Myanmar is -a founder member of GATT -a signatory member of WTO -a member of Regional groupings - ASEAN - GMS - BIMST-EC - ACMECS
International & regional organizations involved in Trade Facilitation - UNESCAP - UNCTAD - WTO - ASEAN - GMS Myanmar has been implementing the obligations of the above organizations related to TRADE FACILITATION
GATT Articles V, VIII, X GATT Article V ( Freedom of Transit) GATT Article VIII (Fees & Formalities connected with import & export) GATT Article X (Publication & Administration of Trade Regulations) As a WTO member, Myanmar has been committed to implement the above three GATT Articles; As an ASEAN member, AFTA has been implemented by generating the elimination of tariffs & NTBs to facilitate trade; As regards to GMS, Agreement on Cross Border Movement of Goods & People was signed and ratified by the member countries
Initial implementation of Trade Facilitation since early 1989, Myanmar has changed its economic course from centrally planned to market oriented system series of structural reforms had been introduced as initial trade facilitation measures
Trade Reforms encourage private sector development allowing FDI institutional changes practiced new financial management streamlining taxes & duties promote external trade by improving export/import procedures improving infra-structure support
GATT Article V (freedom of transit) transit trade has been allowed In 1996, Department of Border Trade was formed Open border check points along the border areas with neighbouring countries one stop service (oss) has been established in 13 border check points for simplified and standardized cargo clearance procedures in collaboration with Custom, Revenue Dept: Banking Institution
Myanmar China Border Check Point
GATT Article V (contd) to be in line with international best practices, X-X Ray machine is now underway to install for speedy inspection of cargo designated two border posts as a pilot sites for implementation of SINGLE WINDOW INSPECTION; As a medium of exchange not only US $ has been allowed but also local currencies for border trade transactions; For speedy payment mechanism, branches of major bank has been opened at border posts.
GATT Article V (contd) Since Myanmar became a member of the WCO in 1991, it has introduced the reform measures in the customs administration in order to simplify and harmonize the customs procedures and documents.
Custom Initiatives transformation of export and import division under the Customs Department into a one stop service station. application of Declaration Forms according to the UN Layout. simplification of customs clearance procedures. restructuring of cargo examination procedure. establishment of customs transit trade system.
Major Initiatives (contd) adoption of the inward processing procedure as suggested by the Kyoto Convention. security initiative for containerized cargoes. establishment of Customs website in cooperation with ASEAN Secretariat. preparation for the ASEAN Single Window.
GATT Article VIII (Fees & Formalities) need to apply export/import licenses export license fees is not payable import license fees is payable reasonable rate based on invoice value to cover document administration cost not as revenue no quantitative restriction on export/import but import is allowed against export earnings the more they want to import, the more they have to export; it supports export promotion;
GATT Article VIII (contd) Major export items are agro products, marine & forest products required formalities are done according to the request of importing countries Main import items are capital goods, construction materials, machinery & pharmaceuticals documentation is simplified & reducing requirements However, due to FDA rules, for safety reason, imported pharmaceuticals are required to register Some food items like rice, cooking oil temporary quantitative measure has been applied due to domestic self sufficiency
GATT Article X (Publications & administration of trade regulations) Since initial reform measures, publications on law, rules, regulations & procedures regarding investment, import, export, custom & taxation have been made; align trade documentation format in line with UN layout key; periodical notifications, orders, information are made transparency through MoC publications such as Trade News, Commerce journal and also on commerce website; http//www.commerce.gov.mm www.myanmartradenet.com.mm which is a Myanmar trade portal is now under construction
UNESCAP Project UNSCAP initiated a project "Alignment of trade document of Cambodia, Myanmar & Vietnam" publishing guide book and already relayed to departments concerned use as a guide to align & simplify trade documents
Publication on Export/Import rules & regulations
Some Publications
Ministry of Commerce website
MyanmartradeNet website
Challenges & issues in implementing trade facilitation multiple cost of implementation to reduce the cost of trade; major cost consuming sectors are; infrastructure development human resource development development of mechanism for trade facilitation institutional reforms
Challenges & issues (contd) inadequate capacity is a major challenge requires assistance not in terms of technical but also financial the assistances provided are only for awareness and acknowledgement of advantage of trade facilitation without practical implementation Competitiveness is a big challenge faced by our exporters supply side constraint; they much depend on few items of exports
Weaknesses to identify new products to new markets Myanmar exporters have some weaknesses limited capacity to produce for export; lack of export diversification into high value-added, added, processed and manufactured goods; stringent quality & standard requirements; export produce not matched by market demand; inadequate comprehensive foreign market information; lack of skilled man power and institutional capacities; lack of technological capacity & technical know-how lack of financial & marketing capability
ISSUES Freedom of transit, cannot be entirely facilitated due to political and social reasons by nature of our country. Narcotic drugs and human trafficking is a major problem to facilitate freedom of transit both for goods and people.
Myanmar would like to support the following request made by Least Developed Countries Group at the Zambia Ministerial Meeting to reach agreement at the Sixth Ministerial Conference : - "Full and faithful implementation of the Modalities for Negotiations on Trade Facilitation that ensure adequate financial and technical assistance and capacity building including support for infrastructure development of Least Developed Countries".