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EXPORT IMPORT TARIFF

In Myanmar, the customs procedures are provided in the Sea Customs Act and Land Customs Act. The tariff law was enacted on March 12, 1992 with a view to assisting the market economic system in order to facilitate external trade. In accordance with the Law, a notification was issued to regulate the classification of imported goods and assessment of duties. For modernization and standardization, in line with international practice, the Harmonized Commodity Description and Coding System (HS) was introduced in April 1992.

TARIFF AND DUTY RATES

Where duties are livable on imported goods, all relevant duties must be paid before such goods are delivered for domestic consumption. In the same way, where export duties are livable, such duties must be paid before such goods are permitted to be exported. Types of duties are livable on imported goods are as follows:

- Import duties
- Commercial taxes
- Licence fees

Customs Tariff

The promulgation of the new Customs Tariff Law on March 12, 1992 enabled the Myanmar Customs Administration to adopt the 1992 Version of the Harmonized System for tariff and statistical nomenclature on April 1, 1992. After incorporating necessary changes in the Myanmar Customs Tariff, the 1996 Version of the Harmonized System was applied on 1 St January 1996.

The Myanmar Customs Tariff comprises of four schedules namely

Schedule I - Import Tariff
Schedule II - Concessionary Tariff
Schedule III - Export Tariff
Schedule IV - Export Border Trade Tariff

The maximum tariff rate is 40% and the minimum is 0% Customs tariff rates on imports of machinery, spare parts and inputs generally range from 0.5 %to 3% Customs duty is zero rate for all the goods to be exported from the Union of Myanmar.

Payment of Customs Duties and Other Taxes

Payment of customs duties and other taxes can be made by the following two methods --
- By cash or payment order
- By deduction from the current deposit account

Cash or Payment Order

- Payment by cash not exceeding 5000 Kyats is accepted at the Customs Department. - - -- Payment for amount exceeding 5000 Kyats must be made by payment order, which are easily obtainable from Myanmar Economic Bank and other Banks.

Payment by cash for customs duties and other taxes exceeding the amount K 5000/- are permissible exceptionally in the following cases:

- Goods declared at wharves
- Goods cleared at Post Office
- Crew baggage and passenger baggage
- Security deposit at auctions.
- Current Deposit Account

The exporters, importers and Joint venture enterprises can open current deposit accounts with the Customs Department. The Customs duties and other taxes levied on their imports or exports can be deducted from these accounts.

Duty Exemption

In the interest of the state the Minister of Revenue and Finance may by notification exempt partially or wholly from levy of customs duties in respect of any of the following cases:

- Nature and type of goods exported from Myanmar or imported into Myanmar
- Nature and type of goods exported from Myanmar or imported into Myanmar by any government department or any organization.

VALUING YOUR PRODUCTS

The basic principle of the present national valuation system is that the real value is taken to be the normal price or import value of goods at the time and place of importation. It presupposes that the sale has taken place in the open market between independent buyer and seller.

By the definition of value, it means the cost at which goods of the like kind quantity could be delivered at the place of importation.

Being one of the original signatories of both GATT and WTO Myanmar shall inevitably have to apply the Customs Valuation methods prescribed in GATT article VII in due course and has taken measures to do so. The Myanmar Customs have made use of the Special and Preferential Treatment offered to developing countries in GATT Article VII of 1994 to exercise delay application of the GATT Code until the year 2000.

CLEARING IMPORT

Under the existing rules and regulations all incoming consignments of the goods must be cleared through the Customs Department under Import Declaration Form (CUSDEC – 1). The Import Declaration Form is to be accompanied by the following documents:

- Import licence / permit
- Invoice
- Bill of Lading or Air Consignment Note
- Packing List

Other Certificates and Permits issued by the relevant Government Departments as a condition for Import.

Customs duty is payable according to the tariff schedule. Import duty is levied on the C.I.F value. Together with customs duty, commercial tax is levied on the imported goods based on the landed cost, which is the sum of assessable value and import duty. These taxes are collected at the point of entry and the time of clearance.

CLEARING EXPORT

On the shipment of export commodities, Export Declaration Form (CUSDEC – 2) must be submitted to the Customs Department together with the following documents:

- Export licence / permit
- Invoice
- Packing list
- Sales Contract
- Shipping Instruction
- Letter of Credit or General Remittance Exemption Certificate

Payment advice referring Inward Telegraphic Transfer Private No./ Inward Telegraphic Transfer Government No.

Sample of goods

- Forest pass for the shipment of forestry produce
- Health Certificate for the export to live animals
- Forest permit for the export of wild live animals
- Other certificates and permits as required by the Government Agencies concerned.
Customs duty is levied on exported goods according to the tariff schedule and export duty is levied on the F.O.B value.

