Posts in category: TRADING

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 They are allowed to be withdrawn following the rules and regulations.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

Myanmar achieved its rice export target of two million tonnes for the current 2022-2023 financial year, Myanmar Rice Federation’s data showed. The country delivered more than two million metric tons of rice and broken rice to foreign trade partners by sea and border channels in the past 11 months (April-February) of the current FY. The federation aimed to export 150,000 tonnes of rice each in February and March respectively. The volume of rice exported last month totalled 191,404 MT, surpassing its expectation. Myanmar has been endeavouring to have 10 per cent growth in the rice export sector year over year, MRF stated.

The export values were recorded at $82 million from 250,947 tonnes in April 2022, $51 million from 153,507 tonnes in May, $50 million from 146,094 tonnes in June, $66 million from 182,550 tonnes in July, $53 million from 156,893 tonnes in August, $37 million from 93,792 tonnes in September, $65 million from 163,189 tonnes in October, $106 million from 264,038 tonnes in November, $90 million from 228,445 tonnes in December, $107 million from 268,835 tonnes in January 2023 and $76 million in February, totalling $783 million from 2,099,693 tonnes in the past 11 months till February 2023.

Myanmar shipped rice and broken rice to regional countries, countries in Africa and European Union member countries through maritime trade. It is also exported to neighbouring countries, China and Thailand through cross-border posts. China is still the main buyer of Myanmar’s rice in the past 11 months, purchasing over 365,000 tonnes of rice and over 410,000 tonnes of broken rice. Myanmar exported rice to nearly 30 foreign markets in the past months, mostly to China (365,958 MT), followed by Bangladesh, the Philippines and other European countries such as Italy, Spain, Poland, Belgium, the Netherlands and France.

Additionally, Myanmar primarily conveyed 411,329 MT of broken rice to China and 276,438 MT to Belgium. It is also sent to the Netherlands, Spain, the UK, Poland, Lithuania and other countries. The export price of Myanmar’s rice was relatively lower than the rates of neighbouring Thailand and Viet Nam, according to the MRF. Myanmar bagged US$700 million from 2 million tonnes of rice exports to foreign countries in the past 2020-2021 financial year. Next, the rice prices stood at over K75,000-K100,000 per bag for high-grade Pawsan rice varieties and K50,000-K62,000 per bag for low-grade rice varieties in the domestic market. Meanwhile, the prices of broken rice moved in the range between K41,000 and K46,000 per bag depending on different qualities.

Source: The Global New Light of Myanmar

Those who have sought export and import licence and permits on Tradenet 2.0 platform through Tradenet 2.0 system are mandatory to withdraw the licence within set periods and they will be fined for late withdrawal, according to the Trade Department under the Ministry of Commerce. 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 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 three 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, according to the notification (20/2020). Exporters and importers are, thus, advised to withdraw their licence within seven days, the Trade Department notified on 27 February. 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 trade volume at the Myawady Trade Zone and the Tachilek Trading Post (Maeyang) stood at US$40.718 million within the second week of February, statistics of the Ministry of Commerce indicated.
From 11 to 17 February, $17.012 million worth of goods were exported and $20.561 million worth of goods imported through the Myawady Trade Zone, the trade volume totalling $37.573 million. Compared to the performance of the previous week, the value of exports and imports decreased by $0.411 million and $0.433 million respectively, and the value of trade dropped by $0.844 million as well. The Tachilek Trading Post (Maeyang) has been trading with the neighbouring countries China and Thailand.

Between 11 and 17 February, it carried out an export value of $1.421 million, an import value of $1.724 million and the trade value of $3.145 million. Compared to the previous week’s trading status, $0.475 million in export value increased and $0.081 million in import value decreased. This week, the Myawady Trade Zone sent fewer exports of peanuts, tamarind, white sesame, black sesame, rice flour, other agricultural products, metals and ores, other mineral products, crab and eel. Imports of motorcycle and spare parts, agricultural trailers and other vehicles, electricity distribution and installation equipment, wires, engines, finished metal construction materials, lace and embroidered textiles, bicycle accessories and other items are low.

