Duties and Tax Exemption
For contact information regarding government custom authorities, please follow the link:
4.1 Myanmar Government Contact List
Myanmar is a member state of both GATT (General Agreement on Tariff and Trade) and WTO (World Trade Organization). Myanmar Customs Department became member of the World Customs Organization on 25-Mar-1991 and became a contracting party to the International Convention on the Harmonized Commodities Description and Coding System (HS Code) on 21-Nov-1994. This convention entered into force since 1-Jan-1995.
Myanmar became a member of the ASEAN on 23-Jul-1997 and entered into the ASIAN agreement on Customs. Myanmar joined other ASEAN members in implementing the Common Effective Preferential Tariff Scheme (CEPT) by taking steps to reduce customs tariffs 0% to 5% within ten years time. The Ministry of Finance reduced the tariff to 5% on 62 products effective from 1 January 2000. Transit duty was abolished 1 January 2000 as a fulfillment of the commitment to the ASEAN agreement on the Facilitation of Goods in Transit. An e-Customs system was introduced 29 August 2011 with modules for export and import and it is planned to implement the ASEAN e-Customs National Single Window process by end of 2014.
Myanmar has not signed/ratified the revised Kyoto Convention on the Simplification and Harmonization of Customs Procedures, which contains a chapter binding states to facilitate the work of intergovernmental and non-governmental organizations in implementing humanitarian assistance. (Kyoto Convention, Annex J-5 on the Special Procedure for Relief Material). Myanmar has neither signed/ratified the Tampere Convention on the Provision of Telecommunication Resources for Disaster Mitigation and Relief Operations.
As of November 2016, an online customs clearance system, Myanmar Automated Cargo Clearance System (MACCS) is implemented in both Seaport and Airport of Yangon and Myawaddi (Kayin State) at Thai-Myanmar border. This is also as part of the ASEAN Economic Community Myanmar is required to implement ASEAN Single Window Access for faster import and export customs clearance. Ever since the system implemented, the lead-time for the custom process is yet to speed up and all required supporting document remains the same. For the registration in MACCS system, agency or organization needs to physically present at the Custom Office and complete and submit the registration form. Please see the below flow chart and more on http://www.myanmarcustoms.gov.mm/maccs/Registration.aspx.
Sources:
ASEAN ICT Mall, Myanmar Customs Department: http://aseanict.com/bizcenter/0/Myanmar-Customs-Department/1338/10612
WCO OMD, Contracting parties to the revised Kyoto convention: http://www.wcoomd.org/en/topics/facilitation/instrument-and-tools/conventions/pf_revised_kyoto_conv/instruments.aspx
UN (Publisher) Tampere convention: https://treaties.un.org/pages/ViewDetails.aspx?src=TREATY&mtdsg_no=XXV-4&chapter=25&lang=en
Online Burma/Myanmar Library, Myanmar New Tax Law: http://www.burmalibrary.org/docs18/myanmar_New_tax_law.pdf
Emergency Response
In the event of an emergency, all humanitarian aid organizations must liaise with the Relief and Resettlement Department (RRD) of Ministry of Social Welfare, Relief and Resettlement for all topics including customs and exercise. The RRD will liaise with the National Disaster Management Committee (NDMC) and this committee will decide if any special customs measures and exemptions would apply.
Myanmar had issued the Natural Disaster Management Law on 31st July 2013 in order to exempt the tax for humanitarian cargo. Ref: Pyidaungsu Hluttaw Law No.21, 2013
The following table states which agreements and conventions apply in Myanmar:
Agreements / Conventions Description |
Ratified by Country? |
WCO (World Customs Organization) member |
Yes, Date: 25-Mar-1991 |
Annex J-5 Revised Kyoto Convention |
No |
OCHA Model Agreement |
No |
Tampere Convention (on the Provision of Telecommunication Resources for Disaster Mitigation and Relief Operations) |
No |
Regional Agreements (on emergency/disaster response, but also customs unions, regional integration) |
Signature to the ASEAN Green Lane System (GLS) for rapid clearance of goods of ASEAN origins. The GLS was implemented in Myanmar 1-Jan-1999. Customs Value Declaration Form (CUSDEC 4) was prescribed effective from 1-Apr-1999 for implementation of the WTO Valuation Agreement. |
National Customs Legislation and Regime |
|
Exemption Regular Regime (Non-Emergency
Response):
The usual process to qualify for exemption of customs duties and taxes is:
- Tax exemption status must be granted to the organization by the government.
- For each import shipment, the government must approve a request for tax exemption, following the standard customs declaration procedure.
- A “special order” procedure per import shipment can be processed to fast track a request for tax exemption and approval by the government.
