Myanmar is - -a founder member of GATT - -a signatory member of WTO -a member of Regional groupings - ASEAN - GMS - BIMST-EC - ACMECS.

Myanmar is

-a founder member of GATT

-a signatory member of WTO

-a member of Regional groupings

- ASEAN

- GMS

- BIMST-EC

- ACMECS

International & regional International & regional organizations involved in organizations involved in

Trade FacilitationTrade Facilitation- UNESCAPUNESCAP- UNCTADUNCTAD- WTOWTO- ASEANASEAN- GMSGMS

Myanmar has been implementing the Myanmar has been implementing the obligations of the above organizations obligations of the above organizations related torelated to TRADE FACILITATION TRADE FACILITATION

GATT Articles V, VIII, XGATT Articles V, VIII, X

• GATT Article V GATT Article V ( Freedom of Transit) ( Freedom of Transit)• GATT Article VIII GATT Article VIII ((Fees & Formalities connected Fees & Formalities connected

with import & export)with import & export)• GATT Article X GATT Article X (Publication & Administration of (Publication & Administration of

Trade Regulations)Trade Regulations)As a WTO member, Myanmar has been committed toAs a WTO member, Myanmar has been committed to

implement the above three GATT Articles;implement the above three GATT Articles;

As an ASEAN member, AFTA has been implementedAs an ASEAN member, AFTA has been implemented

by generating the elimination of tariffs & NTBs to facilitateby generating the elimination of tariffs & NTBs to facilitate

trade;trade;

As regards to GMS, Agreement on Cross BorderAs regards to GMS, Agreement on Cross Border

Movement of Goods & People was signed and ratified byMovement of Goods & People was signed and ratified by

the member countriesthe member countries

Initial implementation of Initial implementation of Trade FacilitationTrade Facilitation

since early 1989, Myanmar has since early 1989, Myanmar has changed its economic course from changed its economic course from centrally planned to market oriented centrally planned to market oriented systemsystem

series of structural reforms had series of structural reforms had been introduced as initial trade been introduced as initial trade facilitation measuresfacilitation measures

Trade ReformsTrade Reforms

encourage private sector developmentencourage private sector development allowing FDIallowing FDI institutional changesinstitutional changes practiced new financial management practiced new financial management streamlining taxes & dutiesstreamlining taxes & duties promote external trade by improving promote external trade by improving

export/import proceduresexport/import procedures improving infra-structure supportimproving infra-structure support

GATT Article V GATT Article V (freedom of transit)(freedom of transit)

transit trade has been allowedtransit trade has been allowed In 1996, Department of Border Trade was In 1996, Department of Border Trade was

formedformed Open border check points along the border Open border check points along the border

areas with neighbouring countriesareas with neighbouring countries one stop service (oss) has been established in one stop service (oss) has been established in

1313 border check points for simplified and border check points for simplified and

standardized cargo clearance procedures in standardized cargo clearance procedures in collaboration with Custom, Revenue Dept: collaboration with Custom, Revenue Dept: Banking InstitutionBanking Institution

Myanmar China Border Myanmar China Border Check PointCheck Point

GATT Article V (contd)GATT Article V (contd)

to be in line with international best practices, to be in line with international best practices, X- Ray machine is now underway to install for X- Ray machine is now underway to install for speedy inspection of cargospeedy inspection of cargo

designated two border posts as a pilot sites for designated two border posts as a pilot sites for implementation of SINGLE WINDOW implementation of SINGLE WINDOW INSPECTION;INSPECTION;

As a medium of exchange not only US $ has As a medium of exchange not only US $ has been allowed but also local currencies for been allowed but also local currencies for border trade transactions;border trade transactions;

For speedy payment mechanism , branches of For speedy payment mechanism , branches of major bank has been opened at border posts.major bank has been opened at border posts.

Since Myanmar became a member of the Since Myanmar became a member of the WCO in 1991, it has introduced the WCO in 1991, it has introduced the reform measures in the customs reform measures in the customs administration in order to simplify and administration in order to simplify and harmonize the customs procedures and harmonize the customs procedures and documents.documents.

GATT Article V (contd)GATT Article V (contd)

Custom InitiativesCustom Initiatives transformation of export and import transformation of export and import

division under the Customs Department division under the Customs Department into a one stop service station.into a one stop service station.

application of Declaration Forms application of Declaration Forms according to the UN Layout.according to the UN Layout.

simplification of customs clearance simplification of customs clearance procedures.procedures.

restructuring of cargo examination restructuring of cargo examination procedure.procedure.

establishment of customs transit trade establishment of customs transit trade system.system.

Major Initiatives (contd)Major Initiatives (contd)

adoption of the inward processing adoption of the inward processing procedure as suggested by the procedure as suggested by the Kyoto Convention.Kyoto Convention.

security initiative for containerized security initiative for containerized cargoes.cargoes.

establishment of Customs website establishment of Customs website in cooperation with ASEAN in cooperation with ASEAN Secretariat.Secretariat.

preparation for the ASEAN Single preparation for the ASEAN Single Window.Window.

