Myanmar Doing Business

Trading Across Borders

At a Glance : Trading across Borders

2020 Ranking: 168

2020 Distance to Frontier Score*: 47.7 (unchanged from DB2019)

Regional Average (East Asia Pacific): 71.55

More information on Myanmar’s performance in Trading Across Borders -Click Here

* The distance to frontier (DTF) measure shows the distance of each economy to the “fron-tier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is reflected on a scale from 0 to 100, where 0 represents the lowest performance and 100 rep-resents the frontier. The ease of doing business ranking ranges from 1 to 190. (Source; World Bank)

What it measures

Time and cost to export the product of comparative advantage and import auto parts

Why does it matter?

Simplification and harmonisation of international trade procedures.

  • Access to international markets: economies of scale. 
  • Economic growth - poverty reduction.
  • Participation in global supply chains. 
  • Transfer of know-how.
  • Positive impact of single windows and digitalisation on growth and increasing trade flows (WTO2013, Bali agreement; Sá Porto, Morini and Canuto 2015)

Administrative and regulatory trade frameworks.

Administrative and regulatory trade frameworks are necessary for safety and consumer protection, but vary in efficiency from economy to economy.

Note : DB Trade indicator captures efficiency through time and cost.

  • Only marginal costs of trading internationally are considered, not fixed (entry) costs.
  • Time is recorded in hours to account for electronic platforms and single windows.

Time and Cost

Indicator Border/ Port As recorded by the Doing Business2020 report Regional Average (East Asia Pacific)
Time to export: Border compliance (hours) Yangon 142 57.5
Cost to export: Border compliance (USD)   432 381.1
Time to export: Documentary compliance (hours)   144 55.6
Cost to export: Documentary compliance (USD)   140 109.4
Time to import: Border compliance (hours)   230 68.4
Cost to import: Border compliance (USD)   457 422.8
Time to import: Documentary compliance (hours)   48 53.7
Time to import: Documentary compliance (hours)   210 108.4

 

 

Characteristics Export Import
Product HS 07 : Edible vegetables and certain roots and tubers HS 8708: Parts and accessories of motor vehicles
Trade Partner India China
Border Yangon Port Yangon Port
Distance (km) 12 12
Domestic transport time (hours) 5 5
Domestic transport cost (USD) 200 200

 

Components of Border Compliance

Procedure Time to complete (hours) (as recorded in the Doing Business2020 report) Associated costs (hours) (as recorded in the Doing Business2020 report)
Export: Clearance and inspections required by customs authorities (at ports) (Inspection time will depend on Cargo description)  11.0 195.0
Export: Clearance and inspections required by customs Authorities (at Airport) (Inspection time will depend on cargo description)  96.0 65.0
Export: Border handling  48.0 171.7
Import: Clearance and inspections required by customs authorities (at ports) (Inspection time will depend on Cargo description)  110.0 285.0
Import: Clearance and inspections required by customs Authorities (at Airport) (Inspection time will depend on cargo description)  0.0 0.0
Import: Border handling  120.0 171.7

 

Trade Documents Required

Export Import
Customs Export Declaration  Bill of Lading
Bill of Lading SAD delivery order
Export Licence Customs import declaration
Commercial Invoice Commercial Invoice
Packing List Packing List
Sales Contract Cargo release order
Shipping Instruction Terminal handling receipts
Letter of Credit or General Remittance Exemption Certificate Technical standard/health certificate
Payment advice referring Inward Telegraphic Transfer Private No./Inward Telegraphic Transfer Government No  Certificate of Origin
OGA Recommendations  OGA Recommendations 
Phyto sanitary  Certificate  
Certificate of Origin  

 

