Compendium of International Trade Supply Chain Processes ... · Compendium of International Trade Supply Chain Processes in Myanmar: August 2016 Produced for the International Trade

The views expressed in this report are the views of the author(s) and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Directors or the governments they represent. ADB does not guarantee the source, originality, accuracy, completeness or reliability of any statement, information, data, finding, interpretation, advice, opinion, or view presented, nor does it make any representation concerning the same.

Project Number: 46191-001 September 2016

Compendium of International Trade Supply Chain

Processes in Myanmar: August 2016

Produced for the International Trade Supply Chain Working Group by the ADB Project TA 8707 (REG): Strengthening Trade Facilitation in the Greater Mekong Subregion through Partnerships with the Private Sector

1

Compendium of International

Trade Supply Chain Processes

in Myanmar: August 2016

Produced for the International Trade Supply Chain

Working Group by the ADB Project TA 8707 (REG):

Strengthening Trade Facilitation in the Greater Mekong

Subregion through Partnerships with the Private Sector

I

ACKNOWLEDGEMENTS

ADB s project team members would like to express their grateful thanks to the following people for their

assistance with assembling and checking this compendium of International Trade Supply Chain

Processes:

U Nyi Nyi Aung, Chairman, Myanmar Customs Brokers Association

U Minn Maung Oo, Secretary General, Myanmar Customs Brokers Association

Daw Hla Hla Yee, Joint Secretary, Myanmar International Freight Forwarders Association

II

INTRODUCTION

This compendium has ee asse led y ADB s project TA 0 ‘EG Strengthening Trade

Facilitation in the GMS through Partnerships with the Private Sector . It as largely the ork of Ms Pwint Thet Wah, Trade Facilitation Specialist. Jacqueline Penfold, Consultant, and Chris Page, Team

Leader, assisted with the editing.

The compendium responds to a widely-recognised problem with the international trade supply chain

(ITSC) in Myanmar, namely that the many private and public sector stakeholders involved –

importers, exporters, freight forwarders, customs brokers, banks, transport operators, the Customs

Department, the Ministry of Commerce, and so on – have traditionally concentrated on their own

domains, and therefore have a i sufficie t u dersta di g a d appreciatio of o e a other s roles.

This often leads to misunderstandings and mistakes, which in turn can cause expensive delays. But

e e ore i porta tly, opportu ities for colla oratio are ei g issed: Mya ar s i ter atio al trade supply chain is cumbersome and complex, having been developed organically over many years,

uch of it duri g the cou try s isolatio fro i ter atio al arkets. It co tai s a o alies a d unnecessary procedures which stakeholder cooperation can both identify and resolve.

ADB s training of mixed groups of these stakeholders during the past year has demonstrated the

value of promoting a better mutual understanding of the ITSC, by producing concrete improvements

in a number of areas. To reinforce and institutionalise that dialogue, the International Trade Supply

Chain Working Group was launched on 9 August 2016. Established under the auspices of the Union of

Myanmar Federation of Chambers of Commerce & Industry (UMFCCI), this will be the principal forum

in which ITSC stakeholders can raise, discuss, and resolve ITSC-related problems: duplication,

redundancy, delays, and bottlenecks. In doing so, the ITSC Working Group will help to make it easier

for businesses to move their goods to and from Myanmar, and to invest in the country.

To aid the ITSC Worki g Group s regular deli eratio s, ADB has apped Mya ar s current import,

export, and transit processes – some 24 in total. These are all included in this compendium, for

reference in the first instance, but more particularly as the starting point for further improvements. It

is very important to remember that the ITSC is highly dynamic, and what applies one week may very

well not apply the next. This compendium does not, therefore, claim to be definitive, nor to tell the

whole story: that is not its point at all; it is, rather, a practical set of tools that the ITSC Working Group

– and any other interested stakeholders – can use to inform them of how the ITSC processes function,

and more particularly as a guide to the areas that require attention.

It ill e the ITSC Worki g Group s job to make improvements, or suggest these to the appropriate

authorities. Changes which occur as a result will have to be reflected in revised descriptions of the

ITSC processes, which should eventually appear in an updated compendium.

The compendium of ITSC processes also has another important function. It is the backbone of the

ITSC training programme, originally developed by ADB and now handed over to the Myanmar

International Freight Forwarders Association (MIFFA), which will be responsible for delivering further

ITSC workshops, on demand, for stakeholders throughout Myanmar. Based on previous experience,

these workshops are likely to identify issues with the trade supply chain that warrant the

III

consideration of the ITSC Working Group, and MIFFA will be responsible for ensuring that these are

passed on. MIFFA and the UMFCCI will also need to work together to ensure that the compendium is

regularly updated.

Finally, the ITSC processes will form an important element of the revised training and assessment

programme for customs brokers in Myanmar, which ADB s TA 8707 project is currently helping to

develop.

For further information about this compendium, or to get involved with the International Trade

Supply Chain Working Group, please contact:

UMFCCI: International Relations Department [email protected]

President s Office [email protected]

MIFFA: Daw Hla Hla Yee, Joint Secretary [email protected]

ADB TA 8707: Pwint Thet Wah, Trade Facilitation Specialist [email protected]

mailto:[email protected]




IV

LIST OF CONTENTS

Abbreviations & Acronyms vi-vii

Important Notes viii-ix

Import Processes

IM1: Licensed Import with Letter of Credit 1-6

IM2: Licensed Import with Telegraphic Transfer (after shipment) 7-13

IM3: Import with Tax Exemption Certificate, UNICEF Supplies 14-17

IM4: Import with Tax Exemption Certificate, Vaccines 18-21

IM5: Import with Tax Exemption Certificate, INGOs 22-26

IM6: Import with Tax Exemption Certificate, Myanmar Investment Commission Supplies 27-31

IM7: Import for Cut-Make-Pack Garments 32-37

IM8: Border Trade Importation at Myawaddy 38-42

IM9: Import for Trade Fair Exhibition 43-46

IM10: Drawback 47-50

IM11: Temporary Importation 51-55

IM12: Pre-arrival Processing, Petroleum Products 56-59

IM13: Import Process for Non-Licensing System (Letter of Credit) 60-63

IM14: Import Process for Non-Licensing System (Telegraphic Transfer, after shipment) 64-68

IM15: Import to Special Economic Zones 69-72

IM16: Import of Household Goods/ Personal Effects 73-75

IM17: Import of Personal Effects (Diplomats) 76-78

Export Processes

E1: Licensed Export with Letter of Credit 79-83

E2: Licensed Export with Telegraphic Transfer (before shipment) 84-87

E3: Non-Licensed Export with Telegraphic Transfer (after shipment) 88-90

E4: Non-Licensed Export with Letter of Credit 91-93

E5: Border trade exportation at Muse 94-96

E6: Trade Fair Exhibition (outbound) 97-100

Transit Process

T1: Transit 101-104

V

ABBREVIATIONS & ACRONYMS

ADB Asian Development Bank

ASEAN Association of Southeast Asian Nations

CCR Central Cold Room

CMP Cut-Make-Pack

CMSD Central Medical Store Department, Ministry of Health

CoO Certificate of Origin

C/T Cycle Time

DO Delivery Order

FDA Food & Drugs Administration

FED Foreign Exchange Department

FERD Foreign Economic Relations Department, Ministry of Finance & Planning

FF Freight Forwarder

FOC Free of Charge

HTK Hta-Tha-Ka: import/export certificate issued by MoC to importer/ exporter

HQ Headquarters

ICD Inland Container Depot

IHD International Health Division

INGO International Non-Governmental Organisation

L/C Letter of Credit

LOB Lube Oil Berth

LTA Long Term Agreement

MACCS Myanmar Automated Customs Clearance System

MCD Myanmar Customs Department

MFTB Myanmar Foreign Trade Bank

MGMA Myanmar Garment Manufacturers Association

MIC Myanmar Investment Commission

MIFFA Myanmar International Freight Forwarders Association

MoC Ministry of Commerce

MoFA Ministry of Foreign Affairs

VI

MoH Ministry of Health

MoPF Ministry of Planning & Finance

MoU Memorandum of Understanding

MOGE Myanmar Oil and Gas Enterprise

MGJEA Myanmar Gems and Jewellery Entrepreneurs Association

MGMA Myanmar Garment Manufacturers Association

MPA Myanmar Port Authority

MPTA Myanmar Petroleum Trade Association

OGA Other Government Agency

OGL Open General License

OSS One-Stop Service

PO Postal Order

POL Port of Loading

RHCs Rural Health Centres

SAD Shipping Agency Department

SEZ Special Economic Zone

SO (DD) Special Order (Direct Delivery)

SRHCs Sub-rural Health Centres

TEC Tax Exemption Certificate

TSEZ Thilawa Special Economic Zone

TT Telegraphic Transfer

UMFCCI Union of Myanmar Federation of Chambers of Commerce & Industry

UNICEF United Nations International Children's Emergency Fund

USD United States Dollars

W/T Waiting Time

WHO World Health Organisation

VII

IMPORTANT NOTES

Cycle Time (C/T) and Waiting Time (W/T)

These terms are used in every ITSC process diagram contained in this compendium. Their purpose

is to illustrate the time taken at each stage of every process, as follows:

Cycle Time: The period usually required to complete one cycle of a given operation from start

to finish

Waiting Time: The time that usually elapses before a given stage of a process is completed, and

it is possible to move to the next stage

The process diagrams indicate the stakeholder which is principally responsible for completing

each stage.

Application of Incoterms and Price Recommendation Measure

The Myanmar Ministry of Commerce (MoC) allows only two Incoterms1 for importations to

Myanmar: CIF and CFR (the latter formerly known as CNF/ C&F).

Where goods are supplied under other Incoterms, for example DAP or DAT, AND where these

goods appear o the MoC s Negati e List, the Mya ar i porter has to produce for the MoC a pro-forma invoice which matches the value of the goods assessed by the MoC (which uses a price

reference database for the purpose of reaching what it considers to be the CIF value). Importers

who wish to obtain a MoC licence within one day need to produce printed evidence, from a

website such as www.alibaba.com , of the price of similar or identical goods.

If the value of the imported goods shown on the pro-forma invoice is lower than the MoC

estimate, the MoC requires the value to be uplifted to match. Most importers comply. Once the

MoC has accepted the revised pro-forma invoice, it issues a licence which shows the same value.

The licence fee bears no relationship to the value of the imported goods, so it is unclear why the

MoC requires this procedure in the first place. Assessment of value at importation is by law a

Customs matter, and the collection of import trade statistics is also the responsibility of the

Myanmar Customs Department (MCD).

The licence issued by the MoC becomes part of the document set submitted to the MCD at

i portatio . The acco pa yi g i oice is i aria ly doctored to atch the alue shown on the

licence (and thus on the MoC-accepted pro forma), since a financial penalty is imposed by the

MCD if it does not. It is de facto a fake, but created in order to comply with official requirements

rather than with fraud in mind.

In any case, the MCD ignores the MoC procedure, and insists (under the terms of the WTO

Valuation Agreement) on the original invoice and other supporting documentation being

presented. If the original Incoterms were other than CIF, the MCD then adds-in the missing

elements (insurance and freight, for example) in order to arrive at the CIF value. The customs duty

1 Incoterms 2010, International Chamber of Commerce (ICC).

http://www.alibaba.com/

VIII

calculated is based on that2.

This convoluted process, deriving from the restriction on available Incoterms, causes unnecessary

delays, encourages dishonesty among importers, unwittingly feeds the general belief in the MCD

that all importers produce fake invoices specifically for the purposes of valuation fraud, and may

well have an impact on the amount of commercial tax that importers eventually pay.

Similar problems occur with exported goods (on the Negative List), because the MoC restricts

Incoterms to CIF and FOB only (although the real commercial documents are assumed to be

produced in the country of importation).

The restrictions on Incoterms to those applying only to sea freight creates a particular problem for

co sig e ts a d i particular s all co sig e ts crossi g Mya ar s la d orders.

The MoC should relax its restrictions on Incoterms and bring its processes into line with the terms

of the WTO Valuation Agreement. This means that, for items on the Negative List, it should

require production of – and accept – the real commercial invoice and sales contract. This is the

minimum requirement. The MoC should also consider whether it requires any evidence of the

value of imported goods on the Negative List, since this element is already under Customs

control. Its concern should rather be the specification/composition of the goods, in which case

other forms of commercial documentation are readily available and easily produced.

Payments

Partly because of the restriction on Incoterms, partly as a legacy of former trade sanctions, but

mainly because of the undeveloped banking system in Myanmar (and the lack of correspondent

banks elsewhere in the world , dou le tra sactio s for Telegraphic Tra sfer TT 3 payments for

imports or exports to/ from Myanmar is the norm. Offshore companies set up in Singapore or

Malaysia (owned by Myanmar importers/exporters) handle the payments: firstly from the

offshore company account to the shipper; secondly from the importer/ exporter to the offshore

company account.

This is a time-consuming and expensive process which inevitably restricts market access to those

businesses able and willing to afford such arrangements. SMEs are forced to deal in cash, which

limits the scope of their business operations.

2 This is, of course, setti g aside the MCD s co ti ui g te de cy to ig ore the co ditio s of the WTO Valuatio

Agreement, and to calculate the value of imported goods by reference to its own price database, internet research, etc. 3 The term used in Myanmar for bank transfers.

Import Processes

Import

Procurement

process and

purchase order

Sales contract

Apply for

recommendation

letter from OGA

(if required)

Open L/C at

bank

Arrange

transportation. Unload

at warehouse.

