1. Ko Ko Lay Director Directorate of Trade 4 th November, 2013 UMFCCI, Yangon, Myanmar

2. Role of MOC The Ministry of Commerce plays a vital role in the implementation of the economic reforms towards the market-oriented economy especially in the trade sector. The Ministry of Commerce sets out four main objectives and three basic principles as policy guidelines in trade performance.

3. Four Main Objectives of MOC (1) To systematically implement trade policies in accordance with the Market-Oriented Economic Policy (2) To produce value added products from primary goods to increase the productivity for export market (3) To carry out the promotion of trade not only through normal trade but also border trade (4) To provide support and facilitate the export and import business

4. 1. Trade activities should be aimed at the interest of the State and the people. 2. Trade activities should not be a burden to the people. 3. Trade activities should be aimed at structuring a long-term viable trading system, rather than to gain short-term profit. Three Basic Principles

5. (1) To formulate and implement the trade policies systematically in accordance with market economic system. (2) To implement export promotion and enhance trade by means of advanced ICT. (3) To expand trade through regional and international cooperation. (4) To improve trade environment. (5) To produce enough amount of essential and important goods for domestic consumption and manufacturing industries. Trade policy objectives

6. Export Policy of Myanmar To extend and explore the foreign markets by utilizing the natural and human resources effectively and efficiently and also to promote the export of traditional and value- added products.

7. Import Policy of Myanmar To allow to import the commodity given priority as capital goods required by the State, raw materials for production, other important essential goods and the goods which support to the public health and export promotion.

8. The main law governing the Trade Sector is the Export and Import Law 2012, which was enacted on 7 th September, 2012. This law is administered by the Ministry of Commerce, from time to time, MOC issues necessary orders, notifications, directives, pertaining to all export/import matters. Currently MOC is under processing for legislat ion. Governing Law

9. The Enterprise which operations involve foreign trade have to register as an exporter/ importer at the Directorate of Trade (DOT), Ministry of Commerce. Registration of Exporter/Importer

10. Foreign Company is not allow to do Trading business. Foreign Co., can appoint local co., or person as business Representative. Trading Business & Representative Office 10

11.  The authority to issue export/import licenses and permits is delegated to the Department of Commerce and Consumer Affairs under the Ministry of Commerce. Licensing Authorities

12.  License application fees are not payable on export of any commodity.  Import license fee is payable on CIF value at a minimum of Ks 250 up to a maximum of Ks 50000.. License Fees

13. In conventional trade, the following types of currencies are allowed to do export/import transactions through the relevant banks; US dollar Euro Singapore Dollar Japan Yen Other foreign currencies permitted by the Central Bank of Myanmar, if any. Types of foreign currencies to be used for Export and Import

14. Normally, the registered exporter has the right to export all commodities except products which are prescribed to be solely exportable by the state owned economic enterprises and the some items are prohibited to export through overseas and overland trade. Prohibited Items for Export

15. (a)Agricultural Products Niger Oil Mustard, Mustard Oil Sun-flower seeds, Sun-flower oil All kinds of oil-extracted cakes Cotton and cotton products (b)Minerals and Metals Gold Diamond Petroleum List of Commodities Prohibited to Export

16. (c)Animal and Animal Products Ivory Buffalo, cow, elephant, horse and rare animals (d)Marine Products Shrimp bran (e)Miscellaneous Arms and ammunitions Antiques

17. The registered importer has the right to import all commodities except some items which are prohibited to import through overseas and overland trade. Prohibited Items for Import

18. List of Prohibited Commodities to Import 1. Liquors 2. Beer 3. Cigarette 4. Prohibited products as per existing laws.

19. Foreign Trade Relations of Myanmar - Member of WTO -Member of ASEAN, BIMSTEC, GMS, ACMECS - Bilateral trade agreement with : Bangladesh China (PRC) India Korea (ROK) Laos Malaysia Pakistan Philippines Thailand Vietnam Sri Lanka

20. Trade Patterns Myanmar is mainly an exporter of agricultural and primary products. Its import consists largely of manufacture goods. Main export items are agricultural products, fishery products, forest products, metals & minerals inclusive of natural gas, precious stones & pearls and some industrial products. Major import items are capital goods, industrial raw materials, spare parts and consumer goods.

21. Direction of Trade Myanmar Foreign Trade is mainly with Asian countries : China (PRC) Thailand Singapore Japan India Korea (ROK) Malaysia Indonesia Vietnam

22. Trade Facilitation -After taking over the State power by new government in April, 2011, new government is carrying out a lot of reformed measures in all sectors including trade sector. -Since trade facilitation is the important feature for smooth flow of international trade, new government has made liberalization activities in order to facilitate the trade matters. Those activities included: (i)Some important commodities such as fuel oil, edible palm oil are allowed to import, which were restricted to import by private sector previously. (ii)motor vehicles are also allowed to import to any citizen of Myanmar and private company to use for individual and business purpose respectively. (iii)Some important agricultural products of edible oil, edible oil seeds, onion and rice are also allowed to export to private sector, which were prohibited to export in the past. (iv)Commercial tax on proceed of export earnings were abolished. (v) export/import licenses are issued at both Yangon and Nay Pyi Taw offices rather than issued at Nay Pyi Taw office only. (vi)Reduce required documents which are necessary to attach with application for licenses.

23. Before June 2012, required to apply export/import licenses for all commodities. However, starting from June 2012, most of licenses were converted from non-automatic licensing to automatic licensing system and issues within 24 hours. On 28 th February 2013, 152 exported items and 166 imported items were removing from the license requirement. Now, about 1900 items of imported goods are applying for no licensing criteria.

24. Trade Promotion - Export all exportable surplus and diversify foreign markets by using natural and human resources - Department of Trade Promotion was formed under the Ministry of Commerce - Intend to increase and diversify exports and improve the quality of products - Trying to lower down the trade barriers and simplified export/import procedures - Encourage the private sector participation in the foreign trade - Establish the Export Processing Zones(EPZ) and Special Economic Zones(SEZ) at suitable places - Welcome Foreign Direct Investment - Disseminate the trade related information to private sector by means of: (a)Lunched the websites such as commerce.gov.mm and myanmartradenet.com (b)Issue the Commerce Journal in weekly and Trade News bulletin in monthly

25. Trade Education Ministry of Commerce established the Trade Training Institute (TTI) in Yangon Office and organizes basic and advanced trade training courses. TTI cooperate s and coordinates with JICA for the formulation of tailored made Export Promotion curriculum. MOC also organizes trade related seminars, workshops, meetings not only itself but also collaboration with other organizations.

26. Foreign Trade of Myanmar From 2009-2010 to 2012-2013 A/U - US $ Million

27. Myanmar’s Foreign Trade by Commodity From 2009-2010 to 2012-2013 A/U - US $ Million

28. Myanmar’s Foreign Trade by Country From 2009-2010 to 2012-2013 A/U - US $ Million

29. Thank you for your kind attention!