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Home Business

Govt Allows 14 Items for Re-Export

Kyaw Hsu Mon by Kyaw Hsu Mon
June 24, 2016
in Business
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Govt Allows 14 Items for Re-Export

A worker unloads rice from a boat on a jetty on the Rangoon River

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RANGOON — The Ministry of Commerce has allowed re-export items that were previously restricted in a government effort to boost export volume three-fold this year.

Exporters will be permitted to re-export 14 previously restricted commodities including car tires, edible oil, cosmetics, foodstuff and clothes to China, through the Muse border trade post in Shan State, as well as by sea. The list excludes arms and drugs, and will be dependent on domestic supply and demand, according to the ministry.

“In the past, the government restricted certain re-export items due to low demand in the market, but we have reconsidered as we’re expanding our export market,” said Myint Cho, director of the Ministry of Commerce.

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Agricultural products and fuels are especially high in demand, he added.

Re-exportation will help reduce the trade deficit, increase taxation and help small and medium enterprises expand their businesses, said Myint Cho, adding that Burma currently exports fewer items than other counties, and is able to increase both market and export volume in line with the government’s wishes.

Maung Aung, senior economist at the Ministry of Commerce, said the main reason for allowing re-export items is to increase trade volume and promote exports while the trade deficit continues to grow.

“The government has an export oriented policy now. By doing so, they will be able to reach their export volume goals. But we also have to consider engaging in value-added processes,” said Maung Aung.

Burma’s main exports are commodities like rice, timber, jade and gems, oil and gas, and beans and pulses.

According to the ministry, the total trade volume reached US$25.7 billion between April 2015 and March of this year. Import volume hovered around $15.5 billion, while export volume reached only $10.2 billion. The fiscal year ended on March 31.

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Kyaw Hsu Mon

Kyaw Hsu Mon

The Irrawaddy

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