Send the empty

container to ICD

Declare to

Customs

Cargo

arrival

Arrange

shipping for

departure

C/T: 3 days

W/T: 2 weeks

Importer

C/T: ½ day

W/T: 3 days

Importer

C/T: 1 day

W/T: 2 weeks

OGA

C/T: ½ day

W/T: 1 day

Bank/Logistics

C/T: 3 days

W/T: 5 days

Customs/Agent

C/T: 1 day

W/T: 30 days

(by Sea) Carrier

C/T: 1 day

W/T: 5 days (by Sea)

Freight Forwarder

C/T: 1 day

W/T: 2 days

Agent

IM1. Import Process with Letter of Credit (L/C)

C/T: Cycle time

W/T: Waiting time

Collect release

order and

delivery order

Apply for

import

licence

C/T: 1 day

W/T: 2 days

MoC

Bank

negotiation at

advising bank

and despatch

documents

C/T: ½ day

W/T: 3 days

Shipper/Courier

C/T: 1 day

W/T: 2 days

Carrier/SAD

Pay Customs agent

service fee

C/T: 3 days

W/T: 7 days

Finance (Importer)

Bill from

issuing bank

C/T: ½ day

W/T: 1 day

Bank/Logistics

IM1. Import Process with Letter of Credit (L/C)

Step 1: Procurement process and purchase order

Most importers undertake the following activities:

Establish the purchasing requirements of the business

Finalise a detailed specification of the items required

Analyse internet trade directories to source the items

Identify the import mode of transport, and specify type of payment (L/C in this

case)

Send an enquiry to the selected suppliers

Evaluate the quotations provided by the suppliers and select the most suitable

Send a purchase order to that supplier

Individual traders tend to cross the border and buy the goods themselves. The method of

payment is cash-down . Individual traders are only allowed to import Ks 10,000,000 worth

of goods each day but, before this, must apply to the Ministry of Commerce (MoC) office,

based at the border, for an import/export certificate.

Step 2: Sales contract

The supplier and the buyer agree, and negotiate if necessary, a sales contract which they

both sign.

Step 3: Applying for a recommendation letter from relevant ministries/

associations (if required)

The importer has to check the MoC website (www.commerce.gov.mm) to confirm whether a

recommendation letter is required for the goods.

This letter is an authorisation from the relevant authority or organisation in Myanmar which

approves the importation or exportation of the item concerned, e.g. the Ministry of

Information would have to approve, in advance, the import or export of walkie-talkies. A pro-

forma invoice must be submitted with any request for a recommendation letter. In some

cases, the authority will also confirm that the pro-forma invoice price is true and correct.

The following documents must support the request:

Original application letter (written request)

Copy of the pro-forma invoice

Copy of the packing list, if available

Copy of the sales contract

Copy of the Company Registration Certificate

Copy of HTK (Hta-Tha-Ka) (import/export certificate issued by MoC to

importer/exporter)

http://www.commerce.gove.mm/

Copies of Form VI (company shares) and Form XXVI (list of company directors)

Step 4: Applying for an import licence at the Ministry of Commerce (if required)

The importer should visit the MoC website (www.commerce.gov.mm) to check whether an

import licence is required for the goods concerned. There are 4,405 tariff lines1 which

require an import licence a d these are sho o a egati e list hi h a e do loaded from the MoC website. The importer must be a member of Myanmar Trade Net before

applying for an import licence and will need to open a bank account at the Citizens Bank in

order to pay the licence application fee as an e-payment.

The Ministry of Commerce only allows the use of the following currencies and Incoterms for

the importation of the goods into Myanmar:

Types of Currencies

1. Euro

2. USD

3. Singapore Dollar

4. Japanese Yen

Types of Incoterms for import

1. CIF

2. CNF

The following documents must be submitted when applying for an import licence:

Application letter

Pro-forma invoice

Sales contract

Recommendation letter from related ministries/associations (if required)



importer/exporter)


The MoC has recently introduced an online licensing system; for more information refer to

http://www.commerce.gov.mm/en/article/fully-online-licensing-system-user-guide-book-0.

This allows for online application and electronic issue of the import licence.2

21 categories/ items can be applied for at the Yangon Branch Office, MoC.

For more information, please refer to:

www.commerce.gov.mm and www.myanmartradenet.com.mm

1 As per MoC notification dated on 27 July 2015.

2 At the ti e of drafti g this process the MoC is testi g its o li e syste , so it is i porta t to check the MoC

website for up-to-date information about the licensing system.

http://www.commerce.gov.mm/

http://www.commerce.gov.mm/en/article/fully-online-licensing-system-user-guide-book-0


http://www.myanmartradenet.com.mm/

Alternatively the MoC can be contacted by telephone:

General enquiries:

Nay Pyi Taw 067-408485

Yangon 01-241025

For enquiries regarding import/export licences:


Yangon 01-372718

For enquiries regarding e-payments:


Yangon 01-252018

For enquiries relating to the Citizens Bank:


Yangon 01-377461

For enquiries regarding e-tokens: 01-241025

Step 5: Opening a letter of credit (L/C) at the bank

The importer has to open an L/C at their bank in Myanmar based on their agreement,

submitting the following documents:

Bank application form

Pro-forma invoice

Sales contract

Cheque



importer/exporter)


The fee for opening an L/C at the bank is 0.25% of the invoice value (min US $50 – max

$1,500) and a SWIFT harge of US $5 is payable for each L/C.

Step 6: Arranging shipping for departure

The buyer needs to notify the supplier when the import licence, if required, is obtained so

that shipment for departure can be arranged. In turn the buyer needs to confirm the details

shown on the draft shipping documents, such as air waybill or bill of lading, invoice, packing

list, country of origin certificate and analysis reports (if required) before the original

documents are issued by the various stakeholders to avoid errors and therefore penalties.

The shipper submits the original shipping documents to the advising bank if the method of

payment is L/C.

Step 7: Bank negotiation at advising bank and dispatch of documents

If the shipping documents at 5 and 6 above are available and confirmed by both parties, the

shipper will send them to the advising seller s bank. The advising bank will then, on behalf

of the shipper, advise receipt to the issuing u er s bank.

Step 8: Bill issue from bank

The issuing bank will inform the buyer when the shipping documents have arrived so that the

buyer can collect these documents and use them to declare and clear the cargo with

Customs. The bank charges US $55 to handle each shipping bill.

Step 9: Cargo arrival

The buyer can trace the arrival of the consignment via www.track-trace.com using the

identification number of the air waybill, bill of lading or container.

Step 10: Collect release order and delivery order (sea freight only)

Once the cargo arrives at the port the agent needs to collect the release order from the box

operator/carrier and the delivery order from the shipping agency department (SAD).

Step 11: Declare to Customs

The agent can submit the CUSDEC-1 declaration form for the cargo at the Custom House in

Yangon, along with other documents which may be required such as import licence, invoice,

pa ki g list, ou tr of origi ertifi ate, a ifest, deli er order, ill of ladi g, age t s letter of undertaking, drug registration certificate (for medicines) and other relevant certificates as

i di ated the M a ar Custo s Depart e t s (MCD) website

(www.myanmarcustoms.gov.mm).

For border trade, the agent can submit the documents to Custom House for documentary

check and then they are returned in a sealed envelope to the agent. The agent sends the

envelope to Customs at the border post. Alternatively the agent can submit the documents

to Customs at the border post trade zone.

The MCD checks the document set, checks the tariff classification of the goods, and then

assesses the value based on the weekly exchange rate. The importer/agent subsequently

pays the associated duties and taxes.

Following the documentary checks above, the MCD randomly selects cargo for further checks

or immediate release. On a daily basis, 10% of cargo will be routed to the red ha el a d undergo a full inspection, 30% will be routed to the ello ha el for -ray scanning, and

60% will be routed to the gree ha el for immediate release without further inspection.

When the cargo is ready for release the agent provides Customs with the relevant gate pass

and a delivery list for the cargo. These forms are then signed by the terminal/border

http://www.track-trace.com/

http://www.myanmarcustoms.gov.mm/

authorities supervisor and the Customs examining officer, in order to allow release of the

cargo.

The Myanmar Customs Department is to introduce the Myanmar Automated Cargo

Clearance System (MACCS) in November 2016.This will allow customs declarations for air and

sea freight, as well as those for selected border crossing points, to be submitted online.

More information about MACCS can be found at www.maccs.gov.mm .

Step 12a: Arranging inland transportation

Before the cargo is released by Customs the agent makes arrangements for transporting the

cargo from the terminal/border post to the u er s premises.

Step 12b: Unloading the cargo at premises

After the cargo has been released by Customs it can be moved to the u er s premises for

unloading.

Heavy-duty trucks can only use the following routes in Yangon:

No. (2) Highway Route



Step 12c: Sending the empty container to inland container depot (ICD)

Empty containers are sent to ICDs after unloading the cargo at the i porter s pre ises. ICDs

operate 24/7 and can be found at:

1. MPA-Allied Yangon Inland Container Depot Ltd (ICD-1)

Botahtaung Township

2. Inland Container Depot 2 (ICD-2)

Botahtaung Township

3. Dagon Seikkan International Logistics Co., Ltd, Inland Container yard (DIL)

Dagon Seikkan Township

4. Myanmar Industrial Port Inland Container Depot (MIP-ICD)

Ahlone Township

5. Myanmar Five Star Line Inland Container Depot

Thaketa Township

6. Hlaing Inland Container Depot (HICD)

Hlaing Thar Yar Township

7. Sh e Me I la d Co tai er Depot Shwe Pyi Thar Township

Step 13: Pay fee to customs agent

The importer pays the customs agent/ broker for the services provided.

http://www.maccs.gov.mm/

Procurement

process and

purchase order

Sales contract

Apply for

recommendation

letter from OGA

(if required)

Arrange transportation.

Unload at warehouse.

Send the empty container to

ICD

Declare to

Customs

Cargo

arrival

Arrange

shipping for

departure

C/T: 3 days

W/T: 2 weeks

Importer

C/T: ½ day

W/T: 3 days

Importer

C/T: 1 day

W/T: 2 weeks

OGA

C/T: 3 days

W/T: 5 days

Customs/Agent

C/T: 1 day

W/T: 30 days

(by Sea) Carrier

C/T: 1 day

W/T: 5 days (by

Sea) Freight

Forwarder

C/T: ½ day

W/T: 1 day

Bank

IM2. Licensed Import with Telegraphic Transfer (TT – after shipment)

C/T: Cycle time

W/T: Waiting time

Collect release

order and

delivery order

Apply for

import

licence

C/T: 1 day

W/T: 2 days

MoC

C/T: 1 day

W/T: 2 days

Carrier/SAD

Pay customs agent

service fee

C/T: 3 days

W/T: 7 days

Finance (Importer)

Paid by TT

C/T: 1 day

W/T: 2 days

Agent

IM2. Licensed Import Process with Telegraphic Transfer (TT)






Identify the import mode of transport and specify type of payment (TT in this

case)





pay ent is ash-down’. Indi idual traders are only allowed to i port Ks 10,000,000 worth





both sign.

Step 3: Applying for a recommendation letter from related

ministries/associations (if required)

The importer has to check the MoC website (www.commerce.gov.mm) to confirm whether a

recommendation letter is required for the goods.














importer/exporter)


Step 4: Applying for an import licence at the Ministry of Commerce (if required)

The importer should visit the MoC website (www.commerce.gov.mm) to check whether an

import licence is required for the goods concerned. There are 4,405 tariff lines1 which

require an import licence and these are shown on a negati e list’ whi h can be downloaded

from the MoC website. The importer must be a member of Myanmar Trade Net before

applying for an import licence and will need to open a bank account at the Citizens Bank in

order to pay the licence application fee as an e-payment.



Types of Currencies

1. Euro

2. USD

3. Singapore Dollar

4. Japanese Yen


1. CIF

2. CNF


Application letter

Pro-forma invoice

Sales contract




importer/exporter)















Alternatively, the the MoC can be contacted by telephone:

General enquiries:


Yangon 01-241025



Yangon 01-372718



Yangon 01-252018



Yangon 01-377461



The buyer needs to inform the supplier if the import licence (if required) is ready for

arranging the shipment for departure. The buyer needs to confirm the draft shipping

documents such as air waybill or bill of lading, invoice, packing list, country of origin

certificate, and analysis reports (if required) before issuing the original documents by the

shipper. The shipping documents are confirmed by both parties, and the shipper sends them

to the buyer by courier service.




Step 7: Collect release order and delivery order

Once the cargo arrives at the port, the agent needs to collect the release order from the box

operator/carrier and the delivery order from the shipping agency department (SAD). This is

not necessary for airfreight and road freight.





packing list, country of origin certificate, manifest, delivery order, bill of lading, agent’s letter of undertaking, drug registration certificate (for medicines) and other relevant certificates as

indi ated y the Myan ar Custo s Depart ent’s (MCD we site (www.myanmarcustoms.gov.mm).









or i ediate release. On a daily asis, % of argo will e routed to the red hannel’ and undergo a full inspe tion, 3 % will e routed to the yellow hannel’ for -ray scanning, and

6 % will e routed to the green hannel’ for i ediate release without further inspe tion.




cargo.







cargo from the terminal/border post to the uyer’s pre ises.


After the argo has een released y Custo s it an e o ed to the uyer’s pre ises for unloading.







Step 9c: Sending the empty container to inland container depot

Empty containers are sent to an ICD after unloading the cargo at the i porter’s pre ises.

ICDs operate 24/7 and can be found at:


Botahtaung Township


Botahtaung Township




Ahlone Township


Thaketa Township



7. Shwe Me’ Inland Container Depot

Shwe Pyi Thar Township

Step 10: Arranging payment by telegraphic transfer (TT)

Once the cargo has been cleared by Customs and unloaded at the uyer’s premises, the

importer needs to submit the following documents to the bank to settle the payment by TT:


Commercial invoice

Packing list

Sales contract

Import licence (if required)

I porter’s undertaking letter

Cheque



importer/exporter)


Customs import declaration form – CUSDEC-1

The transaction fee is US $25 + US $3 (SWIFT fee) if the invoice value is less than US $20,000.

If the invoice value is more than US $20,000, the bank charge is 0.125%.

Step 11: Pay the customs agent’s fee


Despatch Request

Arrange transportation.


