Customs Regulations and Reforms

THE REPUBLIC OF THE UNION OF MYANMAR

MINISTRY OF FINANCE &REVENUE

CUSTOMS DEPARTMENT

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CUSTOMS REGULATIONS AND REFORMS

2ND NEW MYANMAR INVESTMENT SUMMIT

YANGON, MYANMAR

17-18 OCTOBER, 2012

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CUSTOMS REGULATIONS AND REFORMS

MISSION

� THE MISSION OF MYANMAR CUSTOMS IS TO

ACHIEVE TRADE FACILITATION THROUGH

SIMPLIFICATION OF CUSTOMS PROCEDURES

WITHOUT ADVERSELY AFFECTING CUSTOMS

CONTROL OBJECTIVES TO MAINTAIN

PROPER COLLECTION OF REVENUE.

{VISION

� Myanmar Customs is 109th member of the

World Customs Organization and intend

to create Customs service which

generates the security and facilitation of

international trade, protection of social

well-being and partnership with

stakeholder.

{Vision Statement1. To provide better service to the public and the tradingcommunity on the basis of the Customs Service Charters andestablished service performance indicators.2. To promote transparency and full access to all regulationsand legislations being enforced by the Customs and statutoryrequirements for the movement and circulation of goods andcommodities, means of transport and passengers.3. To accelerate the Customs reform and modernization andenhancement of public accountability.4. To foster sustainable human resource development andstrengthen the capacity of Customs officers.5. To provide a consistent and uniform classification of goodsand commodities for tariff purpose in line with international standardsand practices.6. To apply uniform methods of valuation of goods andcommodities for Customs purpose on the basis of internationalconventions and commitments.7. To achieve a consistent, uniform determination of origin ofgoods in accordance with established rules and practices to facilitatetrade and investment.

{OBJECTIVES

- To enhance revenue collection through trade promotion.

- To prevent evasion and loss of revenue by implementingeffective control.

- To collect data for compilation of statistics oninternational trade.

- To modernize and standardize customs procedures to bein line with international practices.

- To cooperate and coordinate with other allied lawenforcement agencies, and

- To promote public image by enhancing integrity ofcustoms personnel.

MEMBERSHIP

10/8/2012 Mr.Sein Myint Deputy Director 7

ASEAN DIRECTORS-GENERAL MEETING

COORDINATING COMMITTEE ON CUSTOMS

CUSTOMS PROCEDURES &

TRADE FACILITATION

WORKING GROUP

CUSTOMS ENFORCEMENT &

COMPLIANCE WORKING GROUP

CUSTOMS CAPACITY BUILDING

WORKING GROUP

ASEAN ECONOMIC COMMUNITY

BALI SUMMIT IN OCTOBER 2003BALI CONCORD II

ASEAN ECONOMIC COMMUNITYASEAN SOCIO-CULTURAL COMMUNITYASEAN SECURITY COMMUNITY

12TH ASEAN SUMMIT (SINGAPORE) IN JANUARY 2007TO HASTEN THE ESTABLISHMENT OF ASEAN ECONOMIC COMMUNITY BY 2015

ASEAN ECONOMIC COMMUNITY

The ASEAN aims to develop Asean Economic

Community by the year 2015 in order to introduce

the free flow of goods, services, investment and

skilled labour, and freer flow of capital.

-Customs integration in the region is a key element

in realization of the ASEAN Economic Community.

-Strategic Plan of Customs Development was

formulated for customs integration.

{STRATEGIC PLAN OF CUSTOMS DEVELOPMENT

1. Tariff Classification

2. Customs Valuation3. Origin Determination4. Establishment of e-customs and ICT application5. Customs Clearance6. Customs Transit

7. Partnership with Businesses and Trading Community8. Authorized Economic Operator 9. Customs Post Clearance Audit10. Customs Enforcement And Mutual Assistance11. Public Security and Protection of the Society

12. Customs Reform and Modernization13. Customs Human Resource Development 14. Narrowing the Development Gap15. Knowledge-based Service

CUSTOMS PROCEDURES AND TRADE FACILITATION WORKING GROUP

� Tariff Classification;� Customs Valuation;� Origin Determination of ASEAN Trade in Goods Agreement;� Establishment of ASEAN e-Customs and ICT applications in Customs

for Trade Facilitation;� Customs Clearance;� Customs Transit ;� Partnership with businesses and the trading community;� Authorized Economic Operator ;

CUSTOMS ENFORCEMENT AND COMPLIANCE WORKING GROUP

� Customs Post Clearance Audit� Customs Enforcement and Mutual Assistance Public

� Security and Protection of the Society

CUSTOMS CAPACITY BUILDING WORKING GROUP

� Customs Reform and Modernization� Customs Human Resource Development

� Narrowing the Development Gap� Knowledge Based Service

{CUSTOMS REFORM AND MODERNIZATION (SPCD-12)

a. this SPCD pursues the modernization of customs

administration based on the following values:- integrity- accountability- transparency

- Enhancement of the quality of Customs services to the public;

- Enhancement of customs integrity

One of the objectives of Myanmar Customs is to

modernize and standardize customs procedures

to be in line with international standards.

{CUSTOMS REFORM AND MODERNIZATION (SPCD-12)

With globalization, it becomes a necessity for customsadministrations to provide efficient and effective service to thetrading community.

Towards this end, Customs administration should invest onreforms and modernization.

Similarly, Customs administration should continuouslyenhance its capacity building effort in facing the challenges ofthe globalized world.

Customs reform and modernization (CRM) is one of theStrategic Plan of Customs Development (SPCD) endorsedunder the Vientiane Action Program (VAP).

