An enterprise permitted under the Foreign Investment Law has to be registered as exporter/importer, upon business requirement, with the Export Import Registration Office, Directorate of Trade.

The Registration of Exporters / Importers

The following persons or enterprises can be registered at the Ministry of Trade as exporters/importers:

1. A citizen or an associate citizen or a naturalised citizen of the Union of Myanmar if the applicant is a sole proprietor;
2. Partnership firms;
3. Limited companies, inclusive of foreign companies and branches or joint venture corporations, formed under the Myanmar Companies Act 1958 or Special Company Act 1950;
4. Co-operative societies, registered under the Co-operative Society Law 1992.

Registration Fee

From 29-10-88 to 30-11-92 exporter/importer registration was done separately and relative registration fees for each category were prescribed. As of December 1992, registration as exporter/importer was permitted and the fee for registration as such is currently Ks 5,000 for one year and Ks 10,000 for three years. The same fees are payable on renewal.

Period of Extension

A registered exporter/importer shall, at the expiry of the term of registration, within one year or three years as the case may be, apply for extension.

1. Application for extension shall be made prior to expiry of the registration term.
2. If extension is applied for after the expiry date, the following penalty shall be paid, in addition to the relevant extension fees
   1. Within one month from expiry K.500
   2. Within two months from expiry K. 1,000
   3. Within three months from expiry K. 1,500

The registration will be cancelled if the exporter/importer fails to apply for extension after three months from the date of expiry.

Goods which may be Exported

Myanmar products can be exported with the exception of some selected items or restricted items (reserved to be carried out only by the State) such as teak, rice, etc. under the export licence issued by Ministry of Trade. From April 1, 1994, the export of timber in log form was not allowed and only value added timber finished products are now allowed to be exported.

Validity Period of Export Licence

The validity period of an export licence is normally 6 months from the date of issue. If necessary, the period may be extended by the Ministry of Trade, by three months at a time.

Application for extension of Export Licence

Application for the extension of an export licence can normally be made without limit as to the number of times. However, the following extension fees and service charges are payable depending on the time of application for extension.

Value = Kyat

Sr. No.	Particulars	Application made before expiry and 7 days after the expiry	Application made between 8 days and 1 month after the expiry	Application made after 1 month after the expiry
1	1st Application -Extension fee -Surcharge	300 -	300 200	300 5000
2	2nd and above application -Extension fee -Surcharge	500 -	500 200	500 5000

Note : The extension fee plus surcharge for both periods are payable if the application for extension is made for both periods, (first and second extension) at the same time.

Amendment of Export Licence

Application for the amendment of an export licence can normally be made without limit as to the number of times. The following amendment fee and surcharge are payable depending on the date of application for amendment.

Fees for Amendment of Export Licence

Value = Kyat

Sr. No.	Particulars	After expiry of the validity period
		Application within 1 month	Application within 1 to 3 months	Application within 3 to 6 months	Application after 6 months
1	Amendment fee	300	300	300	300
2	Surcharge	-	500	1000	5000

Surrender of Export Licence

An export licence granted may at any time, be surrendered. The following surrender fee and surcharges are payable depending on the date of application for the surrender of licence.

Value = Kyat

Sr. No.	Particulars	After expiry of the validity period
		Application within 1 month	Application within 1 to 3 months	Application within 3 to 6 months	Application after 6 months
1	Surrender fee	200	200	200	200
2	Surcharge	-	500	1000	5000

Issuance of Export Licence in Duplicate

If a duplicate copy is required due to damage or loss of the original export licence, it is obtainable upon payment of Kyat 500/- as service charges.

Customs Duty on Exports

Customs duties are payable only on the following items :

Export Customs Tariff on F.O.B. Value

1. Vegetables, roots and tuber 5%
   
2. Pulses, beans and maize 5%
   
3. Rice and rice products K. 10 per metric ton
   
4. Bamboo 10%
   
5. Animal feed 5%
   
6. Animal horns, hides and skins 5%
   

Goods which may be Imported

All goods which are not prohibited by the respective government department, can be imported under the import licence issued by the Ministry of Trade.

