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October 16, 2019

NEWS
LEGISLATION

GAP certificate validity to be extended to two years

Image result for fruits and vegetablesThe validity of Good Agricultural Practices (GAP) certificates will be extended to two years, according to the Agriculture Department.

Good Agricultural Practices ensure food safety, and GAP growers can get more market access, locally and internationally. Additionally, GAP also ensures worker safety, health and welfare, and conservation of the environment. Therefore, the Agriculture Department is planning to extend the validity of certificates to two years. “Fruits and vegetables produced under GAP can fetch good prices. They ensure food safety and traceability. So, the department is raising awareness of GAP among growers by providing courses.

Next, the department is planning to introduce digital touch for seeking GAP certificates soon. Online applications can reduce red tape, and help bring smooth and quick service to growers. The Ministry of Agriculture, Livestock and Irrigation has encouraged farmers to use its GAP protocol in a bid to boost productivity, profitability, market access, and competitiveness in the agricultural sector. The GAP protocol and guidelines include the most consumed and major export items — mango, pomelo, honeydew, watermelon, avocado, chili, tomato, onion, cabbage, corn, sesame, various beans, rice, and coffee.

Source: Global New Light of Myanmar

Importers now need to register business for trading agri inputs, medical equipment

Related imageImporters will not be allowed to trade six items – fertilizers, seeds, pesticides, medical equipment, construction materials and equipment, and agricultural machinery and equipment without a wholesale or retail business registration, according to the Trade Department under the Ministry of Construction.

Foreign companies and joint venture companies between foreigners and Myanmar citizens, which are importing the six items using their import-export registration certificate, were given a 90-day deadline from 21 May to apply and register their business. The registration period has expired, but businesses are being allowed to proceed with the registration process, in accordance with the rules and regulations. However, businesses that have not registered will no longer be able to trade the six items using their import-export license alone. MOC recently announced it has issued registration cards to 11 retail and wholesale trading services.

To register their business with the MOC, companies will require their company registration papers; a copy of approval or endorsement from the Myanmar Investment Commission (only for foreign companies and joint ventures which need them); recommendations of the city development committee concerned; a list of commodity classification of goods to be distributed retail or wholesale; and a detailed business plan, including the initial investment amount, the location of distribution, and the dimensions of the facility. A company can execute retail, or wholesale, or both the trading services. They can apply for registration at the Trade Department of the Ministry of Commerce in Nay Pyi Taw and the export-import licence office of the trade departments in Nay Pyi Taw, Yangon, and Mandalay, depending on the type of company.

Source: Global New Light of Myanmar 

Yangon to Allow Casinos

Image result for CasinoYangon Regional Investment Committee said they will now allow investors into Yangon’s casino industry. Myanmar earlier this year passed the revised Gambling Act (1986), currently they only need to release the by-law for it which will pave the way for casinos in the city. According to the gambling act, foreigner only casinos can be opened with approval from the Union government, it is is believed the move will boost the country’s tourism.

“Investors haven’t proposed a casino yet. We also do not have plans to approve any until the by-law comes out,” said U Phyo Min Thein, Chief Minister of Yangon. Myanmar is hoping to build casinos in popular tourist destinations around the country, and they hope this will generate tax revenue. The existing gambling act only allows the ‘Aungbarlay lottery’ which generates around $30 million per year.

The revised Gambling Act was submitted to Pyithu Hluttaw lower house, on August 21, 2018 and Pyidaungsu Hluttaw Union Parliament, approved it on March 8, 2019. After seeing how successful Macau and Singapore’s gambling industry has been, Myanmar has decided to now allow casinos. Macau’s casino industry circulates $33 billion per year and generates $3 billion in revenue for the country, while Singapore’s casino industry generates $2.7 billion per year.

Source: Myanmar Business Today 

Unlicensed food cars will be penalised: YCDC

Image result for food truck YangonMobile food car vendors will face one-month imprisonment if they are found operating without a licence. Unlicensed food car vendors will be fined K 10,000 to K 100,000 at the first instance. If they continue operating without a licence, they will face one-month imprisonment.

Licenses are not being issued to mobile food car vendors in six townships of downtown Yangon, to prevent them from acting like street vendors on Yangon main roads. At present, action is being taken against food car vendors. Even in other townships, car vendors can only operate only at fixed locations where vehicles can be stopped without causing traffic congestion. Also, sales must not be conducted the whole day.

Mobile vendors can register with the YCDC if they hold an e-driving licence issued by the Road and Transportation Administration Department (RTAD) by presenting the vehicle registration book. Only Yangon licensed trucks can apply for business licenses. While seeking a license, the vendors have to present the vehicle registration book and a copy of the wheel tax receipt, census, tax receipt from the related Internal Revenue Department (IRD), and a commitment to follow the rules and food descriptions. Currently, licences have been issued to over 170 cars vendors, according to YCDC data.