Organizational Requirements to obtain Duty Free Status |
United Nations Agencies |
A request for Tax Exemption status must be sent to the Ministry of Border Affairs and to the Foreign Economic Relations Department (Ministry of National Planning & Economic Development) |
NGOs |
NGO’s must be registered with the relevant Government authority, depending on their scope of work (e.g at the Ministry of Social Welfare or the Ministry of Health and Sports) They need to sign a MOU or LOU with the respective Ministry/Department to carry out their intended project activities and acquire a permit/license to import cargo. A request for Tax Exemption status must be sent to the relevant ministry where the NGO has registered. These ministries will liaise with the Ministry of Commerce, who will issue a letter to the NGO. |
Exemption Certificate Application Procedure:
Organisations can defer from the standard customs declaration procedure to a “special order” procedure to request for exemption of customs duties and taxes.
After cargo arrives, a special order for inspection is prepared and sent to Customs department specifying that the standard exemption procedure has been initiated as well. Authorisation for the freight forwarding agent to work on behalf of the agency/NGO should be issued to the Export/Import section of Customs Department.
Standard Duties and Taxes Exemption Application Procedure |
Documentation required |
|
Process to be followed (step by step) |
|
Special Order Procedure (Myanmar Custom Department, 2012) |
Imports require payment of customs duties following the standard import declaration process. The special order procedure for import can be followed to qualify for exemption of payment of taxes and duties. The director general of the Customs Department has the power to grant exemption of customs duties for imports entering by air, water and road, which are not considered to impact state revenue (as per BAM Para 18). To qualify for Special Order Procedure the imports must be: - Highly perishable goods - State projected goods for factory and building construction, pending for issue due to incomplete document. - Live flora, fauna and remains of the deceased. - Remand for issue under special order as to imports by department or state enterprise due to lack of set revenue. - Dangerous Harmful goods, vaccines under specified temperature ie. Radioactive materials, live virus.
1. Applications to the Director General of Customs Department under Special Order should include: imports declaration, import license, B.L invoice, packaging list, signature of the requester bond to pay in (30) days. Goods imported under special order will undergo a detailed inspection and review of the import declaration by the Customs Department. 2. Goods of Embassy and diplomats require a consent letter and will undergo a detailed inspection by the customs department. 3. Failure to issue on special order after approval require submission for consultation of special order impact declaration . - Phytosanitary certificate for foods. - Veterinary Health Certificate for live animals. - Death certificates for remains of the deceased. - Storage permit for the explosive and inflammable. - Fit for human consumption certificate for food item for sale.
Telecommunications equipment requires a recommendation against protest from Directorate of Communication. 1. Failure to issue on special order after approval require submission for consultation of special order import declaration. 2. Organizations that can qualify for Special Order Procedure are: Government Departments, UN organizations, NGO joint venture corporation of 50%- state capital, companies under permit of Myanmar Investment commission and private companies only for highly perishable goods, dangerous goods, and live animals. 3. After issue under special order the first and second copies of import declarations are requested with the special order reference number and date with the production of third copy of import declaration and necessary document at the special power section in the customs house for calculation and final assessment after which the due duty is paid during the specified period. 4.Whosoever breaches the bond to clear the special order import declaration in (30) days, shall pay the following fine as per customs rules for and due duty –
Source: Myanmar Customs (Publisher), Special Order Procedure (2012) http://www.myanmarcustoms.gov.mm/specialorder.aspx , Date accessed 1 July 2016 |
Exemption Certificate Document Requirements
Duties and Taxes Exemption Certificate Document Requirements (by commodity) |
||||||
|
Food |
Shelter, WASH & Education |
Medicines |
Vehicles & Spare Parts |
Staff & Office Supplies |
Telecoms Equipment |
Invoice |
Yes, pro-forma invoice, 1 copy applies to UN and NGOs |
Yes, pro-forma invoice, 1 copy applies to UN and NGOs |
Yes, pro-forma invoice, 1 copy applies to UN and NGOs |
Yes, pro-forma invoice, 1 copy applies to UN and NGOs |
Yes, pro-forma invoice, 1 copy applies to UN and NGOs |
Yes, pro-forma invoice, 1 copy applies to UN and NGOs |
AWB, BL, Other Transport Docs |
Yes, 3 copy applies to UN and NGOs |
Yes3 copy applies to UN and NGOs |
Yes, 3 copy applies to UN and NGOs |
Yes3 copy applies to UN and NGOs |
Yes, 3 copy applies to UN and NGOs |