Send the empty container to

ICD

Shipment

Arrival

C/T: 1 day

W/T: 2 days

Logistics

C/T: 1 day

W/T: 45 days by

sea.

Logistics

IM3. Import Process with Tax Exemption Certificate (UNICEF Supplies)

C/T: Cycle time

W/T: Waiting time

C/T: 1 day

W/T: 5 days

FERD

Clearance

Process

C/T: 1 day

W/T: 2 days

Programme

Assigned to

LTA Agent for

Clearance

C/T: 1 day

W/T: 1 day

Logistics

C/T: 3 mins

W/T: 5 mins

UNICEF/CMSD

Supply Plan

Transport

Request

Sales Order

C/T: 1 day

W/T: 2 days

Agent

C/T: 3 days

W/T: 5 days

Customs/Agent

C/T: 1 day

W/T: 7 days

MoH

TEC

Endorsement

Send email to

CMSD

Delivered by

LTA

Transport

Follow Up

and Review

C/T: 1 day

W/T: 4 weeks

Programme

C/T: ½ day

W/T: 3 days

Programme

C/T: 7 days

W/T: Depends on

Zone Logistics

C/T: 5 days

W/T: 7 days

Logistics

Local Procurement

• Bid: 2 weeks

• Selection and CRC: 1 week

Delivered by LTA Transporters

• Lead time is based on the

destination of sub-depots and

townships.

C/T: 1 day

W/T: 5 days

IHD

C/T: 1 day

W/T: 5 days

(by Sea) Freight

Forwarder

TEC Approval

(FERD)

TEC

Documents

C/T: ½ day

W/T: 7 days

Supply

Department

Purchase

Order

C/T: 1 day

W/T: 1 day

offshore; 3 weeks

local

procurement

Pre-Advice to

UNICEF

(departure)

Breakdown

IM3. Import Process with Tax Exemption Certificate (UNICEF Supplies)

Step 1: Supply plan

The head of the programme at the UNICEF representative office in Yangon meets with the

Ministry of Health (MoH) and forecasts annual supplies needed for the following year based

on the requirements for Myanmar overall. Both parties agree and sign the supply plan which

usually takes about 3-6 months to finalise.

Step 2: Sales order

The UNICEF programme officer who is responsible for budget allocation issues a sales order

when the supply plan is approved by UNICEF and the MoH.

Step 3: Purchase order

Once the sales order is issued, the UNICEF supply division in Copenhagen prepares a

purchase order to be issued to the supplier. UNICEF has long-term agreement (LTA) suppliers

selected from the bid/tender analysis for the supplies which are purchased yearly. The

payment is directly remitted to the suppliers by the headquarters of UNICEF overseas.

Step 4: Pre-advice to UNICEF (departure)

Shipping is arranged by the shipper and the cargo departs from the port of loading. The

UNICEF headquarters In Copenhagen sends a pre-advice to the UNICEF office in Yangon to

inform them of the shipping details (scanned documents, e.g. bill of lading, invoice, packing

list, country of origin and analysis certificates (if required), arrival date and time). The

procurement or logistics section in Yangon checks these documents before delivery of the

original documents by the courier service. If there are any mistakes with the documents, the

procurement section informs the headquarters in Copenhagen so that the originals can be

amended to avoid incurring penalties on arrival in Myanmar. UNICEF in Yangon informs the

Ministry of Health of the arrival of the cargo by email.

Step 5: Applying for TEC

In order to obtain a tax exemption certificate UNICEF has to submit a written request with a

full set of shipping documents to the International Health Division (IHD) of the MoH and the

Foreign Economic Relations Department (FERD) of the Ministry of Planning & Finance in Nay

Pyi Taw. UNICEF sends these documents to the IHD by courier for endorsement after which

the IHD sends these documents to the FERD for approval.

Step 6: TEC approval from FERD

The documents are registered at FERD and then transferred to the UNICEF section in FERD

where the documents are checked thoroughly. If there are any problems the FERD officer

will call UNICEF for an explanation. When the officer is satisfied that the documents are

correct the TEC is approved by FERD. UNICEF uses a courier service to collect the approved

TEC from FERD. The original documents are sent to UNICEF in Yangon by express coach.


When the cargo arrives the carrier informs the supply division of UNICEF by email.

Otherwise, the arrival of the consignment can be traced via www.track-trace.com using the


Step 8: Customs clearance by long-term agreement agent

UNICEF assigns aLTA agent to clear the cargo through Customs. The agent has to submit a

written request for Customs to clear the cargo, invoice, packing list, CUSDEC-1 and the TEC

(and for sea freight the delivery order and manifest). As the supplies are often for the

Ministry of Health, the ministry frequently supports the clearance process by providing staff

to work together with the agent.

Step 9: Arranging inland transportation

The agent arranges transfer of the container from the container park to a truck by crane or a

forklift. Prior to exit from the terminal/border post the agent reports to Customs to see if the

container needs to be physically examined. In most cases, Customs will limit their inspection

to checking the seal/s on the container.


Step 10: Unloading at the UNICEF warehouse

Once released from the port, the containers can be transported to the UNICEF warehouse for

unloading and the empty container is sent to an ICD.

Step 11: Breakdown list from Ministry of Health

The Ministry of Health (MoH) prepares a breakdown list of items required from any shipment

for each state/division/townships and sends this to UNICEF for further action.

Step 12: Prepare despatch request and transport request

The UNICEF programme section in Yangon prepares a despatch request and sends it to its

logistics section for arranging distribution to state/division/townships health units as per the

breakdown list. The logistics section then prepares a delivery note for each despatch and

forwards this to the long-term agreement delivery service providers.

Step 13: Delivery by LTA transporters

The LTA service providers withdraw the items from the UNICEF warehouse and deliver the

goods as per the delivery notes. The UNICEF logistics officer follows up the progress of the

delivery status to confirm arrival of the supplies at the destination.

Step 14: Follow-up and review

The UNICEF supply division in Yangon follows-up and reviews the yearly activities carried out

by the service providers. It assesses the performance of each provider and the internal

processes within UNICEF in order to know where to enhance the system, if necessary.

Step 15: Pay fee to LTA agent

UNICEF pays the service fee to the LTA agent if their performance is satisfactory.

IM4. Import Process with Tax Exemption Certificate (UNICEF Vaccines)

C/T: 1 day

W/T: 4 weeks

Programme/

MoH

C/T: 1 day

W/T: 3 days

Programme

C/T: 1 day

W/T: 1 day

Procurement

Finalise SO

with TEC

within 30

days

TEC

Approval

Sent to

Central

Cold

Room

Breakdown

of Vaccines

C/T: 1 day

W/T: 2 days

CMSD/Logistics

C/T: 1 day

W/T: 5 days

Director FERD

C/T: 1 day

W/T: 1 day

CMSD/Logistics

C/T: 1 day

W/T: 2 days

(By Air)

Logistics

C/T: 1 day

W/T: 2 days

CMSD/Logistics

C/T: 1 day

W/T: 7 days

MoH

Supply

Plan

Sales

Order

Purchase

Order

Vaccines

Arrival

Declared

by Central

Medical

Store

Distributed

by CCR

C/T: 1 day

W/T: Depends

on available

trucks

Collected

by RHCs/

SRHCs

C/T: 1 day

W/T: 4 weeks

RHCs/SRHCs

C/T: ½ day

W/T: 1 day

Procurement

Pre-Advice

to UNICEF

(Departure)

TEC

Documents

(UNICEF)

SO (DD)

Documents

(UNICEF)

C/T: 1 day

W/T: 2 days

Logistics

C/T: 1 day

W/T: 2 days

Logistics

Send email

to CMSD

TEC

Endorsement

(IHD)

SO (DD)

Documents

to CMSD

Apply SO

(DD) at

Customs

C/T: 1 day

W/T: 2 days

Director CMSD

C/T: 1 day

W/T: 5 days

CMSD/Logistics

C/T: 3 mins

W/T: 5 mins

Director

CMSD/MoH

C/T: 1 day

W/T: 5 days

Director IHD C/T: Cycle time

W/T: Waiting time

IM4. Import Process with Tax Exemption Certificate (Vaccines)

Step 1: Supply plan

The head of the programme at the UNICEF representative office in Yangon meets with the

Ministry of Health (MoH) and forecasts annual supplies needed for the following year based

on the requirements of the beneficiary country. Both parties agree and sign the supply plan

which usually takes about 3-6 months to finalise.

Step 2: Sales order

The UNICEF programme officer who is responsible for budget allocation issues a sales order

when the supply plan is approved by UNICEF and the Ministry of Health (MoH).


Once the sales order has been issued, the UNICEF supply division in Copenhagen prepares a

purchase order to be issued to the supplier. UNICEF has long-term agreement (LTA) suppliers

selected from the bid/tender analysis for the vaccines (World Health Organization (WHO)

recommended) which are purchased yearly. The payment is directly settled to the suppliers

by the headquarters of UNICEF overseas.

Step 4: Pre-advice to UNICEF (departure)

Airfreight is arranged by the shipper and the cargo departs from the airport of loading. The

UNICEF headquarters in Copenhagen sends a pre-advice to the UNICEF office in Yangon to

inform them of the shipping details (scanned documents, e.g. air waybill, invoice, packing list,

country of origin and analysis certificates (if required), arrival date and time). The

procurement or logistics section in Yangon checks these documents before delivery of the

original documents by the courier service. If there are any mistakes with the documents, the

procurement section informs the headquarters in Copenhagen so that the originals can be

amended to avoid incurring penalties on arrival in Myanmar. UNICEF in Yangon informs the

Ministry of Health of the arrival of the cargo by email.

Step 5: Applying for TEC

In order to obtain a tax exemption certificate UNICEF has to submit a written request with a

full set of shipping documents to the International Health Division (IHD) of the MoH and the

Foreign Economic Relations Department (FERD) of the Ministry of Planning & Finance in Nay

Pyi Taw. UNICEF sends these documents to IHD by courier for endorsement after which the

IHD sends these documents to the FERD for approval.

Step 6: TEC approval from FERD

The documents are registered at FERD and then transferred to the UNICEF section in FERD

where the documents are checked thoroughly. If there are any problems the FERD officer

will call UNICEF for an explanation. When the officer is satisfied that the documents are

correct the TEC is then approved by FERD. UNICEF uses a courier service to collect the

approved TEC from FERD. The original documents are sent to UNICEF in Yangon by express

coach.

Step 7: Vaccines arrival

When the vaccines arrive the airline informs the supply division of UNICEF by email.

Otherwise, the arrival of the consignment can be traced via www.track-trace.com using the

identification number of the air waybill.

Step 8: Customs clearance by LTA agent

UNICEF assigns a LTA agent to clear the cargo through Customs. The agent has to submit a

written request for Customs to clear the cargo, invoice, packing list, CUSDEC-1 and the TEC.

As the vaccines are often for the Ministry of Health, the ministry frequently supports the

clearance process by providing staff to work together with the agent.

Step 9: Arrange inland transportation

The agent, having earlier organised transport, sends a vehicle to collect the vaccines from the

airport after Customs clearance and release.


Step 10: Unload to a Central Cold Room (CCR) in Yangon

The vaccines are delivered to the Central Cold Room located in Yangon for storage.

Step 11: Breakdown list from MoH

The Department of Health prepares a breakdown list of vaccines required for each

state/division/township and sends this to UNICEF by email; a copy of the list is sent to the

Central Cold Room.

Step 12: Distribute by Central Cold Room

The Central Cold Room hires trucks from the Central Medical Store Department (under

Ministry of Health) in order to deliver the vaccines to the destinations as per the breakdown

list.

Step 13: Collection by rural health centres (RHCs) and sub-rural health centres

(SRHCs)

The CCR delivers the vaccines to cold storage rooms (provided by MoH and UNICEF) in the

states, regions and townships. The midwives from rural health centres collect the vaccines

monthly from the township cold storage due to the limited storage capacity at rural health

centres. The midwives from sub-rural health centres collect the vaccines from the RHCs

monthly.

Step 14: Follow-up and review

The UNICEF logistics section follows up and reviews the balance of vaccines with the CCR and

also prepares the next purchase orders based on the balance of vaccines and the plan of

MoH.

Step 15: Pay the fee to LTA agent

UNICEF pays the service fee to the service providers if their performance is satisfactory.

IM5. Import Process with TEC (INGOs)

Purchase

order Contract

Apply for

recommendation

letter from OGA

Apply for

FOC permit

at MoC

TEC application

through related

ministry

C/T: 1 day

W/T: 3 days

INGO

C/T: 1 day

W/T: 2 days

INGO

C/T: 1 day

W/T: 2 weeks

OGA

C/T: 1 day

W/T: 2 days

MoC

C/T: 1 day

W/T: 5 days

INGO/Department

of related Ministry

Seek TEC

approval at

MoPF

C/T: 3 days

W/T: 2 weeks

Director

(MoPF)

Declare

to

Customs

Cargo

arrival

Arrange

shipping for

departure

Collect

approved

TEC

Pay Customs

agent’s service

fee

C/T: 1 day

W/T: 30 days

(by Sea)

Logistics (INGO)

C/T: 1 day

W/T: 5 days

(by Sea)

Shipper/Logistics

C/T: ½ day

W/T: 1 day

Logistics

(INGO)

C/T: 3 days

W/T: 7 days

Finance (INGO)

C/T: Cycle time

W/T: Waiting time

Collect release

order/delivery

order

C/T: 1 day

W/T: 2 days

Carrier/SAD

C/T: 1 day

W/T: 2 days

Agent

C/T: 1 day

W/T: 5 days

Customs/Agent

Arrange transportation,

unload at warehouse, send

the empty container to ICD

IM5. Import Process with Tax Exemption Certificate (TEC) for INGOs


The international non-governmental organisation (INGO) procures the items required, either

domestically or internationally, on a tender basis. It awards the tender to the supplier after

bid-analysis and consequently issues a purchase order to the chosen supplier.

