, whereas the border trade was up by $1.566 million from January. 

Source: The Global New Light of Myanmar

Yangon’s edible oil market has seen two different prices since some news reports that there was no more oil in the oil tank and that people had to buy edible oil at the price of K6,600 per viss from oil hoarders came out in the market. The wholesale price of edible oil was K7,000 per viss at the shops on 9 March while some wholesalers sold at K6,050 per viss to regular customers. Even though the relevant authorities announce the reference wholesale price of palm oil weekly, the wholesale price was more than K2,000 higher than the reference wholesale price from mid-February to the beginning of March.

On 10 March, the palm oil was sold at K6,050 per viss at the Nyaungpinlay market and K6,400 per viss at the Bayintnaung market, a buyer said. An oil trader said that the wholesale price of oil at the Bayintnaung market went up to K6,800 per viss on 11 March. The demand for palm oil is weak this week due to consumers who bought palm oil at a price of more than K7,000 per viss. Therefore, it is known that the price has not been increased yet. The palm oil price was cheap in some regions while it was high in Yangon.

The price of palm oil including the delivery fee to the store was just K6,400 per viss in some regions on 7 March and K6,350 per viss on 8 March, a grocery seller, Ma Than Myint told the Global New Light of Myanmar (GNLM). On 8 March, 10,326 tonnes of oil entered the Thilawa port and 5,500 tonnes of oil entered the Hteedan port in Kyimyindine Township. According to the information that the wholesale price will drop from over K7,000 to K6,000 per viss, the palm oil was sold at K6,050 per viss in the Yangon oil market. However, it is reported that only a few outlets sell at the above price.

Source: The Global New Light of Myanmar

Myanmar aims to deliver 100,000 tonnes of onions to external markets in the 2023-2024 financial year, according to the Ministry of Commerce. The country has planned to ship 300,000 tonnes of onions during the April-June period, 15,000 tonnes during the July-September period, 20,000 tonnes during October and December 2023 and 35,000 tonnes during January-March 2024 period to external markets. The onion output is estimated at over 1 million tonnes per year. Beyond self-sufficiency, the onions are exported to foreign countries.

More than 80,000 tonnes have been shipped to global markets so far. Myanmar’s onions are purchased from Viet Nam, Thailand, Bangladesh and China. The supply of new onions in the markets brings down the prices. The onion prices moved in the range between K1,000 and K1,750 per viss depending on the producing areas (Seikphyu and Myittha), according to Yangon Region Chambers of Commerce and Industry (Bayintnaung Commodity Depot). On 14 February, the Union Minister for Commerce gave a remark at the coordination meeting on the promotion of onion exports and price stability in the domestic market.

There are over 170,000 acres of onions across the country, with an estimated production of 1 million tonnes. He also talked about promoting interest for the growers, having fair prices for the consumers and boosting exports in harmony with domestic consumption. Officials from Myanmar Onion, Garlic and Culinary Crop Producers and Exporters Association also discussed the export barriers and export conditions through the seaborne and land borders and called for the government’s support for market expansion.

Additionally, to effectuate sustainable development in the onion export sector, government-to-government pacts to the potential markets including the Philippines, getting easy and quick access to the phytosanitary certificates, raising awareness of Good Agricultural Practices (GAP) among the growers, promoting onion exports and domestic market stability were also highlighted at the meeting. According to the Ministry of Agriculture, Livestock and Irrigation’s 2018-2019 FY statistics, onion cultivation covered over 170,000 acres. The yield rate was over 3,600 viss per acre. Mandalay Region accounts for 36 per cent of onion outputs in the country, while Sagaing Region, 32 per cent and Magway Region, 26 per cent. 

Source: The Global New Light of Myanmar

China announced that the average daily trade value through the Wang Ding border is 24.23 million yuan and that in 2022, more than one billion was traded. Therefore, the daily trade value of the China-Myanmar border is US$3.5 million. The Shweli (Ruili) border is the largest inland port important for trade between China and Myanmar, with automatic inspection lanes (16).

There are reportedly 44 manual inspection routes and 22 vehicle inspection routes. According to Chinese statistics, the Wang Ding-Manman crossing on the border of Myanmar traded more than 7,000 tonnes of goods in 2023, and about 500 vehicles pass through it every day.

According to China’s accounting records, from 2022 to 7 February 2023, the amount of cross-border freight was 0.637 million tonnes, and the total number of incoming and outgoing vehicles was 44,874. The main force in exports and imports with household electrical appliances, machinery, daily items rubber including fruits, etc., it is stated that it is worth 1.65 billion Chinese yuan. According to these factors, trade increased more in 2023 than in 2022.

Source: The Global New Light of Myanmar

Myanmar has been bringing in electric vehicles (EVs) under the customs tariff relaxation through seaborne and border trade routes, according to the Ministry of Commerce. On 3 March, a fleet of 30 Dongfeng EVs imported by Asia Pacific Automaker Corporation Co Ltd arrived in the Muse 105th mile trade zone in northern Shan State. They are allowed to be withdrawn following the rules and regulations. Furthermore, 19 EVs (BYD) imported by Earth Renewable Energy Co Ltd also arrived at the Hteedan port. They were also claimed in line with the procedures.

Chindwin Shan Co Ltd also took out 7 kW GB AC five chargers for EVs on 21 February 2023 from the port terminal. The importation of the EV charger is exempted from Customs tariffs to enhance the EV sector in the domestic auto market. Myanmar Investment Commission also released a statement on 15 February that electric vehicles and related businesses will be promoted as the priority sector as per its notification dated 15 February. In the exercise of the power conferred by Sections 43 and 100 (B) of the Myanmar Investment Law, the MIC issued this statement with the approval of the Union government.

Enterprises executing installation, manufacturing and restoration services of the EVs, renewable electricity generation, EVs charging service businesses, electric vehicle battery production, EV battery and related service business, electric bus operation services, electric taxi and transportation service businesses and scientific research development business are included in those priority sectors.

During the establishment and ideation phase for incorporation and operations, those businesses can seek a permit from the MIC to enjoy tariff relief or zero-Customs tariff status and the exemption for other taxes levied in the country under Section 77 (A) of the Myanmar Investment Law and income tax exemption under Section 75 (C) of the Myanmar Investment Law for the importations of machinery, essential equipment and accessories, spare parts and construction raw materials that cannot be found in domestic markets.

Electric vehicles (EVs) are entitled to zero-Customs tariff status, according to the notification released in early November 2022 by the Ministry of Planning and Finance. To encourage the number of EV users and improve the related business, tariffs of battery electric vehicles (BEVs) imported under Completely Built Up (CBU), Completely Knocked Down (CKD) and Semi-Knocked Down (SKD) in Customs Tariff of Myanmar 2022 were reduced to zero per cent in line with the decision of the Union Government.

Types of BEVs include road tractors for semi-trailers, buses or motor vans for the transport of ten or more people including the driver, truck, motor vehicle for personal use, three-wheeled vehicles for the transport of persons, three-wheeled vehicles for the transport of goods, electric motorcycles, electric bicycles, ambulances, prison vans and hearses. According to this directive, the imports of spare parts (for instance, charging station equipment and device) with the recommendation of the Ministry of Electric Power and the Ministry of Energy and the spare parts with the recommendation of the Department of Industry can be done between 2 November 2022 and 31 March 2023. 

Source: The Global New Light of Myanmar