16.07.2018
Update on the Liberalization of Trade Restrictions in Myanmar
Trading activities within the Republic of the Union of Myanmar are governed by numerous laws and regulations, as well asministerial policies and practices. Since late 2001, most trading activities were prohibited for foreign investors in the Republic of the Union of Myanmar, both through limited approval of imports under the Export and Import Law 2012, as well as the enforcement of the unofficial ban on trade by the Ministry of Commerce.
In 2015, the Ministry of Commerce eventually started to change its policy, allowing selective relaxation of this general prohibition. In January 2015, the Ministry of Commerce announced a limited lift of its trade prohibition by permitting joint ventures operating car showrooms the import and sale of new motor vehicles. In November 2015, the Ministry of Commerce allowed the import and trade of specific products, namely fertilizers, seeds, pesticides and hospital equipment, followed by a similar notification for constructions materials in 2016. Since June 2017, chemical fertilizers, seeds, pesticides, hospital equipment and construction materials could be imported and sold by any foreign-owned company, including 100% foreign-owned companies. The import of farm equipment by joint ventures was permitted since November 2017.
Independently, the Management Committee of the Thilawa Special Economic Zone announced a broad exemption from the trade prohibition in May 2015, allowing certain wholesale trading activities by 100% foreign-owned companies incorporated in the newly established Thilawa Special Economic Zone.
The recent enactment of the Myanmar Investment Law 2016 was expected to further lift the ban on trade. On 10 April 2017, the Myanmar Investment Commission issued a list of restricted investment activities (Notification No. 15/2017), according to which retail and wholesale trading services shall be generally allowed. Such trading activities shall, however, require the approval of the Ministry of Commerce.
Following several consultation rounds and drafts, the Ministry of Commerce finally issued the new Terms & Conditions for Retail / Wholesale Trading (Notification No. 25/2018) on 9 May 2018. While this Notification described in detail which documents and information shall be necessary to apply for a retail/wholesale license, the Ministry of Commerce did, however, not yet accept any applications.
On 26 July 2018, the Ministry of Commerce issued the Announcement of Goods allowed for Wholesale and Retail Trading (Announcement 3/2018), containing a list of priority/preferential goods permitted for trade by foreign companies and joint ventures, which may be reviewed and amended from time to time according to the needs of the Union of Myanmar.
Finally, the Ministry of Commerce issued the Standing Operating Procedure Concerning Applications for Registration of Retail/Wholesale Business, describing the process for registration of a retail/wholesale trading business as well as the necessary documents/information and official fees.
Please find below an overview of the most relevant changes.
Notification No. 25/2018 contains terms and conditions for Myanmar-owned companies, foreign-owned companies as well as joint-venture companies between Myanmar citizens and foreigners carrying out retail and wholesale trading activities in Myanmar.
According to this Notification, "retail" means the sale of goods to the public in small quantities for consumption, but not for resale."Wholesale" is defined as sale of goods in large quantities to retailers for re-sale or to manufacturers for use as input in their production.
The new Notification shall apply to the following enterprises:
In accordance with the prescribed procedures, any such company shall be allowed to engage in retail/wholesale of domestically produced or imported goods (with the exception ofrestricted/prohibited goods) in the whole of Myanmar. An enterprise which was granted a retail/wholesale license has the right to import goods under its importer/exporter registration license.
Comment Luther:It has been clarified, that F&B outlets arenot required to obtain a retail/wholesale license for the operationof restaurants, cafes and similar F&B outlets servingcustomers.
Depending on the type of investment, the new Notification provides for different minimum capital requirements.
Comment Luther: The reference to land rental fees seemsto be a remnant from the Thilawa notification.
Joint-Venture Companies
Joint-ventures between Myanmar citizens and foreign investors, in which the Myanmar shareholder(s) hold at least 20% of the shares are subject to the following minimum capital requirements:
Comment Luther: A joint venture company shall, however,not engage in retail distribution, including mini-markets andconvenience stores, in premises of less than 929 square metersin floor area, as already provided in Notification 15/2017of the Myanmar Investment Commission. Shops in shoppingmalls are exempted from the floor area requirement, providedthat the mall operator holds a valid license.
