Project Number: 46191-001 November 2015 Survey of trade-related private sector in Myanmar Produced by the ADB Project TA 8707 (REG): Strengthening Trade Facilitation in the Greater Mekong Subregion through Partnerships with the Private Sector The views expressed in this report are the views of the author(s) and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Directors or the governments they represent. ADB does not guarantee the source, originality, accuracy, completeness or reliability of any statement, information, data, finding, interpretation, advice, opinion, or view presented, nor does it make any representation concerning the same.
Transcript
Project Number: 46191-001 November 2015
Survey of trade-related private sector in Myanmar
Produced by the ADB Project TA 8707 (REG): Strengthening Trade Facilitation in the Greater Mekong Subregion through Partnerships with the Private Sector
The views expressed in this report are the views of the author(s) and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Directors or the governments they represent. ADB does not guarantee the source, originality, accuracy, completeness or reliability of any statement, information, data, finding, interpretation, advice, opinion, or view presented, nor does it make any representation concerning the same.
SURVEY OFTRADE-RELATED PRIVATE SECTOR IN MYANMARReport produced by:
Chris Page, Team Leader
Pwint Thet Wah, Trade Facilitation Specialist
TA-8707 REG
Strengthening Trade Facilitation in the Greater Mekong Subregion
through Partnerships with the Private Sector
Contents
Abbreviations iv
Foreword v
1. Introduction 1
Project Background 1Survey Methodology 1Questionnaire Design and Layout 3
2. Survey Responses 4
Section 1: General Information 4Section 2: Customs Clearance 7Section 3: Information about Regulations and Procedures 12Section 4: Customer Service 18Section 5: Suggestions 20
3. Findings and Conclusions 22
Findings 22Conclusions 23
4. Recommendations, Responses and Further Plans 24
Recommendations 24Project Responses and Further Plans 24
5. Annex 26
iii
iv
Abbreviations
ACH Asia Cargo Highway
ADB Asian Development Bank
AEO Authorised Economic Operator
ASEAN Association of South East Asian Nations
BCP Border Crossing Point
CTB-MoF Customs and Tarit Bureau, Ministry of Finance, Japan
EDI Electronic Data Interchange
FDA Food & Drug Authority
GATT General Agreement on Tarits & Trade
GMS Greater Mekong Subregion
HS Harmonised System
IFCBA International Federation of Customs Brokers Associations
JICA Japan International Cooperation Agency
MACCS Myanmar Automated Cargo Clearance System
MCBA Myanmar Customs Brokers Association
MIFFA Myanmar International Freight Forwarders Association
MoC Ministry of Commerce
PCA Post-clearance Audit
RKC Revised Kyoto Convention
R-PATA Regional Policy Advisory and Technical Assistance
TA Technical Assistance
UMFCCI Union of Myanmar Federation of Chambers of Commerce & Industry
WCO World Customs Organization
WTO World Trade Organization
v
Foreword
The Asian Development Bank (ADB) has been supporting the development of the Greater Mekong Subregion (GMS) since the early 1990s with investment in hard infrastructure as well as facilitation measures. In the face of intensifying integration at various levels, including the ASEAN Economic Community, ADB has been scaling-up support for trade and transport facilitation in multiple subregions with a view to enabling lesser developed countries to better prepare themselves and benefit from their active participation in international trade and investment.
This report presents the findings of a trade survey conducted in Myanmar in February and March 2015, under ADB’s regional technical assistance ‘Strengthening Trade Facilitation in the
Greater Mekong Subregion (GMS) through Partnerships with the Private Sector’. Its purpose was to canvass the views of the trade-related private sector (importers, exporters, freight forwarders, customs brokers, port operators, and warehouse-keepers) not only about trade facilitation constraints in Myanmar, but also about the possible solutions.
The survey focused largely upon the customs clearance process, and the provision of information about import/ export regulations and procedures. It also examined the service provided to trade stakeholders by the Myanmar Customs Department. In exploring these areas, a key objective was to identify ways to establish or improve the measures by which the customs administration communicates and engages with the private sector in respect of cross-border trade.
With a response rate of 80% from a wide range of traders and businesses, the survey results are the authentic voice of a representative cross-section of the trade-related private sector in Myanmar, based on their day-to-day experiences. Most of the issues identified are not particularly surprising, and some might even be considered predictable; but the exercise served as a validation or a reality check of constraints on the ground. It is therefore of considerably greater value than an external assessment and deserves the full attention of concerned stakeholders who are working to improve the trading environment in Myanmar.