Step 2: Signing contract

Once the purchase order is confirmed by both parties, the contract is signed. Payment is

made to the supplier via the procurement section located at the headquarters of the

organisation.

Step 3: Applying for a recommendation letter from the relevant ministry

If, for example, the INGO wants to import equipment for the Myanmar Police Force, the

INGO has to apply for a recommendation letter from the Ministry of Home Affairs1. The pro-

forma invoice and packing list must be endorsed by the Union Minister Office of the Ministry

of Home Affairs.

Step 4: Applying for a free of charge (FOC) permit at the Ministry of Commerce

The agent or INGO representative needs to submit the following documents to the Ministry

of Commerce (MoC):

Free of Charge’ (FOC) application letter – written request from the INGO

Original invoice endorsed by relevant ministry

Original packing list endorsed by relevant ministry

Memorandum of Understanding (MoU) between INGO and relevant ministry

The INGO representative pays the FOC permit fee at the Myanmar Economic Bank and

returns to the MoC to collect the FOC permit.

1 Any applications for FOC permit require a recommendation letter. Refer to MoC website

www.commerce.gov.mm


Step 5: Arranging shipment

Once the FOC permit is issued, shipment of the cargo from the port of loading can be

organised by the shipper in collaboration with the INGO headquarters. The original shipping

documents will be sent to the INGO representative office in Yangon by a courier service.

Step 6: TEC approval from Ministry of Planning and Finance, and collecting the

TEC

Meanwhile the INGO needs to apply for a tax exemption certificate (TEC) from the Ministry of

Planning and Finance (MoPF) by submitting the following documents to the relevant ministry:

Application letter (written request)

FOC permit

Original invoice

Original packing list

Agreement/MoU with the relevant ministry

The relevant ministry will send these documents to the Union Minister Office of MoPF for

approval. The MoPF will send a fax to the relevant ministry as well as the Myanmar Customs

Department (MCD) once the TEC has been granted.


The INGO can trace the arrival of the consignment via www.track-trace.com using the

identification number of the airway bill, bill of lading or container.

Step 8: Issue release order and delivery order

Once the cargo arrives at the terminal/border post, the agent needs to collect the release

order from the box operator/carrier and the delivery order from the shipping agency

department (SAD). This is not necessary for air freight.



The agent has to submit the CUSDEC-1 declaration form for the cargo at the Custom House in

Yangon, along with other documents which may be required such as the FoC permit, TEC,

invoice, packing list, country of origin certificate, manifest, delivery order, bill of lading,

agent’s letter of undertaking, drug registration ertifi ate (for edi ines and other relevant

ertifi ates as indi ated y the Myan ar Custo s Depart ent’s (MCD we site



assesses the value based on the weekly exchange rate.


or i ediate release. On a daily asis, % of argo will e routed to the red hannel’ and

undergo a full inspe tion, 3 % will e routed to the yellow hannel’ for -ray scanning, and

6 % will e routed to the green hannel’ for i ediate release without further inspection.


and a delivery list for the container. These forms are then signed by the terminal/border post


cargo.

The Myanmar Customs Department is to introduce Myanmar Automated Cargo Clearance

System (MACCS) in November 2016. This will allow customs declarations for air and sea

freight, as well as those for selected border crossing points, to be submitted online. More

information about MACCS can be found at www.maccs.gov.mm .



cargo from the terminal to the INGO’s pre ises.

Step 11: Unloading the cargo at premises

After the argo has een released y Custo s it an e o ed to the INGO’s premises for

unloading.








The INGO pays the customs agent/ broker for the services provided.

Procurement

process and

purchase

order

Sales contract

Apply for

recommendation

letter at MIC One-

Stop Service

Apply for TEC

at MIC One-

Stop Service

Declare to

Customs

Cargo

arrival

Arrange

shipping for

departure

C/T: 3 days

W/T: 2 weeks

Importer

C/T: ½ day

W/T: 3 days

Importer

C/T: 2 days

W/T: 5 days

MIC

C/T: ½ day

W/T: 1 day

Director (MoPF)

C/T: 1 day

W/T: 30 days (by

Sea)

Carrier

C/T: 1 day

W/T: 5 days

(by Sea)

Freight Forwarder

IM6. Import Process with TEC (MIC Projects)

C/T: Cycle time

W/T: Waiting time

Collect release

order and

delivery order

Apply for import

licence at MIC

One-Stop Service

C/T: ½ day

W/T: 1 day

MIC

Send the original

shipping documents to

importer

C/T: ½ day

W/T: 3 days

Shipper/ courier

C/T: 1 day

W/T: 2 days

Carrier/SAD

Pay Customs

agent’s service

fee

C/T: 1 day

W/T: 2 days

Agent

Pay by TT

C/T: ½ day

W/T: 1 day

Bank

C/T: 3 days

W/T: 5 days

Agent/Logistics

Arrange transportation, unload

at warehouse, send the empty

container to ICD

C/T: 3 days

W/T: 7 days

Finance (Company)

IM6. Import Process with Tax Exemption Certificate (TEC) for Myanmar

Investment Commission (MIC) Projects


The importing company submits a detailed proposal to the Myanmar Investment Commission

(MIC) for obtaining project approval1. If the MIC Committee approves this proposal, then the

company is granted 3 years of tax exemption for Customs duties and commercial tax ( ta

holiday’ for any product listed in the approved proposal to be imported. If the company

wants two further years’ exemption it can submit to the MIC Committee an official request

with a detailed explanation.

If the project is approved, the Ministry of Commerce (MoC) allows partial shipments to

import the items listed in the proposal. As per the schedule of proposal, the company issues

purchase orders to appropriate suppliers.

Step 2: Signing a contract

Once the purchase order is confirmed by the importer and the supplier they can then sign a

sales contract.

Step 3: Applying for a recommendation letter at MIC One-Stop Service

The company can apply to obtain a recommendation letter for the goods to be imported at

the MIC One-Stop Service (OSS). The MIC Committee based at the OSS compare the import

invoice against the list of items on the main proposal. If they are satisfied they endorse the

invoice.

Step 4: Applying for an import licence at the MIC One-Stop Service

After receiving the recommendation letter from the MIC Committee, the company can apply

for an import licence by submitting the following documents to the Committee:

Application letter (written letter)

MIC certificate (certificate endorsed by MoPF once project is approved)

Approved MIC proposal

Original pro-forma invoice

1 This can take 1-2 years.

Original sales contract

Copy company registration certificate


importer/exporter)


If all documents are present and correct an import licence is issued at the MIC OSS.

Step 5: Applying for a TEC at the MIC OSS

Once the import licence is issued, the company can apply for a tax exemption certificate

(TEC) by submitting the set of documents above to the Ministry of Planning & Finance (MoPF)

officer at the MIC OSS. If all documents are present and correct a TEC is issued.


Once the import licence and TEC document are obtained, the shipper can arrange departure

of the consignment from the port of loading. The original shipping documents such as the bill

of lading, commercial invoice, packing list, country of origin certificate, etc. can be delivered

by courier service to the importer.


The importer can trace the arrival of the consignment via www.track-trace.com using the

identification number of the bill of lading or container.

Step 8: Collect release order and delivery order



not necessary for air and road freight.




packing list, country of origin certificate, manifest, delivery order, bill of lading, agent’s letter

of undertaking, drug registration certificate (for medicines) and other relevant certificates as


indi ated y the Myan ar Custo s Depart ent’s (MCD we site








pays the associated duties and taxes if not covered by the TEC.

The MCD then randomly select cargo containers for further checks or immediate release. On

a daily basis, 10% of cargo will be routed to the red hannel’ and undergo a full inspe tion,

30% will be routed to the yellow hannel’ for -ray scanning and 60% will be routed to the

green hannel’ for i ediate release without further inspection.


and a delivery list for the container. These forms are then signed by the terminal/border post


cargo.


Clearance System (MACCS) in November 2016.. This will allow customs declarations for air

and sea freight, as well as those for selected border crossing points, to be submitted online.




argo fro the port to the uyer’s pre ises.

Step 11: Unloading the cargo at the warehouse

After the cargo has been released by Customs it can be o ed to the i porter’s premises for

unloading.








Once the cargo has been cleared by Customs and unloaded at the uyer’s premises, the

importer needs to submit the following documents to the bank to settle the payment by TT:


Commercial invoice

Packing list

Sales contract

Import licence (if required)


Cheque



importer/exporter)



MIC certificate





Step 14: Reporting to Myanmar Investment Committee

On a monthly basis, the company has to report to the Myanmar Investment Commission the

progress of the project activities and the balance of the items to be imported as per the

schedule of the approved MIC proposal.

IM7. Import and Export Processes (CMP)

Pay Customs agent

service fee

Unload at

premises Cutting

C/T: ½ day

W/T: 3 days

Finance

(Importer)

C/T: ½ day

W/T: 1 day

Logistics

C/T: 1 day


Carrier

Arrange

shipping for

departure

Declare

to

Customs

Based on the order quantities C/T: ½ day

W/T: 1 day

Company

C/T: 1 day

W/T: 2 days

Logistics/FF

Quality

control

Buyer’s inspection

Payment

transfer for

CMP service

fee

C/T: ½ day

W/T: 1 day

Importer/

exporter

C/T: ½ day

W/T: 1 day

Importer/

exporter

C/T: ½ day

W/T: 1 day

MGMA

C/T: ½ day

W/T: 1 day

MoC/MoPF

C/T: 1 day


Shipper/Freight

Forwarder

Packaging

C/T: ½ day

W/T: 3 days

Shipper

Order Pro-forma

invoice

Endorsement

from MGMA on

the pro-forma

invoice

Apply for

import licence

& TEC at MIC

one stop

Cargo

arrival

C/T: 3 days

W/T: 5 days

Agent/Logistics

Sewing

Based on the order

quantities

Stuffing

Export

document

process

C/T: 1 day

W/T: 2 days

Logistics/FF

Examination

at yard

On board and

departure

C/T: 1 day

W/T: 2 days

Logistics/FF

Arrange

transportation

C/T: ½ day

W/T: 1 day

Agent

Pay Customs

agent service

fee

C/T: 3 days

W/T: 7 days

Finance

(Importer)

Arrange

shipping

for export

Head office overseas

sends original shipping

documents by courier to

branch office in MM

7. Import & Export Processes (Cutting, Making and Packaging)

Step 1: Order and pro-forma invoice

The head office of the company located abroad places an order to the branch office (and

where the factory is based) in Myanmar. The pro-forma invoice for this order is sent to the

branch office.

The order usually comprises material imported into Myanmar (MM) which is cut and

packaged, and then exported, according to an export schedule decided by the head office.

Step 2: Apply for a recommendation letter from MGMA

The pro-forma invoice, supported by a written request, must be submitted for checks and

endorsement at the Myanmar Garment Manufacturers Association (MGMA).

Step 3: Applying for an import licence and TEC at the MIC One-Stop Service

The agent can apply for the import licence and the tax exemption certificate at the Myanmar

Investment Commission (MIC) One-Stop Service (OSS) in Yangon for CMP shipments after

obtaining the recommendation letter from the MGMA.


Application letter

Pro-forma invoice

Sales contract




importer/exporter)





1 At the time of drafting this process the MoC is testi g its o li e syste , so it is i porta t to check the MoC



Step 4: Arrange shipping for departure

Once the import licence is ready, the branch office informs the head office to arrange

shipping. The original shipping documents are sent from the head office overseas, by the

shipper, to the branch office in Myanmar via a courier service.


The arrival of the consignment can be traced via www.track-trace.com using the


Step 6: Collecting the release order and delivery order



not necessary for air and road freight.




packing list, ountry of origin ertifi ate, anifest, deli ery order, ill of lading, agent’s letter

of undertaking and other relevant certificates as indicated by the Myanmar Customs

Depart ent’s (MCD we site (www.myanmarcustoms.gov.mm).










undergo a full inspection, 30% will be routed to the yellow hannel’ for -ray scanning, and







cargo.







cargo from the terminal/border post to the importer’s pre ises.

Step 9: Unloading the cargo at premises

After the cargo has been released by Customs it can be moved to the importer’s pre ises for

unloading.





Step 10: Sending the empty container to inland container depot (ICD)

Empty containers are sent to an ICD after unloading the argo at the i porter’s pre ises.

ICDs operate 24/7 and can be found at:


Botahtaung Township


Botahtaung Township




Ahlone Township



Thaketa Township



7. Shwe Me’ Inland Container Depot

Shwe Pyi Thar Township

Step 11: Paying the customs agent’s fee


Step 12: Cutting process

Based on the schedule, the factory starts the cutting process.

Step 13: Sewing process

The factory assigns the employees to sew the cut fabric.

Step 14: Quality control and buyer’s inspection

After sewing is completed, the internal quality control process is undertaken. Subsequently,

the buyer asks an inspection team, normally from head office, to check the quality of the

quality and workmanship in the factory.

Step 15: Payment transfer

If the quality control checks are satisfactory the head office transfers the service fees for CMP

to the factory.

Step 16: Packaging process

The finished goods are packed for export.

Step 17: Arranging shipping for export

The factory arranges shipping for export once the cargo is ready. The shipping schedule is

drafted as per the export schedule from the head office.

Step 18: Stuffing and declaration to Customs

After booking the transport, the goods are stuffed at a factory warehouse and an agent

prepares the Customs declaration. If required, Customs examine the goods at the yard

before the cargo is released for export.

Step 19: On board and departure

The cargo is sealed and then placed on board the vessel/airplane/truck, which will depart as

per schedule. The export documents are sent from the branch office in Myanmar, by courier,

to the head office overseas.

