Transcript Trade and its Opportunities of Myanmar” Mr. Ko Ko Lay

Ko Ko Lay
Director
Directorate of Trade
4th November, 2013
UMFCCI, Yangon, Myanmar
Role of MOC
The Ministry of Commerce plays a vital role in the
implementation of the economic reforms towards the
market-oriented economy especially in the trade sector.
The Ministry of Commerce sets out four main objectives
and three basic principles as policy guidelines in trade
performance.
Four Main Objectives of MOC
(1) To systematically implement trade policies in accordance
with the Market-Oriented Economic Policy
(2) To produce value added products from primary goods to
increase the productivity for export market
(3) To carry out the promotion of trade not only through normal
trade but also border trade
(4) To provide support and facilitate the export and import
business
Three Basic Principles
1. Trade activities should be aimed at the interest of the State and
the people.
2. Trade activities should not be a burden to the people.
3. Trade activities should be aimed at structuring a long-term
viable trading system, rather than to gain short-term profit.
Trade policy objectives
(1)
To formulate and implement the trade policies systematically in
accordance with market economic system.
(2)
To implement export promotion and enhance trade by means of
advanced ICT.
(3)
To expand trade through regional and international cooperation.
(4)
To improve trade environment.
(5)
To produce enough amount of essential and important goods for
domestic consumption and manufacturing industries.
Export Policy of Myanmar
To extend and explore the foreign markets by utilizing the
natural and human resources effectively and efficiently
and also to promote the export of traditional
and value- added products.
Import Policy of Myanmar
To allow to import the commodity given priority as capital goods
required by the State, raw materials for production, other important
essential goods and the goods which support to the public health and
export promotion.
Governing Law
 The main law governing the Trade Sector is the Export and Import
Law 2012, which was enacted on 7th September, 2012.
 This law is administered by the Ministry of Commerce, from time to
time, MOC issues necessary orders, notifications, directives,
pertaining to all export/import matters.
 Currently MOC is under processing for legislation.
Registration of Exporter/Importer
 The Enterprise which operations involve foreign trade have to
register as an exporter/ importer at the Directorate of Trade (DOT),
Ministry of Commerce.
Trading Business & Representative Office
 Foreign Company is not allow to do Trading business.
 Foreign Co., can appoint local co., or person as business
Representative.
10
Licensing Authorities
 The authority to issue export/import licenses and permits is
delegated to the Department of Commerce and Consumer Affairs
under the Ministry of Commerce.
License Fees
 License application fees are not payable on export of any
commodity.
 Import license fee is payable on CIF value at a minimum of Ks 250
up to a maximum of Ks 50000.
.
Types of foreign currencies
to be used for Export and Import
In conventional trade, the following types of currencies are
allowed to do export/import transactions through the relevant
banks;
 US dollar
 Euro
 Singapore Dollar
 Japan Yen
 Other foreign currencies permitted by the Central Bank of
Myanmar, if any.
Prohibited Items for Export
Normally, the registered exporter has the right to export all
commodities except products which are prescribed to be solely
exportable by the state owned economic enterprises and the some
items are prohibited to export through overseas and overland trade.
List of Commodities Prohibited to Export
(a)
Agricultural Products
Niger Oil
Mustard, Mustard Oil
Sun-flower seeds, Sun-flower oil
All kinds of oil-extracted cakes
Cotton and cotton products
(b)
Minerals and Metals
Gold
Diamond
Petroleum
(c)
Animal and Animal Products
Ivory
Buffalo, cow, elephant, horse and rare animals
(d)
Marine Products
Shrimp bran
(e)
Miscellaneous
Arms and ammunitions
Antiques
Prohibited Items for Import
The registered importer has the right to import all commodities
except some items which are prohibited to import through overseas
and overland trade.
List of Prohibited Commodities to Import
1. Liquors
2. Beer
3. Cigarette
4. Prohibited products as per existing laws.
Foreign Trade Relations of Myanmar
- Member of WTO
-Member of ASEAN, BIMSTEC, GMS, ACMECS
- Bilateral trade agreement with :
Bangladesh
China (PRC)
India
Korea (ROK)
Laos
Malaysia
Pakistan
Philippines
Thailand
Vietnam
Sri Lanka
 Trade Patterns
Myanmar is mainly an exporter of agricultural and
primary products.
