In Myanmar, the customs procedures are provided in the Sea Customs Act and Land Customs Act. The tariff law was enacted on March 12, 1992 with a view to assisting the market economic system in order to facilitate external trade. In accordance with the Law, a notification was issued to regulate the classification of imported goods and assessment of duties. For modernization and standardization, in line with international practice, the Harmonized Commodity Description and Coding System (HS) was introduced in April 1992.
TARIFF AND DUTY RATES
Where duties are leviable on imported goods, all relevant duties must be paid before such goods are delivered for domestic consumption. In the same way, where export duties are leviable, such duties must be paid before such goods are permitted to be exported. Types of duties are leviable on imported goods are as follows:
- Import duties
- Commercial taxes
- Licence fees
Customs Tariff
The promulgation of the new Customs Tariff Law on March 12, 1992 enabled the Myanmar Customs Administration to adopt the 1992 Version of the Harmonized System for tariff and statistical nomenclature on April 1, 1992. After incorporating necessary changes in the Myanmar Customs Tariff, the 1996 Version of the Harmonized System was applied on 1 St January 1996.
The Myanmar Customs Tariff comprises of four schedules namely
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Schedule I - Import Tariff
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Schedule II - Concessionary Tariff
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Schedule III - Export Tariff
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Schedule IV - Export Border Trade Tariff
The maximum tariff rate is 40% and the minimum is 0% Customs tariff rates on imports of machinery, spare parts and inputs generally range from 0.5 %to 3% Customs duty is zero rate for all the goods to be exported from the Union of Myanmar.
Payment of Customs Duties and Other Taxes
Payment of customs duties and other taxes can be made by the following two methods -
- By cash or payment order
- By deduction from the current deposit account
Cash or Payment Order
Payment by cash not exceeding 5000 Kyats is accepted at the Customs Department. Payment for amount exceeding 5000 Kyats must be made by payment order, which are easily obtainable from Myanmar Economic Bank and other Banks.
Payment by cash for customs duties and other taxes exceeding the amount K 5000/- are permissible exceptionally in the following cases:
- Goods declared at wharves
- Goods cleared at Post Office
- Crew baggage and passenger baggage
- Security deposit at auctions.
Current Deposit Account
The exporters, importers and Joint venture enterprises can open current deposit accounts with the Customs Department. The Customs duties and other taxes levied on their imports or exports can be deducted from these accounts.
Duty Exemption
In the interest of the state the Minister of Revenue and Finance may by notification exempt partially or wholly from levy of customs duties in respect of any of the following cases:
- Nature and type of goods exported from Myanmar or imported into Myanmar
- Nature and type of goods exported from Myanmar or imported into Myanmar by any government department or any organization.
VALUING YOUR PRODUCTS
The basic principle of the present national valuation system is that the real value is taken to be the normal price or import value of goods at the time and place of importation. It presupposes that the sale has taken place in the open market between independent buyer and seller.
By the definition of value, it means the cost at which goods of the like kind quantity could be delivered at the place of importation.
Being one of the original signatories of both GATT and WTO Myanmar shall inevitably have to apply the Customs Valuation methods prescribed in GATT article VII in due course and has taken measures to do so. The Myanmar Customs have made use of the Special and Preferential Treatment offered to developing countries in GATT Article VII of 1994 to exercise delay application of the GATT Code until the year 2000.
CLEARING IMPORT
Under the existing rules and regulations all incoming consignments of the goods must be cleared through the Customs Department under Import Declaration Form (CUSDEC – 1). The Import Declaration Form is to be accompanied by the following documents:
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Import licence / permit
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Invoice
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Bill of Lading or Air Consignment Note
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Packing List
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Other Certificates and Permits issued by the relevant Government Departments as a condition for Import.
Customs duty is payable according to the tariff schedule. Import duty is levied on the C.I.F value. Together with customs duty, commercial tax is levied on the imported goods based on the landed cost, which is the sum of assessable value and import duty. These taxes are collected at the point of entry and the time of clearance.
GOODS WITH PROHIBITIONS, CONTROLS, AND RESTRICTIONS
Import Prohibitions
Common types of goods prohibited from importation into Myanmar are as follows:
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Counterfeit coins and currencies
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Pornographic articles
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Piece goods without stamped measurement
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Goods having counterfeit trade mark
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All kinds of narcotic drugs and psychotropic substances
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playing cards
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Goods bearing the imprint or reproduction of the flag of the Union of Myanmar
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Goods bearing the emblem of Buddha and pagodas of Myanmar
Export Prohibitions
Common types of goods prohibited from exportation out of Myanmar are as follows:
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Arms and ammunitions
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Pornographic articles
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Antiques
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All kinds of narcotic drugs and psychotropic substances
Any person deeming himself, aggrieved by any decision or order passed by an officer of Customs, may appeal to the Revenue Appellant Tribunal, within one month from the date of such decision or order. The Tribunal may thereupon make such further inquiry , giving the appellant , on his request, permission to make an oral statement and pass such order as he thinks fit, confirming, altering or annulling the decision or order appealed against within one month from the date of the decision or order made by the officer of Customs. The Tribunal may extend such period to three months on sufficient cause being shown by the appellant. It is required that the appealing letter, on which the 15 kyat revenue stamp is stuck, along with four copies of the official documents on the decision or order taken by the officer of Customs should be submitted to the following address:
Those persons who do not wish to appeal to the Revenue Appellant Tribunal may also apply to the Direction General of Customs for review and revision of the order made by any officer of Customs. On the application of any party interested, made within two years from the making of the order, the Direction making of the order, the Director General of Customs my review and on so revenue notify, revise or confirms such order. Application for revision should be addressed to:
Any order or decision, made by the Director General of Customs, may be appealed by the aggrieved person to the Minister for Finance and Revenue, within 60 days from the date of receiving such order or decision. The decision of the Minister is final and conclusive. Appealing letter should be submitted to the following address:
