From April 2021 onwards, the military regime implemented a series of import restrictions to conserve dwindling foreign currency reserves and stimulate domestic production. The regime’s economic policies have moved towards an import substitution model, with more than a third of all imported items placed under restrictions of some kind.
Securing import licenses is a challenge for importers. The regime Ministry of Commerce has implemented stringent import regulations that result in only limited approvals of import license applications. Importers report that the timing of license approvals is also unpredictable.
The export sector in Burma is experiencing a decline, leading to weakened foreign currency earnings. Due to this downturn, importers face a shortage of foreign currency to facilitate supplier payments. Compounding the situation, supplier payments can only be processed through official channels. Traders also use the “hundi” system, an illegal, non-banking financial practice commonly used in Burma to transfer money and make payments internationally.
The Trade Department, overseen by Burma’s Ministry of Commerce, has announced the availability of import license submissions via the Myanmar Tradenet 2.0 platform, which is integrated with the Myanmar Automated Cargo Clearance System (MACCS). The platform includes both automatic and non-automatic licensing systems with effect from June 22, 2023. For seaborne trade, only a limited number of goods qualify for automatic licensing, while most now fall under non-automatic licensing requirements, including items that previously did not require licenses. Furthermore, as of June 2023, all import license applications pertaining to river, land and border trade will only be processed under the non-automatic licensing system, with applicants required to show export earnings and submit additional supporting documentation.
The necessary documentation for the importation of goods into Burma includes the following:
• An import license (depending on the nature of the goods).
• Import declaration (CUSDEC-1).
• Commercial invoice.
• Bill of landing, air consignment notes, or truck notes.
• Packing list.
• Any additional certificates, permits, or import recommendations as required, such as a country-of-origin certificate, SPS (Sanitary and Phytosanitary) certificate, or FDA certificate.
For more information on the Guide to Import and Special Customs Procedures, please refer to the following links:
- https://www.myanmartradeportal.gov.mm/guide-to-import
- https://myanmartradeportal.gov.mm/en/special-customs-procedures
As the laws and regulations governing imports are highly complex, most importers rely on professional experts such as freight forwarders and customs brokers to plan and carry out import transactions.