GOODS WITH PROHIBITIONS, CONTROLS, AND RESTRICTIONS

Import Prohibitions

Common types of goods prohibited from importation into Myanmar are as follows:

- Counterfeit coins and currencies
- Pornographic articles
- Piece goods without stamped measurement
- Goods having counterfeit trade mark
- All kinds of narcotic drugs and psychotropic substances
- Playing cards

- Goods bearing the imprint or reproduction of the flag of the Union of Myanmar
- Goods bearing the emblem of Buddha and pagodas of Myanmar
- Export Prohibitions

Common types of goods prohibited from exportation out of Myanmar are as follows:

- Arms and ammunitions
- Pornographic articles
- Antiques
- All kinds of narcotic drugs and psychotropic substances

TEMPORARY ADMISSION

Commodities, imported temporarily for inward processing, such as industrial raw materials and packing materials are exempted from customs duty for a period of two years under bond to re-export within a time limit.

OBTAINING REFUNDS/DRAWBACKS ON YOUR DUTY PAYMENT

Seventh-eighths of the customs duty paid on goods that could be easily identified will be refunded when such goods are withdrawn from the country again under the drawback facility in accordance with the following conditions:

The re-export goods must be identical with those imported on payment of duty

Two years must not have elapsed since their importation in cases where the port of re-export is the same as that of import. The time may be extended up to three years on application.

The re-export goods must be included among the articles declared to be incapable of being identified.

The goods must not be re-exported to a port to which shipment under claim for drawback is prohibited.

The goods exported must not be of less value than the amount of drawback claimed.

The claim for drawback should not ordinarily be less than 5 Kyats in respect of any single shipment.

The goods must not be included among the articles declared to be prohibited or restricted.

LICENSES/BONDED WAREHOUSE

All dutiable imported goods may be stored in licenced or approved warehouses. An application should be made in writing for approval. The owner of goods must execute a bond, binding himself to pay a penalty of twice the amount of duty on default. Goods are allowed temporary storage without payment of duty and taxes up to a period of three years. Goods removed from those warehouses for home use are liable for payment of import duties and taxes according to the rates applicable to them Exemption from payment of import duties and taxes are given for goods that are to be re- exported subsequently or sold to organizations or individuals exercising duty exemption facilities.

CLEARANCE FOR PASSENGER

All sorts of baggage of both in-coming and out-going passengers are subject to Customs control in Myanmar.

In-coming Passengers

Dual channel system

In order to expedite clearance of passengers' baggage, the Green and Red Channels have been adopted at the Yangon International Airport. Passengers with the prohibited, restricted or dutiable goods exceeding duty free allowance are to make the declaration at the Red channel. Passengers who are uncertain about the status of their baggage are also advisable to go through the Red Channel. Any valuable, dutiable and restricted articles including cellular telephones brought in by a passenger must be declared and should be placed under Customs bond if they are not intended for use in the Union of Myanmar. Declarations can be made by using the Passenger Declaration Form issued by the Customs Department. Foreign currency being possessed by the visitor ( non-citizen) is required to be declared in the Foreign Exchange Declaration Form ( FED Form ) if the amount exceeds US $ 2000 or its equivalent. Other passengers are suggested to proceed through the Green Channel.

Duty free allowances for the in coming passengers

The following goods shall be treated as passenger's baggage for which the Customs duties are exempted :

- Personal effects in actual use by the passenger
- 400 sticks of cigarettes
- 2 litres of wine. spirit or liquor
- 250 gm of tobacco
- 100 sticks of cigars
- 0.5 litre of perfume

Import permits/licences

The goods brought into not for the private and personal use of the passengers will require import permits / licenses issued by the Ministry of Commerce.

Other import restrictions

Importation of the following items require written approvals from the government agencies concerned :

Item Agency
(a) Live animals/birds Lives Stock Breeding and Veterinary Department
(b) Arms Myanmar Police Force
(c) Medicines/drugs Myanmar Food & Drugs Authority
(d) Live plants/seeds/soil Myanmar Agricultural Service
(e) Telecommunication equipment (including mobile phones) Telecommunication Department

Import prohibitions

The following articles are prohibited from importation into the Union of Myanmar :

- Counterfeit coins and currencies,
- Pornographic articles
- All kinds of narcotic drugs and psychotropic substances
- Antiques and archaeologically valuable items
- Wild life and endangered species
- Unaccompanied baggage

Duty exemption facility is extended to cover the baggage arriving within three months from the date of the arrival of the passenger.

Out -going passengers

Declaration and restriction

When asked by any officer of Customs , oral declaration on the belonging of the passenger is required if the following items are acquired for the private and personal use of the passenger, he or she can take them out of the Union of Myanmar on production of the written approval from the agencies concerned.

Item Agency
(a) Religious artifacts Archaeological Department
(b) Printed books/matters & recorded cassette tapes & discs Press Scrutiny and Registration Division Affairs
(c) Recorded video tapes Video Censor Board
(d) Gems set jewellery, silverware & handicraft Licensed shops (Their Cash memos/vouchers would serve as export permit
(e) Unset gems In addition to the requirements of item(d) special certificates from the Myanmar Gem Enterprise (MGE)

Export prohibitions

It should be noted that the following articles are totally prohibited from exportation out of the Union of Myanmar.

- Counterfeit coins and currencies
- Pornographic articles
- All kinds of narcotic drugs and psychotropic substances
- Antiques and archaeologically valuable items
- Wild life and endangered species

For more information, please visit to www.commerce.gov.mm.