What has improved

In July 2015 the Ministry of Commerce announced the creation of a negative list for import licenses. With this announcement, around 5.600 products (HS Codes) out of a total of over 9,600 were automatically exempted from licenses. This resulted in annual cost compliance savings to business of USD 3.8 million for the period of 1 July 2015 to 30 June 2016 
MACCS system was launched on November 12, 2016 in Yangon Area (including Thilawa SEZ) as a first step. Since MACCS system is fruitful in Yangon Area, it was extended to Myawaddy Border Trade Zone and it was materialize on June 5,2018. Myanmar Customs is considering to extend the outreach of MACCS System to  other border areas” to read “The Myanmar Automated Cargo Clearance System (MACCS) was launched on November 12, 2016 in Yangon (including Thilawa SEZ) as a first step. It was extended to the Myawaddy Border Trade Zone and on June 5,2018. Myanmar Customs is considering to extend MACCS System to  other border areas.
In 2017 the Ministry of Commerce launched the Myanmar Trade Portal Website, allowing traders to search by product, HS code etc. The MTP has just been revamped
On 8 February 2018 the Ministry of Commerce issued a notification reforming export licensing
  • Prior to this policy, Myanmar’s Ministry of Commerce (MOC) imposed license requirements on about 80% of product lines (11,167 HS codes).
  • Under the new regime, 71% of products (those not on the negative list) can be exported without a licence.
  • Only 27% of vegetable products now need export licences, down from 76% previously. This simplifies the export requirements for HS 07 (Edible vegetables and certain roots and tubers, measured by Doing Business)

 

Action Plan

Action Item Timeline Status
Continue to simplify procedures for import and export license and expand the negative list Short Term Discussion is ongoing with Thura Swiss Ltd
Prepare a study on the time and cost required for documentary compliance and border compliance Short Term Discussion is ongoing with Thura Swiss Ltd
Streamline documents required for import and export
Short Term Discussion is ongoing
Review the risk based system and selectivity for customs inspections Medium Term

Review the risk based system and selectivity for customs inspections are reviewed every six months

Make operational the electronic issuance of certificates of origin Medium Term Online CO Application System had been initially implemented on April 1st at Nay Pyi Taw and Yangon.Later extended at Muse and Myawaddy trade zone on July 1st 2019
Streamline and automate the process of issuance for phytosanitary certificates Medium Term Two training on Generic ePhyto National System (GeNS) supported by Netherland were conducted to initiate electronic phytosanitary certificates at Plant Protection Division, Department of Agriculture

Streamline and automate the process of issuance for Health Certificates

Medium Term

As per update of New SOPs-

1. Regarding Import Recommendation & Export Recommendation,

 2.Regarding Import Health Certificate and Export Health Certificate ,

             

Develop risk categorization system for sanitary and Phytosanitary which is connected to MOC and Customs’ clearance systems Long Term
 

Fully implement the National Single Window

Long Term  
Dematerialize the customs clearance process with no paper involved at any stage Long Term Customs officers still need to check and verify the Original Document. After effective implementation of Post Clearance Audit (PCA) dematerialize the customs clearance process will be introduced
Introduce electronic payment facilities Long Term Electronic Payment such as deposit system has been involved in MACCS system that started from 12 November 2016. Traders can do online payment at anytime of 24 hours/7days if they opened Deposit account in MACCS system. For more convenience, we are still discussing with CBM-Net about the transaction from trader’s bank account to MCB bank account
Enact a comprehensive new trade law in Myanmar Long Term  
Upgrade the infrastructure of the port of Yangon. Long Term  
Update customs legislation through a new consolidated customs Act and align procedures in customs valuation and risk management for cargo inspection Long Term Sea Customs Act and Land Customs Act have been amended in 2015 and 2018 major amended are Customs Valuation, Post Clearance Audit (PCA) Transit in electronic customs and to combine the various customs related laws and to cover the new Customs procedures from revised Tokyo Convention (RVC),WCO and trade facilitation agreement of WTO. We are drafting the new customs law with the assistant of World Bank Group.
 

 

Lead Person

Director General of the Department of Trade, Ministry of Commerce,

U Minn Minn

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