Foreign-Owned Companies
For 100% foreign-owned companies and joint-venture companies with less than 20% Myanmar-owned shareholding, the new Notification provides for the following minimum capital requirements:
Comment Luther: A foreign-owned company shall, however,not engage in retail distribution, including mini-markets and convenience stores, in premises of less than 929 square meters in floor area, as already provided in Notification15/2017 of the Myanmar Investment Commission. Shops in shopping malls are exempted from the floor area requirement, provided that the mall operator holds a valid license.
Myanmar-Owned Companies
For Myanmar-owned companies, neither minimum capital nor floor-space requirements shall apply.
Comment Luther: Based on the latest comments of theMinistry of Commerce, Myanmar owned companies refer tosuch entities considered "Myanmar Companies" under theCompanies Law 2017, allowing for up to 35% foreign participation.
According to the new Notification, retail/wholesale company shall neither distribute retail/wholesale goods which are restricted or prohibited under any Myanmar law, rules or regulations nor engage in unfair competition in the sale of goods and services.
Comment Luther: We understand, that this list will be limitedto goods restricted under existing laws (such as importedalcohol, tobacco, arms, etc.).
It should further be noted, that the new regulations do not permit mobile and door-to-door distribution services.
Any company violating the terms and conditions of the new Notification shall be subject to Ministry of Commerce sanctions. Any company found engaged in trading activities without the required license shall receive two (2) warnings, and if the default is not remedied, have its exporter/importer registration and import rights cancelled.
Prior to the application of a retail/wholesale license with the Ministry of Commerce by a foreign or joint venture company, a recommendation from the relevant city development committee or township development committee shall be obtained.
The city or township development committee will confirm the suitability of the company's premises for the operation of a wholesale or retail business:
It should be noted, that foreign-owned companies and joint-venture companies that are already carrying out retail/wholesale business activities under an MIC Permit or a prior notification shall not be required to obtain a separate recommendation from the city or township development committee.
With the exception of Myanmar-owned companies already carrying out retail/wholesale business activities, all retail/wholesale businesses shall submit the following documents and information to apply for a retail/wholesale license:
Comment Luther: If an investor has not yet transferred the prescribed funds, the Ministry of Commerce will issue a temporary retail/wholesale license. The permanent license shall be issued upon provision of evidence that the prescribed funding was brought into Myanmar within one (1) month from the issuance of the temporary license.
Existing Myanmar-Owned Companies
A Myanmar-owned company already carrying out retail/wholesale business prior to the date of issuance of the new Notification with an investment of USD 700,000 or more (or MMK equivalent) shall - within 150 days - register with the Ministry of Commerce and submit the following:
Comment Luther: Myanmar-owned companies with an initial investment capital of less than USD 700,000 (or equivalent in MMK) are exempted from registration.
The new Standing Operating Procedure distinguishes between companies that are already carrying on trading activities under existing notifications, and such companies that will commence trading only upon approval of their license.
Comment Luther: The Ministry of Commerce does not explicitly request equity contributions. As it is only necessary to provide evidence that the investment was remitted from abroad into a domestic bank account, any contributions permitted under Myanmar financial and corporate laws should be sufficient (e.g. also an approved loan from abroad).
It should be noted that a company may apply for a retail license or wholesale license or both. A company applying for both licenses shall invest the sum of the minimum amount stipulated for a retail license and the minimum amount stipulated for a wholesale license.
Companies not yet engaged in the Sale of Goods
For companies which are not yet engaged in the sale of goods, the prescribed investment shall be contributed as follows:
Companies already engaged in the sale of domestically manufactured goods
For manufacturing companies already engaged in the sale domestically produced goods that wish to distribute other goods (e.g. imported goods), the prescribed investment shall be contributed as follows:
<MYPIC03>
Companies already engaged in the sale of goods
For companies already allowed to carry out retail/wholesale business activities (e.g. under an MIC Permit or previous Notification),the capital shall be contributed as follows:
Comment Luther: Investors that do not meet the minimum investment amount prior to application of the new retail/wholesale license shall - within five years after registration- remit/contribute the full minimum initial investment amount stipulated in Notification 25/2018.
Licenses shall be issued for a term of five (5) years and may be renewed with not less than two (2) months prior application upon submission of the company's corporate documents and a business plan for the next five (5) years.
