Muse and Myawaddy borders open to industrial imports

Muse and Myawaddy borders open to industrial imports

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By Chan Mya Htwe   |   Thursday, 12 May 2016

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A huge backlog of industrial machinery and vehicles that was licenced for import across the Muse and Myawaddy border points is being permitted to cross, according to a Ministry of Commerce official, after the authorities placed a bar on imports across several border stations late last year.

The government closed Kachin State’s Kan Pike Tee border trading station to vehicle and machinery imports last December, following allegations that illegally imported heavy machinery was being used at the jade mines in Hpakant, resulting in a spike in deadly landslides.

Restrictions at Muse and Myawaddy border points started early this year, also in response to a heavy flow of unregulated imports, according to figures at leasing and logistics firms. Several of those companies have been unable to source vehicles or equipment as a result of the closure.

But equipment that had received an import licence for the Muse and Myawaddy border stations is now being permitted to cross, U Khin Maung Lwin, deputy secretary from the Ministry of Commerce, told The Myanmar Times.

Only equipment that had received an import licence and was ready to be imported when the border points were opened is being allowed through, he said. There was backlog of over 8000 pieces of equipment and machinery at Muse and around 4600 at Myawaddy as of early May, according to Ministry of Commerce data.

After receiving a licence an importer has six months to bring equipment across the border, and as border crossings were closed in December licences for some equipment will have expired, he added. Importers whose licences have expired will have to renew their licences, which involves them being examined by the Ministry of Road Transport, customs and the Ministry of Commerce.

Licences started being renewed on May 1 and the renewal window will close on May 31, Myawaddy Border Trade Association said. Between May 4 and May 6, 1933 vehicles and pieces of machinery crossed the Myawaddy border point under renewed license and 452 at Muse.

Importers are still not permitted to bring equipment across other border stations like Kan Pike Tee and Tachileik, U Khin Maung Lwin said.

The country manager of one logistics firm, who asked to remain anonymous, said he understood that the Muse and Myawaddy border stations were open. But as this only applied to equipment that had received a licence, it did not solve the issue that import licences have become hard to find.

The previous government tightened restrictions on import permits – limiting logistics and leasing firms to only 10 of a particular type of vehicle or machine, said officials at leasing and logistics firms. However, some expect the new administration to relax these restrictions in due course.

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Translation by Khant Lin Oo