Companies that defy prescribed rules while re-exporting refined sugar will face action from the government from 28 February 2018, according to news released by the Commerce Ministry.
The Commerce Ministry has allowed Myanmar merchants to re-export sugar in the 2015-2016 fiscal year with the aim of obtaining hard currency earnings, enhancing trade and creating job opportunities.
However, the authorised companies need to strictly adhere to the prescribed rules and regulations. The companies will be inspected to check if they are abiding by the set rules. Some companies are reportedly selling the sugar imported under the re-export system in the domestic market. If the import list does not tally with the volume of re-exports, the companies will face legal action.
Therefore, the trade department has already issued a notice to the companies to check their re-export list against the actual record by 25 January. Myanmar’s merchants import sugar mostly from Thailand and India, and also from Brazil, Qatar and the United Arab Emirates. It is then re-exported to China through the Sino-Myanmar checkpoint, as Myanmar sugar millers are unable to produce quality sugar that meets the export criteria for lack of advanced refining machinery.
Some 2 million tonnes of sugar are traded annually under the re-export system.