ADB is exploring ways of bringing the Customs Department and the trade-related private sector together in a joint etort to improve trade facilitation in Myanmar, including but not limited to addressing the issues identified in the survey. It is expected that other agencies and stakeholders could also be engaged as appropriate.
We understand that multiple organisations and development partners are working to support trade facilitation in the developing world, particularly in the light of the World Trade Organization’s Trade Facilitation Agreement. We firmly believe that these findings will prove to be useful in supporting their own work in the sector, both in Myanmar and elsewhere in the GMS.
James LynchDirector
1
1. Introduction
Project Background
ADB has for some time been supporting the GMS Economic Cooperation Program to promote connectivity, competitiveness, and community. Whilst physical connectivity in the GMS has improved significantly, weak institutional and operational capacity to facilitate cross-border trade has constrained the transformation of transport corridors into economic corridors.
In 2010, the Government of Japan launched a trade facilitation initiative, the Asia Cargo Highway (ACH), the objective of which is to promote the seamless flow of goods within and outside Asia. The ACH involves four development partner institutions: ADB; the Customs and Tarit Bureau, Ministry of Finance, Japan (CTB-MoF); the Japan International Cooperation Agency (JICA); and the World Customs Organization (WCO). The Association of Southeast Asian Nations (ASEAN) member states endorsed the ACH in 2011.
In coordination with the CTB-MoF, JICA, and the WCO, ADB subsequently provided initial technical assistance (TA) under the ACH to conduct a series of time release studies at border crossings in five GMS countries: Cambodia, Lao PDR, Myanmar, Thailand, and Viet Nam. This regional policy advisory and technical assistance (R-PATA) project builds on these ongoing ACH initiatives and broader ADB support for transport and trade facilitation in the GMS.
The trade-related private sector, and in particular those involved in cross-border trade, has an important role to play in identifying transport and trade facilitation constraints in the GMS. A constant message from these stakeholders has been that customs formalities remain the major impediment to improved logistics and egcient supply chains. Another common complaint concerns the lack of business-friendly information about customs regulations and procedures. These issues are very relevant for the five GMS countries as they seek to facilitate trade with other ASEAN member countries, and try to enhance sub-regional connectivity through the development of economic corridors.
Survey Methodology
The R-PATA project ‘Strengthening Trade Facilitation through Partnerships with the Private Sector’ (referred to as TA 8707) addresses these concerns. It is designed to develop and/
Survey of Trade-Related Private Sector in Myanmar2
or strengthen partnerships between customs administrations and the trade-related private sector in the GMS, thereby facilitating the cross-border movement of goods. Specific project objectives are to identify trade facilitation constraints and the means of addressing them, and to establish and/ or strengthen the measures by which customs administrations communicate and engage with the private sector in this regard.
Surveys of the trade-related private sector have proved in many countries to be an etective means by which to gauge perceptions of the egciency of trade across borders, and to identify broad areas that are in need of improvement. However, because many of these surveys are based on aggregate indicators, they do not always identify specific trade facilitation constraints or bottlenecks; and they rarely oter solutions.
For the TA 8707 project, therefore, the decision was taken from the outset that any surveys of the trade-related private sector in the GMS should attempt to be more precise; and, as well as asking respondents to identify very specifically what needs to be improved, these surveys would elicit suggestions as to how that might be achieved.
The first of these surveys, to which this report relates, has been arranged in Myanmar. It was carried out by means of a questionnaire issued to importers, exporters, freight forwarders, customs brokers, transport operators, and warehouse-keepers. A deliberate attempt was made to include those operators who regularly use the land border crossing points (BCPs) of Myawaddy (Kayin State, on the border with Thailand) and Tachileik (Shan State, also on the border with Thailand), since these form important links in GMS transport corridors.
The survey questionnaires were issued through various trade representative bodies, notably the Myanmar International Freight Forwarders Association (MIFFA), the Myanmar Customs Brokers Association (MCBA), and the Union of Myanmar Federation of Chambers of Commerce & Industry (UMFCCI), since these organisations were best placed to ensure that their members were widely canvassed, and in a way that allowed them time both to consider the questions properly, and respond.
500 questionnaires (in both the Myanmar and English languages) were issued in February and March 2015; 400 had been returned by 22 May, the cut-ot point, representing a return rate of exactly 80%.
The response rate reflects the high degree of interest in these issues amongst trade-related private sector operators in Myanmar. The responses are clear, unequivocal, and in most cases both constructive and practical in nature.
Section 2 of this report summarizes all of the responses to the survey under headings corresponding to the questions used in the survey questionnaire, and in exactly the same sequence. Section 3 sets out the main findings, and draws some initial conclusions from them; Section 4 makes recommendations, and outlines how TA 8707 is responding in Myanmar, including plans for future work.