Procurement

process and

purchase

order

Sales

Contract

Apply for

recommendation

from OGA

(if required)

Apply for

import

licence at

MoC

(if required)

Departure by

truck

Customs

examination

at OSS

checkpoint

Arrange

transportation/

trans-loading

Declare to Customs

at checkpoint

(Friendship Bridge)

on arrival

C/T: 3 days

W/T: 5 days

Importer

C/T: ½ day

W/T: 3 days

Importer

C/T: 1 day

W/T: 2 weeks

OGA

C/T: 1 day

W/T: 2 days

MoC

C/T: 1 day

W/T: 2 days

Shipper/Forwarder

C/T: ½ day

W/T: 1 day

Customs

C/T: ½ day

W/T: 1 day

Agent/Logistics

C/T: ½ day

W/T: ½ day

Customs Broker

IM8. Border Trade Importation at Myawaddy

Pay customs

duty/commercial tax

and advance income

tax 2 % - cash at OSS

checkpoint

C/T: ½ day

W/T: 1 day

Customs/Agent

C/T: Cycle time

W/T: Waiting time

Pay Customs

agent’s

service fee

Paid by TT

C/T: ½ day

W/T: 1 day

Bank

C/T: 3 days

W/T: 7 days

Finance

(Importer)

IM 8. Import Process at Myawaddy Border Crossing Point







case)





pay ent is ash-down’. Indi idual traders are only allowed to i port Ks , , worth





both sign. At Myawaddy this is not always the case as it is common for importers to simply

cross over the border and buy goods with cash.

Step 3: Applying for a recommendation letter from relevant OGA

The importer has to check the Ministry of Commerce (MoC) website

(www.commerce.gov.mm) to confirm whether a recommendation letter is required for the

goods.














importer/exporter)


Step 4: Applying for an import licence from the MoC

The importer should visit the MoC website) to check whether an import licence is required

for the goods concerned. There are 4,405 tariff lines1 which require an import licence and

these are shown on a negati e list’ whi h an e downloaded fro the MoC we site. The

importer must be a member of Myanmar Trade Net before applying for an import licence

and will need to open a bank account at the Citizens Bank in order to pay the licence

application fee as an e-payment.



Types of Currencies

1. Euro

2. USD

3. Singapore Dollar

4. Japanese Yen


1. CIF

2. CNF



Application letter

Pro-forma invoice

Sales contract




importer/exporter)









General enquiries:


Yangon 01-241025



Yangon 01-372718



Yangon 01-252018



Yangon 01-377461







Alternatively, the i porter an apply for an i port li en e at the MoC’s offi e at the

Department of Border Trade in Myawaddy.

Step 5: Departure (of truck) arranged by the shipper

The shipper arranges for the departure when the import licence (if required) is received and

the payment is remitted. Heavy-duty trucks from Thailand have to unload their cargo at the

Thailand border point then load to smaller trucks in order to deliver the cargo to Myawaddy.

Step 6: Cargo arrival and Customs clearance

Myanmar Customs note the trucks and cargo at the checkpoint located near the Friendship

Bridge; subsequently the trucks proceed to the Myawaddy Trade Zone. The cargo is then

declared by an agent to Customs at Myawaddy One-Stop Service (OSS). Customs examine

the cargo and, if applicable, duty and tax is paid before the cargo is released.

The importer, if he/she prefers, can choose to declare the cargo at the Custom House in

Yangon instead, in which case the agent receives the set of documents back from Customs in

a sealed envelope which he/she must hand to the agent in Myawaddy. If payment of duty

and tax is necessary these are paid in Yangon. The agent has to submit the sealed envelope

to the OSS Myawaddy Trade Zone.





Step 7: Arrange inland transportation and delivery to destination

Following release of the cargo at Myawaddy Trade Zone, the agent arranges for the cargo to

be transferred to other trucks for delivery to various destinations around the country.




Pre-event

discussion Set date

Booking

venue Sign contract

Apply for

recommendation

letters from

relevant OGA

Apply for Open

General

Licence at MoC

Send/ collect

invoices

Apply for trade fair

permit at Local

Government

C/T: ½ day

W/T: 1 day

Event Organiser

Declare to

Customs on

arrival

C/T: ½ day

W/T: 1 day

Event Organiser

C/T: ½ day

W/T: 1 year

Event Organiser

C/T: 1 day

W/T: 1 day

Event Organiser

C/T: 1 week

W/T: 2 weeks

Event Organiser/

OGA

C/T: 1 day

W/T: 1 day

Event Organiser/

MoC

C/T: 1 week

W/T: 2 weeks

Event Organiser

C/T: 3 days

W/T: 1 week

Event Organiser

C/T: 1 day

W/T: 1 day

Customs/Agent

IM9. Trade Fair Exhibition (Inbound)

Request team

to examine

goods at related

ministries

C/T: 1 week

W/T: 2 weeks

Event Organiser/

MoC/Customs/MoH/

Company/Fire Brigade

C/T: Cycle time

W/T: Waiting time

At close of

exhibition/

Customs check

and seal

remaining items

C/T: 1 week

W/T: 1 week

Approved

Location/Customs

Re-export

C/T: ½ day

W/T: 1 day

Event

Organiser/Agent

Finalise file at

MCD HQ

C/T: 1 day

W/T: 5 days

Even Organiser/

Agent

Taxes paid

on cargo

sold at

venue

C/T: ½ day

W/T: 1 day

Exhibitors/

Customs

Issue release

order/delivery

order

(if sea freight)

C/T: 1 day

W/T: 2 days

Carrier/SAD

Arrange

transportation

C/T: ½ day

W/T: 1 day

Agent

Pay Customs

agent service

fee

C/T: 3 days

W/T: 7 days

Finance

(Company)

IM9. Trade Fair Exhibition (Inbound)

Step 1: Pre-event discussion

The event organiser enters into discussion with the exhibitor/s regarding their participation

at a trade fair in Myanmar. Setting up a trade fair can take 6-12 months to organise.

Step 2: Set date

The event organiser sets the date once all parties have agreed the details.

Step 3: Booking venue

The event organiser books a venue after setting the date for the trade fair.

Step 4: Signed contract

The event organiser and exhibitor sign a contract.

Step 5: Applying for recommendation letters from other government agencies

(OGA)

The event organiser, on behalf of the exhibitors, submits a written request to apply for

recommendation letters from relevant government agencies, e.g.:

Myanmar Gems and Jewellery Entrepreneurs Association (MGJEA)

Ministry of Mining

Ministry of Health

Step 6: Applying for a show permit at State/Regional Government

The event organiser applies for a show permit at the state/regional government where the

trade fair is to be held and takes a week to be approved and issued.

Step 7: Send/collect invoices

The event organiser collects the invoices from the exhibitors and this can take up to two

weeks.

Step 8: Applying for an open general licence (OGL) at MoC

The event organiser submits the documents set to apply for an OGL at the Ministry of

Commerce (MoC), as follows:

Written request

Recommendation letters from OGA for all exhibitors

Invoices from all exhibitors

If the documents are present and correct MoC approves and issues the OGL.

Step 9: Arranging shipment for departure

When the OGL is received, the event organiser then informs the exhibitors so they can

prepare for departure from their country.

Step 10: Apply for teams to examine the goods at relevant ministries

The event organiser requests in advance, various teams to support the exhibitors, such as

Customs and MoC.

Step 11: Declare to Customs on arrival

An agent, on behalf of the event organiser and all the exhibitors, will submit an import

declaration (CUSDEC-1) with accompanying documents such as the invoice, packing list,

event permit to Customs on arrival. Exhibits are not liable to duties and taxes unless they

remain in Myanmar.

Step 12: Exhibition

The exhibition takes place and, depending on the type of exhibition, can run for a few days or

up to 2 weeks.

Step 13: Check and seal by Customs on final day

The officials from the Myanmar Customs Department (MCD) check and seal remaining goods

at the exhibition booths (approved location) on the final day.

Step 14: Pay taxes upon sold out goods at venue

Any items sold at the exhibition are liable to duties and taxes, and this is payable before

departure from the country.

Step 15: Arranging shipping for departure (re-export)

The event organiser, together with the agent, arranges and prepares for departure after

duties and taxes are paid.

Step 16: Finalise file at Custom House (HQ)

The agent submits the Customs documents (CUSDEC 1, OGL, invoices, packing list, air waybill,

etc.) at the Custom House (MCD HQ) in Yangon.



Procurement

process and

purchase order

Contract

Apply for

drawback

licence at

MoC

Arrange

shipping for

departure

Cargo arrival

Operation at

site for two

years

Arrange

transportation,

unload at site

Declare to

Customs

(pay 100% of

duty)

C/T: 3 days

W/T: 2 weeks

Importer

Declare to Customs

on re-export. Apply

to Customs exam

team for checking

(if required)

C/T: 1 day

W/T: 3 days

Importer

C/T: 1 day

W/T: 5 days

MoC

C/T: 1 day

W/T: 5 days

(by sea freight)

Shipper/FF

C/T: 1 day

W/T: 30 days

Carrier

C/T: 2 years

W/T: 2 years

Company

C/T : 1 day

W/T: depends on

location

Agent/Transporter

C/T: 3 days

W/T: 5 days

Customs/Agent

C/T: 1 day

W/T: 2 days

Customs/ Agent

IM10. Drawback

Before two

years, apply

for re-export

licence at

MoC

C/T: 3 days

W/T: 5 days

MoC

C/T: Cycle time

W/T: Waiting time

C/T: ½ day

W/T: 1 day

Agent

On board for

departure

C/T: 1 day

W/T: 3 days

Carrier

Pay Customs

agent service

fee

C/T: 1 day

W/T: 7 days

Finance (Company)

Collect release

order/delivery

order (sea

freight only)

C/T: 1 day

W/T: 2 days

Carrier/SAD

Examination

by Customs

C/T: ½ day

W/T: 1 day

Customs

Apply for

refund

(87.5%)

at Customs

C/T: 1 day

W/T: 30 days

Customs/Company

Arrange

transportation

IM10. Drawback


This process is mainly used by companies to import equipment that is to be re-exported after

a fixed period of time.






case)




Step 2: Sign contract

The exporter and the importer agree, and negotiate if necessary, a contract which they both

sign.

Step 3: Apply for drawback licence at MoC

The importer applies for a drawback licence at the Ministry of Commerce (MoC) to import

the equipment.




Step 4: Arranging departure

The importer needs to notify the exporter when the drawback licence is obtained so that

shipment for departure can be arranged. In turn the importer needs to confirm the details

shown on the draft shipping documents, such as bill of lading/air waybill/truck note, invoice,

packing list, and country of origin certificate before the original documents are issued by the




various stakeholders, to avoid errors and therefore penalties. The shipper sends the original

shipping documents to the buyer by the courier if the method of payment is telegraphic

transfer (TT).



identification number of the bill of lading, air waybill or container.

Step 6: Collect release order and delivery order (for sea freight only)





Yangon, along with other documents which may be required such as drawback licence,

invoice, packing list, country of origin certificate, manifest, delivery order, bill of lading,

agent’s letter of undertaking and other rele ant ertifi ates as indi ated y the Myan ar Custo s Depart ent’s (MCD we site (www.myanmarcustoms.gov.mm).






assesses the value based on the weekly exchange rate. The importer/agent then pays the

associated duties and taxes at a rate of 100% (with a refund of 87.5% on re-export).







cargo.









cargo from the terminal/border post to the i porter’s proje t site.

Step 9: Unloading at site and operation

After the cargo has been released by Customs it can be moved to the importer’s site for

unloading where it can remain for the approved time period.





Step 10: Applying for a re-export licence at MoC

Within 6 months of the end of the approved time period, the importer must apply for a re-

export licence at the MoC. An inspection team from the MCD may examine the used

equipment at the project site prior to re-exportation.

Step 11: Declare to Customs for re-export

Customs release the cargo following satisfactory documentary and physical checks. The

importer can then apply to the MCD for a refund of 87.5% of the duty originally paid at

importation.

Step 12: On board for departure

After inspection, Customs seal the equipment and the agent arranges for it to be placed on

board the vessel/aircraft/truck.




IM11. Temporary Importation

Arrange logistics

service

Service

contract Apply for TEC

at MoPF

Arrange

shipping for

departure

Cargo arrival

Declare to Customs for re-export.

Apply Customs team for

examination

C/T: 30 days

W/T: 45 days

MoPF

C/T: 1 day

W/T: 5 days

(by sea freight)

Shipper/FF

C/T: 1 day

W/T: 30 days

Carrier

C/T: 1 day

W/T: 2 days

Customs/ Agent

C/T: Cycle time

W/T: Waiting time

Arrange

transportation

C/T : 1 day

W/T: 3 days

Importer

C/T: ½ day

W/T: 1 day

Agent

C/T : 3 days

W/T: 2 weeks

Service provider

Pay Customs

agent service fee

C/T: 3 days

W/T: 7 days

Finance

(Importer)

Collect release

order/delivery

order

C/T: 1 day

W/T: 2 days

Carrier/SAD

Examination

by Customs

C/T: ½ day

W/T: 1 day

Customs

Apply for event

permit at

UMFCCI/

relevant OGA

C/T : 3 days

W/T: 2 weeks

UMFCCI/OGA

IM11. Temporary Importation

Step 1: Arranging logistics service

This process is mainly used by companies to temporarily import equipment which is to be re-

exported after a fixed period of time. The overseas exporter/services provider liaises with

the importer/client in Myanmar regarding the goods movement.

Step 2: Sign service contract

The importer and exporter agree, and negotiate if necessary, a service contract which they

both sign.

Step 3: Apply for an event permit at UMFCCI and State/Regional Government

In the case of an importation for a particular event, the importer notifies the Union of

Myanmar Federation of Chambers of Commerce & Industry (UMFCCI) of the event by


1. Written request

2. Invoices

3. Packing list

The UMFCCI issues a letter acknowledging the event and importation.

Following this, the importer submits the set of documents above and the UMFCCI letter to

the state/regional government for approval. An approval letter is then issued by the

state/regional government office which allows use of the accommodation specified for the

event.

Step 4: Apply for a recommendation letter at the relevant ministry

The importer has to check the Ministry of Commerce (MoC) website

(www.commerce.gov.mm) to confirm whether a recommendation letter is required for the

goods.



approves the importation or exportation of the item concerned. A pro-forma invoice must

be submitted with any request for a recommendation letter.



Letter from state/regional government office



Copy of the service contract

The relevant ministry issues a recommendation letter. The importer can then apply for a tax

exemption certificate at the Ministry of Planning and Finance (MoPF) by submitting all the

documents relating to the equipment, as mentioned above. The MoPF then issues the tax

exemption letter to the Internal Revenue Department and Customs, with a copy to the

importer.

Step 5: Arranging departure

The importer needs to confirm the details shown on the draft shipping documents, such as

bill of lading air waybill, truck note, invoice, and packing list before the original documents

are issued by the various stakeholders to avoid errors and therefore penalties. The shipper

sends the original shipping documents to the importer by courier.


The importer can trace the arrival of the equipment via www.track-trace.com using the

identification number of the bill of lading, air waybill, or container.





Step 8: Declare to Customs on arrival and request Customs team to inspect (if

required)



packing list, country of origin certificate, manifest, delivery order, bill of lading, agent’s letter

of undertaking, drug registration certificate (for medicines) and other relevant certificates as











undergo a full inspe tion, 3 % will e routed to the yellow hannel’ for -ray scanning, and





cargo.

In addition, a Customs team will examine the documents and equipment upon arrival at the

event.


Clearance System (MACCS) in November 2016. This will allow customs declarations for air





cargo from the terminal/border post to the premises/venue.



Step 10: Declare to Customs for re-export

Customs examine the cargo at the departure office and release the equipment if documents

and goods are in order.

The following documents are required to support the declaration:

1. Letter of approval from state/regional government office

2. Import declaration (CUSDEC-1)

3. Invoice

4. Packing list

5. CUSDEC-2 (export declaration)

Step 11: On board for departure

After conducting an inspection, Customs seal the equipment and the agent arranges for it to

be placed on board the vessel/aircraft/truck.



Departure/

Pre-Advice

Apply for

import

licence at

MoC

Fax sent to

Declare to

Customs with

copy documents

Duty fee

(PO/ cheque) in

advance

Trans-loading

fuel at LOB

(Temporary

storage)

Customs

examination

Arrival

at Lube Oil

Berth

Finalise file

at MCD HQ

C/T: 1 day

W/T: 3 days

Shipper

C/T: 1 day

W/T: 5 days

MoC

C/T: ½ day

W/T: 1 day

Customs

C/T: 1 day

W/T: 2 days

MPTA

C/T: 1 day

W/T: 1 day

Customs

C/T: 3 days

W/T: 2 weeks

Logistics

C/T: 1 day

W/T: 2 days

MCD HQ/Agent

IM12. Pre-Arrival Cargo Processing Procedure (Petroleum Products)

Test result

application at

MoGE

C/T: 1 day

W/T: 3 days

MOGE

C/T: Cycle time

W/T: Waiting time

C/T: ½ day

W/T: 1 day

Agent

Arrange

transportation

to place of

delivery

C/T: 1 day

W/T: 2 days

Agent

Pay Customs

agent service

fee

C/T: 3 days

W/T: 7 days

Finance (Importer)

Collect

delivery

order

Procurement

process and

purchase

order

Sales

Contract

C/T: 3 days

W/T: 5 days

Importer

C/T: ½ day

W/T: 3 days

Importer

IM12. Pre-Arrival Cargo Processing Procedure (Petroleum)

Step 1: Procurement process and issue purchase order






case)




Step 2: Sign contract


both sign.

Step 3: Arranging departure (pre-advice)

The shipper arranges departure of the cargo, the movement of which can be traced via

www.track-trace.com using the bill of lading number. The shipper sends the pre-advice (bill

of lading/air waybill/truck note, invoice and packing list) to the importer by fax and courier

service.

Step 4: Apply for import licence at MoC

The importer should visit the Ministry of Commerce (MoC) website

(www.commerce.gov.mm) to check whether an import licence is required for the goods

concerned. There are 4,405 tariff lines1 which require an import licence and these are shown

on a negati e list’ whi h an e downloaded fro the MoC we site. The i porter ust e a member of Myanmar Trade Net before applying for an import licence and will need to open a

bank account at the Citizens Bank in order to pay the licence application fee as an e-payment.



Types of Currencies

1. Euro

2. USD

3. Singapore Dollar

4. Japanese Yen





1. CIF

2. CNF


Application letter

Pro-forma invoice

Sales contract




importer/exporter)









General enquiries:


Yangon 01-241025



Yangon 01-372718



Yangon 01-252018



Yangon 01-377461


Step 5: Declare to Customs and pay duty in advance

The agent is required to pre-enter the declaration for fuel to Customs before the cargo

arrives by submitting a CUSDEC-1 declaration form for the cargo at the Custom House in







pa king list, ountry of origin ertifi ate, anifest, ill of lading, agent’s letter of undertaking and other relevant certificates as indicated by the Myanmar Customs Depart ent’s (MCD website (www.myanmarcustoms.gov.mm).



pays the associated duties and taxes by PO cheque to Custom House in Yangon.

When the cargo arrives the agent informs the MCD and Customs attend the Lube Oil Berth

(LOB) as per steps 6-8 below.





Step 6: Arrival at Lube Oil Berth

The cargo arrives at the Lube Oil Berth (LOB) in Yangon.

Step 7: Collect delivery order

Once the cargo arrives at the LOB, the agent needs to collect the delivery order from the

shipping agency department (SAD).

Step 8: Customs examination

The cargo is examined at the LOB by Customs.

Step 9: Unloading fuel at LOB

After documentary check and physical examination by Customs, the fuel can be stored at the

LOB.

Step 10: Sending fuel samples to Myanmar Oil and Gas Enterprise (MOGE)

The importer sends a fuel sample to MOGE for testing and the subsequent result is collected

by the agent and submitted to Customs for attachment to the document set.

Step 11: Finalise file at Custom House (MCD HQ)

Following testing the agent submits the Customs case file to Custom House (MCD HQ).





IM13. Import Process with Non-licensing System {Letter of Credit (L/C)}

Purchase

order Sales contract

Open L/C at

bank

Cargo

arrival

Arrange

shipping for

departure

C/T: 1 day

W/T: 3 days

Importer

Pay Customs

agent

C/T: ½ day

W/T: 3 days

Importer

C/T: ½ day

W/T: 1 day

Bank

C/T: 1 day

W/T: 45 days (by sea)

Logistics

C/T: 1 day

W/T: 5 days

(by Sea)

Shipper/Forwarder

C/T: Cycle time

W/T: Waiting time

Collect delivery

order and

release order

Bill from

issuing bank

C/T: ½ day

W/T: 1 day

Bank

C/T: 3 days

W/T: 7 days

Finance

(Importer)

Declare to

Customs

C/T: 1 day

W/T: 2 days

SAD/Agent/Carrier

New Cargo:

C/T: 3 days

W/T: 14 days

Recorded Cargo:

5 days

Agent/Customs

C/T: 1 day

W/T: 2 days

Agent



Send the empty container

to ICD

IM13. Import Process with Letter of Credit/Non Licensing System







case)





pay ent is ash-down’. Indi idual traders are only allowed to i port Ks , , worth of goods each day but, before this, must apply to the Ministry of Commerce (MoC) office,




both sign.

Step 3: Opening a letter of credit (L/C) at the bank

The importer has to open an L/C at their bank in Myanmar based on their agreement,



Pro-forma invoice

Sales contract

Cheque



importer/exporter)


The fee for opening an L/C at the bank is 0.25% of the invoice value (min US $50 – max

$ , and a SWIFT’ harge of US $ is paya le for ea h L/C.


The buyer needs to confirm the details shown on the draft shipping documents, such as air

waybill or bill of lading, invoice, packing list, country of origin certificate, and analysis reports

(if required) before the original documents are issued by the various stakeholders to avoid

errors and therefore penalties. The shipper submits the original shipping documents to the

advising bank if the method of payment is L/C.

Step 5: Bank negotiation at advising bank and despatch of documents

If the shipping documents at 3 and 4 above are available and confirmed by both parties, the

shipper will send the to the ad ising (seller’s ank. The ad ising ank will then, on ehalf of the shipper, ad ise re eipt to the issuing ( uyer’s ank.

Step 6: Bill issue from bank

The issuing bank will inform the buyer when the shipping documents have arrived so that the

buyer can collect these documents and use them to declare and clear the cargo with

Customs. The bank charges US $55 to handle each shipping bill.









Yangon, along with other documents which may be required such as invoice, packing list,

ountry of origin ertifi ate, anifest, deli ery order, ill of lading, agent’s letter of

undertaking, drug registration certificate (for medicines), and other relevant certificates as














When the cargo is ready for release, the agent provides Customs with the relevant gate pass



cargo.









After the cargo has been released by Customs it can be moved to the uyer’s pre ises for unloading.






Empty containers are sent to an ICD after unloading the argo at the i porter’s pre ises. ICDs operate 24/7 and can be found at:


Botahtaung Township


Botahtaung Township




Ahlone Township


Thaketa Township



7. Shwe Me’ Inland Container Depot Shwe Pyi Thar Township




IM14. Import Process with Non-licensing System – TT After Shipment

Purchase


Sent original

shipping

documents by

courier

Cargo

arrival

Arrange

shipping for

departure

C/T: 1 day

W/T: 3 days

Importer

Pay to

Customs

agent

C/T: ½ day

W/T: 3 days

Importer

C/T: 1 day

W/T: 3 days

Shipper/Courier

C/T: 1 day

W/T: 45 days (by sea)

Logistics

C/T: 1 day


Shipper/Forwarder

C/T: Cycle time

W/T: Waiting time

Collect

delivery order

and release

order

TT Payment

C/T: 1 day

W/T: 1 day

Bank

C/T: 3 days

W/T: 7 days

Finance

(Importer)

Declare to

Customs

C/T: 1 day

W/T: 2 days

SAD/Agent/Carrier

New Cargo:

C/T: 3 days

W/T: 14 days

Recorded Cargo:

5 days

Agent/Customs

C/T: 1 day

W/T: 1 day

Agent


unload at warehouse.

Send the empty container

to ICD

IM14. Import Process with Telegraphic Transfer/Non Licensing System






Identify the import mode of transport, and specify type of payment (TT in this

case)





pay ent is ash-down’. Indi idual traders are only allowed to i port Ks , , worth of goods each day but, before this, must apply to the Ministry of Commerce (MoC) office,




both sign.


The buyer needs to confirm the draft shipping documents such as bill of lading, invoice,

packing list, country of origin certificate, and analysis reports (if required) before issuing the

original documents by the shipper. The shipping documents are confirmed by both parties,

the shipper sends them to the buyer by courier service.




Step 5: Collect release order and delivery order (sea freight)






Yangon, along with other documents which may be required such as invoice, packing list,

ountry of origin ertifi ate, anifest, deli ery order, ill of lading, agent’s letter of

undertaking, drug registration certificate (for medicines), and other relevant certificates as










or immediate release. On a daily basis, 10% of cargo will be routed to the red hannel’ and undergo a full inspection, 30% will be routed to the yellow hannel’ for -ray scanning, and

60% will be routed to the green hannel’ for i ediate release without further inspection.




cargo.









After the argo has een released y Custo s it an e o ed to the uyer’s pre ises for unloading.








Empty containers are sent to an ICD after unloading the argo at the i porter’s pre ises. ICDs operate 24/7 and can be found at:


Botahtaung Township


Botahtaung Township




Ahlone Township


Thaketa Township



7. Shwe Me’ Inland Container Depot Shwe Pyi Thar Township


Once the cargo has been cleared by Customs and unloaded at premises, the importer needs

to submit the following documents to the bank to settle the payment by TT:


Commercial invoice

Packing list

Sales contract


Cheque



importer/exporter)






The importer pays the customs agent/ broker for services provided.

IM15. Thilawa Special Economic Zone (TSEZ)

Purchase


Recommendation

letter from TSEZ

Management

Committee

Arrange

shipping for

departure

C/T: 1 day

W/T: 3 days

Importer

Pay

Customs

agent

C/T: ½ day

W/T: 3 days

Importer

C/T: 1 day

W/T: 1 day

Importer

C/T: 1 day

W/T: depends

on PoL

C/T: 1 day


Shipper/Forwarder

C/T: Cycle time

W/T: Waiting time

Customs check

seal tag only at

port

Declare to

Customs TSEZ OSS

Pay Security Fee

(20,000 MMK)

C/T: 1 day

W/T: 1 day

Customs/Agent

C/T: 3 days

W/T: 7 days

Finance

(Company)

Deliver to

TSEZ Zone

from port to

Thilawa

Global

Logistics

C/T: ½ day

W/T: 1 day

Customs/ Agent

C/T: 1 day

W/T: 1 day

Customs/Agent

Customs

examination at

TGL, consignee’s WH and photo of

goods submitted

to MCD

Cargo

arrival

C/T: ½ day

W/T: 1 day

Agent

Finalise

file at

TSEZ OSS

C/T: ½ day

W/T: ½ day

Customs/ Agent

C/T: ½ day

W/T: 1 day

TSEZ Committee

Apply for a

master list

C/T: 1 day

W/T: 2 days

Carrier/SAD

Collect release order

and deliver order

IM15. Import Processes (Thilawa Special Economic Zone)


The importer undertakes to source and obtain items internationally, e.g. if the company

wants to procure stationery from Japan the procurement section undertakes the following

activities:

Establishes the requirements (need) of the company

Finalises a detail specification of the stationery required

Analyses internet trade directories to source the stationery

Identifies the method such as mode of transport and type of payment (L/C or TT)

Sends an enquiry to the selected suppliers

Evaluates the quotations provided by the suppliers and selects the most reliable

supplier

Sends a purchase order to the supplier

Step 2: Signing contract

The supplier and the buyer (the latter also known as an investor for this process) agree, and

negotiate if necessary, a sales contract which they both sign.


