April 30, 2019
Yangon, Myanmar: The Customs Department, Ministry of Planning and Finance, and the DaNa Facility, a UK aid funded programme, today launched the Developing Custom Bonded Warehouse programme to introduce Customs officers and relevant stakeholders to the potential of a bonded warehouse system in supporting local industry, and to highlight the key components of a bonded warehouse programme in Myanmar.
Bonded warehouses are specifically designed to support industry, particularly those which import high value and/or high import duty goods. Through bonded warehouses, these industry sectors will have the ability to defer their import duties and taxes until they themselves find customers willing to buy the goods or identify export markets, meaning that they can improve productivity and better manage their cash flows.
This system allows for exported finished goods to be more competitively priced in regional and global markets as this export pricing does not include embedded duty and tax charges. This system also enable to export through such an enhanced competitive process brings in important income for the country. The significant cases are found in the garment exporting countries, where shorter lead-time is a competitive factor. Therefore, it will be a case for Myanmar.
U Aung San Tun, Deputy Director General of the Customs Department said, “The Customs warehousing business has improved accompanied with increased job opportunities. Especially, opportunities for CMP manufacturing could increase in areas such as delivering goods to customers in real time, saving costs of transportation and manufacturing, allowing higher competitive capacities to enter international markets. Furthermore, oversea owners may specify our country as a buffer place, increasing not only jobs at Bonded Warehouses but also collections of duties and taxes. Additionally, trade with neighbouring countries would be more developed if customs and bonded warehouses are situated at border points.”
Bonded warehouse systems not only streamline export and import process and contribute to the transformation of key industries such as garments and other manufacturing, but also create an environment conducive to linkages between SMEs and large multinational and local firms.
Peter Brimble, Senior Technical Adviser of the DaNa Facility noted that the Logistics Performance Index of Myanmar stands at 137 out of 160 according to World Bank in 2018. “I believe that the establishment of an effective bonded warehouse system in Myanmar will support Myanmar’s climb up this index.”
Speaking at the launch in Yangon, Jenni Hall, Private Sector Development Lead for DFID in Myanmar, said: “We are pleased to support this innovative bonded warehouse work as a key element of our efforts in Myanmar to promote inclusive economic growth through responsible and sustainable private sector development.
Notes to editors:
For more information please contact the DaNa Facility communications team at: +95 9782500752 or through email: email@example.com
The DaNa Facility: The DaNa Facility is a UK aid funded programme, established in May 2016 as one of three components of UK aid’s wider ‘Business for Shared Prosperity’ (BSP) programme. The DaNa Facility, implemented by DAI Europe and KPMG, supports inclusive economic growth and private sector development in Myanmar through responsible and sustainable business growth, investment and trade. For more information on the DaNa Facility please visit: www.danafacility.com. Follow the DaNa Facility on Twitter | Facebook.
You can find a Myanmar language version of this press release here.