Its import consists largely of manufacture goods.
Main export items are agricultural products, fishery
products, forest products, metals & minerals inclusive
of natural gas, precious stones & pearls and some
industrial products.
Major import items are capital goods, industrial raw
materials, spare parts and consumer goods.
 Direction of Trade
 Myanmar Foreign Trade is mainly with Asian
countries :
 China (PRC)
 Thailand
 Singapore
 Japan
 India
 Korea (ROK)
 Malaysia
 Indonesia
 Vietnam
Trade Facilitation
-After taking over the State power by new government in April, 2011, new government is
carrying out a lot of reformed measures in all sectors including trade sector.
-Since trade facilitation is the important feature for smooth flow of international trade,
new government has made liberalization activities in order to facilitate the trade
matters.
Those activities included:
(i)Some important commodities such as fuel oil, edible palm oil are allowed to
import, which were restricted to import by private sector previously.
(ii)motor vehicles are also allowed to import to any citizen of Myanmar and private
company to use for individual and business purpose respectively.
(iii)Some important agricultural products of edible oil, edible oil seeds, onion and rice
are also allowed to export to private sector, which were prohibited to export in the
past.
(iv)Commercial tax on proceed of export earnings were abolished.
(v) export/import licenses are issued at both Yangon and Nay Pyi Taw offices rather
than issued at Nay Pyi Taw office only .
(vi)Reduce required documents which are necessary to attach with application for
licenses.
 Before June 2012, required to apply export/import
licenses for all commodities.
 However, starting from June 2012, most of licenses
were converted from non-automatic licensing to
automatic licensing system and issues within 24 hours.
 On 28th February 2013, 152 exported items and 166
imported items were removing from the license
requirement.
 Now, about 1900 items of imported goods are applying
for no licensing criteria.
 Trade Promotion

- Export all exportable surplus and diversify foreign
markets by using natural and human resources
- Department of Trade Promotion was formed under the
Ministry of Commerce
- Intend to increase and diversify exports and improve the
quality of products
- Trying to lower down the trade barriers and simplified
export/import procedures
- Encourage the private sector participation in the foreign
trade
- Establish the Export Processing Zones(EPZ) and Special
Economic Zones(SEZ) at suitable places
- Welcome Foreign Direct Investment
- Disseminate the trade related information to private
sector by means of:
(a)Lunched the websites such as commerce.gov.mm and
myanmartradenet.com
(b)Issue the Commerce Journal in weekly and Trade
News bulletin in monthly
Trade Education
Ministry of Commerce established the Trade Training Institute (TTI) in Yangon Office
and organizes basic and advanced trade training courses.
TTI cooperate s and coordinates with JICA for the formulation of tailored made Export
Promotion curriculum .
MOC also organizes trade related seminars, workshops, meetings not only itself but
also collaboration with other organizations.
Foreign Trade of Myanmar
From 2009-2010 to 2012-2013
A/U - US $ Million
Sr.
No.
1.
2.
3.
4.
Fiscal Year
2009-2010
2010-2011
2011-2012
2012-2013
Export
7586.94
8861.01
9135.60
9056.24
Import
4181.40
6412.73
9035.06
9371.64
Volume of
Trade
11768.34
15273.74
18170.66
18427.88
Balance of
Trade
(+) 3405.54
(+) 2448.27
(+) 100.54
(-) 315.41
Myanmar’s Foreign Trade by Commodity
From 2009-2010 to 2012-2013
A/U - US $ Million
Sr.
No.
1.
Description
FY 2012-2013
7586.94
8861.01
9135.60
9056.24
(a) Agricultural Products
1678.36
1800.39
2372.98
2559.99
(b) Animal Products
24.15
93.77
92.90
47.08
(c) Marine Products
466.90
498.61
705.93
641.68
(d) Mineral Products
1017.75
2274.07
897.06
456.54
561.52
644.70
643.85
604.10
3238.90
2907.95
4007.81
4399.81
599.54
641.51
4150.08
347.04
Import
4181.40
6412.73
9035.06
9371.64
(a)Capital Goods
1530.53
2480.68
3843.31
4286.63
(b) Industrial Raw Materials
1635.98
2628.97
3451.05
2999.62
(c) Consumer Goods
1014.89
1303.08
1740.70
2085.40
11768.34
15273.74
18170.67
18427.88
(f) Manufacture Goods
(inclusive of natural gas)
(g) Others
3.