The shipper organises shipping and the cargo departs. The buyer needs to confirm the

details shown on the draft shipping documents, such as bill of lading, invoice, packing list,

country of origin certificate and analysis reports (if required) before the original documents

are issued by the various stakeholders to avoid errors and therefore penalties. The shipper

sends the original shipping documents to the buyer by courier if the method of payment is

TT.

Step 4: Apply for a master list (ML) from TSEZ Committee

The importer applies for a master list from Thilawa SEZ Committee along with the following

documents:

1. Written request

2. Materials list

3. TSEZ permit

4. Company registration certificate

5. Hta-Tha-Ka

6. Form VI & Form XXVI

The importer can apply for the materials that he/she wants to import for one year. Partial

shipments are allowed. If the materials are not listed in the approved ML then the importer

can add the new items to be imported.

Step 5: Registration/Recommendation from TSEZ Management Committee

The investor/agent submits the following documents to the TSEZ Management Committee

for both registration and application for a recommendation letter:

Application (written request)

Master list

List of materials for one consignment

Invoice

Packing list

Certificate of origin

Copy bill of lading

TSEZ Management Committee checks the documents, and if all are correct and present, signs

and seals the documents and issues the recommendation letter for registration to the

buyer/investor.




Step 7: Collect release order and delivery order (for sea freight only)




The agent has to submit the CUSDEC-1 declaration form for the cargo at TSEZ One-Stop

Service (OSS), along with other documents which may be required such as written request

(application letter), master list, bill of material, invoice, packing list, country of origin

certificate, bill of lading, delivery order, manifest and other relevant certificates as indicated

y the Myan ar Custo s Depart ent’s (MCD we site (www.myanmarcustoms.gov.mm).





pays the associated duties and taxes for the goods not included in the Master List which are

therefore not exempted by the TSEZ Committee.


or immediate release. On a daily asis, % of argo will e routed to the red hannel’ and undergo a full inspe tion, 3 % will e routed to the yellow hannel’ for -ray scanning, and





cargo.





Step 9: Finalise case file at TSEZ OSS

The agent submits a Customs case file (sealed envelope) at the OSS at TSEZ.


The importer pays the customs agent/ broker for services provided.


Collect

release order

and delivery

order

Cargo arrival

C/T: 1 day

W/T: 2 days

Customs/Agent

C/T: 1 day

W/T: 1 day

Agent

Pay duty

(PO/ Cheque)

(if necessary)

C/T: 1 day

W/T: 1 day

Agent/ Owner

Delivery to

consignee

Recommendation

letter from relevant

organisation

C/T: 1 day

W/T: 2 weeks

Customs

Assess value at

MCD Valuation

Section

C/T: ½ day

W/T: 1 day

Relevant organisation

IM16. Household Goods/ Personal Effects

Arrange shipping

for departure

C/T: 1 day

W/T: 3 days

Shipper/Forwarder

C/T: 1 day

W/T: 2 days

Customs/Agent

C/T: ½ day

W/T: 1 day

Customs

Customs

examination

C/T: Cycle time

W/T: Waiting time

C/T: 3 days

W/T: 7 days

Finance (Importer)

C/T: 1 day

W/T: depends

on PoL

Pay Customs

agent

Declare to

Customs

(pre-

examine)

IM16. Import Process - Personal Effects (Household Goods)


The freight forwarder arranges shipment after agreement with the consignee.

Step 2: Apply for a recommendation letter from the relevant organisation

The consignee/agent applies for a recommendation letter from the relevant organisation.

This is usually linked to the type of business concerned, e.g. scholarship students would apply

to the university overseas; an engineer working in Singapore would require their employment

contract, and so on.


The consignee can trace the arrival of the consignment via www.track-trace.com using the



Once the effects arrive at the port, the agent needs to collect the release order from the box




Yangon, along with other documents which may be required such as the recommendation

letter from relevant organisation, invoice, packing list, country of origin certificate, manifest,

deli ery order, ill of lading, agent’s letter of undertaking and other rele ant ertifi ates as indi ated y the Myan ar Custo s Depart ent’s (MCD we site (www.myanmarcustoms.gov.mm).

For household effects crossing the land border, the agent can submit the documents to

Custom House for documentary check and then they are returned in a sealed envelope to the

agent. The agent sends the envelope to Customs at the border post. Alternatively the agent

can submit the documents to Customs at the border post trade zone.


assesses the value based on the weekly exchange rate. Some of the effects bought overseas,

depending on when and where they were purchased, may be liable to tax and duty and the

consignee/agent will need to pay this. Customs may examine the effects.






cargo.






Before the effects are released by Customs the agent makes arrangements for transporting

the effects from the terminal to the consignee’s pre ises.

Step 6b: Unloading the effects at premises

After the effects have been released by Customs they can be moved to the consignee’s premises for unloading.


If the effects were shipped, the empty container is sent to an ICD after unloading the effects

at the consignee’s pre ises.

Step 7: Pay fee to agent

The consignee pays the agent for the services provided.


C/T: 1 day

W/T: 1 day

Customs

Pay Customs

agent fee

C/T: 3 days

W/T: 7 days

Finance (Importer)

Declare to

Customs

Recommendation

letter from MoFA

Cargo

arrival

C/T: 1 day

W/T: depends

on PoL

17. Personal Effects (Diplomat)

C/T: Cycle time

W/T: Waiting time

Arrange shipping

for departure

C/T: 5 day

W/T: 7 days

Shipper/Forwarder

Collect release

order and delivery

order

C/T: 1 day

W/T: 2 days

Carrier/SAD

C/T: 1 day

W/T: 2 days

Agent

Customs examination

C/T: 2 weeks

W/T: 1 month

MoFA


unload at premises, send

empty container to ICD

C/T: 1 day

W/T: 2 days

Customs/Agent

IM17. Import Process –Personal Effects (Diplomat)


The freight forwarder arranges shipping for departure after agreement with the

consignee/diplomat.

Step 2: Apply for a recommendation letter from the Ministry of Foreign Affairs

(MoFA)

The consignee/agent can apply for a recommendation letter at MoFA in order to claim a tax

exemption certificate. The agent submits the following documents:

1. Written request

2. Invoice

3. Packing list

4. Letter from organisation/ ministry from home country


The consignee can trace the arrival of the consignment via www.track-trace.com using the



Once the effects arrive at the terminal, the agent needs to collect the release order from the

box operator/carrier and the delivery order from the shipping agency department (SAD).

There is no requirement to collect a delivery order for airfreight.


The agent has to submit the CUSDEC-1 declaration form for the effects at the Custom House in

Yangon, along with other documents which may be required such as recommendation letter

from MoFA, invoice, packing list, manifest, delivery order, bill of lading/air waybill, agent’s letter of undertaking and other relevant certificates as indicated by the Myanmar Customs

Depart ent’s (MCD we site (www.myanmarcustoms.gov.mm). Customs check the

documents, and then release the goods following a check of any seals that are present.

The Myanmar Customs Department is to introduce the Myanmar Automated Cargo Clearance

System (MACCS) in November 2016.This will allow customs declarations for air and sea freight,



as well as those for selected border crossing points, to be submitted online. More information

about MACCS can be found at www.maccs.gov.mm .


Before the effects are released by Customs the agent makes arrangements for transporting the

effects from the Customs station to the importer’s pre ises.


After the effects have been released by Customs they can be moved to the importer’s premises for unloading.


If effects arrive by sea freight, the empty container is sent to an ICD after unloading the effects

at the importer’s pre ises.


The consignee pays the customs agent/ broker for the services provided.


Export

Export Processes

Sales order Sales

contract

Apply for

export

licence at

MoC

L/C issued by

bank

Customs

export

process

C/T: ½ day

W/T: 3 days

Exporter

C/T: ½ day

W/T: 3 days

Exporter

C/T: 1 day

W/T: 2 days

MoC

E1. Licensed Export with Letter of Credit (L/C)

Insurance

certificate

C/T: 1 day

W/T: 1 day

Bank

Country of Origin

Certificate (CoO)

(non-preferential)

CoO

Form D/E

Original

shipping docs

submitted to

bank

C/T: 1 day

W/T: 2 days

Shipper/

Agent

C/T: 1 day

W/T: 1 day

Insurance Co.

C/T: depends on

item

W/T: 7 days

Agency

C/T: ½ day

W/T: 1 day

UMFCCI

C/T: ½ day

W/T: 1 day

MoC

C/T: ½ day

W/T: 1 day

Bank

C/T: 1 day

W/T: 5 days

Shipper/FF

C/T: Cycle time

W/T: Waiting time

Recommendation

letter from OGA

(if required)

C/T: 1 day

W/T: 2 weeks

OGA

Book the

vessel

Fumigation,

quarantine,

phytosanitary

E1. Export Process with Letter of Credit (L/C)


The Importer sends a purchase order to the exporter.


The exporter and the importer negotiate and agree a sales contract which they both sign.

Step 3: Applying for a recommendation letter from relevant OGAs (if required)

The exporter has to check the MoC website (www.commerce.gov.mm) to confirm whether a

recommendation letter is required for the goods. If so, the exporter must apply for the letter

from the relevant ministry/association by submitting the following documents:







importer/exporter)


Step 4: Applying for an export licence at MoC (if required)

The agent applies for an export licence at the Ministry of Commerce if the item is identified

on the negative list’ posted at www.commerce.gov.mm .


the exportation of the goods from Myanmar:

Types of Currencies

1. Euro

2. USD

3. Singapore Dollar

4. Japanese Yen


1. FOB

2. CNF

3. CIF



The following documents must be submitted when applying for an export licence:

Application (written letter)

Pro-forma invoice

Sales contract




importer/exporter)





Step 5: Booking the vessel

The freight forwarder/agent books the vessel if the cargo is ready for export.

Step 6: Fumigation, quarantine and stuffing (if required)

If required by the importer, the cargo is fumigated and quarantined before being stuffed into

a container; these services are mostly carried out by service providers such as SGS, Myanmar.

Step 7: Telex L/C

The issuing bank informs the advising bank when the importer has opened the L/C.

Step 8: Declare to Customs for export

The agent submits an export declaration prior to departure, which requires the following

documents:

1. CUSDEC-2

2. Invoice

3. Packing list

4. Export licence (if required)

5. Certificate (e.g. FDA certificate, if required by importer)

6. Copy of the Company Registration Certificate

7. Copy of HTK (Hta-Tha-Ka) (import/export certificate issued by MoC to

importer/exporter)




8. Copies of Form VI (company shares) and Form XXVI (list of company directors)

Customs then randomly select cargo containers for further checks or immediate release. On

a daily basis, 10% of cargo will be routed to the red hannel’ and undergo a full inspe tion, 30% will be routed to the yellow hannel’ for -ray scanning, and 60% will be routed to the

green hannel’ for i ediate release without further inspe tion. E ery e portation is sealed by Customs prior to release.





Step 9: Insurance certificate

If the ter s of the sales ontra t are CIF’ (Incoterms-2010) the agent arranges insurance

cover for the cargo and obtains a certificate.

Step 10: Applying for a Country of Origin Certificate (non-preferential) at UMFCCI

Every export requires a non-preferential origin certificate which the agent can apply for at

the Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry

(UMFCCI) in Yangon by submitting the following documents:

1. Invoice

2. Export declaration (CUSDEC-2)

3. Online application form

Step 11: Applying for a preferential origin certificate at MoC

Preferential certificates of origin are available on application to the Ministry of Commerce in

Nay Pyi Taw. There are different application forms depending on where the goods are being

exported to:

1. Form D (ASEAN – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines,

Singapore, Thailand, Viet Nam)

2. Form E (ASEAN plus 6 –Australia, China, India, Japan, New Zealand and South Korea)

Step 12: Submitting the original shipping documents to the bank

The original shipping documents are submitted to the advising bank by the consignor.


Step 13: Pay customs agent

The exporter pays the customs agent/ broker for the services provided.

TT credit

C/T: ½ day

W/T: 1 day

Bank

C/T: depends on

item

W/T: 5 days

Agency

E2. Licensed Export with Telegraphic Transfer (TT – Before Shipment)

Sales order

C/T: 1 day

W/T: 3 days

Shipper/FF

Sales

contract

Apply for

MOC export

licence

(if required)

Fumigation,

quarantine,

phytosanitary

Customs

export

process

Insurance

certificate

Country of Origin

Certificate (CoO)

(non-preferential)

CoO

Form D/

Form E

Book the

vessel

Original

shipping docs to

importer by

courier

C/T: ½ day

W/T: 3 days

Exporter

C/T: ½ day

W/T: 3 days

Exporter

C/T: 1 day

W/T: 2 days

Shipper/

Agent

C/T: 1 day

W/T: 5 days

Insurance Co.

C/T: 1 day

W/T: 2 days

MoC

C/T: ½ day

W/T: 1 day

UMFCCI

C/T: ½ day

W/T: 1 day

MoC

C/T: ½ day

W/T: 3 days

Courier/Shipper

C/T: Cycle time

W/T: Waiting time

Recommendation

letter from

relevant OGA

(if required)

C/T: 1 day

W/T: 2 weeks

OGA

E2. Export Process with Telegraphic Transfer


The importer sends a purchase order to the exporter.



Step 3: Applying for a recommendation letter from relevant OGAs

(if required)

The exporter has to check the MoC website (www.commerce.gov.mm) to confirm whether a

recommendation letter is required for the goods. If so, the exporter must apply for the letter

from the relevant ministry/association by submitting the following documents:







importer/exporter)


Step 4: Applying for an export licence at MoC (if required)

The agent applies for an export licence at the Ministry of Commerce if the item is identified

on the negati e list’ posted at www.commerce.gov.mm .


the exportation of the goods from Myanmar:

Types of Currencies

1. Euro

2. USD

3. Singapore Dollar

4. Japanese Yen


1. FOB

2. CNF

3. CIF



The following documents must be submitted when applying for an export licence:

Application letter

Pro-forma invoice

Sales contract




importer/exporter)





Step 5: Telegraphic transfer (TT)

The exporter receives the payment by TT.








documents:

1. CUSDEC-2

2. Invoice

3. Packing list





importer/exporter)






a daily basis, 10% of cargo will be routed to the red hannel’ and undergo a full inspection,

30% will be routed to the yellow hannel’ for -ray scanning and 60% will be routed to the







If the terms of the sales contra t are CIF’ (Incoterms-2010) the consignor/agent arranges

insurance cover for the cargo and obtains a certificate.



the Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry in

Yangon by submitting the following documents:

1. Invoice






exported to:




Step 12: Sending the original shipping documents to the importer

The exporter sends the original shipping documents to the importer by courier.