At the Tachilek Trading Post (Maeyang), although items of dried prawn shells, old plastic cans, old cardboard paper, tangerines and tobacco leafs decreased, more brooms were exported than the previous week. Although tractors, machinery and equipment, glass building materials, electricity distribution and installation equipment, mineral building materials, iron and steel construction materials, petroleum products, paints, polish, metal raw materials, galvanized iron sheet, tyres and inner tubes, pharmaceutical products, soap, sports equipment, ready-made clothes, kitchen appliances and other items were imported more, cement, commercial vegetable oils, chemicals, plastic raw materials, iron and steel products were imported less. Such fluctuations influenced the trade volume, according to the trade list. 

Source: The Global New Light of Myanmar

The Trade Department under the Ministry of Commerce notified on 23 February that 65 per cent of income from rice export through the border area has to be exchanged at the reference rate (K2,100) set by the Central Bank of Myanmar. Earlier, exporters were allowed to use the whole export income (foreign currency) and did not need to convert them into Kyat at the CBM’s reference rate. This action will come into force for all rice and rice products exports starting from 1 March 2023 to affect export items equally, the Trade Department notified.

As per the notification released by the CBM on 5 August 2022, as per the US dollar policy, 65 per cent of earnings must be exchanged to local currency at the CBM’s reference foreign exchange rate, while exporters can use 35 per cent of export earnings or transfer or sell them on to Authorized Dealers or others with an over-the-counter rate, as per the statement of the CBM dated 16 August. Nonetheless, as per the meeting 66/2022 of the Foreign Exchange Supervisory Committee, export earnings of some items can be made in Chinese Yuan and Thai Baht in addition to the US dollar.

On 14 December 2021, the Central Bank of Myanmar released a notification that Yuan/Kyat cross-currency settlement in the bilateral transaction was officially allowed in the border areas between Myanmar and China to boost the bilateral cross-border trade, facilitate the trading and bilateral transaction, increase the use of domestic currency following the objectives of the ASEAN Financial Integration.

Nonetheless, the directive released on 30 June said that transactions for the exports of agricultural products including corn, rice, bean and oil crops are to be made in dollars instead of Yuan-Kyat/Baht-Kyat. Also, 65 per cent of export income must be converted into local currency at the reference exchange rate of the CBM. At present, the dollar was valued at over K2,860 in the informal FX market, indicating a large gap in the exchange rate against the reference rate of K2,100, traders said. 

Source: The Global New Light of Myanmar

The price of corn declined amid weak demand from foreign trade partners, according to Yangon Region Chambers of Commerce (Bayintnaung Wholesale Centre). The price has been stable at K1,300 per viss since the end of January. The price moved slightly down by K20 per viss on 25 February. At present, the domestic market has a bustling trade activity. Myanmar sends corn to China and Thailand via border posts.

Myanmar shipped corn to China, India, Thailand, Viet Nam and the Philippines, according to Myanmar Corn Industrial Association. China is purchasing Myanmar’s corn through cross-border trade under the opium substitution programme. Legitimate corn trade between Myanmar and China commenced at the end of 2022. A total of 112 companies have been given the go-ahead for corn exports.

Thailand gives green light to corn imports under zero tariff (with Form-D), between 1 February and 31 August. However, Thailand imposed a maximum tax rate of 73 per cent on corn imports to protect the rights of their growers if the corn is imported during the corn season of Thailand. The directive released on 30 June said that transactions for the exports of agricultural products including corn, rice, bean and oil crops are to be made in dollars instead of Yuan-Kyat/Baht-Kyat.

Therefore, 65 per cent of export earnings (US dollars) of the corn have to be exchanged according to the reference rate of the Central Bank of Myanmar (K2,100). Nonetheless, there is a large gap between the regulated rate and the unauthorized rate of the US dollar (over K2,880). Nonetheless, as per the meeting 66/2022 of the Foreign Exchange Supervisory Committee, export earnings of some items can be made in Chinese Yuan and Thai Baht in addition to the US dollar.

The CBM’s notice dated 18 November takes effect on those export items; various pulses (green gram, black gram, chickpea, pigeon pea), edible oil crops (peanut, sesame seeds), corn, rubber, fishery products (fish, shrimp, crab, eel) and livestock products (live cattle, hides, frozen meat, dried meat). The traders need to apply for a licence to make Yuan or Baht payments.