Any license holder desiring to establish additional outlets shall submit an application 90 days prior to opening, detailing:
Companies shall comply with the initial investment and floor space requirements stipulated in Notification 25/2018.
Pursuant to Announcement 3/2018, the following categories of goods shall be allowed for distribution by retail/wholesale companies:
Comment Luther: We understand, that the list provides for goods that enjoy preference, but is not necessarily conclusive. It has further been verbally confirmed that the retail and wholesale trade of domestically produced tobacco and alcohol will be permitted (subject to the relevant excise licenses, if any).
Certain goods, such as motor-vehicles, may already be imported under various notifications issued by the Ministry of Commerce. If such notifications provide for additional requirements and conditions, e.g. for the establishment of car showrooms requiring the construction of a showroom and application of a showroom license, such requirements shall prevail and no separate retail/wholesale license shall be required.
Operators of shopping malls with an appropriate floor size exceeding 929 m² may apply for a retail license with the Ministry of Commerce.
Once obtained, individual shops within the shopping mall are not required to obtain a separate retail license, but may carryout their activities under the umbrella license of the mall operator. Companies operating shops within the shopping mall may import their goods either in the name of the mall operator, or in their own name (providing the authorities with a recommendation from the mall operator holding the retail license).
Minister's OfficeNotification No. 25/20189 May 2018
In exercising the powers conferred by section 13 (b) of the Export Import Law ("EIL"), the Ministry of Commerce ("MoC") of the Government of the Republic of the Union of Myanmar ("RUOM") hereby issues this Notification.
(by) Dr Than Myint
Union Minister
MoC
Letter No.: SaKa-11/2-18/2018(5)
Date: 9 May 2018
By order _signed_
Toe Ag Myint
Permanent Secretary ("PS")
Justification
1. In the economic reforms of the Union of Myanmar (“UoM”), relaxation [of rules] in being provided
in commercial sectors in order to increase employment opportunities and improvement in
technology through foreign investment. In doing so, it has become necessary to allow foreigners
to carry out sale and distribution services in the domestic market, not only to provide better
prices and more choice in quality to consumers, but also to be in accordance with regional
treaties. Hence, to bring about conditions favorable to the interest of the consuming public and
also not detrimental to the domestic SMEs, retail/wholesale from among commercial activities
related to distribution and sale, will be allowed to foreigners.
Aim
2. The aim of these T&C are as follows:
a. To afford better prices and more choice to consumers through increased competition among
retail and wholesale distributers;
b. To improve quality and volume of goods and services, and technology through increased
inputs to domestic goods and services of sale and distribution enterprises;
c. To further stimulate the development of SMEs due to capturing of more market share by
domestic goods;
d. To enable operation under rules and regulations to prevent uncompetitive practices between
distributors in exploitation of consumers;
e. To invite more foreign investments;
f. To increase employment opportunities for Myanmar citizens.
Definitions
3. Definitions are as follows:
a. Retail means the sale of goods to the public in small quantities for consumption and not for
re-sale;
b. Wholesale means the sale of goods in large quantities to retailers for re-sale, or to
manufacturers to use as input in production.
Right to sell
4. A fully citizen-owned company, fully foreigner-owned company, joint-venture between citizens
and foreigners shall be allowed to carry out retail/wholesale as follows:
a. The company may engage in retail/wholesale in accordance with prescribed procedures of
domestically produced or imported goods, other than restricted/prohibited goods;
b. The company may engage in retail/wholesale in accordance with prescribed procedures in any
town within region/states.
Prescribed Conditions
5. A fully citizen-owned company, fully foreigner-owned company, joint-venture between citizens
and foreigners, shall comply with the following in carrying out retail/wholesale activities within
the country:
a. A foreign company, which on its own is desirous of engaging in:
(1) Wholesale - shall make an initial investment, excluding land rent, of USD 5 million or more in
goods to be sold;
(2) Retail - shall make an initial investment, excluding land rent, of USD 3 million or more in
goods to be sold.
b. A company which engages in retail/wholesale under a joint-venture system between citizen
and foreigner:
(1) Where the equity ratio of citizen is 20 per cent or more:
(aa) In case of wholesale - shall make initial investment, excluding land rent, of USD 2
million or more in goods to be sold.
(bb) In case of retail - shall make initial investment, excluding land rent, of USD 700.000 or
more in goods to be sold.
(2) Where the equity ratio of citizen is less than 20 per cent - it shall comply with conditions of
section 5 sub-section
(a) above.
6. A fully citizen-owned company may engage in retail/wholesale enterprise with the initial
investment amount that it can afford.
Compliance
7. A fully citizen-owned company, fully foreigner-owned company, joint-venture between citizen and
foreigner, shall comply with the following in carrying out retail/wholesale within the country:
a. Any of the above types of companies established subsequent to the issuance of these T&C,
shall apply to the MoC with the following supporting documents in order to register a
retail/wholesale enterprise:
(1) Certificate of incorporation;
(2) MIC’s Endorsement (copy), MIC’s Permit (copy) (those companies which are required to
procure MIC’s endorsement);
(3) Recommendation of the city development committee concerned or the township
development committee in the region/state concerned;
(4) List of commodity classification of goods to be distributed retail/wholesale;
(5) Detailed business plan including initial investment amount, location of distribution,
dimensions et cetera.
b. A fully citizen-owned companies, which had made initial investment of USD 700,000 or more (or
MMK equivalent), prior to the date of issuance of these T&C, shall within 150 days after such
date, register the retail/wholesale enterprise at the MoC, with the following supporting
documents:
(1) Certificate of incorporation;
(2) List of commodity classification of goods being distributed retail/wholesale;
(3) Detailed business plan including working capital, location of distribution, dimensions et
cetera;
(4) In case of having more than one business, the number of branches, and detailed business
plan of each business including list of commodity classification of goods being distributed.
c. Retail/wholesale companies shall abide by rules and regulations of the NPT / Yangon /
Mandalay City Development Committees, or the township development committee in
region/state concerned, and local authorities, and open for business at prescribed locations,
dimensions and number of outlets, at prescribed days and hours.
d. Retail/wholesale companies shall comply with and perform according to relevant laws, rules,
procedures and regulations in order to ensure that the goods distributed are safe and of
specified quality, and to provide after-sale service in accordance with warrantees, and to avoid
damage to the environment.
Prohibitions
8. Any company allowed to engage in retail/wholesale shall not distribute retail/wholesale goods
restricted, prohibited under prevailing laws, notifications and regulations.
9. A fully foreigner-owned company or a joint-venture between citizen and foreigner, shall not
engage in retail distribution, including mini-markets and convenience stores, in premises of less
than 929 square meters in floor area.
10. A retail/wholesale company shall comply with and perform according to the laws, rules,
regulations prescribed by the UoM, and shall refrain from unfair competition in the sale of goods
and services.
Payment of stipulated taxes
11. A company allowed to engage in retail/wholesale shall, in the import and distribution of goods
pay taxes in accordance with the prevailing laws, rules, regulations, procedures, orders and
directives of departments concerned.
Oversight
12. The MoC, in cooperation with relevant departments, will oversee as needed compliance of the
aforementioned T&C, and adherence to their business plan, and for improvement in domestic
distribution and sale industry. Retail and wholesale operators shall cooperate and provide
necessary data and evidence toward effective oversight.
Sanctions
13. Any retail/wholesale operator found to be in violation of these T&C shall have action taken
against it under rules and regulations contained in laws, rules, orders and directives issued by
the MoC.
14. In addition to laws and regulations issued by the MoC, a retail/wholesale operator shall also
comply with and perform according to other prevailing laws and regulations related to sale,
distribution and provision of services, and in case of failure to do so, will have action taken
against it under applicable law, rules and regulations.
Miscellaneous
15. These T&Cs shall be applicable to all fully citizen-owned companies, fully foreigner-owned
companies and citizen-foreigner joint-venture companies engaged in retail/wholesale
distribution.
16. However, fully citizen-owned companies engaged in retail/wholesale with initial investment
capital of USD 700,000 or less (or equivalent in MMK), are exempted from requirement for
registration under Section 7 sub-section (a) of these T&C.
17. Companies registered as retail/wholesale enterprises, which are desirous of opening additional
branches or extending them, shall within 90-days prior to such opening or extension, shall
notify the MoC, and such additional/extended branches shall also comply with the prescribed
T&Cs.
18. These T&Cs for retail/wholesale distribution will be amended in accordance with the needs of
the Union.
