On 6 June 2019, the Ministry of Commerce (“MOC”) issued Notification No.24/2019 (the “Notification”) that allows foreign companies to export certain local products by exercising powers under Section 13 (b) of the Export and Import Law.
In order to raise the quality of Myanmar exports, boost international demand for local goods and raise earnings for domestic producers, MOC will now allow foreign companies and joint ventures companies (“Companies”) to purchase the following seven categories of commodities from local producers/manufacturers for export in line with the prescribed terms and conditions.
- meat and fish;
- value-added crops;
- pulp and paper;
- refined metals;
- semi-finished or finished fruit products; and
- timber based furniture.
Pursuant to the Notification, it is noted that the prescribed terms and conditions must be followed when the Companies perform the exportation. Generally, the following exports are subject to the recommendations, prescribed terms and conditions:
- Meat and fish, the recommendations of the Livestock Breeding and Veterinary Department and Department of Fisheries.
- Value-added crops; the recommendations of the Food and Drug Administration Department and the export of rice and broken rice will be carried out with the remittance of USD 3 million into any local bank from overseas as initial paid-up capital, the warehouses should be of sufficient size and membership of the Myanmar Rice Federation is required.
- Pulp and paper; those items are subject to other prescribed procedures of the export license application.
- Seeds; recommendations of the Agricultural Department.
- Refined metals; the recommendations of the Mine Department.
- Semi-finished or finished fruit products, the export shall be in line with procedures of the relevant department under the National Food Law.
- Timber based furniture, the export shall be in line with policies of the Ministry of Natural Resources and Environmental Conservation along with the recommendations of the Myanmar Timber Enterprise and Forest Department.
However, the MOC will provide further updates as necessary subject to local demand, market position and conditions of local businesses involved with the categories of commodities.
Partner, Managing Director
Deputy Managing Director
Head of Banking & Finance Practice
The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.