1. Introduction 3
Questionnaire Design and Layout
The questionnaire used is at Annex 1. It contains a total of 23 questions, and was designed with a number of principles in mind:
To be comprehensive enough to cover what seemed likely to be the main issues, whilst at the same time being short enough so as not to deter those surveyed from answering.
To minimise the need for narrative responses, and to set the majority of questions within a simple semantic diterential scale, requiring only a ‘tick box’ response.
To explore perceptions and gauge levels of satisfaction, as well as gathering concrete information.
To group questions under distinct categories.
Within those categories, to move progressively from questions about the general to the particular.
To invite suggestions about what might be done to resolve identified problems.
Respondents were not asked to give their names, and confidentiality of identity – where known – has been preserved through the aggregation of data.
4
2. Survey Responses
Section 1: General Information
Question 1: What is the nature of your business? (Please tick all that apply)
Importer ExporterFreight
ForwarderCustoms
Broker TransporterWarehouse
Keeper
72 24 56 327 30 7
Some respondents represented more than one business type, e.g. importer/ exporter, or freight forwarder/ customs broker, hence a total that is larger than the number of survey responses. All categories were covered, however, and the chart below shows the spread. The high percentage of customs brokers reflects the fact that these operators handle the lion’s share of customs clearance processing in Myanmar, on behalf of importers and exporters. See Questions 8 and 9 for a deeper exploration of this phenomenon.
Figure 1: Categories of Respondents
Customs Broker Transport Operators Warehousekeepers
Importer Exporter Freight Forwarders
2. Survey Responses 5
Question 2: At which ports/ airports/ border crossings do you import/ export your goods? (Please list all)
The respondents were operating at each of the following points of entry to Myanmar:
Seaports: Asia World Port, Myanmar Industrial Port, Htee Tan Port, MITT Port, and Bo Aung Kyaw Port, all on the Yangon River, YangonThilawa Port, on the river estuary 25 km south of Yangon
Airport: Yangon International Airport
Land border crossings: Muse, Myawaddy, Kaw Thaung (also known as Kawthoung), and Tachileik
The map below shows the location of these various entry points.
Source: Asian Development Bank.
Survey of Trade-Related Private Sector in Myanmar6
Question 4: What type of goods do you usually import/ export?
A very wide range of products was listed. These are set out in the box below, under their (simplified) section headings in the Harmonised System (HS)1:
1 The Harmonised Commodity Description and Coding System of tari6 nomenclature.
Question 3: Which are the main countries from which/ to which you import/ export?
Almost 40 countries were mentioned. These are highlighted in blue on the world map below.
Live Animals & Animal ProductsAgricultural Meat Products, Seafood
Mineral ProductsCement, Oil & Gas, Raw Materials, Lubricants
Products of Chemical or Allied IndustriesFertilizers, Chemicals, Medicines, Perfumes, Dangerous Cargoes
continued on next page
Source: Asian Development Bank. 15-2557B World ABV
This map was produced by the cartography unit of the Asian Development Bank. The boundaries, colors, denominations, and any other information shown on this map do not imply, on the part of the Asian Development Bank, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries, colors, denominations, or information.
UNITED STATES
BRAZIL
FRANCE
SPAIN
PORTUGAL
GERMANY
DENMARK
SWEDENNORWAY
BELGIUM
UNITEDKINGDOM
IRELAND
ITALY
SAUDI ARABIA
SYRIA
JORDAN
ISRAEL
EGYPT
I N D I A
VIET NAM
THAILANDPHILIPPINES
MALAYSIA
INDONESIA
REPUBLIC OFKOREA
JAPAN
SINGAPORE
PEOPLE’S REPUBLIC OF CHINA
HONG KONG, CHINA
MYANMAR
2. Survey Responses 7
Plastics & RubberRubber
Wood & Articles of WoodPlywood
Paper & PaperboardTissues, Stationery, Books, Paper
Vehicles, Planes & Transport EquipmentMotorcycles, Motor Vehicles, Car Spare Parts, Tyres
Optical & Medical ApparatusVaccines & Diagnostic Test Kits, Medical Equipment
Miscellaneous & Manufactured ArticlesConsumer Goods, Household Goods, Furniture, Cosmetics, Personal Goods, Toys, Hotel Accessories, Miscellaneous Healthcare Products
box continued
Section 2: Customs Clearance
Question 5: Is the customs clearance process egcient?