1. This SOP describes the process for registration as a RWB, as well as document requirements and
fees. The Ministry of Commerce (“MoC”) will amend this SOP as needed.
Chapter 1. Company Classes
2. The RWB registration process may be carried out according to company class applied for. The four
classes are companies are as follows:
a. New foreign companies (“NFC”) or joint-ventures with nationals (“NJV”)
Cent-per-cent foreigner owned companies to be registered for the first time as RWB in the
Union of Myanmar and foreign joint-ventures between foreigner and national come under this
class.
b. Existing foreign companies (“EFC”) or joint-ventures with nationals (“EJV”)
Existing companies already incorporated in the Union of Myanmar, but which are not licensed
to engage in RWB, with cent-per-cent foreigner owned companies, and foreign joint-ventures
between foreigner and national come under this class.
c. Companies already licensed to engage in RWB (“RWFC” and “RWJV”)
Existing cent-per-cent foreigner owned companies (“RWFC”) , and foreign joint-ventures
between foreigner and national (“RWJV”), which are already licensed, under MIC Permit or
previous notifications permitting RWB to foreigners, to engage in RWB in the Union of Myanmar
come under this class.
d. Existing RWB citizen companies (“CRWB”) relevant to this Notification
Existing citizen companies already engaged in RWB with investment over USD700,000 or more
(or MMK equivalent) are relevant to this class. Citizen companies carrying on under
USD 700,000 are not required to register for RWB with the MoC.
Chapter 2. RWB Registration Process
3. This process is only concerned with R/W sale of commodities at a permitted outlet/location, and is
not relevant to mobile distribution, door-to-door distribution. Furthermore, it is also not relevant
for other services including food and beverages [provision] such as restaurants, cafes, tea-
shops.
Rights of a RWB Licensee
4. A RWB Licensee has the right to import commodities for its business under importer/exporter
registration. It has the right to sell RW anywhere in the entire country the commodities contained
in the List of Priority/preferential Commodity Groups issued by the MoC.
5. The application form for RWB Registration may be downloaded freely at www.commerce.gov.mm.
The application must be completed and submitted together with two copies, attaching prescribed
supporting documents.
6. A company may apply for retail license or wholesale license or both. In case of applying for both
retail and wholesale licenses, initial investment amount must be the sum of the minimum
stipulated for retail license and the minimum stipulated for wholesale license.
Priority Commodity List
7. The MoC has issued the List of Priority/preferential Commodities permitted for FC and JVs
involving foreigners.
Place of Registration
8. In case of companies of Classes “a”, “b” and “c” - application for registration must be submitted
at Department of Trade (“DoT”),
MoC, Office-3, NayPyiTaw (“NPT”).
9. A company of Class “d” may apply at any one of the following places:
a. Export/Import Office (Yangon), DoT, MoC, Yangon.
b. Export/Import Office (Mandalay), DoT, MoC, Mandalay.
c. DoT, MoC, Office-3, NPT.
Supporting Documents to be Presented
10. Companies of Classes “a”, “b” and “c” must attached the following documents:
a. Certificate of Incorporation;
b. (copy of) MIC Permit/Endorsement; (Only for FC or Foreigner involved JVs requiring MIC Permit
or Endorsement)
c. Recommendation from the relevant City Development Committee, or the Township
Development Committee in the region/state;
d. List of commodity groups to be sold RW;
e. Business Plan for 5-years, including the following data:
(1) Investment Amount (initial capital, and amount to be contributed as working capital)
(2) Sales Plan, Distribution Plan and Management Plans;
(3) Location and area;
(4) Summary of company’s plan for implementation of objectives contained in the RW
Permission Notification such as job creation, upgrading of technology, quality and cost-
effective choice for consumers, promotion of domestic Small and Medium Enterprises et
cetera.
f. Number and location of planned additional outlets (to give exact site if known)
g. Document issued from a domestic bank, showing evidence of remittance from abroad of the
initial investment amount ; (if unable to present this bank document, only a provision RWB
license will be issued, and the actual RWB license will be issued only if the required remittance
evidence can be submitted within one month).
NOTE. In carrying out RWB, citizens must be given priority in recruiting.
