Knowledge Highlights 25 April 2024
Myanmar sets out procedures for registration of export/import businesses
On 10 May 2023, the Myanmar Ministry of Commerce issued Notification No. 35/2023 on the Export/Import Business Owner Registration Order (“Order”). The Order sets out requirements for the registration and renewal processes for those conducting export and/or import business in Myanmar.
Registered export/import business owners may:
- export and import goods in accordance with the prescribed procedures by sea, air, and conventional trade through designated trading stations in the border region or in the border trade system; and
- export and import goods as per relevant terms and conditions with the exception of goods whose export and import are prohibited.
This article provides an overview of the Order.
Registration
Eligibility
“Export/import business owner registration” is defined as the registration made by the Department of Trade (“DOT”) under the Order of a business owner who exports any goods out of the country or imports any goods into the country for the purpose of trade.
The Order provides that the following may apply to be registered as an export/import business owner:
- Companies established under the 1950 Special Companies Act and the 2017 Myanmar Companies Law
- Cooperative societies established under the Cooperative Society Law
The Order defines the term “export/import business registration” to mean registration made by the DOT for the export or import of any goods out of and into Myanmar for a non-trading purpose. The Order stipulates that the following are able to apply for such a registration:
- Government departments and organisations
- State-owned enterprises
- Associations registered with the relevant departments
- Religious figures and diplomats
Documentation to be submitted
The Order sets out the documentation that must be provided to apply for registration and specifies that foreign companies engaging in trade must submit evidence of investment from abroad such as bank statements. Where required for the business undertaken, the company must also submit copies of the following:
- permit or endorsement issued to the company by the Myanmar Investment Commission
- permit issued by a Special Economic Zone Management Committee
It is noted that applications to register can be made online via Myanmar Tradenet 2.0.
Fees
The term of the export/import business owner registration for a company is five years from the approval, and the registration fee is MMK200,000.
A company may apply to the DOT for renewal of its registration six months prior to expiry. The fee for renewal is the same as the registration fee. The export/import business owner registration certificate will be automatically cancelled should no application for renewal be made within a year of the registration’s expiry.
The Order makes provision for the amendment of data submitted during the registration process. However, this process will require the resubmission of the documentation specified for registration and incurs a fee of MMK10,000 per amendment.
The term of the export/import business registration of government departments and organisations, State-owned enterprises, associations registered with the relevant departments, religious figures and diplomats is one year and the registration fee is waived.
Verification card
An export/import business owner may apply for a maximum of five export/import business owner verification cards at a fee of MMK10,000 per card.
Requirements
The Order specifies that only the headquarters of a company established in the country may apply for export/import business registration, irrespective of how many branches it may have. If the company is established outside of Myanmar and registered according to the Myanmar Companies Law, only one branch may apply for an export/import business owner registration irrespective of how many branches may have been opened.
No company or cooperative society may apply for an export/import business owner registration or for its renewal or amendment if its export/import business owner registration has been suspended or cancelled or any of the members of its board of directors is also the director of a company or cooperative society whose export/import business owner registration has been suspended or cancelled.
The Order also stipulated that the company or cooperative society must not misrepresent, hold back, modify, add, and falsify anything when applying for an export/import business owner registration or for its renewal or amendment.
Rejection, suspension, or cancellation of application
The DOT is able to reject an application for both business owner and business registration and cancel registration granted where it finds non-compliance with requirements stated in the Order. The DOT is also able to suspend the registration for a period from three months to one year where the company is found to be in non-compliance with the Order.
An affected company is able to appeal to the Ministry of Commerce within 30 days of the DOT notice of such action.
The company is able to apply for reinstatement of a suspended registration upon the expiry of the suspension period or where it has obtained the recommendation of the relevant department and paid stipulated fines.
If the DOT finds that the trading activities of the holder of an export/import business owner registration are not in conformity with public interest, the management committee of the Ministry of Commerce, headed by the Union minister, may decide to suspend or cancel the export/import business owner registration.