A relatively high percentage of respondents (37.75%) viewed the customs clearance process as being ‘mostly’ egcient. Given that the process is almost entirely manual, fragmented, multi-locational, and consists of a series of procedures that involve passing paperwork through many pairs of hands, this represents quite an achievement by the Customs Department.
That said, 34.25% of respondents considered the process to be egcient ‘sometimes’, 16% considered it to be ‘rarely’ egcient, and 8% ‘hardly ever’ egcient. These figures should be
Survey of Trade-Related Private Sector in Myanmar8
of concern to the Customs Department, and are worthy of its attention. Work is underway, with the assistance of JICA, to automate the cargo clearance process with the introduction of the Myanmar Automated Cargo Clearance System (MACCS). One of the aims of this etort is that “time and costs for customs clearance procedure will be reduced, and trade egciency and competitiveness enhanced”.
It may be that trade stakeholders would welcome more, and more regular, information about the MACCS initiative, and how it is intended to improve the situation. But the automation process is likely to continue for some time yet, and there could well be benefits in the interim in the Customs Department discussing with the trade how egciencies in the existing clearance process can be achieved (see also list of suggestions in Section 5).
Figure 2: EZciency of the Customs Clearance Process
100
90
80
70
60
50
40
30
20
10
0
%
Nearly Always Mostly
4
37.75
34.25
168
Sometimes Rarely Hardly Ever
Question 6: Is the customs clearance process clear, understandable and predictable?
The view of 48% of respondents that the customs clearance process is mostly or nearly always clear, understandable and predictable again represents a fair achievement by the Customs Department. There is an opportunity here, however, for Customs to explore with traders how these features could be further improved: responses in the ‘sometimes’, ‘rarely’, and ‘hardly ever’ categories still amount to a worrying 52% of the overall total.
The suggestions made in response to Question 19 are likely to be useful in this respect.
2. Survey Responses 9
Figure 3: Clarity, Understandability & Predictability of the Customs Clearance Process
100
90
80
70
60
50
40
30
20
10
0
%
Nearly Always Mostly
6.25
41.75
26.75
17.25
8
Sometimes Rarely Hardly Ever
Figure 4: Satisfaction with Speed of Customs Clearance Process
100
90
80
70
60
50
40
30
20
10
0
%
Nearly Always Mostly
4.5
38.25
31
21.5
4.75
Sometimes Rarely Hardly Ever
Question 7: How often are you satisfied with the speed of customs clearance?
Satisfaction levels are quite low, with only 42.75% of respondents indicating that they are mostly or nearly always satisfied. The Customs Department might wish to discuss with traders whether and how satisfaction levels can be improved.
Some of the suggestions made in Section 5 are likely to be useful in this respect.
Survey of Trade-Related Private Sector in Myanmar10
Question 8: How satisfied are you with the service you receive from your customs broker?
This question was put to importers & exporters only. With almost 60% of respondents being only partly satisfied, there is considerable room for improvement. It is particularly important that this area is addressed, given the prime role of customs brokers in the management of the customs clearance process in Myanmar. See also the responses to Question 9, below.
Figure 5: Satisfaction with Service from Customs Broker
Dissatisfied
Partly Satisfied
Mostly Satisfied
Very Satisfied
%
0 20 40 60 80 100
Question 9: Please say what aspects of your customs broker’s performance could be improved.
Although not everyone who responded to the questionnaire answered this particular question, there were a number of replies which provide a very clear indication of where the areas for improvement are felt to be:
Customs brokers
should know more about the WTO rules and regulations regarding valuation (279 responses)
should comply with the rules and do their best to run files and get cargo cleared within the normal/ expected time frames (25 responses)
must get better at providing regular and frank reports to their customers (importers/exporters)(25 responses)
need to understand more about trade and the international supply chain (20 responses)
need more training (16 responses)
should be able to tell the lead-time and the estimated cost for each stage of the customs clearance process (14 responses)
2. Survey Responses 11
Overall Process
There are delays in the Customs Valuation Section, overvaluation of imported goods, and Customs doesn’t accept the original invoice value (387 responses)
There are many steps in the Customs clearance processes and these need to be reduced to make it more egcient (134 responses)
There is not enough manpower at Customs (125 responses)
Cargo examination takes too long and is done too often (109 responses)
Customs has a vertical system of management. It takes time to wait for signatures if the Directors are on trips or in meetings (88 responses)
There are delays in the Customs Cash Section (37 responses)
The clearance process takes 3 weeks, leading to high charges for port storage, detention and demurrage (34 responses)
E-Customs (digcult to access the internet) (30 responses)
Some Customs stat are not punctual (20 responses)
The Ministry of Commerce mobile control team causes unnecessary delays (14 responses)
It takes too long to get refunds from the Customs Department (12 responses)
Logistics
There are not enough trailers for the transportation of goods (68 responses)
There are not enough machines at ports, and port facilities are inadequate (30 responses)
More qualified stat are required at all ports (28 responses)
There is not enough space for cargoes at the airport warehouse (18 responses)
There are not enough available crane services (10 responses)
Question 10: Please list the 3 most common causes of problems with customs clearance.