Import Licence Fee

Import licence fees are payable on all imports from abroad. It includes those imports for which import pen-nits are not required, those imported with a permit, an import licence or open general licence; imports through the border and those imported for general trading purposes by the State Economic Enterprises (SEEs), government departments, co-operatives and private enterprises. Licence fees must be paid according to the specified rate for import of goods on consignment basis either by SEEs or private enterprises and entrepreneurs. With a view to reducing the cost of living and to being competitive under the market economy, the Ministry of Trade issued an Import Licence Fees Order on June 28, 1991, revising the licence fees payable on commodities imported from abroad with effect from July 1, 1991.

Import licence fees payable on the C.I.F. ( Yangon ) value of goods imported from abroad range from a minimum fee of K 250 to a maximum of K 50,000 as follows:

C.I.F value	Import Licence Fees
K 10,000	K 250
K 10,001 -K. 25,000	K 625
K 25,001 -K. 50,000	K 1,250
K 50,001 -K. 100,000	K 2,500
K 100,001 -K. 200,000	K 5,000
K 200,001 -K. 400,000	K 10,000
K 400,001 -K. 1000,000	K 20,000
K 1,000,001 and above	K 50,000

Licence fees must be paid before the date prescribed in the import licence/permit. Those import licences/permits for which licence fees have been paid may be extended by another three months, if such extension is necessary.

Extension of Import Licence

Application for the extension of an import licence can normally, be made without limitation as to the number of times. However, the following surcharge will be payable by the exporter/importer in addition to the relevant extension fee depending on the date of application for extension.

Value = Kyat

Sr. No.	Particulars	Application made before expiry and 7 days after the expiry	Application made between 8 days and 1 month after the expiry	Application made after 1 month after the expiry
1	1st Application -Extension fee -Surcharge	Relevant import licence fee -	Relevant import licence fee 500	Relevant import licence fee 5000
2	2nd and above application -Extension fee -Surcharge	Relevant import licence fee -	Relevant import licence fee 500	Relevant import licence fee 5000

Note : The exporter/importer is liable to payment of extension fee plus surcharge for both periods, if the application for extension is made for both periods (first and second extension) at the same time.

Amendment of Import Licence

Application for the amendment of import licence can normally be made without limitation as to the number of times. The following amendment fee and surcharge are payable depending on the date of application for amendment.

Fees for Amendment of Import Licence

Value = Kyat

Sr. No.	Particulars	After expiry of the validity period of import licence
		Application within 1 month	Application within 1 to 3 months	Application within 3 to 6 months	Application after 6 months
1	Amendment fee	Kyat 500 for one type of amendment or 2.5% of the value of licence whichever is less
2	Surcharge	-	500	1000	5000

Surrender of Import Licence

Import licence granted may, at any time, be surrendered. The following surcharges are payable depending on the date of application for the surrender of licence.

Value = Kyat

Sr. No.	Particulars	After expiry of the validity period of import licence
		Application within 1 month	Application within 1 to 3 months	Application within 3 to 6 months	Application after 6 months
1	Surcharge	-	500	1000	5000

Actions taken for not obtaining the chalan or non-payment of licence fee within the prescribed time

Application for import licence will be retumed to the applicant by registered post, if the chalan is not taken in time or if the payment is not made within (21) days after obtaining the chalan, despite the fact that communication as to the granting of the import licence had been made either by telephone or officially in writing.

Payment of licence fee after the prescribed period

The registered exporter/importer shall make the payment of import licence fee within (21) days as mentioned on the chalan. In case payment after the prescribed period is accepted by the bank for various reasons, licence will be issued after the following penalty is paid.

