New Ministry of Commerce Notification offers encouraging trading environment,gradually liberalizing for the benefit of investors and the Myanmar economy
On the 12th of June 2017, the Ministry of Commerce issued Notification No. 36/2017 granting permission for foreign-owned companies to import and trade certain goods prescribed under the Myanmar Harmonized System Commodity Code (Myanmar HS Code). These goods include fertilizers, seeds, pesticides, hospital equipment and construction materials. Such permission is granted in an effort to bring in better quality products and materials for the nation’s agricultural, public healthcare and infrastructure sectors.
The following requirements are to be met for foreign-owned companies wishing to obtain permission to import and trade such goods, whether for retail or wholesale:
· Permit to Trade from the Directorate of Investment and Company Administration (“DICA”) is obtained
· Company objectives allow for retail and/or wholesale activities
· When applying for an importer/exporter registration certificate, a bank statement is submitted with together with the DICA-issued Form VI and Form XXVI
· The goods to be imported must meet quality standards as determined by the relevant government authorities
· Compliant with laws, rules and procedures pertaining to retailing and wholesaling of goods
· Open a bank account and conduct transactions and trading using foreign currencies brought into Myanmar as working capital
Foreign-owned companies are permitted pursuant to the Notification to trade such goods under the same law, rules and procedures as local companies however the list of goods may be subject to change depending on domestic demand, market conditions and market positions of local companies.
The Notification is a good sign towards promotion of foreign investments and seems to suggest that the gradual liberalization of the market for each sector will depend on the country’s need and timeliness.