The responses are set out below, in two broad categories, and with the types of response given from highest to lowest numbers. The results speak for themselves, and although there are a number of customs-related problems that need to be addressed, there are others – beyond the control of the Customs Department – which are also causing concern.
Survey of Trade-Related Private Sector in Myanmar12
Section 3: Information about Regulations and Procedures
Question 11: What are your main sources of information about import/ export regulations and procedures?
The chart below shows very clearly where traders obtain their information about import and export regulations and procedures. That the Customs Department’s website, and other customs publications, should feature significantly is not surprising. But it is interesting to note how many respondents rely upon customs brokers for this information – once again reflecting the significant role played by these operators in Myanmar; and once again underlining the importance of ensuring that they know enough about current regulations and procedures to be able to etectively satisfy demand.
Figure 6: Sources of Information
Customs Broker Trade Association Newspapers
Facebook Customs Website Other Customs Publications
Question 12: How complete is that information?
Only 2.25% of respondents felt that the information that they obtain (from all sources) about import and export regulations and procedures is entirely complete. Nearly 65% of respondents felt that this information is only partly complete, or not at all. This represents a major problem, and a huge challenge for those responsible for providing information: importation and exportation of goods to/ from Myanmar will never be egcient whilst those involved do not have the full picture in relation to ogcial requirements; mistakes will inevitably be made, delays will occur, ogcial sanctions may be unfairly imposed, and duty and taxes under-declared.
2. Survey Responses 13
Figure 7: Completeness of Information
Not At All
Only Partly
Mainly
Entirely
%
0 20 40 60 80 100
Figure 8: Accuracy of Information
Not At All
Only Partly
Mainly
Entirely
%
0 20 40 60 80 100
Question 13: How accurate is that information?
Precisely the same points apply to the responses to this question. Only 4.75% of respondents felt that the information that they obtain about import and export regulations and procedures is entirely accurate. Over 63% felt that this information is only partly accurate, or not at all; and 32% said that the information is mainly accurate. Quite clearly, ‘mainly’ is nowhere near good enough where issues such as the HS classification, origin, or valuation of goods is concerned.
Survey of Trade-Related Private Sector in Myanmar14
Question 14: How up-to-date is that information?
Once again, the responses are similar to those for Questions 12 and 13. Only 4.25% of respondents felt that the information that they obtain about import and export regulations and procedures is entirely up-to-date. Over 72% felt that this information is only partly up-to-date, or not at all; and 23.5% said that the information is mainly up-to-date.
Figure 9: Information up-to-date?
Not At All
Only Partly
Mainly
Entirely
%
0 20 40 60 80 100
Question 15: How easy is it to obtain information about import/ export regulations and procedures?
Whilst 24% of respondents said that obtaining information about import and export regulations is digcult or very digcult, a significant majority – 76% – found the process moderately easy, easy or very easy. This should encourage those who are responsible for information provision, since they can concentrate on completeness, accuracy and currency, with less attention given to the (often more problematic) medium by which the information is conveyed.
2. Survey Responses 15
Figure 10: Ease of Obtaining Information
Moderately Easy Very Easy Di.cult Very Di.cultEasy
Figure 11: Ease of Understanding Information
Moderately Easy Very Easy Di.cult Very Di.cultEasy
Question 16: How easy is it to understand that information?
Whilst 18.25% of respondents said that information about import and export regulations is digcult or very digcult to understand, a very large majority – 81.75% – found that understanding the information is moderately easy, easy or very easy. This does not mean that improvements cannot be made, but once again it is clear that the main focus needs to be on ensuring the completeness, accuracy and currency of the information conveyed.
Survey of Trade-Related Private Sector in Myanmar16
Question 17: Does Customs provide adequate information when regulations and procedures are changed, or introduced?
The provision of complete, comprehensive, and accurate information about new regulations and procedures, preferably in advance, is the sine qua non of etective trade facilitation. Only 8% of respondents said that this type of information is nearly always adequate, with others assigning lower marks. This is clearly an area which requires attention.
Figure 12: New or Changed Procedures: Is Information Adequate?
100
80
60
40
20
0
Nearly Always Mostly Sometimes Rarely Hardly Ever
%
Figure 13: Ability to Obtain Advance Rulings?