{CUSTOMS LAWS

� THE SEA CUSTOMS ACT (1878)� THE LAND CUSTOMS ACT (1924)� THE TARIFF LAW (1992)

- “THE LAW AMENDING THE SEA CUSTOMS ACT”has been submitted to the Office of Attorney-General for approval.

- World Trade Organization Valuation Agreement(WTOVA) and Post Clearance Audit can bepracticed when the above-mentioned law isapproved and enacted.

{TARIFF ELIMINATION

Tariff on all intra-ASEAN goods will be eliminated in

accordance with the schedules and commitments.

2003 2007 2008 2010 2012 2015 2018

Asean 6 60% 80% - 100% - - -

CLMV - - 60% - 80% 93% 100%

{TARIFF CLASSIFICATION

Being a member of the World Customs

Organization (WCO) and the Association of

South East Asian Nations (ASEAN),

Contracting party of Harmonized System (HS)Convention, Myanmar Customs has amended

Custom Tariff of Myanmar every four or five

years.

CUSTOMS TARIFF OF MYANMAR (2012), basedon WCO HS amendment (2012) and ASEAN

Harmonized Tariff Nomenclature (2012/1) has

been implemented since 1st January 2012.

{CUSTOMS VALUATION

World Trade Organization Valuation

Agreement will be implementedafter the approval of the

amendment of the Sea CustomsAct.

Currently, customs valuation ispracticed in accordance with Sea

Customs Act 30 (a) and (b).

{IMPORT CLEARANCE

Normally, the import requirement for

clearance are as follows:-

(a) Import license ( Ministry of Commerce)

(b) Invoice

(c) Packing List

(d) Airway bill / Bill of lading

(e) Letter of Credit

(f) Recommendation from the department

concerned if necessary.

{EXPORT CLEARANCE

As a developing country majority of Myanmar Exportcover agricultural products, marine products and

forest products. The requirement are simply asfollows:

(a) Export license (Ministry of Commerce)(b) Letter of credit

(c) Invoice(d) Packing list(e) Pre-shipment Inspection Certificate (Agricultural

products)(f) Other Related documents from the departments

concerned (if necessary)

{ E-CUSTOMS AND ICT APPLICATION

Myanmar E-Customs System was introduced on

29th August , 2011. E-customs is being

implemented as follows:

(a) (29.8.2011) Export(b) (17.10.2011) CMP Import

(c) (14.12.2011) CMP Export

(d) (2.1.2012) Import / SO Case

E-customs system is being developed by a localICT Company and now foreign companies are

proposing for National Single Window (NSW).

MYANMAR E-CUSTOMS SYSTEM TRAINING

23

E-CUSTOMS ACTIVITIES TO NSW

Phase-2

Phase-3

Phase -4

NSW

ASW

2008-2011

2013-2015

e-Customs Single

Window

Phase-1

2011-2012

2012-2013

2012-2014

{SINGLE WINDOW

ASEAN SINGLE WINDOW AGREEMENT WAS SIGNED ATTHE MEETING OF ASEAN ECONOMIC MINISTERSMEETING IN 2005 .

The Asean single Window is an environment where

ten National Single Windows of individual membercountries operate and integrate.

National Single Window enables a single submissionof data and information, a single and synchronousprocessing of data and information and a single

decision-making for customs clearance of cargo,which expedites the customs clearance, reduce

transaction time and costs, and thus enhance tradeefficiency and competitiveness.

{POST CLEARANCE AUDIT

OBJECTIVES

- To ensure fairness of taxation- To keep order of Customs Clearance

procedures- Not to disturb smooth flow of cargo

distribution

CUSTOMS MEASURES

To verify declarations after clearance in order to confirmappropriate declarations were done by importers.When wrong or inappropriate declarations are found in

the Audit, Customs give instructions, advices toimporters and urge them to amend declarations and pay

the shorted amount of duty/tax.

{ RISK MANAGEMENT IN FUTURE

RISK MANAGEMENT -Aims to reduce or avoid the chance of injury, damage , loss or danger.

RISK MANAGEMENT IN CUSTOMS- Risk is the potential for non-compliance with customs laws.

-A useful tool for trade facilitation

{NON-INTRUSIVE INSPECTION (NII) EQUIPMENTS

Non intrusive inspection (NII) equipment and

radiation detection equipment should beavailable and used for conducting

inspections, where available and inaccordance with risk assessment. This

equipment is necessary to inspect high-risk

containers or cargo quickly, withoutdisrupting the flow of legitimate trade.

X-RAY SCANNING MACHINE AT MUSE CHECKPOINT (MYANMAR-CHINA BORDER)

X-RAY SCANNING MACHINE AT ASIA WORLD PORT TERMINAL (YANGON)

{EXPANSION OF ORGANIZATION

Myanmar is going to develop three SpecialEconomic Zones :

- Thilawa SEZ in Yangon region,- Dawei Deep-sea SEZ in Taninthayi Region inthe southern part of Myanmar

- Kyaukphyu Deep-sea SEZ in Rakhine Regionin the east part of Myanmar.

Due to increasing workload, MyanmarCustoms will have to recruit more officers to bedesignated in those SEZs.

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THANK YOU THANK YOU THANK YOU THANK YOU

FOR FOR FOR FOR

YOUR ATTENTIONYOUR ATTENTIONYOUR ATTENTIONYOUR ATTENTIONCooperation of other government Cooperation of other government Cooperation of other government Cooperation of other government

administrations and business sector administrations and business sector administrations and business sector administrations and business sector

is much appreciated. is much appreciated. is much appreciated. is much appreciated.