FY 2011-2012
Export
(e) Forest Products
2.
FY 2009-2010 FY 2010-2011
Total
Remarks
Myanmar’s Foreign Trade by Country
From 2009-2010 to 2012-2013
A/U - US $ Million
Sr.
FY 2009-2010
FY 2010-2011
FY 2011-2012
FY 2012-2013
No.
Country
Export
Import
Total
Export
Import
Total
Export
Import
Total
Export
1.
Asian
Countries
7059.101
3879.235
10938.336
8411.525
5785.213
14196.738
8584.056
8110.820
16694.876
8596.669
8667.244
17263.91
(a)ASEAN
4141.030
1922.137
6063.167
3930.840
2840.600
6771.440
4676.692
4020.570
8697.262
4540.725
4026.236
8566.961
0.750
0.030
0.780
0.370
-
0.370
1.330
0.020
1.350
0.900
(2)Cambodia
-
0.180
0.180
0.040
1.360
1.400
0.360
1.110
1.470
(3)Indonesian
37.430
140.070
177.500
41.110
275.490
316.600
40.940
431.820
472.760
-
-
-
0.020
-
0.020
0.030
-
0.030
152.610
159.520
312.130
437.800
145.320
583.120
152.040
303.410
455.450
(1)Brunei
(4)Laos
(5)Malaysia
Import
Total
0.900
0.370
0.370
31.540
195.230
226.770
0.150
0.220
0.370
97.920
360.900
458.820
(6)Philippines
27.210
14.160
41.370
22.300
16.970
39.270
34.320
14.640
48.960
26.020
17.990
44.010
(7)Singapore
670.410
1202.190
1872.600
456.990
1645.320
2102.310
542.750
2516.130
3058.880
291.350
2535.430
2826.780
(8)Thailand
3197.870
378.677
3576.547
2905.180
709.090
3614.270
3823.832
691.150
4514.982
4011.605
841.376
4852.981
(9)Vietnam
54.750
27.310
82.060
67.030
47.050
114.080
81.090
62.290
143.380
81.240
74.720
155.960
2918.071
1957.098
4875.169
4480.685
2944.613
7425.298
3907.364
4090.250
7997.614
4055.944
4641.008
8696.952
(1)Bangladesh
69.336
11.442
80.778
125.024
11.611
136.635
70.585
14.220
84.805
39.733
12.631
52.364
(2)China(PRC)
634.968
1258.091
1893.059
1203.560
2168.522
3372.082
2214.300
2786.840
5001.138
2279.511
2868.671
5148.182
(b)Other
Asian
Countries
(3)Hong Kong
947.700
10.880
958.580
1894.690
8.440
1903.130
41.470
9.710
51.180
12.730
14.560
27.290
(4)India
1013.137
193.515
1206.652
781.591
195.460
1067.051
1045.989
325.380
1371.369
1036.710
310.206
1346.916
(5)Japan
177.350
259.110
436.460
237.430
256.330
493.780
320.200
502.170
822.370
406.490
1091.730
1498.220
75.580
224.060
299.640
148.390
304.230
452.620
214.820
451.930
666.750
343.210
623.980
2.
(6)Korea(ROK)
European
Countries
132.050
96.340
228.320
120.880
161.980
282.860
131.520
253.170
348.690
280.770
130.320
244.220
374.540
3.
USA
177.350
259.110
436.460
237.430
256.350
493.780
320.200
502.170
822.370
2.810
119.980
122.790
4.
Others
393.230
187.300
580.530
326.390
406.070
732.460
390.580
407.453
798.033
326.440
340.200
666.640
Total
7586.941
4181.395
11768.336
8861.005
6412.733
15273.738
9135.604
9035.063
18170.667
9056.239
9371.644
18427.883
Thank you for your kind attention!