Myanmar imports over $1.2 bln worth machinery, spare parts last FY

The import value of Myanmar’s machinery and spare parts has estimated at over US$1.2 billion during the past financial year 2019-2020, the Ministry of Commerce’s data indicated.
Similarly, the country imported $899.89 million worth vehicles and spare parts.
Imports of commercial vehicles and machinery have been permitted through seaports and three border gates — Muse, Myawady, and Tachilek.
“Starting from 1 January, imports of commercial vehicles on a company licence are not allowed. Importers are required to operate a car showroom in line with the prescribed rules and regulations. However, the new policy can pose difficulties for traders conducting business on a manageable scale,” said importers.
In a bid to maintain the social distancing during the coronavirus crisis, the Ministry of Commerce provided fully online licence system for the car showrooms for car imports. It will extend its online service to sales centres later, the ministry stated on 2 November.
Under the 2021 vehicle import policy, 2019 will be the oldest model to be issued an import permit for private cars with non-commercial purpose, according to the press release of the Commerce Ministry.
Except for machinery, all import vehicles must be left-hand drive under the 2021 vehicle import policy.
When vehicles with engines under 1,350 CC are individually imported, the model year must be 2019 and later. Passengers vehicles such as mini-bus, city bus, express bus and commercial trucks manufactured in 2017 and later can be imported.
Under FOC Free-of-Charge licence system, fire trucks, ambulances and hearse vehicles manufactured in 2012 or later are allowed for import.
Heavy equipment that cannot be driven on public roads such as excavators, bulldozers, wheel loaders, vibratory roller, clamp loader, motor grader, road roller compactor, bridge crane, gantry crane, tower crane, pilling machine, crawler drill/crane, mobile crane, rough-terrain crane, forklift, boom lift and asphalt finisher are allowed to be brought into the country as long as they are 15 years old or less.
Myanmar cuts tariff on import of private cars and Semi-Knocked Down vehicles amid the COVID-19 impacts. This move is likely to bring down the prices of cars with engines above 1,500 CC. The dealers pointed out that the price is possible to drop by K2 to 15 million depending on vehicle brand and specifications.
In a bid to remedy the businesses slowdown caused by the COVID-19 impacts, the government has brought tax cuts on the importation of private cars with non-commercial purpose and SKD vehicles assembled in Myanmar starting from 1 August 2020, according to notification of the Ministry of Planning, Finance and Industry released on 29 July 2020.
The government lowered custom duty from 30 to 20 per cent on imported private cars with the engine under 2,000 CC and 40 to 30 per cent on cars with 2,001 CC and above. Meanwhile, the locally assembled cars under the SKD system were totally exempted from 10 per cent tax. Additionally, tariffs on SKD vehicles with 2001 CC and above were reduced from 20 to 5 per cent.
Additionally, starting from 7 August 2020, registration fees at the Road Transport Administration Department (RTAD) on FOB price of the private vehicles were reduced from 30 to 15 per cent for vehicles with 1,500 CC and above, 50 to 25 per cent for vehicles with 1,351-2,000 CC, 80 to 40 per cent for cars with 2,001-5,000 CC and 120 to 60 per cent for cars with 5,001 CC, and above respectively, the RTAD stated.
However, tax cuts still do not cover special goods tax, commercial tax and income tax in order to hold the vehicle ownership status. — Htet Myat (Translated by Ei Myat Mon)

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