When goods leave Myanmar’s customs territory, they are sent out of the country. Exports are governed by different rules depending on whether they are for business. Exports are complicated because of the logistics, laws, and rules that govern them. Most exporters hire freight forwarders and customs brokers to help them plan and carry out export transactions. The Customs Department of the Ministry of Planning and Finance (“Customs”) is in charge of how much Myanmar sends abroad. Customs is in charge of figuring out and collecting taxes on exports, as well as other regulatory and law enforcement tasks that have to do with exports. The exporter must also join the Union of Myanmar Federation of Chambers of Commerce and Industry.
Exports not allowed
Myanmar doesn’t let certain things leave the country. Articles XX and XXI of the WTO’s GATT allow WTO members to ban the export of certain items that threaten public morals or human, plant, or animal life, such as weapons and ammunition. Under these GATT rules, the Department of Trade in the Ministry of Commerce has used its right to ban some items. The Ministry of Commerce’s Notification No. 59/2020, dated August 17, 2020, says that the following items cannot be sent out of Myanmar:
- Diamond.
- Crude oil.
- Ivory.
- Elephants, horses, and other uncommon animals.
- Guns and bullets.
- Antiques.
If you aren’t sure what to do, you should ask the department of Trade of the Ministry of Commerce for help.
Export licenses
Myanmar’s government has made it easier for people to get an export license. But you still need an export license for some tariff lines. The Department of Trade in the Ministry of Commerce is in charge of giving export licenses. It does this based on recommendations from other ministries and agencies and business groups. There is no charge for exporting. The Ministry of Commerce says that the FOB Incoterm must be used in all export transactions. Other Incoterms are not allowed right now. The requirements for a license are looked at every year, and there may be small changes here and there during the year.
Required certificates or export recommendations
Depending on the type of export and what the country of import wants, regulatory authorities or association members of the UMFCCI may need to issue certificates, export permits, or export recommendations. COOs that are not preferred are also given out by the relevant ministries, UMFCCI, and its members.
Changes to and the validity of an export license
The license is good for three months after it is issued. The exporter can ask for a two-month license extension after three months. There is also a second one-month extension that can be requested if the first one isn’t enough. After six months, the person who wants to get a license must apply for a new one. Before shipping, you can also make changes to export licenses.
Export taxes
Once a declaration has been made and accepted by Customs, certain export products will need to have their duties paid. On exports of certain goods, the customs department takes a 2% advance income tax for the internal revenue department. Section 16(b) of the Income Tax Law gives the Ministry of Planning and Finance (MOPF) the power to set the rates and methods for collecting advanced taxes on exported/imported goods during a relevant income year. For exports, the progressive taxes must be paid in Myanmar Kyat during the relevant income year at a rate of 2% of the value of the goods exported if the export is paid for in Myanmar currency, or 2% of the value of the goods exported using the exchange rate set by the Central Bank of Myanmar for the date of export if the export is paid for in a foreign currency. Under the Special Economic Zone (SEZ) Law, 2014, exporters get extra help.
Exports checked by customs
Customs is in charge of export inspections. These are meant to keep exporters and importers from arguing about the quality and quantity of the goods and to stop the export of goods that aren’t allowed. Some goods, like rice, can also have pre-shipment inspections (PSIs) done by private inspection companies.
