Guide to Exporting Goods from Myanmar

1. An export must register as a company authorized to engage in international trade and then register as an exporter with the Directorate of Investment and Company Administration (DICA), Ministry of Planning and Finance. Registrations can be up to five years. DICA has a One Stop Service (OSS) to facilitate registration.
2. An exporter must also register with the Department of Trade, Ministry of Commerce. Registrations can be for up to three years, but the time must not exceed the company’s DICA registration to engage in international trade. The fee for registration is K50,000 per year. 
3. The exporter must also join the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI). Top.

WTO’s GATT, Article XX and XXI, permit WTO members to prohibit the exportation of certain articles that endanger public morals, threaten human, plant or animal life, involve the importation of gold and silver, arms and ammunition, and similar items. The Department of Trade of the Ministry of Commerce has exercised its rights under these GATT provisions to prohibit the following exportations:

1. Counterfeit currency and coins
2. Pornographic material
3. All kinds of narcotic drugs and psychotropic substances
4. Antique objects
5. Arms and ammunition
6. Fisheries products prohibited
7. Shrimp shell meal
8. Animal and animal produce products prohibited
9. Elephant tusks
10. Buffalo, cattle, elephants, horses, wild animals
11. Minerals and mineral products prohibited
12. Gold
13. Diamonds
14. Petroleum
15. Forestry products prohibited
16. Logs (not processed wood)
17. Agricultural products prohibited
18. Sesame oil
19. Mustard and mustard oils
20. Sunflowers and sun flower oil
21. Residues from producing vegetable oil

If in doubt, you should seek advice from the Directorate of Trade of the Ministry of Commerce. Top.

The Government of Myanmar is currently liberalizing requirements for obtaining an export license as a precondition to exporting goods. However, most tariff items (all but 983 tariff lines) still require an export license.

The Department of Trade of the Ministry of Commerce, issues export licenses. No license fee is charged for exports. Export licenses are issued based upon the recommendations by relevant ministries, agencies and business associations:

1. Agricultural seeds - Department of Agriculture
2. Teak scantlings and forest products - Forest Department
3. Shrimp bran (prawn shell dust), fish bran - Department of Livestock Breeding and Veterinary
4. Metal - Department Mine
5. Movies, video tapes - Myanmar Motion Picture Enterprise
6. Animals, animal products and animals feed - Livestock Breeding and Veterinary Department
7. Materials related to food and drugs - Food and Drug Administration
8. Seeds and vegetable roots - Department of Agriculture
9. Pearl products made of pearl and mother of pearl - Myanmar Pearl Enterprise

The Ministry of Commerce requires that all export transactions use the FOB Incoterm. Other Incoterms are not currently authorized.

The Ministry of Commerce reviews the price levels of export transactions and may deny an export license if the price level of a particular export transaction is deemed contrary to the national economic interest.

Applications for export licenses have been automated. See the tradenet website. However, manual applications are also accepted. Applications are accepted at the Department’s Headquarters at Nay Pyi Taw, in Yangon, Mandalay and some border offices. Department of Trade currently operates a Border Trade Online System (BTOS) for processing export licenses at border posts.

License requirements are reviewed on an annual basis and there may also be occasional additional changes during each year.

Required certificates, permits or export recommendations, etc.

1. Depending upon the nature of the export, certificates, permits or export recommendations may be required from regulatory authorities or association members of the UMFCCI, consistent with the importing country’s requirements.
2. A country of origin (COO) certificate may be required from the Ministry of Commerce in order for exports to qualify for ASEAN or other preferential duty treatment.  In addition to ASEAN members, free trade agreements exist with Korea, Japan, Indian, China, and Australia-New Zealand. Exports may also be eligible for Generalized System of Preference (GSP) duty free treatment. The application process for a COO certificate is paper-based. There are 10 certificates for ASEAN free trade and various GSP programs. For copies of the certificates and an illustration of the application process, click here.
3. Non-preferential COOs are also issued by the relevant ministries, UMFCCI and its constituent members.

Validity of export license and amendments

License validity is three months after issuance. After three months, the exporter can apply for an extension of the license for two months. On further application, a second extension for one month is also provided for. After six months the applicant must apply for a new license. There is no license fee for extensions.

Amendments to export licenses are also available before shipment.

