Guide to Import - Special customs procedures
Special customs procedures
Special customs procedures may apply to certain imports. For information about these special procedures, click here.
1. Special order procedure
A Special Order is the power of the Director General, Customs, to permit imports to enter without the payment of duties and taxes at the time of entry. This procedure can apply to highly perishable goods, the goods of diplomats, and certain other products. The importer must post a financial guarantee (deposit) to be permitted to use this procedure. For more information, click here.
2. Transit and transhipment.
Customs transit is the procedure where goods are transported under customs control from one customs office to another without the payment of duties and taxes. Transshipment is the procedure when goods are transferred under customs control from the importing means of transit to the exporting means of transit without the payment of duties and taxes.In Myanmar, the ASEAN transit agreement has not yet been implemented. However, Customs applies limited trade transit procedures, permitting the movement of cargo from one vessel to another in port or the movement of goods to the port and then to another vessel (known as “retention procedures”). For more information on transit procedure, click here.
3. Temporary admission.
Temporary admission is the procedure where goods are brought into the customs territory conditionally relieved from the payment of duties and taxes if they are intended for a specific purpose and are re-exported within a specified time frame without change in condition.This is useful for trade shows, visiting musicians traveling with their instruments, etc. Internationally, ATA carnets, serving as both a customs declaration and financial guarantee, are used to effect temporary admission in most countries. Myanmar has not adopted ATA carnets but does have a temporary admission procedure.
4. Customs bonded warehouse (duty free store)
Customs warehousing procedure is the procedure where goods are stored under Customs control without the payment of duties and taxes. Myanmar has both public and private customs warehouses, including an airport warehouse. This permits importers to store their goods in customs warehouses without the payment of duties and taxes. Duty free stores at airports and land borders are a special form of customs warehouse where international travelers can purchase goods without the imposition of duties and taxes. Myanmar has authorized a number of duty free stores. Warehouse operators must provide a financial guarantee to Customs. For more information, click here.
5. Inward processing.
Inward processing is the procedure where goods can be brought into the customs territory conditionally relieved from the payment of import duty and taxes, on the basis that they are intended for manufacturing, processing or repair and they will then be exported. Myanmar currently has a limited inward processing procedure known as importation by cutting, making and packaging (CMP), designed primarily for garment manufacturing. Manufacturers using this procedure must provide a financial guarantee to Customs and normally export the finished product within one year.Click here for more information about CMT.
6. Outward processing.
Outward processing is the procedure where goods that are in free circulation in the customs territory may be temporarily exported for manufacture, processing or repair and then returned with a total or partial exemption from duties and taxes. Myanmar does not currently have an outward processing procedure.
7. Drawback.
Drawback procedure means the Customs procedure, when goods are exported, that provides for a total or partial repayment of duties and taxes. In Myanmar imports of machinery and equipment that are re-exported are eligible for duty drawback. The goods must be re-exported within two years of importation. Under the current procedure, seven eighths of the customs duty paid on the goods will be refunded on re-export. The drawback claim must be made at the time of re-export and the goods must be easily identifiable. Claims are normally processed within six months.
8. Travelers (passengers)
A traveler is a person who temporarily enters a country in which he or she does not normally reside or a person who leaves or returns to a country in which he or she normally resides. Travelers entering Myanmar must submit a customs declaration. Click here for a copy of a traveler’s customs declaration.
Myanmar has adopted a dual channel customs control system, allowing travelers on arrival to chose between the green “nothing to declare” channel and the red “something to declare” channel. A foreign traveler’s personal effects are exempt from duty and tax. Foreigners must declare foreign currency exceeding USD 10,000; citizens of Myanmar must declare all foreign currency. Duty and tax free allowances apply to up to 2 liters of beverage alcohol, up to 150 ml of perfume, up to 400 cigarettes, and certain other items.
9. Imports of goods by truck
Myanmar requires cargo trucks from other countries to be offloaded and then on-loaded to Myanmar registered trucks and trailers a border crossing points. In other countries in the region only the truck and driver are exchanged at the border.
Spotlight on the Garment Industry
Today the garment industry is 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. To read about these special procedures, click here.
Currently almost all garment production in Myanmar is done under the “Cut, Make and Package” (CMP) process. 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 certificates of origin.
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