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

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 list (w.e.f. February 8, 2018) 2

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) 3

MYANMAR DOING BUSINESS 2020 REFORMS Trading across Borders 4 Type to enter a caption.

MYANMAR DOING BUSINESS 2020 REFORMS Trading across Borders #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. 5

Comparison of export license requirement in old and new export regimes* Section Description Percentage of products previously Percentage of products requiring export licence 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). 6 * Under the new regime, 71% of products (those not on the negative list) can be exported without a licence.

MYANMAR DOING BUSINESS 2020 REFORMS Trading across Borders #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) 7

MYANMAR DOING BUSINESS 2020 REFORMS Trading across Borders #2: Myanmar has made it easier to trade by introducing an online application system for certificates of origin (w.e.f. Regional 2018 Nov 19 th (0370) 8

MYANMAR DOING BUSINESS 2020 REFORMS Trading across Borders #2: Myanmar has made it easier to trade by introducing an online 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 outgoing) by end of 2019 9

MYANMAR DOING BUSINESS 2020 REFORMS Trading across Borders #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. 10

MYANMAR DOING BUSINESS 2020 REFORMS Trading across Borders 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 11

Online Preferential CO Application System Awareness 12

MYANMAR DOING BUSINESS 2020 REFORMS Trading across Borders #3: Myanmar has made it easier to trade by removing the requirement for a pre-inspection of brand new car spare parts 13

MYANMAR DOING BUSINESS 2020 REFORMS Trading across Borders #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 18 th Feb 2019 Public Private Dialogue Meeting. • Legal basis: Myanmar Customs Department internal directive no 2902 (screenshot on next slide) 14

Myanmar Customs Department internal directive no 2902 15

Trading Across Border Public Private Dialogue Workshop (18-2-2019 ) Yangon 16

MYANMAR DOING BUSINESS 2020 REFORMS Trading across Borders #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) 17

MYANMAR DOING BUSINESS 2020 REFORMS Trading across Borders #4: Myanmar has made it easier to trade by reducing the time required for export 18

MYANMAR DOING BUSINESS 2020 REFORMS Trading across Borders #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 19

Internal Directive (23/2018) To remove the requirement to submit the Phytosanitary Certificate for export of beans and pulses to the Myanmar authorities 20

MYANMAR DOING BUSINESS 2020 REFORMS Trading across Borders #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 other 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) 21

MYANMAR DOING BUSINESS 2020 REFORMS Trading across Borders #5: Myanmar has made it easier to trade by introducing the Myanmar Automated Cargo Clearance System (MACCS) 22

MYANMAR DOING BUSINESS 2020 REFORMS Trading across Borders #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 on 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) 23

MYANMAR DOING BUSINESS 2020 REFORMS Trading across Borders #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) 24