Directorate of TradeAdvance forward through commerce 
Trade Regime of Myanmar
Since, Myanmar has changed it's economic course from a centrally planned economy into a market oriented system, a series of structural reforms had been introduced and new legal policy instruments given the private sector including foreign investors and businessmen, the right to do business and to make investment in the country were enacted.
The Government of the Union of Myanmar has recognized, in the context of the market-oriented economic system, the private sector as a prime-mover of the market mechanism and pays great attention for its development. All-out efforts are being made to encourage the active participation of private sectors in foreign trade and giving full support in every angle.
By these reasons, trade liberalization measures were introduced as follows:-
( 1 ) To be in line with the changing economic system, the private individuals or enterprises are allowed to carry out the export import business which was previously monopolised by the state.
( 2 ) Border Trade was regularised in order to develop and strengthen the bilateral trade relations with the five neighbouring countries . Department of Border Trade was established and its 11 branch offices providing one - stop service for border trade matters in collaboration with various departments concerned.
( 3 ) Export and Import procedures was realigned.
( 4 ) Lowered the technical barriers to trade and simplified export/ import procedures geared towards trade facilitation and promotion.
( 5 ) Incentives are being given to exporters by allowing 100 % retention of export earnings for importation of goods.
( 6 ) Trade notifications are being issued by specifying necessary rules in conformity to the changing internal and external business environment.
( 7 ) Exemption of commercial tax and customs duty on the imported items like fertilizers, agricultural machineries and implements, insecticides and pesticides, medicines and raw materials.
( 8 ) The role of Chambers of Commerce and Industry had reactivated and reorganized the Union of Myanmar Federation of Chambers of Commerce and Industry - UMFCCI for the promotion of trade and industry of the private sector.
To be in line with the market oriented economy, the foreign trade policy of Myanmar is also a very independent one. We can trade with any country in the world except with some countries that are trade embargoed by the United Nations Resolutions or a few countries and territories which we have cut off diplomatic relations.
Myanmar believes in trade liberalization and alsowants free and fair trade in the world. Myanmar was a founder member of the old organization, GATT and a member of the new organization, WTO. Hence, our foreign trade policies are generally governed by the rule-based multilateral trading system.
Export Policy
Myanmar's export policy is to export all exportable surplus and diversify foreign markets by using of natural and human resources. Increasing and diversifying exports and improving the quality of products are among the main objectives of the export promotion policy.
We give top priority for the development of agriculture as the base and all - round development of the economy as well. A number of new items in the manufacturing and processing sectors have been introduced in the past few years. Main export items include agricultural products, forest products, fishery products, metals & minerials, precious stones and industrial products.
The registered exporter / importer has the right to do trading business. The registered exporters / importers are allowed to enjoy 100 percent export retention money for the import of goods. There exists no export quota nor ceiling for any exportable product or any individual or organization.
Import Policy
Regarding the import policy, import is allowed against the export earnings with a view to promote export and to overcome the balance of trade deficit problems.
The private businessmen are encouraged to import capital goods, industrial machineries including raw materials and other essential items while the consumer choices can be fulfilled equally at the same time.
Licence should be applied for any export or import. The authority to issue export/import licences and permits is dedicated to Directorate of Trade and Department of Border Trade under the Ministry of Commerce. Directorate of Trade is authorised to issue export/import licences and permits for conventional export/import by overseas. The Department of Border Trade is authorised to issue export/import licences for overland trade with the neighbouring countries.
The validity of export / import licence / permit issued by the Directorate of Trade is three months from the date of issue, and it cannot be extendable.
Export licence fee is not payable on export of any commodity including agricultural crops. All the imports are subject to pay the licence fees, customs duty and commercial tax.
Customs duty together with the commercial tax are collected at the point of entry and the time of clearance of imported goods. Raw materials and other essential imports are taxed at very low rates, while the highest rate is applied to luxury items.
Commercial tax is levied according to the Schedules appended to the Commercial Tax Act 1991, and the rates vary depending on the types of goods and services. For the items not exempted from commercial tax, the rates of tax on imported goods are 5%, 10%, 20% 25% according to the respective schedule of goods. Another schedule represents specific types of foods such as cigarettee, liquor, etc. carrying rates above 25%.
Assessment of Import Duty is based on the assessable value, which is the sum of CIF value and the landing charge (0.5 % of the CIF value) for the goods imported. The commercial tax together with the custom duty are collected at the point of entry and the time of clearance of imported goods.
There are three state banks namely Myanma Foreign Trade Bank - MFTB, Myanma Investment and Commercial Bank -MICB and Myanma Economic Bank - MEB, conducting foreign trade transactions of the Union of Myanmar. MEB opens branch offices at the border checkpoints for the commercial transactions of overland trade with the neighbouring countries.
* * * * * * * * *