11. Companies of Class “d” shall apply for RWB license within 150 days after notification, with the
following documents attached:
a. Certificate of Incorporation;
b. Business Plan for 5-years, including the following data:
(1) List of commodity groups to be sold RW;
(2) Amount of working capital utilized in the RWB within the previous year;
(3) Sale, distribution and management plans;
(4) Location and area;
c. Number of branch outlets (if any), and the list of commodity groups sold at those outlets, and
RWB plans.
Chapter 3. Minimum Initial Investment Amount Stipulation
12. RWB Licensees shall comply with Initial Investment Amount stipulated on the commodities in
notification, and shall carry out with prescribed methods for minimum contributions according to
class of company:
a. The Minimum Investment Amount, exclusive of Land-Rent, for companies of class “a” and “b”
are as follows:
b. If a company of class “b” is manufacturing and distributing commodities within the country,
and will also sell imported commodities, the Minimum Investment Amount, exclusive of Land-
Rent, is as follows:
c. The Minimum Investment Amount, for companies of class “c” is as follows:
(1) To present at the time of application for license, the evidence of the amount invested in
commodities in the inventory during the period from the commencement of the RWB and
30-days prior to the date of application .
(2) Companies that do not meet the minimum investment amount, will, within 5-years after the
RWB registration, remit/contribute the full minimum initial investment amount stipulated for
FC and foreigner involved JV in accordance with Noti-2018/25. The schedule of
contributions to make up that amount within the first 5-years of license must be
presented;
(3) Upon completion of the first RWB license term, evidence of full remittance/contributions of
the minimum initial investment amount within the first 5-year term, must be presented
when applying for renewal.
d. Companies of class “d” just have to register for RWB, and may carry out without limits on
minimum initial investment amount.
13. If companies of class “a”, “b” or “c” have within the first year already invested 100% of the
remittance/ contribution stipulate, evidence of additional remittance/contributions are not
required. Remittance/contribution from abroad may be made any government
or (citizen/foreign) private bank allowed in the Union of Myanmar by the Central Bank of
Myanmar.
Chapter 4. Floor Area
14. Companies of class “d” may carry on without restrictions on floor area of each outlet.
Retail
15. The area of each outlet shall be 929 sq.m or more, inclusive of office and storage areas internal
to the outlet building, but exclusive of office, storage area and car park areas external to the
outlet building.
16. In case of a Shopping Mall, the area must be greater than 929 sq.m and appropriate for a
shopping mall. The owner or operator of the Shopping Mall shall register for retail sale, but each
outlet within the Shopping Mall need not register individually. However, if outlets within a
shopping mall desires to import their commodities they may do so under the name of the mall
which has received the retail license. If they desire to import on their own, they may procure
exporter/importer registration with the recommendation of the mall in-charge holding the retail
license.
Wholesale
17. The outlet must have sufficient area for wholesale depending on the commodity group to be
sold. In case of direct distribution ex warehouse, the warehouse must be situated at a location
appropriate for wholesale.
18. In conducting scrutiny in respect of location, area, suitability for RWB, if there is discrepancy
between particulars in the Business Plan presented and recommendations of the relevant city
development committee, or if there is doubt concerning location, area, a team comprised of
competent departments will conduct field inspections.
Chapter 5. Additional Outlets
19. RWB licensees of any class desirous of opening additional outlets shall within 90-days prior to opening, submit in person or by document addressed to the DG, DoT at the following offices with the respective particulars:
a. Office:
i. Export/Import Office (Yangon), DoT, MoC, Yangon.
ii. Export/Import Office (Mandalay), DoT, MoC, Mandalay.
iii. DoT, MoC, Office-3, NPT.
b. Particulars:
i. location(s) and area(s) of additional outlet(s)
ii. if different form existing, name of new outlet and Business Plan;
iii. recommendation from the relevant city or township development committee;
20. Companies of class “a”, “b” or “c” shall comply with initial investment amount and outlet size
stipulated by Noti-2018/25 when opening additional outlets.
Chapter 6. RWB License Term
Registration Term
21. RWB license shall have a valid term of 5-years from the date of issue.
License Fees
22. Fee for registration of RWB is MMK50,000 (fifty thousand).
Renewal and Extension Fees
23. Application for renewal shall be submitted two months in advance of expiry under company
letterhead, attaching directors list, shares list, business plan for next 5 years (without need for
evidence of additional investment). Fees for extension are MMK 50,000 (fifty thousand).