GATT Article VIIIGATT Article VIII(Fees & Formalities)(Fees & Formalities)

need to apply export/import licensesneed to apply export/import licensesexport license fees is not payableexport license fees is not payable import license fees is payableimport license fees is payablereasonable rate based on invoice valuereasonable rate based on invoice valueto cover document administration cost not as to cover document administration cost not as

revenuerevenueno quantitative restriction on export/importno quantitative restriction on export/importbut import is allowed against export earningsbut import is allowed against export earningsthe more they want to import, the more they the more they want to import, the more they

have to export; it supports export promotion;have to export; it supports export promotion;

GATT Article VIIIGATT Article VIII(contd)(contd)

Major export items are agro products, marine & forest Major export items are agro products, marine & forest productsproducts

required formalities are done according to the request required formalities are done according to the request of importing countries of importing countries

Main import items are capital goods, construction Main import items are capital goods, construction materials, machinery & pharmaceuticalsmaterials, machinery & pharmaceuticals

documentation is simplified & reducing requirementsdocumentation is simplified & reducing requirements However, due to FDA rules, for safety reason, However, due to FDA rules, for safety reason,

imported pharmaceuticals are required to registerimported pharmaceuticals are required to register Some food items like rice, cooking oil temporary Some food items like rice, cooking oil temporary

quantitative measure has been applied due to domestic quantitative measure has been applied due to domestic self sufficiencyself sufficiency

GATT Article X (Publications & GATT Article X (Publications & administration of trade administration of trade

regulations)regulations)• Since initial reform measures, publications on law, Since initial reform measures, publications on law,

rules, regulations & procedures regarding rules, regulations & procedures regarding investment, import, export, custom & taxation have investment, import, export, custom & taxation have been made;been made;

• align trade documentation format in line with UN align trade documentation format in line with UN layout key;layout key;

• periodical notifications, orders, information are periodical notifications, orders, information are made transparency through MoC publications such made transparency through MoC publications such as as Trade News,Trade News, Commerce journalCommerce journal and also on and also on commerce website; commerce website; http//www.commerce.gov.mmhttp//www.commerce.gov.mm

• www.MyanmartradeNet.com.mmwww.MyanmartradeNet.com.mm which is a Myanmar which is a Myanmar trade portal trade portal is now under constructionis now under construction

UNESCAP ProjectUNESCAP Project

• UNSCAP initiated a project UNSCAP initiated a project "Alignment of trade document of "Alignment of trade document of Cambodia, Myanmar & Vietnam" Cambodia, Myanmar & Vietnam"

• publishing guide book and already publishing guide book and already relayed to departments concernedrelayed to departments concerned

• use as a guide to align & simplify use as a guide to align & simplify trade documentstrade documents

Publication on Export/Import rules & regulationsPublication on Export/Import rules & regulations

Some PublicationsSome Publications

Ministry of Commerce Ministry of Commerce websitewebsite

MyanmartradeNet MyanmartradeNet websitewebsite

Challenges & issues in Challenges & issues in implementing trade implementing trade

facilitation facilitation • multiple cost of implementation to multiple cost of implementation to

reduce the cost of trade;reduce the cost of trade;• major cost consuming sectors are;major cost consuming sectors are;

– infrastructure developmentinfrastructure development– human resource developmenthuman resource development– development of mechanism for trade development of mechanism for trade

facilitationfacilitation– institutional reformsinstitutional reforms

Challenges & issues Challenges & issues (contd)(contd)

• inadequate capacity is a major challengeinadequate capacity is a major challenge• requires assistance not in terms of technical requires assistance not in terms of technical

but also financialbut also financial• the assistances provided are only for the assistances provided are only for

awareness and acknowledgement of advantage awareness and acknowledgement of advantage of trade facilitation without practical of trade facilitation without practical implementationimplementation

• Competitiveness Competitiveness is a big challenge faced by is a big challenge faced by our exporters our exporters

• supply side constraint; they much depend on supply side constraint; they much depend on few items of exportsfew items of exports

WeaknessesWeaknesses

• to identify new products to new markets to identify new products to new markets Myanmar exporters have some weaknessesMyanmar exporters have some weaknesses– limited capacity to produce for export;limited capacity to produce for export;– lack of export diversification into high value-added, lack of export diversification into high value-added,

processed and manufactured goods;processed and manufactured goods;– stringent quality & standard requirements;stringent quality & standard requirements;– export produce not matched by market demand;export produce not matched by market demand;– inadequate comprehensive foreign market inadequate comprehensive foreign market

information;information;– lack of skilled man power and institutional capacities;lack of skilled man power and institutional capacities;– lack of technological capacity & technical know-howlack of technological capacity & technical know-how– lack of financial & marketing capabilitylack of financial & marketing capability

ISSUESISSUES

• Freedom of transit, cannot be Freedom of transit, cannot be entirely facilitated due to entirely facilitated due to political and social reasons by political and social reasons by nature of our country. nature of our country.

• Narcotic drugs and human Narcotic drugs and human trafficking is a major problem trafficking is a major problem to facilitate freedom of transit to facilitate freedom of transit both for goods and people.both for goods and people.

Myanmar would like to support the following Myanmar would like to support the following request made by Least Developed Countries request made by Least Developed Countries Group at the Zambia Ministerial Meeting to Group at the Zambia Ministerial Meeting to reach agreement at the Sixth Ministerial reach agreement at the Sixth Ministerial Conference : -Conference : -

"Full and faithful implementation of the "Full and faithful implementation of the Modalities for Negotiations on Trade Facilitation Modalities for Negotiations on Trade Facilitation that ensure adequate financial and technical that ensure adequate financial and technical assistance and capacity building including assistance and capacity building including support for infrastructure development of Least support for infrastructure development of Least Developed Countries".Developed Countries".