According to the US dollar policy, 65 per cent of earnings must be exchanged for local currency at the CBM’s reference foreign exchange rate, while exporters can use 35 per cent of export earnings or transfer or sell them to Authorized Dealers or others with an over-the-counter rate within 30 days, the CBM announced.

Myanmar exported 2.3 million tonnes of corn to foreign trade partners in the 2020-2021 financial year. 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 produces 2.5-3 million tonnes of corn every year. 

Source: The Global New Light of Myanmar

From 1 to 21 February, trade volume between Myanmar and Thailand at the Kawthoung border registered US$13.688 million, according to statistics of the Ministry of Commerce. The trade post has managed to export 12,841 tonnes of goods worth US$11.98 million and import 5,646.17 tonnes of goods valued $1.688 million, totalling $13.688 million worth trade volume.

Between 1 and 29 January, Myanmar earned $19.663 million from exports and $0.847 million from imports, the total trade value of $20.51 million. The Ministry of Commerce announced that millions of dollars were pocketed due to the main export of fishery products through the FOB system.

The most export products are variety of fish, oil-palm and nipa palm. The most import goods are gasoline, diesel, cassava powder, hydrogen peroxide, sodium carbonate, salt, ice box, silicon, charcoal powder, quicklime powder, various goods, battery, oil-palm seeds and bird nests.

Source: The Global New Light of Myanmar

The number of Myanmar trucks carrying watermelons to China dropped so the price significantly escalated, Muse fruit traders said. Earlier, over 150 truckloads of watermelon and muskmelon per day were delivered to China through the Muse border. At present, the border point saw an entry of about 100 trucks of watermelons and muskmelons to China. Additionally, the prices touched a high of 5.2 Yuan per kilogramme for watermelon, 6 Yuan for Taiwan watermelon and 8.3 Yuan per kilo for muskmelon. In early February, tight inspections of Chinese Customs hindered truck transport. Only 20-30 trucks were, therefore, able to pass the checkpoint amid the delays despite the high price of watermelon and muskmelon.

Consequently, watermelon was sold out at the depots on the China side and more than 500 trucks queued in line on the Myanmar side. On 5 February, the trade channel was eased and around 100 trucks entered China. Those trucks struck on the Myanmar side were given the go-ahead in rotation for exports depending on demand, the Muse fruit wholesale centre stated. Myanmar’s watermelon and muskmelon are heavily reliant on the Chinese market. Traders grappled with China’s strict virus policy.
In 2021, the COVID-19 restrictions hindered Myanmar’s watermelon and muskmelon exports to China. Chinese Customs Regulation increased delay.

Long delays of trucks caused harm to watermelon quality and only one in five trucks heading to China remained undamaged with quality watermelons. The traders are observing delivery time, price and profitability as they are perishable fruit, while they are trying to explore new markets besides China. On 1 April, Nantaw and Sinphyu border posts were suspended in the wake of COVID-19 impacts. China has closed down the major border crossing Mang Wein from 30 March 2021 following COVID-19 cases in Myanmar. On 8 July 2021, the two remaining borders – Kyinsankyawt and Panseng – were suspended.

As a result of this, the border trade between Myanmar and China was completely halted. Among Sino-Myanmar border posts, Kyinsankyawt resumed operations on 26 November 2021. Trade activity at the Muse-Mang Wein border, which performed the majority of trade between Myanmar and China, resumed on 14 January 2023. Additionally, other goods except for agricultural products (watermelon, muskmelon), minerals and fisheries products are allowed to be sent to China through that border point. Additionally, Nantaw and Sinphyu, which are the major borders, were reopened on 25 January 2023. At present, Myanmar daily delivers rice, broken rice, rubber, various beans and pulses, fishery products, chilli pepper and other food commodities to China through Kyinsankyawt by over 100 trucks. 

Source: The Global New Light of Myanmar

The wholesale reference rate of palm oil for the Yangon market moved slightly down this week ending 26 February compared to that of the previous week, according to the Supervisory Committee on edible oil import and distribution. The reference price stood at K4,490 per viss in the week from 13 to 19 February. For the week ending 26 February, the price was set higher at K4,470 per viss. The figures showed a small decrease of K20 per viss. 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 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 Special Goods Tax Law, 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 to offer palm oil at a subsidized rate. They sell palm oil at K4,650 per viss to consumers directly. 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