30 July 2019

The Myanmar Ministry of Commerce has recently issued Notification No. 24 of 2019 (“Notification”) allowing foreign companies and joint ventures between foreign companies and Myanmar companies (“joint ventures”) to purchase seven categories of goods from local manufacturers for export. This is effective from 6 June 2019, the date of the Notification.

The Notification states that the opening of these categories for foreign export is aimed at increasing productivity and enabling local manufacturers to enter more foreign markets.

Categories of goods and procedure for export

The seven categories of goods and the procedure for export set out in the Notification are as follows:

  • Meat and fish: Requires an export licence and the recommendation of the Livestock Breeding and Veterinary Department and the Department of Fisheries.
  • Value-added crops:
    • Beans, corn and sesame
      • Product to be in powdered form, ready-to-eat or cleansed and peeled; and
      • Requires an export licence and a recommendation from the Food and Drug Administration.
    •  Rice and broken rice
      • Requires evidence of the transfer of at least USD3 million from a foreign bank to any domestic bank, as initial investment contribution;
      • Requires evidence of having sufficient warehouse space; and
      • Membership of the Myanmar Rice Federation.
  • Pulp and varieties of paper: Exportation must be in accordance with other prescribed procedure.
  • Seeds: Exportation must be in accordance with the procedure of the Department of Agriculture in accordance with the Seed Law.
  • Refined ores: In accordance with the Mines Law, sale and purchase permits must be obtained to deal in minerals, and the permit holder shall then be issued with an export licence, with the recommendation of the Department of Mines.
  • Fruit-based value-added, semi-finished or finished products: Requires an export licence which shall be granted in accordance with the relevant department’s procedure under the Food Law.
  • Wood-based furniture: Requires an export licence and the recommendation of the Myanmar Timber Enterprise and the Department of Forest, in line with the policy of the Ministry of Natural Resources and Environmental Conservation 

The Notification states that the list of goods allowed for export by foreign companies and joint ventures will be revised as necessary in accordance to domestic needs, market situation and condition of local businesses.

 

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