Myanmar junta imposes more restrictions on imports

Beginning next month, importers in Myanmar will face new restrictions aimed at reducing the amount of money flowing out of the country, according to business sources. The restrictions, announced by the junta’s ministry of trade and commerce on May 30, will penalise importers who receive goods before they get an import license. It has long been common practice in Myanmar for importers to place orders before they get official authorisation due to the length of time that it takes to get such approval. “For the most part, we can’t count on getting licenses even if we apply five or six months in advance,” said the owner of a trading company who spoke to Myanmar Now on condition of anonymity. To get around such delays, many companies will arrange for goods that arrive prior to approval to be held by customs in storage until licenses are finally granted. This method allows traders to ship goods while license applications are still being processed. However, under the new rules, the regime will only allow four types of goods to be stored at customs warehouses: electronic appliances and vehicles, industrial raw materials, chemicals used for industrial purposes, and ingredients used in food production. This comes less than six months after the commerce ministry announced that 14 types of goods, including agricultural products and materials used to produce textiles, could be stored by customs without prior import approval. The move comes as the regime faces a growing crisis over its rapidly dwindling foreign currency reserves. Earlier this week, it also launched a crackdown on Myanmar nationals sending money out of the country to buy real estate in neighbouring Thailand. It has also initiated a barter trade system to reduce the need for hard currencies to pay for imported goods. According to commerce ministry statistics, the value of imports into Myanmar fell from US$17 billion in the 2022-23 fiscal year to $15 billion in the following year. “They are steadily running out of spare foreign currency, so they’re just trying to seal every hole they see. However, the more restrictions they impose, the bigger the black market will get,” said one economic analyst.

Myanmar junta imposes more restrictions on imports

The move is the latest by the regime aimed at tightening its grip over the country’s dwindling hard currency supply

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