Yes, 3 copy applies to UN and NGOs |
Donation/Non-Commercial Certificates |
Yes, one original and one copy, same for NGO and UN |
Yes, one original and one copy, same for NGO and UN |
Yes, one original and one copy, same for NGO and UN |
Yes, one original and one copy, same for NGO and UN |
Yes, one original and one copy, same for NGO and UN |
Yes, one original and one copy, same for NGO and UN |
Packing Lists |
Yes, 2 copy for NGO and UN |
Yes, 2 copy for NGO and UN |
Yes, 2 copy for NGO and UN |
Yes, 2 copy for NGO and UN |
Yes, 2 copy for NGO and UN |
Yes, 2 copy for NGO and UN |
Other Documents |
1 original and 1 copy of phyto sanitary, fumigation, radiation and GMO certificates with covering request letter for UN and NGOs |
Covering Request Letter for UN and NGOs |
1 original and 1 copy of batch certificate, certificate of analyses, usage instructions and Covering Request Letter for UN and NGOs |
1 copy of Catalogue (proof of what kind of vehicle and usage) Covering Request Letter for UN and NGOs |
1 copy of catalogue (proof of usage intensions Covering Request Letter for UN and NGOs |
1 copy of catalogue (proof of usage intensions), Covering Request Letter, for UN and NGOs |
Additional Notes |
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|
Customs Clearance
General Information
Customs Information |
|
Document Requirements |
|
Embargoes |
Arms |
Prohibited Items |
Explosives and Arms; playing cards, gambling equipment, antiques, archaeological items and pornography are prohibited. Currency restrictions: The import and export of local currency is prohibited |
General Restrictions |
Jewellery, electrical goods and cameras must be declared; failure to do so may result in visitors being refused permission to export it on departure. Video cameras will be held in safe custody at the airport and will be returned on departure. |
Customs Clearance Document Requirements
Customs Clearance Document Requirements (by commodity) |
||||||
|
Food |
Shelter, WASH & Education |
Medicines |
Vehicles & Spare Parts |
Staff & Office Supplies |
Telecoms Equipment |
D&T Exemption Certificate |
Yes, if available, Original, 1 copy, applies to UN and NGOs |
Yes, if available, Original, 1 copy, applies to UN and NGOs |
Yes, if available, Original, 1 copy, applies to UN and NGOs |
Yes, if available, Original, 1 copy, applies to UN and NGOs |
Yes, if available, Original, 1 copy, applies to UN and NGOs |
Yes, if available, Original, 1 copy, applies to UN and NGOs |
Invoice |
Yes, pro-forma invoice, 1 copy applies to UN and NGOs |
Yes, pro-forma invoice, 1 copy applies to UN and NGOs |
Yes, pro-forma invoice, 1 copy applies to UN and NGOs |
Yes, pro-forma invoice, 1 copy applies to UN and NGOs |
Yes, pro-forma invoice, 1 copy applies to UN and NGOs |
Yes, pro-forma invoice, 1 copy applies to UN and NGOs |
AWB, BL, Other Transport Docs |
Yes, 3 copy applies to UN and NGOs |
Yes3 copy applies to UN and NGOs |
Yes, 3 copy applies to UN and NGOs |
Yes3 copy applies to UN and NGOs |
Yes, 3 copy applies to UN and NGOs |
Yes, 3 copy applies to UN and NGOs |
Donation/Non-Commercial Certificates |
Yes, one original and one copy, same for NGO and UN |
Yes, one original and one copy, same for NGO and UN |
Yes, one original and one copy, same for NGO and UN |
Yes, one original and one copy, same for NGO and UN |
Yes, one original and one copy, same for NGO and UN |
Yes, one original and one copy, same for NGO and UN |
Packing Lists |
Yes, 2 copy for NGO and UN |
Yes, 2 copy for NGO and UN |
Yes, 2 copy for NGO and UN |
Yes, 2 copy for NGO and UN |
Yes, 2 copy for NGO and UN |
Yes, 2 copy for NGO and UN |
Phytosanitary Certificate |
Yes, 2 copy, for UN and NGOs |
No |
No |
No |
No |
No |
Other Documents |
1 copy of catalogue (proof of usage intensions), Covering Request Letter for UN and NGOs |
1 copy of catalogue (proof of usage intensions), Covering Request Letter for UN and NGOs |
1 copy of batch certificate, certificate of analyses, usage instructions and Covering Request Letter for UN and NGOs |
Catalogue (proof of what kind of vehicle and usage) Covering Request Letter for UN and NGOs |
1 copy of catalogue (proof of usage intensions), Covering Request Letter for UN and NGOs |
1 copy of catalogue (proof of usage intensions), Covering Request Letter for UN and NGOs |
The following attachments show a notification from the Ministry of Commerce and Trade regarding import/export licenses for private companies:
Ministry of Commerce and Trade Notification 74-2016
Ministry of Commerce
and Trade Notification 74-2016 (English
Translation)
Checklist of Required Certificates for Food
Commodities:
|
Phytosanitary |
Veterinary |
Health |
Origin |
Fumigation |
Non GMO |
Weight |
Composition/ Analysis |
Crop Year |
Production Year/ Best Used By-date |
Cereals |
X |
X |
X |
X |
X |
X |
X |
|||
Pulses |
X |
X |
X |
X |
X |
X |
X |
|||
Processed Cereals |
X |
X |
X |
X |
||||||
Dairy Products |
X |
X |
X |
X |
||||||
Blended Food Products |
X |
X |
X |
X |
X |
X |
X |
|||
Vegetable Oils |
X |
X |
X |
|||||||
Sugar |
X |
X |
X |
|||||||
Canned food |
X |
X |
X |
X |
X |
Transit Regime
Transit Regime |
Transit Procedure All commodities, not for domestic consumption and imported for
transit trade, are required to furnish the prescribed form, ie.
CUSDEC-3, attached with the followings: |