(1)	Payment made within (15) days after the prescribed (21) days	10 per cent of import licence fee payable shall be paid as penalty
(2)	Payment made within (30) days after the prescribed (21) days	20 per cent of import licence fee payable shall be paid as penalty

Commodities for which import licence fee is exempted

Import licence fee is exempted on the following commodities:

1. The commodities imported for business purposes by the organisations doing business under the foreign investment permit issued by the Myanmar Investment Commission as follows:
   1. Machinery equipments instrumental machinery components, spare parts and materials used in the business which are actually required for use during the construction period and imported as foreign capital in kind prescribed by the Myanmar Investment Commission;

   2. Raw materials and packing materials imported for the first three years' commercial production following the completion of construction for the purpose of manufacture and export.

   Note: Regarding raw materials originally imported for the purpose of manufacture and export, if the finished products are not exported for any reason, but sold in the domestic market, then an import licence fee shall be paid on such raw materials or packing materials.

2. The following commodities imported by the State-owned economic enterprises and departments:
   1. Commodities imported for business use and departmental use;
   2. Capital goods imported under the annual investment programme.

3. Purchase of brand new motor vehicles for business use which are being sold locally in foreign currency by Vehicle, Machinery and Equipment Trading, Inspection and Agency Services and Myanmar Motor Limited, imported under consignment system, to the organisations doing business under foreign investment permit, issued by the Myanmar Investment Commission, foreign oil companies carrying out business under production sharing agreements with Myanma Oil and Gas Enterprise, and diplomatic organisations.

4. Medicines and 36 kinds of pharmaceutical raw materials used in the manufacture of drugs and medicines, imported by the State-owned economic enterprises or registered private exporter/importer for the purpose of supporting the improvement of public health and the welfare of the people in receiving medical treatment.

5. The following commodities, imported by the State-owned economic enterprises or registered private exporter/importer for the development' of the agriculture sector.
   1. Fertilizers
   2. Farm implements
   3. Insecticides

6. Commodities transported through the territory of the Union of Myanmar under the transit trade system.

Commodities permitted import by specification

Specifications are prescribed through regulation by the Ministry of Trade for the import of certain commodities such as RBD palm olien oil and seasoning powder. Distribution of these products can be made after testing and inspection is made by the National Health Laboratory and upon submission of the certificate that they are fit for human consumption.

Only those drugs and medicines, registered with the Myanmar Food and Drug Board of Authority of the Department of Health, will be allowed to be imported and distributed. A registered exporter/importer, wishing to import and distribute drugs and medicines will, normally, be required to produce the following certificate and licences, issued by the Myanmar Food and Drug Board of Authority of the Department of Health, for the issuance of the import licence.

1. Drug importation approval certificate;
2. Drug wholesaler's licence;
3. Drug retailer's licence.

Validity Period of Import Licence

The validity period of an import licence is normally 6 months from the date of issue. However, if requested, this period may be extended by the Ministry of Trade, three months at a time.

Export Procedure

1. A registered exporter must obtain an export licence, in conformity with the rules and regulations laid down by the Directorate of Trade. No fee is charged for the issuance of an export licence.

2. In applying for an export licence, the application shall have attached a sales contract or agreement and/or proforma invoice mentioning detailed specifications with regard to grade, quantity, price, name of buyer and country, method of payment, shipment period and destination country.

3. An irrevocable Letter of Credit has to be opened at the Myanma Investment and Commercial Bank by the buyer through correspondent or acceptable bank.

4. The vessel the cargo is to be shipped by has to be nominated by the buyer.

5. Myanma Port Authority has to be contacted for the shipment of cargo that is to be shipped on F.O.B. basis.

6. Preshipment inspection, if required, will be conducted by Inspection and Agency Services with respect to specification, weight, quality and packing.

7. Details of the cargo, such as shipping bills, other shipping documents and customs pass etc., must be presented to the Bank for transaction.

Import Procedure

1. A registered importer is required to open a foreign exchange account at a bank in order to apply for an import licence from the Directorate of Trade.

2. In applying for an import licence, the application shall have attached the sales contract and/or proforma invoice mentioning detailed specifications, mode of packing and delivery phasing.

3. Import licence fees payable on the C.I.F. (Yangon) value of the goods imported from abroad is mentioned under Chapter IV.