100
80
60
40
20
0
Nearly Always Mostly Sometimes Rarely Hardly Ever
%
Question 18: Are you able to obtain advance rulings from Customs about regulations and procedures?
A meagre 2.5% of respondents said that they are nearly always able to obtain advance rulings from the Customs Department. Almost 50 % said that this is rarely or hardly ever possible. This represents a significant trade facilitation constraint, since the lack of such service provision inhibits the ability of importers and exporters to make commercial judgements based upon, for example, the HS classification or valuation of their goods, or licensing requirements.
2. Survey Responses 17
Figure 14: Information Provision: Suggestions for Improving the Experience
400
350
300
250
200
150
100
50
0
Websit
e public
ations:
Custom
s and tr
ade associa
tions
Better c
ooperaiti
on betw
een
Custom
s and b
roke
rs
Custom
s bookle
ts/n
otices
Unin
terru
pted p
ower supply
at Cust
oms
Mobile
Apps
Custom
s help
desk w
ith
qualified st
aE
Media
announcements
and
inte
rvie
ws
%
Question 19: Please make one suggestion that would improve your experience with obtaining information about regulations and procedures.
The respondents otered many constructive and practical suggestions in response to this question. Improvements to websites, and better cooperation between the Customs Department and customs brokers, were by far the most popular, and are both eminently achievable.
Survey of Trade-Related Private Sector in Myanmar18
Section 4: Customer Service
Question 20: How helpful are Customs ogcials when you need information about customs regulations and procedures?
Over 94% of the responses indicated that customs ogcials are moderately helpful or helpful when asked for information about ogcial requirements. This reflects very well on the Customs Department and, whilst there is clearly an etort to be made to improve overall levels of helpfulness, this is not a priority area in comparison with others surveyed.
Figure 15: Helpfulness of Customs OZcials
100
80
60
40
20
0
Very Helpful
1.75
34
60.25
3.5 0.5
Helpful ModeratelyHelpful
Unhelpful Very Unhelpful
%
Question 21: How well do Customs ogcials understand your requirements when you request information about customs regulations and procedures?
Over 80% of respondents felt that the Customs Department’s ogcials – or, at any rate, those approached for information – understand trade requirements either quite well or very well. This is positive news for Customs. However, over 18% of ogcials are held to understand requirements either not very well or not at all well. This is bound to have a negative impact on trade facilitation, and requires attention.
2. Survey Responses 19
Figure 16: How Well Do Customs OZcials Understand Trade Requirements?
100
80
60
40
20
0
Very Well
3.5
78
18
0.5
Quite Well Not Very Well
Not At All
%
Figure 17: Usefulness of Regular Meetings & Briefings
Not Particularly Useful
Moderately Useful
Useless
Useful
Very Useful
%
0 20 40 60 80 100
Question 22: How useful would it be if Customs were to organise regular meetings to provide briefings on regulations and procedures?
With over 83% of respondents considering the organisation of regular meetings and briefings either useful or very useful, there would appear to be little doubt of the value of introducing such arrangements. These could well act as a vehicle for addressing some of the concerns raised under Questions 12 et seq.
Survey of Trade-Related Private Sector in Myanmar20
Section 5: Suggestions
In this section, respondents were invited to oter any suggestions for ways in which trade facilitation could be improved in Myanmar. Their responses are set out in the table below, in eight broad categories. It is noteworthy that many of these suggestions are concrete, practical, and relatively easy to implement.
Respondents have, by and large, avoided the temptation to use the survey as a means to bash Customs, and have been generally constructive in their comments. There is, indeed, a widespread recognition that the Customs Department is inadequately resourced, both in stat numbers and know-how, for the job it has to do. A lack of knowledge and skills amongst the customs broker community is also perceived as an area requiring attention, reflecting a willingness amongst respondents to recognise their own responsibilities – as they also do in relation to the need to observe the law, and follow the rules.
Unsurprisingly, given responses to earlier questions, the need for better provision of quality information about regulations and procedures is considered to be of high importance, as is the need to reform the process by which the Customs Department values imported goods.
It is particularly pleasing to see that a significant number of responses indicate the potential benefits of closer working between the trade-related private sector and the public sector bodies responsible for international trade in Myanmar. There is accordingly some potential for developing mechanisms, and creating a collaborative atmosphere, within which some of
these issues can be addressed.
