Minn Minn Director General Department of Trade 1 MYANMAR DOING - - PowerPoint PPT Presentation

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Minn Minn Director General Department of Trade 1 MYANMAR DOING - - PowerPoint PPT Presentation

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MYANMAR DOING BUSINESS 2020 REFORMS Trading across Borders Minn Minn Director General Department of Trade 1 MYANMAR DOING BUSINESS 2020 REFORMS Trading across Borders #1: Myanmar has made it easier to trade by introducing a negative export

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MYANMAR DOING BUSINESS 2020 REFORMS Trading across Borders

Minn Minn Director General Department of Trade

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#1: Myanmar has made it easier to trade by introducing a negative export list (w.e.f. February 8, 2018)

MYANMAR DOING BUSINESS 2020 REFORMS Trading across Borders

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MYANMAR DOING BUSINESS 2020 REFORMS Trading across Borders

#1: Myanmar has made it easier to trade by introducing a negative export list

  • Introduced with effect from February 8, 2018
  • Legal basis: Ministry of Commerce (MOC) notification

9/2018. View online here. Screenshot of notification on next slide

  • Claimed as a reform in DB2019, but not counted

(presumably not enough time for private sector to feel the effects before submitting questionnaires)

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MYANMAR DOING BUSINESS 2020 REFORMS Trading across Borders Type to enter a caption.

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#1: Myanmar has made it easier and cheaper to trade by introducing a negative export list

Impact

  • Reduced percentage of items requiring export licences from 80%

(under the previous positive list) to 29%;

  • Reduced percentage of HS07 items requiring export licences from 76%

(under the previous positive list) to 27%;

  • Exporters can see whether a product requires an export licence (as

well as procedures, forms etc,) through the National Trade Portal

  • Workshops with exporters held in Naypyitaw, Yangon and each land

border post. Over 1000 people attended.

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Comparison of export license requirement in old and new export regimes* Section Description Percentage of products previously requiring export licence Percentage of products requiring export licence under new regime 1 Animal Products 44% 31% 2 Vegetable Products 76% 27% 3 Fats and Oils 100% 71% 4 Food & Beverage 87% 5% 5 Mineral Products 100% 100% 6 Chemicals 99% 75% 7 Plastics 98% 5% 8 Leather 97% 67% 9 Wood 97% 77% 10 Pulp & Paper 99% 7% 11 Textile & Clothing 71% 3% 12 Footwear & Headgear 51% 1% 13 Stone, Glass & Cement 100% 7% 14 Jewelery 100% 100% 15 Base Metals 100% 14% 16 Machinery 100% 8% 17 Transport Equipment 100% 75% 18 Optics 92% 3% 19 Arms 100% 100% 20 Misc Manufactures 97% 5% 21 Works of Art 100% 100%

* Notification issued by Ministry of Commerce on Feb 8, 2018 on the “negative list” of export licenses. * 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.

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#1: Myanmar has made it easier and cheaper to trade by introducing a negative export list

Statistics of HS07 export licences issued

  • (266) No. of HS07 export licences issued May 1, 2017 to February 7, 2018

(10 Months)

  • (165) No. of HS07 export permits issued February 8, 2018 to April 30, 2018

(3 Months)

  • (258) No. of HS07 export permits issued May 1, 2018 to present [date]

(11 Months)

  • Cost of export permit ( Kyat 2500 = about 2 USD)

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#2: Myanmar has made it easier to trade by introducing an online application system for certificates of origin (w.e.f. Regional 2018 Nov 19th (0370)

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#2: Myanmar has made it easier to trade by introducing an

  • nline application system for certificates of origin
  • Trial period with effect from mid December 2018
  • During trial period online or manual submissions accepted
  • Online applications mandatory from April 1, 2019
  • Part of ASEAN ECO reform mandate, which will allow full

electronic processing of ECOs (incoming as well as

  • utgoing) by end of 2019

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#2: Myanmar has made it easier to trade by introducing an online application system for certificates of origin

Impact

  • Applicants can now apply, pay and receive their certificate online.
  • Until ASEAN e-signature provisions allow (end 2019), applicants will

still need to bring their certificates to MOC for a manual signature

  • Estimated time reduced from 1 or 2 days to 1 to 3 hours
  • Workshops with traders held on Yangon and Naypyitaw , over 300

people attended.

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Year/month

  • No. of Application lodged manually
  • No. of Application lodged online

May 2018 6746 June 2018 8480 July 2018 10154 August 2018 11431 September 2018 8289 October 2018 7728 November 2018 5990 December 2018 4806 (Testing Period start ed from January 2019) January 2019 4823 33 February 2019 4419 114 March 2019 3841 520

TOTAL 76701 667

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Online Preferential CO Application System Awareness

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#3: Myanmar has made it easier to trade by removing the requirement for a pre-inspection of brand new car spare parts

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#3: Myanmar has made it easier to trade by removing the requirement for a pre-inspection of brand new car spare parts

  • Came into effect on March 8, 2019
  • Previously Myanmar Customs Department carried out a mandatory

pre-inspection of all imported brand new car parts

  • Requirement dropped as a result of complaints from importers at a

meeting held on 18th Feb 2019 Public Private Dialogue Meeting.