4. An irrevocable Letter of Credit ( L / C ) has to be opened by the importer at the Bank.

5. If the purchase is made on F.O.B. basis, the importer has to secure insurance from Myanma Insurance and freight booking from Myanma Five Star Line.

6. After receiving shipment advice from the suppliers, the importer has to arrange for the clearance of the goods.

Open General Licence (OGL)

The Ministry of Trade permits import under Open General Licence (OGL) only to those organisations, doing business under the foreign investment permit issued by the Myanmar Investment Commission. Permission is granted only to those organisations which require by nature of business, to import frequently either for capital investment or for business operation purposes, Import under Open General Licence is permitted according to the prescribed method of import. If the import is to be made by a method not included in the method prescribed in the Open General Licence, application for an import licence shall have to be made according to the prescribed terms and conditions.

Regulations for the import under Open General Licence (OGL)

Regulations for import under Open General Licence (OGL) are as follows:

1. Commodities specified in the Open General Licence shall only be imported under this licence;

2. Commodities which are to be treated as foreign capital in kind shall be those endorsed by the Foreign Capital Evaluation Committee under the Myanmar Investment Commission. Endorsement shall be submitted for each time of import;

3. Commodities to be imported for business operation purposes shall be raw materials relating to the business and the materials for business use. Other commodities will not be allowed to be imported;

4. Commodities for trading purpose shall not be imported under Open General Licence. (OGL);

5. Commodities imported under Open General Licence (OGL) shall not be commodities prohibited by laws which are currently in force;

6. Proprietary items which require the permission from the Ministry concerned shall be imported after receipt of permission from the relevant organisations under the Ministry concerned;

7. Settlement of import bills for the commodities imported shall be made according to the terms and conditions prescribed by the bank concerned;

8. Statement showing the particulars of imported commodity, quantity and value shall be submitted without fail within seven days after the clearance of cargoes at each time of import.

Order, permitting the organisations making foreign investment in the Union of Myanmar to import without import licences.

The Ministry of Trade issued Order No. 2/94, dated 16-6-94 specifying the procedures and conditions permitting import without application for import licence by the permitted foreign investment enterprises.

Commodities permitted to be imported without import licence and the duration allowed:

1. Capital investment items imported as foreign capital (construction period as prescribed and permitted by the Myanmar Investment Commission)

2. Raw materials required for the first three years' commercial production following the completion of construction.

The organisations are to abide by the terms and conditions and regulations prescribed by the Ministry of Trade (See Appendix 13 for Order No. 2/94).

Procedures to be followed by the enterprises permitted under the Union of Myanmar Foreign Investment Law for the import of capital goods brought in as capital investment, raw materials and inter-industry use goods required during the initial period, without applying for import licence from the Ministry of Trade.

The Myanmar Investment Commission has prescribed procedures to be followed by permitted foreign investment enterprises to expedite the clearance of capital brought in as capital investment, raw materials and inter-industry use goods required for the production of goods and services for the initial period at the sea/air ports.

Procedures

1. On receipt of the "Permit" to invest, the investor must register at the Company Registration Office of the Directorate of Investment and Company Administration (DICA) and then to register as Exporter/Importer at the Directorate of Trade.

2. Furnish the following data to DICA (two copies) and Foreign Capital Evaluation Committee (one copy).
   • Commencement and duration of the project development programme, feasibility study and survey programs where necessary.

   • List of capital goods by commodity group in detail, during the initial investment period.

   • Commencement of production and services.

   • List of raw materials and inter-industry use goods required during the initial period of commercial production and the supplemental requirement of capital goods as initial investment.

3. For shipment of goods, to apply for endorsement to Foreign Capital Evaluation Committee (FCEC) attaching the Proforma Invoice, Shipping Invoice and Packing List.

4. Foreign Capital Evaluation Committee to check with the invoiced commodities and the time period with the list attached to the approved proposal and with list submitted to DICA and FCEC.

