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 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 

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 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 

The Central Bank of Myanmar (CBM) officially introduced Japanese yen and Chinese yuan as settlement options for banks in cross border payments and transfers.
With the aim of facilitating border trade, the CBM’s January 30 directive permits banks with Authorised Dealer licenses for foreign exchange to open yen and yuan accounts and settle trades in those currencies. However, opening personal accounts or legal entities in the two foreign currencies are not permitted.
“The objective is for easy settlement when conducting border trades. Local banks can also make transfers among themselves,” said U Pe Myint, senior adviser to CB Bank.
He added that “as China and Japan are strong economies, opening personal accounts in yen and yuan should also have been allowed. However, I think the CBM will allow this in future.”

Source: Myanmar Times

U Thaung Tun, the Union Minister for Investment and Foreign Economic Relations and the Chairman of the Myanmar Investment Commission, attended the second day of the Invest Myanmar Summit 2019 in Nay Pyi Taw, and re-affirmed plans to establish standard operating procedures (SOPs) and a Land Bank to ease investment procedures.
The setting up of the Ministry of Investment and Foreign Economic Relations, which was formed recently to attract foreign investment, is among the significant changes being made in Myanmar, said the Union Minister.
The ministry’s MyCo System is offering online registration to companies, he added.
He also stressed the important role played by the youth in the Fourth Industrial Revolution, appreciating the aptitude displayed by Myanmar youths who achieved success in the Robot Olympics.
“Myanmar’s enviable geographical location makes the country a strategic place as it is sitting between China and India, and both countries are developing at the highest pace. Understanding the importance of the Belt and Road Initiative, Myanmar is making the necessary investments to improve its infrastructure,” said U Thaung Tun.
When it comes to making and receiving investments, a win-win situation is important for both sides, and all need to work together to achieve it, he said.

Regarding the situation in Rakhine, U Thaung Tun said the Union Government understands the situation in the State and has formed the Central Committee led by the State Counsellor to focus on implementing peace, stability, and development in the state. It has also set up the Union Enterprise for Humanitarian Assistance, Resettlement and Development in Rakhine State (UEHRD), the committee for repatriation and resettlement of displaced people in Rakhine State, and the Rakhine State Advisory Commission led by Dr. Kofi Annan, and is carrying out development works in the state.
Lack of development is one of the main challenges faced by the state, and it is important to work for the development of the state rather than trading blame, he said.
The Union Minister also praised the investors in Rakhine State, especially in the agriculture, production, education and health sectors, and called attention to the Investment Forum in Rakhine State, which will be held next month.

Source: Global New Light of Myanmar