Availability of Information about Regulations & Procedures Customs Clearance Process
The orders, notifications, rules and regulations should be informed to the importers and exporters on time (238 responses)
Introduce a ‘single window’ or ‘one stop’ system, in line with e-Government principles (32 responses)
Amend and revise out-of-date rules and regulations (16 responses)
Train the stat in the Customs Department’s public relations unit (6 responses)
Reduce or eliminate unnecessary steps in the customs clearance process (134 responses)
Provide 24-hour electricity supply, improve internet access and make the e-customs online system available throughout working hours (82 responses)
Reduce or eliminate delays whilst awaiting signatures by Customs ogcials (30 responses)
Eliminate systematic physical inspection of cargo and make it random (21 responses)
Ensure correct HS Code every time (18 responses)
Reduce declaration processing time to 1 week, in line with neighbouring countries (15 responses)
Decentralise decision-making (14 responses)
Upgrade the technology (EDI system) and allow on-line customs declarations (14 responses)
Apply the non-licensing system for all goods in future (12 responses)
Require proper filing system in Custom House (10 responses)
Valuation of Imported Goods Customs Administration
To reduce or eliminate delays in the Customs valuation section (290 responses)
Traders should not submit fake invoices to Customs, and Customs must eliminate corruption (22 responses)
Customs should abide by WTO Valuation rules and regulations (20 responses)
Customs must abolish the practice of referring to internet prices and database prices for valuation (10 responses)
PCA should be introduced (10 responses)
Customs should be given enough manpower (125 responses)
Provide training to Customs ogcials, and assign skilful stat in each field (80 responses)
To change the old policies to be in line with international standards of trade facilitation (32 responses)
To reduce tarit and non-tarit barriers (12 responses)
To be a member of the RKC as soon as possible, and to apply all annexes (6 responses)
Public-Private Sector Cooperation Corruption
Ministry of Commerce, Myanmar Port Authority, Customs Department, FDA, shipping lines and private sector should all cooperate better (68 responses)
Traders, ogcials and related associations should meet regularly to share information, find solutions to problems, and review the feedback (34 responses)
Joint workshops should be conducted among Customs, related ministries, related associations and private companies quarterly and the outcomes should be reported in the media (18 responses)
The Ministry of Commerce mobile team is a waste of time and should be reviewed (14 responses)
Mutual trust should be built among Customs, related ministries and the private sector (12 responses)
Transparency should be in place and be systematically applied (30 responses)
Corruption should be eliminated. There should be an internal auditing system to uncover/ eradicate facilitation payments by means of disciplinary actions (26 responses)
Trade Responsibilities Logistics
The MCBA should share information with its members in a timely manner (45 responses)
It is important for all trade operators to know the whole supply chain (20 responses)
The necessary training should be provided to Customs Brokers to be skilful and professional (16 responses)
Impose greater penalties on illegal traders (7 responses)
The transportation sector should be improved (68 responses)
More machines (cranes, fork-lifts, trucks, etc) should be provided at ports (30 responses)
More X-ray machines should be provided for cargo examination at ports (24 responses)
There should be enough space at the Customs warehouse for all cargoes (18 responses)
box continued
22
3. Findings and Conclusions
Findings
The survey responses come from 400 representatives of the principal trade-related private sector actors in Myanmar. These businesses regularly handle importations and exportations to and from almost 40 countries worldwide, and through 11 entry/ exit points. The goods that they are dealing with cover a very wide range, from raw materials to finished products. It is reasonably safe to say, therefore, that the responses are representative, and a sound basis upon which to develop trade facilitation measures.
The responses are almost universally constructive and balanced: there is a refreshing absence of mud-slinging, and a proper recognition by many respondents that trade facilitation is not only a Customs responsibility; the trade, too, must play its part in making things work. Several areas which fall outside the Customs Department’s purview are also identified.
It is not hard to see where the priorities are felt to lie in terms of making improvements. In several areas, the possibility exists of introducing reforms very quickly. The provision of complete, accurate, and up-to-date information about rules, regulations, and procedures looms large. This is not an issue only for the Customs Department: since many stakeholders obtain their information from customs brokers and trade associations, these organisations also need play their part in ensuring that their clients and members are properly informed.
Improvements in the performance of customs brokers, who are responsible for the vast majority of customs clearance transactions in Myanmar, are clearly felt to be required. A recurring theme here, which is also a matter for urgent attention by the Customs Department, is the proper application of the WTO Valuation Agreement2.
Encouragingly, there is considerable support for building a more collaborative working relationship between customs and the private sector. And there is some recognition, too, that private sector actors need to improve the way in which they themselves operate.