5. To deal with the Customs Department for clearance of goods with the endorsement of FCEC.

6. The import of capital goods brought in as investment, raw materials and inter-industry use goods can be imported without applying for an Import Bill Receivable Certificate but this does not apply for CMP (Cutting, Marketing, Packing) systems taking only service charges, where an Export Bill Receivable (EBR) Certificate needs to be applied for.

2. CUSTOMS CLEARANCE PROCEDURES FOR EXPORT AND IMPORT

The Tariff Law was enacted on March 12, 1992 with a view to assisting the market economic system in order to facilitate external trade. In accordance with the Law, a notification was issued to regulate the classification of imported goods and assessment of duties. For modernisation and standardisation, in line with international practice, the Harmonised Commodity Description and Coding System (H.S.) was introduced in April 1992.

Customs Declaration Form for Import / Export Clearance

Import

Under the existing rules and regulations all incoming consignments of the goods must be cleared through the Customs Department under Import Declaration form (CUSDEC - 1). The Import Declaration form is to be accompanied by the following documents:

1. Import licence/permit

2. Invoice

3. Bill of Lading or Air Consignment Note

4. Packing List

5. Other Certificates and Permits issued by the relevant Government Departments as a condition for Import.

Customs duty is payable according to the tariff schedule. Import duty is levied on the tax base, assessable value, which is the sum of C.I.F. value and landing charges of 0.5 per cent of C.I.F. value. Together with customs duty, commercial tax is levied on the imported goods based on the landed cost, which is the sum of assessable value and import duty. These taxes are collected at the point of entry and the time of clearance.

Export

On the shipment of export commodities Export Declaration Form (CUSDEC - 2) must be submitted to Customs Department together with the following documents:

1. Export licence / permit

2. Invoice

3. Packing list

4. Sales Contract

5. Shipping Instruction

6. Letter of Credit or General Remittance Exemption Certificate

7. Payment advice referring Inward Telegraphic Transfer Private No. / Inward Telegraphic Transfer Government No.

8. Sample of goods

9. Forest pass for the shipment of forestry produce

10. Health Certificate for the export of live animals

11. Forest permit for the export of wild live animals

12. Other certificates and permits as required by the Government Agencies concerned.

Customs duty is levied on exported goods according to the tariff schedule and export duty is levied on the tax base F.O.B. value.

Customs Declaration Form for Transit Trade

All commodities, not for domestic consumption and imported for transit trade, are required to furnish the prescribed form, i.e., CUSDEC - 3, with the following documents attached.

1. Bill of Lading or air consignment note or truck note

2. Transit trade licence or permit issued by the Ministry of Trade

3. Commercial Invoice

4. Sales contract between seller and buyer or contract between seller and authorised agent

5. Guarantee bond, undertaken in strict compliance with regulations; failure to export will be dealt with according to the existing law.

Transit duty is based on the C.I.F. value of imported goods and will be levied 2.5% ad valorem rate.

Clearance under Special Order

A special order may be granted for rapid clearance of the following types of goods imported by sea or air.

1. Perishable goods

2. Goods immediately required by government projects and enterprises

3. Live animals, human remains.

Temporary Importation

Commodities, imported temporarily for inward processing, such as industrial raw materials and packing materials are exempted from customs duty for a period of two years under bond to re-export within a time limit.

Claims for Drawback

Seventh-eighths of the customs duty paid on goods that could be easily identified will be refunded when such goods are withdrawn from the country again under the drawback facility in accordance with the following conditions :

1. The re-export goods must be identical with those imported on payment of duty.

2. Two years must not have elapsed since their importation in cases where the port of re-export is the same as that of import. The time may be extended up to three years on application.

3. The re-export goods must not be included among the articles declared to be incapable of being identified.

4. The goods must not be re-exported to a port to which shipment under claim for drawback is prohibited.

5. The goods exported must not be of less value than the amount of drawback claimed.

6. The claim for drawback should not ordinarily be less than 5 kyats in respect of any single shipment.

7. The goods must not be included among the articles declared to be prohibited or restricted.