About Air Freight shipment? (Thailand-Myanmar)

What document do we need to prepare for Air freight shipment to Myanmar?

You need to have the following document, 

1) Commercial invoice and Packing list

2)  Certificate of origin or FORM D, E, AJ, AK in case of FTA (Free Trade Agreement)

3) Airway bill

For the import clearance in Myanmar, what should we need to know?

If you are a shipper, If the trade term between you (Shipper) and the customer is DAP/DAT at customer place    

        1) You need to check with the Myanmar customer whether the customer can import by their company name.

       2) You also need to check whether the Myanmar customer wants to exercise any privilege to exempt the import duty & taxes.

       3) Some commodities may require the Import License for import to Myanmar. We strongly recommend you check whether the Import License is required unless the shipment will not be able to proceed with the import customs clearance.

If you are a consignee,

1)  If you want to import by yourself, you need to check

        1.  The validity of  Certificate of Export/Import registration (HTA THA KA document)

        2. Whether you already apply for an I/E code ( Import / Export code)

2)     Do you need to exercise any privilege to exempt the import duty & taxes?

3)     Does your product require any Import License?  You must check before your shipment arrives at Myawaddy. If not, your shipment will not be able to proceed with the import customs clearance.

How long does it take for the clearing process of air freight shipment?

With the complete set of documents, it would take around 5-6 working days.

The Import Duty and Tax expense in Myanmar

According to Myanmar regulation, there are 4 main expenses that importer need to pay

1. Import Custom Duty

It is varied upon the HS Code. The custom tariff could be found in “2017 Custom Tariff of Myanmar.”

2. Commercial Tax

It is 5% of cargo value (CIF/CPT) + custom duty (for general cargo.)

3. Advanced Income Tax

It would be 2% of cargo value (CIF/CPT)

4. MACCS (Myanmar Automated Cargo Clearing System)

It would cost 30,000 MMK per invoice.

The Import tax privilege in Myanmar

In general, there would be mainly four privileges to exempt the custom duty or taxes or both.

  1. Form D (Asian) – Form E (Asian+3) – Form AJ (Japan) -Form AK (Korea), These forms will enable the Myanmar importer to waive out the Import custom Duty (Remain the commercial Tax and Advance Income Tax to pay for)
  2. MIC (Myanmar Investment Commission) is for the importer whose company registers under the MIC. They could waive out for Import Custom Duty, Commercial Tax and Advance Income Tax. However, this privilege has applied on the imported items and there is validity so it is recommended checking with the consignee (Importer)
  3. SEZ (Special Economic Zone), which we normally know such as THILAWA SEZ, MEZ (Myawaddy Economic Zone). This privilege is similar to MIC which enables the importer whose company registered under SEZ law could import without Import Custom Duty, Commercial Tax and Advance Income Tax. As same as MIC, the privilege has the validity.
  4. CMP is the privilege for only the garment industry. The importer whose company registers under CMP law could import without Import Custom Duty, Commercial Tax, and Advanced Income tax. As same as MIC and SEZ, the privilege has the validity.

What currency shall I use in my invoice when I import with Air Freight shipment?

Myanmar Custom mainly refers to US Dollar, Thai Baht, Singapore Dollar, or Euro. But if the commodity is required an import license, we do recommend US Dollars for the currency in the commercial invoice.

About the Import License

The import license has its validity upon two parameters

  • The quantity in the license as balance, which would be deducted by the imported quantity from time to time. Hence, if the balance in the license has not finished yet, the importer could still use such a license for import, or
  • The expiration date on the license. The import license has three months lift time and could extend two times, e.g., two months and one month consecutively

 An import license has limitations at the value of 200,000 USD per 1 application.

Please contact us , if you want to get more information or want us to provide services to you.