Automation of import-export processes by Myanmar Customs

Myanmar Customs is currently developing an automated cargo clearance system (MACCS) designed to automate a number of areas of customs operations. These include user registration, clearance of goods, cargo management, payment, information technology, and the helpdesk. MACCS will connect with shipping and airlines, the Port Authority, warehouse operators, brokers and importer/exporters and also with other government agencies. It will initially be installed in Yangon and later in other customs offices throughout Myanmar. Eventually MACCS will provide the basis for a National Single Window (NSW) where submission for licenses to other government agencies and approvals or rejections may be made using MACCS.  It is planned for MACCS to be operational by late 2016. MACCS should significantly reduce the time for customs processing of imports and exports and also improve the collection of revenue and enforcement of import restrictions. Top.

You can find out on this website which commodities are subject to these requirements by using the search facilities on the Commodity Search page.

Department of Agriculture, Livestock Breeding and Veterinary Department, Department of Fishery and Food and Drug Administration Department are responsible for sanitary and phytosanitary (SPS) measures in Myanmar. SPS standards adopted by Myanmar follow those of CODEX, ASEAN, and the OIE. A detailed description of the procedures and documentation required can be found on the Procedures page of this website. Top.

These technical regulations are administered by the Department Of Research and Innovation (DRI). Note that export countries have specific technical requirements specific to exported products and that exporters should check with relevant compentent authorities in export destinations about those requirements before exporting. Myanmar has established a TBT Enquiry Point as required by the WTO TBT Agreement.  You can contact the TBT Enquiry Point if you have any questions regarding technical standards. Top.

1. All exports must be cleared through Customs using the CUSDEC-2 Export Declaration Form along with the CUSDEC-4 Customs Valuation Form.

2. Required accompanying documents include:

   1. An export license / permit

   2. The invoice

   3. Packing list

   4. Sales contract

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

   6. Sample of goods

   7. Pass for the shipment of forestry products

   8. Health certificate for the export of live animals

   9. Permit for the export of wild live animals

   10. Other certificates, permits or import recommendations, as required (for example, a country of origin or SPS or FDA certificate)

3. Generally the customs declaration and supporting documents must be submitted to Customs prior to the export of the goods. Top.

1. Commercial taxes are currently assessed on exports of some commodities. These include raw gems (15%), finished gems(5%), electricity (8%), gas (8%); crude oil (5%);, teak and conversions (50%); and timber and conversions (50%).
2. A specific goods tax (SGT) on manufactured goods was recently approved and will be effective 1 April 2016. Commercial taxes may be phased out and replace by the SGT.
3. Tax exemptions on exports are granted to domestic and foreign investors. Manufacturing businesses receive 50% income tax exemption on profits accrued from exports, and commercial tax exemption if the goods are exported with a few exceptions.
4. Customs collects a 2% advance income tax on exports for the Internal Revenue Department. Top.

Private inspection companies also may conduct pre-shipment inspections (PSIs) of certain commodities, such as rice.Top.

Businesses located in SEZs frequently conduct export processing operations, taking advantage of duty and indirect tax exemptions. SEZs have been used by China, Vietnam and other countries to encourage FDI and to experiment with new economic policies.

Myanmar’s SEZ legislation was revised in 2014. Under this law, investors who carry out business in a SEZ are eligible for a variety of tax exemptions and reductions. For details, click here to review the SEZ law.

The Government currently plans to establish 3 SEZs: Dawei, Kyaukphyu, and Thilawa. Infrastructure is being developed for Dawei. Dawei is not operational. Kyaukphyu is also at an early stage of development. Factories have located in Thilawa but only one has started operations. Top.

A foreign agent provides the fabric and other materials to produce garments according to contract specifications. An import license to import the fabric and other materials is obtained from the Ministry of Commerce, based upon recommendation letters from the Ministry of Industry and the UMFCCI. No export license for the finished garments is required. Imported materials and exported finished garments are duty and tax free. The Ministry of Industry monitors the production of factories through daily statistical reports and also issues non-preferential certificates of origin.  This has helped the garment industry to develop into a leading sector of the economy in Myanmar, with more than 300 factories employing more than 250,000 workers. About half the factories are foreign-owned. All garment production is exported to customers located in many countries around the world. Export sales exceed USD$1.6 billion. Special, simplified procedures have been developed to expedite the production and export of clothing articles. Top.