  • Legal basis: Myanmar Customs Department internal directive no

2902 (screenshot on next slide)

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Myanmar Customs Department internal directive no 2902

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Trading Across Border Public Private Dialogue Workshop (18-2-2019 ) Yangon

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#3: Myanmar has made it easier to trade by removing the requirement for a pre-inspection of brand new car spare parts

Impact

  • Save 6 – 24 hours time consuming
  • Save the cost of lift on/lift off fees, truck fees, photo fees, fork lift

charges and locks & seals fees [around Kyat 80,000]

  • Removes an irritant for importers

Statistics

  • [571 shipments of brand new car parts from China between May 1,

2018 and March 31, 2019] (USD 158.318 Million)

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#4: Myanmar has made it easier to trade by reducing the time required for export

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#4: Myanmar has made it easier to trade by reducing the time required for export

  • Myanmar removed the requirement to show a phytosanitary

(SPS) certificate (required by the Indian authorities)

  • Exporters do not need to submit the SPS Certificate of their

agricultural export products to Customs Department.

  • Introduced with effect from December 18, 2018

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Internal Directive (23/2018) To remove the requirement to submit the Phytosanitary Certificate for export of beans and pulses to the Myanmar authorities

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#4: Myanmar has made it easier to trade by reducing the time required for export

Impact

  • Exporters can now apply for an SPS certificate in parallel with
  • ther procedures, saving a minimum of 72 hours

Statistics

  • [514 consignments exports to India from May 1 to December

31, 2018] (USD 363.17 Million )

  • [646 consignments relevant exports to India from January 1 to

March 31, 2019] (USD 54.39 Million)

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#5: Myanmar has made it easier to trade by introducing the Myanmar Automated Cargo Clearance System (MACCS)

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#5: Myanmar has made it easier to trade by introducing the Myanmar Automated Cargo Clearance System (MACCS)

  • The Myanmar Customs Department has implemented MACCS – a new Customs ICT system based
  • n the Japanese Nippon Automated Cargo and Port Consolidated System (NACCS);
  • The System includes Risk Management System and Cargo Control System.
  • Several Government Agencies related to Trade connected to MACCS System;
  • MACCS is fully operational in the Yangon area since November 2016. More recently the Customs

Department has introduced MACCS at Myawaddy on the Myanmar-Thailand land border;

  • MACCS has handled 0.231 million Import Declarations and 0.127 million Export Declaration in
  • 2018. It covers 99% of declarations in Yangon & Thilawa Area.
  • For more information on MACCS see http://www.maccs.gov.mm/. For export procedures and fees see

http://www.maccs.gov.mm/e-x and for import procedures and fees see http://www.maccs.gov.mm/i-m;

  • Reform claimed in DB2019.
  • Discrepancy between government figures and private sector reporting (see separate slide)

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#5: Myanmar has made it easier to trade by introducing the Myanmar Automated Cargo Clearance System (MACCS)

Impact

  • This reform (together with others listed in this presentation) shortens the time and

cost for traders to complete customs and border procedures, especially those who go through the Port of Yangon (which is what the DB case study measures) Legal Basis

  • Section 209 of the Sea Customs Act provides for customs procedures (importation

and exportation of goods) in electronic format (e-Customs) or through a single

  • window. (screenshot on next slide)

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MYANMAR DOING BUSINESS 2020 REFORMS Trading across Borders

s209 of the Myanmar Sea Customs Act 25

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Myanmar Customs has changed a lot in recent years

  • But Trading Across Borders scores unchanged since

Doing Business 2016

  • It seems some of the Reforms are not recorded by the

Doing Business Team or Reforms are not reported to the Doing Business Team

  • Un-recorded/Un-reported Reforms;

(1) Introduction of PCA System (2) Introduction of new Customs Valuation System (3) Introduction of AEO System

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Myanmar Customs has changed a lot in recent years Un-record/Un-reported Reforms (1)Introduction of PCA System

  • Ministry of Planning and Finance has issued the notification of the

procedure of Post Clearance Audit at 17-2-2017. (Ministry of Planning and Finance, Notification No. 10/2017 http://www.myanmarcustoms.gov.mm/PostClearanceAudit.php )

  • The PCA system can assist the effectiveness of the Risk

Management System in Customs Automation System (MACCS).

  • It can raise the traders’ compliance.

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Myanmar Customs has changed a lot in recent years Un-record/Un-reported Reforms (2) Introduction of New Customs Valuation System

  • Ministry of Planning and Finance has issued the notification for the

procedure for Customs Valuation Determination. (Ministry of Planning and Finance, Notification No. 91/ 2017; http://www.myanmarcustoms.gov.mm/pdf/wtova%20notification.pdf )

  • Myanmar Customs Department has changed the valuation system from
  • fficial assessment system to WTOVA System.
  • Customs can accept the importer’s declared value which is based on

the Price Actually Paid or Payable for the imported goods.

  • It reduced the time for considering Customs Value.

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Myanmar Customs has changed a lot in recent years Un-record/Un-reported Reforms (3) Introduction of Authorized Economic Operator – AEO System

  • An Authorized Economic Operator – AEO Notification has beed

issued since 30th March 2018

  • Now in Pilot stage
  • 4 companies has been chosen as Trusted Traders

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Indicator DB2019 GoM Figures Reduce %

Time to export: Border compliance (hours)

142 91.6

35% Cost to export: Border compliance (USD)

432 223.5

48% Time to export: Documentary compliance (hours)

144 72

50% Cost to export: Documentary compliance (USD)

140 44

66% Time to import: Border compliance (hours)

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9.1 96% Cost to import: Border compliance (USD)

457

133.5 70% Time to import: Documentary compliance (hours)

48 3.25

93% Cost to import: Documentary compliance (USD)

210 70

66%

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Reforms in the pipeline include….

  • Framework trade law
  • New customs law
  • Bonded warehouses
  • Blueprint for a national single window
  • Myanmar Tradenet Re-Engineering
  • Online Export Import Company Registration System
  • Time Release Study - TRS

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Thank You For Your Kind Attention

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