Penalty for Invalid Term
24. Penalties for applying for extension after expiry are as follows:
Suspension of RWB License
25. If no extension application is made four months after the license has expired, the RWB license
will be suspended, as well as right to import thereunder.
26. If an RWB licensee does not present evidence of remittance/contribution from abroad to a
domestic bank of the minimum prescribed amount within 30-days from date of issuance of a
provisional license, the said provisional license shall become void.
Sanctions
27. Any person found to be engaged in RWB without license when required to be licensed:
a. warning notice in the first and second instances for registration;
b. if still not registered after the period specified in the notice, cancellation of exporter/importer
registration and import rights of FC or foreigner involved JV concerned.
28. If companies of class “a”, “b” or “c” fail to present evidence of required remittance/contribution
within prescribed time:
a. warning notice in the first and second instances for presentation of evidence;
b. if still not presented after the period specified in the notice, cancellation of exporter/importer
registration and import rights of the company concerned.
Government of the Republic of the Union of Myanmar
Ministry of Commerce
Department of Trade
26 July 2018
1. The MoC has with Notification-2018/25 already announced permission for FC and JVCs to engage in R/W activities within the
country, together with the terms and conditions to be complied with.
2. In order that the FC and JVCs may clearly know the commodity groups allowed to be sold R/W within the country under the said
Notification, they are hereby prescribed as attached.
3. It is announced that the list of priority/preferential commodities permitted to be sold R/W will be reviewed and amended from
time to time according to the needs of the Union.
(by)
Department of Trade
Newsletter 3/2018
Date: 26 July 2018
List of Priority/preferential Commodity Groups allowed to be sold R/W by FC & JVCs
1. Personal items (including clothing, watches, cosmetics)
2. The following also come under foodstuff:
a. agricultural produce (other the commodities prohibited from import according to needs of the
Union)
b. aquatic products;
c. animal products;
d. ready-to-eat foodstuff;
e. soft drinks, all kinds; and
f. domestically produced beverages;
3. Household items (including ceramics, earthenware, glass and glassware)
4. Kitchen-use items;
5. Medicine, medical equipment, hospital equipment;
6. Animal feed and veterinary medicines;
7. Stationery;
8. Furniture;
9. Sports equipment;
10. Communication equipment (including cameral and phones)
11. Electronic goods
12. Construction equipment and materials;
13. Electrical goods;
14. Industrial chemicals;
15. Seeds, agricultural inputs, materials/equipment;
16. Farming machinery equipment;
17. Machines all kinds, and auxiliary equipment/materials;
18. Bicycles, all kinds;
19. Motorcycles and auxiliary equipment/materials, all kinds;
20. Spare parts for motor-vehicles and machinery;
21. Toys;
22. Home decoration items (including flowers and plants);
23. Gift items and handicrafts, all kinds;
24. Art materials/equipment, musical instruments and auxiliary materials/equipment (excluding antiques);
NOTE:
(1) In the sale of above commodities under R/W license, priority/preference shall be given value-
added domestic products.
(2) Imports shall comply with the laws, rules, procedures, terms and conditions of the ministry
concerned according to the type of commodity.
(3) The List of Commodity Groups for Priority/preferential Sale will be amended according to the
needs of the Union.
 | Alexander Bohusch Rechtsanwalt/Attorney-at-law (Germany) Luther Law Firm Limited Myanmar Phone +95 1 500021 alex.bohusch@luther-lawfirm.com | |
 | Fabian Lorenz, M.A. Rechtsanwalt/Attorney-at-law (Germany) Luther Law Firm Limited Myanmar Phone +95 1 500021 fabian.lorenz@luther-lawfirm.com | |
 | Nicole Schwiegk Rechtsanwältin/Attorney-at-law (Germany) Luther Law Firm Limited Myanmar Phone +95 1 500021 nicole.schwiegk@luther-lawfirm.com | |
 | Fanny Tatin Avocat/Attorney-at-law (France) Luther Law Firm Limited Myanmar Phone +95 1 500021 fanny.tatin@luther-lawfirm.com |
Facebook 
Linkedin 
XING 
Youtube