|Trade Regime of Myanmar|
Trade Regime of Myanmar
Since, Myanmar has changed its 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 was 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.
(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 monopolized by the state.
(2) Border Trade was regularized in order to develop and strengthen the bilateral trade relations with the five neighboring 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 were 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 also wants 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.
Basic Principles of Export
The basis principle of export policy is to penetrate into the global market by using our existing natural and human resources and to produce value added products more than normal export items.
Basic Principles of Import
The basis principle of import policy is priority import the capital goods, construction materials, other essential goods, hygienic materials for people’s health, supporting products for export promotion and support the import substitute production.