Myanmar's Experience on Implementation of Trade Facilitation Measures

1. Myanmar's Experience on Implementation of Trade Facilitation Measures Presented By Mr. Myo Oo Deputy Director General Ministry of Commerce Myanmar

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

3. International & regional organizations involved in Trade Facilitation • UNESCAP • UNCTAD • WTO • ASEAN • GMS Myanmar has been implementing the obligations of the above organizations related to TRADE FACILITATION

4. GATT Articles V, VIII, X • GATT Article V ( Freedom of Transit) • GATT Article VIII (Fees & Formalities connected with import & export) • GATT Article X (Publication & Administration of Trade Regulations) As a WTO member, Myanmar has been committed to implement the above three GATT Articles; As an ASEAN member, AFTA has been implemented by generating the elimination of tariffs & NTBs to facilitate trade; As regards to GMS, Agreement on Cross Border Movement of Goods & People was signed and ratified by the member countries

5. Initial implementation of Trade Facilitation • since early 1989, Myanmar has changed its economic course from centrally planned to market oriented system • series of structural reforms had been introduced as initial trade facilitation measures

6. Trade Reforms • encourage private sector development • allowing FDI • institutional changes • practiced new financial management • streamlining taxes & duties • promote external trade by improving export/import procedures • improving infra-structure support

7. GATT Article V (freedom of transit) • transit trade has been allowed • In 1996, Department of Border Trade was formed • Open border check points along the border areas with neighbouring countries • one stop service (oss) has been established in 13 • border check points for simplified and standardized cargo clearance procedures in collaboration with Custom, Revenue Dept: Banking Institution

8. Myanmar China Border Check Point

9. GATT Article V (contd) • to be in line with international best practices, X- Ray machine is now underway to install for speedy inspection of cargo • designated two border posts as a pilot sites for implementation of SINGLE WINDOW INSPECTION; • As a medium of exchange not only US $ has been allowed but also local currencies for border trade transactions; • For speedy payment mechanism , branches of major bank has been opened at border posts.

10. GATT Article V (contd) Since Myanmar became a member of the WCO in 1991, it has introduced the reform measures in the customs administration in order to simplify and harmonize the customs procedures and documents.

11. Custom Initiatives • transformation of export and import division under the Customs Department into a one stop service station. • application of Declaration Forms according to the UN Layout. • simplification of customs clearance procedures. • restructuring of cargo examination procedure. • establishment of customs transit trade system.

12. adoption of the inward processing procedure as suggested by the Kyoto Convention. security initiative for containerized cargoes. establishment of Customs website in cooperation with ASEAN Secretariat. preparation for the ASEAN Single Window. Major Initiatives (contd)

13. GATT Article VIII(Fees & Formalities) • need to apply export/import licenses • export license fees is not payable • import license fees is payable • reasonable rate based on invoice value • to cover document administration cost not as revenue • no quantitative restriction on export/import • but import is allowed against export earnings • the more they want to import, the more they have to export; it supports export promotion;

14. GATT Article VIII(contd) • Major export items are agro products, marine & forest products • required formalities are done according to the request of importing countries • Main import items are capital goods, construction materials, machinery & pharmaceuticals • documentation is simplified & reducing requirements • However, due to FDA rules, for safety reason, imported pharmaceuticals are required to register • Some food items like rice, cooking oil temporary quantitative measure has been applied due to domestic self sufficiency

15. GATT Article X (Publications & administration of trade regulations) • Since initial reform measures, publications on law, rules, regulations & procedures regarding investment, import, export, custom & taxation have been made; • align trade documentation format in line with UN layout key; • periodical notifications, orders, information are made transparency through MoC publications such as Trade News,Commerce journal and also on commerce website; http//www.commerce.gov.mm • www.MyanmartradeNet.com.mmwhich is a Myanmar trade portal is now under construction

16. UNESCAP Project • UNSCAP initiated a project "Alignment of trade document of Cambodia, Myanmar & Vietnam" • publishing guide book and already relayed to departments concerned • use as a guide to align & simplify trade documents

17. Publication on Export/Import rules & regulations

18. Some Publications

19. Ministry of Commerce website

20. MyanmartradeNet website

21. Commerce Journal

22. Challenges & issues in implementing trade facilitation • multiple cost of implementation to reduce the cost of trade; • major cost consuming sectors are; • infrastructure development • human resource development • development of mechanism for trade facilitation • institutional reforms

23. Challenges & issues (contd) • inadequate capacity is a major challenge • requires assistance not in terms of technical but also financial • the assistances provided are only for awareness and acknowledgement of advantage of trade facilitation without practical implementation • Competitiveness is a big challenge faced by our exporters • supply side constraint; they much depend on few items of exports

24. Weaknesses • to identify new products to new markets Myanmar exporters have some weaknesses • limited capacity to produce for export; • lack of export diversification into high value-added, processed and manufactured goods; • stringent quality & standard requirements; • export produce not matched by market demand; • inadequate comprehensive foreign market information; • lack of skilled man power and institutional capacities; • lack of technological capacity & technical know-how • lack of financial & marketing capability

25. ISSUES • Freedom of transit, cannot be entirely facilitated due to political and social reasons by nature of our country. • Narcotic drugs and human trafficking is a major problem to facilitate freedom of transit both for goods and people.

26. Special & Differential Treatment Myanmar would like to support the following request made by Least Developed Countries Group at the Zambia Ministerial Meeting to reach agreement at the Sixth Ministerial Conference : - "Full and faithful implementation of the Modalities for Negotiations on Trade Facilitation that ensure adequate financial and technical assistance and capacity building including support for infrastructure development of Least Developed Countries".

27. Thank you