Trade Environment
Each import and export shipment has LC (letter of Credit) transaction, which will be issued by either MFTB (Myanma Foreign Trade Bank) or MICB (Myanma Investment & Commercial Bank). The country’s exports are mostly agricultural produce, forest produce, seafood, handicrafts and garments. Exports are permitted after receiving advance payment at Myanmar LC Banks. “Kyats” is the official currency, but most trades are transacted through EURO or USD or SGD via LC. Locally, FEC (Foreign Exchange Certificate) is used for USD equivalent value.
Shipment Requirement
- It is advisable to arrange Export shipments on FOB, and Import shipments on CIF term respectively.
- Depending on nature or type of cargo, other documentations (CO / FDA / MTE / UMFCCI certificates etc) are also required.
- Export / import Licence must be approved prior to shipment departure or arrival. For all import shipments, insurance certificate of the shipment is a necessity for bank negotiation.
- For HBL amendments and surrendered MBLs, please ensure amendment emails and telex release messages arrive at SAD (Government’s Shipping Agency Departments) and feeder line’s local agent office “BEFORE” the vessel arrival date.
Import Shipment Documentation
Master document
(1)
For Air Freight, it is OK to consign the MAWB directly to the local Yangon forwarder. It is also OK to show cargo description as “consolidated cargo as attached manifest”
(2) For LCL consolidation, master co-loader can consign the MBL directly to the local Yangon de-consolidation agent.
(3) For FCL sea Freight, MBL must be prepared as follow : -
Consignee : “only one” consignee details in Yangon, who is the import licence holder
Notify : (1) Name of LC Bank in Yangon
(2) Destination Yangon Forwarder Details
*** Please note MBL cannot be consigned to local forwarder directly.
House document
It is advisable to issue shipper’s instruction to draft HAWB / HBL. Normally, LC Bank name and LC numbers are mentioned on the House documents for easier customs filing.
Separate Document sets
When one shipment uses different LC numbers from different LC Bank belonging to different consignees, there must be separate sets of MBL + HBL showing each LC number with its relevant bank and consignee details.
Amendments and Penalty
Once MBL has been surrendered and feeder vessel has already arrived, any kind of amendments on MBL will be considered “late submission of documents”. In this case, the consignee will be penalized by Customs.
(1) 1 – 15 days late submission from arrival date : 1/90th penalty amount on the container value
(2) 15 – 30 days late submission from arrival date : 1/45th penalty amount on the container value |