Source: Global New Light of Myanmar

Offshore fishing vessels asked to install monitoring systems by October-end

Fishing vessels are seen in Sittwe, Rakhine State. THE Myanmar Fisheries Department has asked offshores fishing vessels operating in the maritime fishing zone to install vessel monitoring systems (VMS) by 30 October. Although the no-fishing season ended without vessels installing monitoring systems and the new season has begun from 1 September, the Fisheries Department has allowed fishing vessels to operate and given them two months (1 September to 30 October) to get VMS installed.

Fishery companies and owners of fishing vessels have not received the price and information details of the VMS equipment, in spite of a Thai Company introducing VMS machines with videos on 31 August at the Myeik District Fisheries Department, according to officials at the department.

There are 1,202 offshore fishing vessels and 20,987 offshore fishermen operating in the area, as per records taken in the 2018-2019 fiscal year. The authorities are working to equip all vessels with VMS in order to monitor the movement of offshore fishing vessels, preserve the ecosystem, and conserve marine life in Myanmar’s maritime zone.

Source: Global New Light of Myanmar 

Gemstones and jewelry omitted from Union Tax Bill 2019

Image result for gemstones in myanmarGemstones and jewelry have been omitted from the special commodities list in the 2019 Union Tax Bill submitted to the Pyidaungsu Hluttaw on August 7.

The Myanmar Gemstones Law came into operation this year and covers taxation for gemstones and jewelry. The law was passed by the Pyidaungsu Hluttaw in late December last year and was enacted from late January this year. In the 2018 tax bill, raw jade allocated for exports were taxed at 15pc while rubies, sapphires and other raw gemstones were taxed at 10pc. Jewelry made from jade, rubies, sapphires and other gemstones were taxed at 5pc.

Data from the Natural Resource Governance Institute(NRGI) showed that Myanmar registered selling an average of US$1.2 billion a year worth of jade between 2012 and 2016 at emporiums the government organized but China, which buys most of the jade, reported importing US$2.6 billion over the same period, according to The Diplomat. NRGI data also showed that in fiscal year 2015-16, Myanmar’s jade production alone was between US$3.7 billion and US$43.1 billion.

Source: Myanmar Times 

Draft law to create trade authority, empower commerce ministry

Image result for Myanmar Trade

The Ministry of Commerce (MoC) has drafted a law to establish a trade development body made up entirely of cabinet ministers and empower the new authority and MoC to issue lists of restricted items and non-tariff regulations. The legislation is expected to be approved by parliament within this year and the drafting was supported by the World Bank and German’s development agency GIZ. Under the draft trade law, businesses can import, export and re-export goods by obtaining trade registration certificates and licences issued by the commerce ministry, according to law firm DFDL.

Section 6 of the bill stipulates the formation of a trade development commission tasked with implementing the law. The proposed body, packed with ministers, will be chaired by one of the vice presidents, with finance minister U Soe Win as deputy chair. Section 27 authorises the commerce ministry to issue restrictions and prohibitions on goods and regulations in relation to the country of origin and other compliance certificates. It does not mention tariffs.

Section 34 empowers the ministry to send trade missions abroad and undertake trade promotional activities and exhibitions domestically and overseas. In addition, a one-stop service board will be set up to manage trade-related licencing and approval procedures. The draft law intended to regulate the e-market as well, which is largely an unregulated sector in Myanmar. The commission will carry out trade negotiations on goods and services, including intellectual property rights, and will further set up committees.

Source: Myanmar Times 

Myanmar encourages development of automobile assembly industry

Related imageMyanmar is encouraging the development of automobile assembly industry, allowing auto manufacturers to import products that are essential to make vehicles in the country. According to the Supervisory Committee for Motor Vehicle Imports and Related Business, between April 2018 and January 2019, the committee has allowed eight auto manufacturers to import such products. There are about 120 car sale centers with 44 showrooms as of May this year.

The committee has outlined a new auto import policy for 2019, saying that only vehicles with left-hand drive can be imported to suit the country’s traffic route direction. Besides, 2016 vehicle will be the oldest to be issued a permit for private cars with non-commercial purpose under consignment system. Permitted models are 2015 and later for passenger vehicles such as mini-bus, city bus, express bus and commercial trucks; 2007 and later for fire trucks and ambulances; and 15 years old or less models for heavy equipment such as excavators, bulldozers, wheel loaders and tower cranes. Impacted by the new car import policy starting this year, Myanmar’s second-hand car sale centers are likely to close down as these kinds of cars are mostly right-hand drive which will be no longer allowed.

At present, vehicles imported under a system of vehicle assembly, known as Completely Knock-Down (CKD) or Semi Knock-Down (SKD), are on the upward trend with the U.S. dollar exchange rate appreciation and Myanmar currency depreciation and cars installed locally are expected to get more market share in 2019. Meanwhile, Myanmar’s Internal Revenue Department announced earlier that it will collect advanced income tax by 15 percent for vehicles imported through normal trade, while 2 percent be on those imported for industrial use via border trade.