Sales order Sales

contract

TT credit

Customs

export

process

Insurance

certificate

Country of Origin

Certificate (CoO)

(non-preferential)

CoO

Form D/

Form E

Original

shipping docs to

importer by

courier

C/T: ½ day

W/T: 3 days

Exporter

C/T: ½ day

W/T: 3 days

Exporter

C/T: 1 day

W/T: 2 days

Shipper/

Agent

C/T: 1 day

W/T: 5 days

Insurance Co.

C/T: ½ day

W/T: 1 day

Bank

C/T: depends on

item

W/T: 5 days

Agency

C/T: ½ day

W/T: 1 day

UMFCCI

E3. Non-Licensed Export with Telegraphic Transfer (TT – After Shipment)

C/T: ½ day

W/T: 1 day

MoC

C/T: ½ day

W/T: 3 days

Courier/Shipper

C/T: 1 day

W/T: 3 days

Shipper/FF

Fumigation,

quarantine,

phytosanitary

C/T: Cycle time

W/T: Waiting time

Book vessel

E3. Non-Licensed Export Process with Telegraphic Transfer after

Shipment












documents:

1. CUSDEC-2

2. Invoice

3. Packing list





importer/exporter)




green hannel’ for i ediate release without further inspe tion. E ery e portation is sealed

by Customs prior to release.






If the terms of the sales ontra t are CIF’ (In oter s-2010) the agent arranges insurance






1. Invoice






exported to:








Step 11: Telegraphic transfer

The exporter receives the payment by TT.


E4. Non-Licensed Export with Letter of Credit (L/C)

Sales order Sales

contract L/C issued by

bank

Customs

export

process

Insurance

certificate

Country of Origin

Certificate (CoO)

(non-preferential)

CoO

Form D/

Form E

Original

shipping docs

submitted to

bank

C/T: ½ day

W/T: 3 days

Exporter

C/T: ½ day

W/T: 3 days

Exporter

C/T: 1 day

W/T: 2 days

Shipper/

Logistics

C/T: 3 days

W/T: 5 days

Insurance Co.

C/T: depends on

item

W/T: 7 days

Agency

C/T: ½ day

W/T: 1 day

UMFCCI

C/T: ½ day

W/T: 1 day

MoC

C/T: ½ day

W/T: 1 day

Bank

C/T: Cycle time

W/T: Waiting time

Book the

vessel

Fumigation,

quarantine,

phytosanitary

C/T: 1 day

W/T: 3 days

Shipper/FF

C/T: ½ day

W/T: 1 day

Bank

E4. Non-Licensed Export Process with Letter of Credit (L/C)










Step 5: Telex L/C

The importer opens a letter of credit (L/C) at the issuing bank; the issuing bank notifies the

advising bank and the latter notifies the exporter.



documents:

1. CUSDEC-2

2. Invoice

3. Packing list





importer/exporter)



a daily basis, 10% of cargo will be routed to the red hannel’ and undergo a full inspection,

30% will be routed to the yellow hannel’ for -ray scanning, and 60% will be routed to the







If the ter s of the sales ontra t are CIF’ (Incoterms-2010) the agent arranges insurance






1. Invoice



Step 9: Apply for an origin certificate at MoC



exported:




Step 10: Submitting the original shipping documents to the bank

The agent submits the original shipping documents to the bank after the cargo has departed.




E5. Border Trade Exportation at Muse

Sales order Sales

contract Stuffing the

cargo

Customs

export

process

Insurance

certificate

Country of Origin

Certificate (CoO)

(non-preferential)

CoO

Form D/

Form E

Original

shipping docs to

consignee by

courier

C/T: ½ day

W/T: 1 days

Exporter

C/T: ½ day

W/T: 2 days

Exporter

C/T: 1 day

W/T: 2 days

Shipper/

Agent

C/T: 1 day

W/T: 1 day

Insurance Co.

C/T: depends on

item

W/T: 5 days

Agency

C/T: ½ day

W/T: 2 days

UMFCCI

C/T: ½ day

W/T: 1 day

MoC

C/T: ½ day

W/T: 1 day

Courier/Shipper

C/T: Cycle time

W/T: Waiting time

Booking the

truck

Fumigation,

quarantine,

phytosanitary

C/T: ½ day

W/T: 3 days

Logistics/

Forwarders

C/T: 1 day

W/T: 1 day

Logistics

E5. Export Process at Muse Border Crossing Point


In many cases, the importer enters from China and purchases the cargo for cash in Muse.

Alternatively, the importer remits payment to the exporter by telegraphic transfer (TT),

usually after the export cargo has been delivered.


Non-cash exports require a sales contract, signed by both parties after an agreement is

reached on terms and conditions.

Step 3: Book the truck

The agent books a truck so the cargo can be transported.

Step 4: Stuffing the cargo

Once the truck is obtained the exporter arranges loading (stuffing).

Step 5: Fumigation and quarantine (if required)




The consignor/agent submits an export declaration prior to departure, which requires the

following documents:

1. CUSDEC-2

2. Invoice

3. Packing list





importer/exporter)










If the terms of the sales ontra t are CIF’ (In oter s-2010) the agent arranges insurance






1. -Invoice

2. –Export declaration (CUSDEC-2)

3. -Online application form




exported to:









C/T: 1 day

W/T: 4 days

Event Organiser/

MCD

C/T: 1 day

W/T: 1 day

Customs

Invitation

letter

Exhibition

abroad

C/T: 1 week

W/T: 1 week

Overseas

Pre-event

discussion

Declare

Customs at

MCD HQ

OGL

application

at MoC

Examination at OSS

Finalise file at MCD HQ

Recommendation

letters from

relevant OGA

Declare at FED

Office

OGL issued

by MoC

C/T: 1 day

W/T: 1 day

Exhibitor/Agent

Customs

examination

(OSS/factories)

Request Customs

to examine the

goods

C/T: 1 day

W/T: 1 day

Exhibitors/ OSS

C/T: 5 mins

W/T: 5 mins

Customs/FED/Exhibitor

C/T: ½ day

W/T: 1 day

Event Organiser

Pay duty & tax at MFTB

Bank

Inform/check by

Airport Customs at

departure

C/T: 1 day

W/T: 1 day

Exhibitors/ MFTB

C/T: 1 day

W/T: 7 days

Event Organiser

C/T: 1 day

W/T: 1 day

Event Organiser

Declaration at

Yangon Int’l Airport

(Red Channel)

C/T: 1 day

W/T: 7 days

Event Organiser/

OGA

C/T: 1 day

W/T: 1 day

Exhibitors/Customs

C/T: 1day

W/T: 7 days

Event Organiser/

MoC

C/T: 1 day

W/T: 1 day

Event Organiser/OSS

E6. Trade Fair Exhibition (Outbound)

Finalise export

files at MCD

HQ

C/T : 1 day

W/T: 1 day

Event Organiser/

MCD HQ

E6. Export Process (Trade Fair Exhibition - Outbound)

Step 1: Invitation letter

The invitation letter is sent to the Republic of the Union of Myanmar Federation of Chambers

of Commerce and Industry (UMFCCI) from where it is disseminated to members. Those

members wishing to take part in the exhibition are requested to contact UMFCCI for further

information.

Step 2: Pre-event discussion

The event organiser arranges a pre-event discussion with exhibitors wishing to participate in

the event and collects invoices from them for the goods to be temporarily exported.

Step 3: Prior application for an Open General Licence (OGL) at MoC

The event organiser notifies the Ministry of Commerce that the trade fair is going to take

place and, on behalf of the exhibitors/exporters, submits a written request and copies of

invoices. The MoC, in turn, reminds the organiser that the exporters must apply for

recommendation letters from the relevant associations/OGAs before the original OGL is

issued.

Step 4: Applying for a recommendation letter from relevant associations/OGAs

The event organiser, on behalf of the exporters, applies for recommendation letters at the

relevant associations or government agencies, by submitting the following documents:

Written request

Copies of invoices

Step 5: Obtain OGL from MoC

Once the event organiser has received the recommendation letters, the Ministry of

Commerce issues the Open General Licence to the event organiser.

Step 6: Applying for a Customs team to examine the goods

The event organiser, in advance of declaration, contacts the Myanmar Customs Department

(MCD) to request a team to examine the goods.

Step 7: Customs examination

The event organiser submits the export declaration and accompanying documents to

Customs HQ. Depending on the cargo the Customs team may examine the goods at premises

and affix a seal and note this in the case file. Information on the export documents required

from the event organiser can be found on the MCD website.

Step 8: Declare to Customs on export

The exhibitors declare the goods to the Customs departure office where Customs release the

goods after checking the document set.

Step 9: Exhibition

The exhibition takes place.

Step 10: Declare to Customs on return

The exhibitors declare the goods to Customs upon arrival in Myanmar by submitting the

following documents:

Invoices for any goods sold outside of Myanmar during the trip

CUSDEC-2

Step 11: Declare at Foreign Exchange Department (FED) at airport

The exhibitors need to notify FED of the goods sold at the exhibition and declare the foreign

currency obtained.

Step 12: Pay Duty & Tax at Myanmar Foreign Trade Bank (MFTB) bank

The exhibitors need to pay any duty and tax applicable to the MFTB in Yangon.

Step 13: Examination by One-Stop Service (OSS: for border posts)

Customs at the nearest OSS examine the goods and conduct a documentary check.

Step 14: Finalise file at Custom House

For all re-importations the case file is sent to the Custom House (HQ) in Yangon.


The exhibitor pays the agent/broker for the services provided.

Transit Process

Transit

Service

contract

Apply for

import and

export

licences

Transfer

payment

(TT)

Arrange

shipment

for

departure

Dispatch

original

shipping

documents

Declare to

Customs and

pay taxes

Collect release

order and

delivery order

Cargo

arrival

C/T: ½ day

W/T: 1 day

Service

Provider

Deliver cargo

to border

checkpoint

C/T: ½ day

W/T: 1 day

MoC

C/T: ½ day

W/T: 1 day

Bank/Company

C/T: 1 day

W/T: 5 days

Freight

Forwarder

C/T: 1 day

W/T: 3 days

Courier/Consignor

C/T: 3 days

W/T: 5 days

Customs/Agent

C/T: 1 day

W/T: 2 days

Carrier/SAD

C/T: 1 day

W/T: 7 days

Logistics

C/T: 2 days

W/T: 3 days

Transporter

T1. Transit Trade in Myanmar (From Thailand to China)

Arrange

transportation

C/T: ½ day

W/T: 1 day

Agent

C/T: Cycle time

W/T: Waiting time

Customs

examination at

border checkpoint

C/T: ½ day

W/T: 1 day

Customs

Release cargo

and deliver to

buyer

C/T: ½ day

W/T: 1 day

Transporter

Obtain MIFFA

recommendation

for all logistics

(General Cost for

Transit Trade)

C/T: ½ day

W/T: 1 day

MIFFA

T1. Transit Process


The service provider/trading company in Myanmar and the consignor sign a contract for the

transit process.

Step 2: Applying for a recommendation letter at MIFFA

The service provider applies for a recommendation letter from the Myanmar International

Freight Forwarders Association (MIFFA) in Yangon. MIFFA reviews the transit costs quoted by

the service provider and then endorses the written application. This endorsement is required

when applying for a transit trade licence from the Ministry of Commerce (MoC).

MIFFA requires the following documents:

1. Written application on MIFFA letterhead



importer/exporter)


5. Pro-forma invoice

6. Packing list

7. Sales contract

8. Bill of lading/airway bill/truck note

Step 3: Applying for the import and export licences

The service provider applies for an import and export licence at the MoC after receiving the

recommendation letter from MIFFA. The MoC imposes a transaction fee of 2.5% of the total

invoice value.

The following documents are required by the MoC:



importer/exporter)


4. Pro-forma Invoice

5. Packing List

6. Sales Contract

7. Bill of lading/airway bill/truck note

8. MIFFA’s re o endation letter

Step 4: Telegraphic Transfer (TT)

Payment is paid by telegraphic transfer to the service provider for the services provided.

Step 5: Arranging transportation

The service provider arranges transportation of the cargo from the entry point to the exit

point in Myanmar.

Step 6: Sending the original shipping documents by courier

The consignor sends the original shipping documents to the service provider/consignee by

courier.


The service provider can trace the arrival of the cargo via www.track-trace.com using the

identification number of the air waybill, bill of lading, or container.


The service provider/agent collects the release order from the box operator/carrier and

collects the delivery order from the shipping agency department (SAD).

Step 9: Declare to Customs on arrival (and pay 2.5% transit tax)

The service provider/agent declares the cargo to Customs (transit trade) by submitting the

forms shown below:

1. CUSDEC-3

2. Invoice

3. Packing list

4. Import/export licence





importer/exporter)


If the cargo is sealed then Customs confine their actions to documentary check and a check

of the seal/s. A 2.5% transit tax is imposed and collected by Customs. Unsealed loads may

be examined and, where possible, sealed by Customs prior to release.

Step 10: Customs examination at border checkpoint and release of cargo

The agent submits the original CUSDEC-3 declaration and supporting documents to the

Customs export office for checking. The seal is then checked and the cargo is allowed to

proceed from the border post if there are no irregularities. Unsealed loads may be physically

examined.


The service fee is paid to the customs agent/ broker for the services provided.