Source: Xinhua 

Trade laws protecting local producers now being drafted: MOC

The Ministry of Commerce (MOC) is drafting new trade laws to safeguard local producers while promoting exports of domestically-produced goods.

Due to the lack of investments and technology, Myanmar producers face stiff competition from their regional peers, who are able to manufacture at faster speeds and lower costs and produce higher quality goods.

As such, the legislation, drafted in collaboration with the World Bank and German development agency GIZ, will include a new Safeguard Law on Increased Import and Antidumping and Countervailing Law. The laws aim to safeguard domestic manufacturers from cheap imports and support demand for locally-made products.

At the same time, the government is also raising efforts to promote economic growth through exports by adding new priority sectors to its National Export Strategy (NES).

Gems and jewellery, the digital economy, fruits and vegetables, agricultural product-based food products and industrial art products have been added to the NES 2020-2025, which replaces the first NES 2014-2019, according to the MOC.

Notably, the new sectors appear to involve higher value-add and selected across a wider spectrum of industries compared to the current NES, which prioritises raw commodities including rice, pulses, oilseed crops, marine products, textile and garments and wood and wood products.

In the first six months of this financial year, the country’s export earnings totaled some US$8 billion, which is up by more than US$650 million from the same period last year, buoyed by overseas demand for locally produced garments and despite lower exports of rice, beans and pulses.

Meanwhile, spending on imports rose to US$8.9 billion during the same period, resulting in a trade deficit of more than US$100 million, according to data from the MOC.

Source: Myanmar Times

DICA chief promoted as investment ministry’s top civil servant

https://www.mmtimes.com/sites/mmtimes.com/files/styles/mmtimes_ratio_c_normal_detail_image/public/news-images/u-aung-naing-oo-ps-appointment-01.jpg?itok=jqc_DVPD

The government has appointed U Aung Naing Oo as permanent secretary of the recently-created Ministry of Investment and Foreign Economic Relations, the official gazette announced.

As the top civil servant leading the ministry, he will support and advise the cabinet minister, career diplomat U Thaung Tun, on how to drum up foreign investments and build on reform initiatives. Observers hope the new body will be the reflected voice of business in government, challenging line ministries on red tape while ensuring that related draft regulations are consulted on.

U Aung Naing Oo was transferred to be director general of the Office of the Union Investment and Foreign Economic Relations on March 29.

The civil servant is widely praised by the business community for drafting new laws and consulting stakeholders in an open and effective manner as director general of the Directorate of Investment and Company Administration (DICA).

It is under his guidance that the 2016 Investment Law and 2017 Companies Law “achieved their intended outcome,” said Nishant Choudhary, co-chair of EuroCham Myanmar’s legal group.

For Mandalay Technology managing director U Zaw Naing, U Aung Naing Oo’s “excellent leadership at DICA” has made a big difference for the private sector.

“Business people in Myanmar see him as a key driver for corporate reform, including MyCo Online Register, the new electronic registry system, and the digitalisation of the investment application process. He will be able to make a bigger impact on economic reform in his new position, and brings with him a wealth of experience to support the minister,” the businessman commented.

The investment ministry was established last November. Two departments formerly under the Ministry of Planning and Finance – DICA and the Foreign Economic Relations Department – were brought under the new body.

The move represents Daw Aung San Suu Kyi’s belated efforts intended to win support for her much-criticised handling of the economy. The National League for Democracy-led government is facing huge challenges from its economic governance, especially in the implementation of new policies and laws, and investor confidence is further hampered by sluggish reform and the northern Rakhine crisis.

From a peak of $9.4 billion in 2015-16, approved foreign investment has reduced to $6.6 billion in 2016-17 and $5.7 billion in 2017-18. A further $1.7 billion was recorded from April 1 to September 30, 2018, while in the 2018-19 fiscal year to March 15 it reached $1.9 billion.

The country’s GDP is expected to grow by 6.6 percent in 2019 and 6.8pc in 2020, according to the Asian Development Bank.

U Thaung Tun, who’s also the Myanmar Investment Commission chair, last November pledged to establish a “single-window” system for investment proposals, based on a list of standard operating procedures agreed on by relevant ministries. This is welcome by investors but yet to materialise.

Many local businessmen, U Zaw Naing observed, are looking at how the government, including the new ministry, manages Belt and Road-related projects as well as investments from China.

He is confident that the permanent secretary will work effectively with development partners, foreign governments and multilateral institutions to “mobilise external resources in order to assist Myanmar’s transition”.

“I am certain that U Aung Naing Oo would further work towards improving the business landscape and regulatory environment,” Mr Choudhary added.

U Thant Zin Lwin, who has been DICA deputy director general since 2016, is set to take over as DICA chief.

Source: Myanmar Times

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