Finally there is considerable dissatisfaction with the customs clearance process. This is hardly surprising, given the fact that it is largely paper-based and involves many diterent stages and approvals. Whilst the temptation may be to dismiss these concerns on the grounds that customs cargo clearance is eventually to be automated by the introduction of MACCS, this would be to ignore a clear opportunity to explore ways in which the existing
2 The Agreement on Implementation of Article VII of the General Agreement on Tari6s & Trade (GATT), 1994,
3. Findings and Conclusions 23
system can be made less onerous. Customs attention to, and etorts towards improving this area should build confidence and help to dispel lingering disbelief about ogcial intentions in this respect.
Conclusions
A number of concrete, practical suggestions have been made for improvements in this and other areas. There appears to be considerable willingness on the part of trade stakeholders to get involved in making those improvements, not only on their own account, but through closer working arrangements with Customs.
The Customs Department therefore has a real opportunity of ‘working with the grain’ of private sector enthusiasm to advance trade facilitation in Myanmar. It can take comfort from the fact that several areas of its service are held to be reasonably satisfactory, and concentrate on the areas which are causing concern.
If it avoids a defensive posture, and sees the possibilities inherent in demonstrating, through concrete actions, a real commitment to change, there is every chance that a more positive private sector view will quickly develop.
24
4. Recommendations, Responses and Further Plans
This report is being shared with those who contributed, through distribution by the various trade associations involved: MCBA, MIFFA, UMFCCI, and other chambers of commerce. The Customs Department and the MCBA, upon which the burden of responding to the majority of the survey’s suggestions falls, have been provided with advance copies.
Recommendations
1) The report should be much more widely published: at minimum on the websites of the Customs Department, MCBA, MIFFA, UMFCCI, etc; but also on the website of ADB’s Resident Mission in Myanmar. It should also be shared with the Myanmar Business Forum (already requested by UMFCCI); with concerned Government Ministries (principally Finance & Revenue, and Commerce); with JICA and other donor organisations working in the area of trade; and with other ADB TA projects working on trade facilitation in the region.
2) The trade survey should be re-run in Myanmar after an interval of 12 months, in order to gauge responses in the light of improvements made. The design of the questionnaire, and the survey process, should be identical so as to ensure comparison of similar data (even though there can be no guarantee of reaching the same 400 respondents).
3) The survey should be repeated in the other GMS countries covered by TA 8707.
Project Responses and Further Plans
The TA 8707 project has already begun work in some of the areas identified by the trade survey. These include:
The joint Customs/ MCBA design of a new training, testing and certification programme for customs brokers;
Training for customs ogcials and traders in making technical presentations and delivering short training sessions to trade audiences;
A series of short courses for customs ogcials and traders on how the international trade supply chain operates, with an explanation of the roles and responsibilities of the various stakeholders, the accepted commercial practices involved, and the terminology used;
4. Recommendations, Responses and Further Plans 25
A series of seminars for the trade on the rules and application of the WTO Valuation Agreement;
The development of an Authorised Economic Operator scheme, with trade facilitation benefits being otered in exchange for trade compliance; and
The development of a trader-centric, systems-based Post-clearance Audit (PCA) system, with related technical advice and training for the Customs Department.
26
5. Annex
Please take a few minutes of your time to complete this questionnaire. The information gained from the analysis of the responses will be used by ADB and Myanmar Customs as the basis for devising ways of improving trade facilitation in Myanmar. All of the results will be aggregated in such a way that individuals cannot be identified.
Please answer questions either by putting a tick in the relevant box, or by writing a short response, as appro-priate in each case.
Section 1: General information about your business
Importer ExporterFreight
ForwarderCustoms
BrokerTrans-porter
Warehouse Keeper
Q1. What is the nature of your business? (Please tick all that apply)
Q2. At which ports/airports/ border crossings do you import/ export your goods? (Please list all)
Q3. Which are the main countries from which/ to which you import/export?
Q4. What type of goods do you usually import/export?
Trade Survey Questionnaire
5. Annex 27
Section 2: Customs clearance
Nearly Always Mostly Sometimes Rarely Hardly Ever
Q5. Is the customs clearance process egcient?
Q6. Is the customs clearance process clear, understandable and predictable?
Q7. How often are you satisfied with the speed of customs clearance?
Very Satisfied Mostly Satisfied Partly Satisfied Dissatisfied
Q8. (Importers/ exporters only) How satisfied are you with the service you receive from your customs broker?
Q9. (Importers/ exporters only) Please say what aspects of your customs broker’s performance could be improved.
Q10. Please list the 3 most common causes of problems with customs clearance.
Section 3: Information about regulations and procedures
Customs
website
Other
customs
publications
(magazines,
journals,
brochures, etc)
Customs
broker
Trade
association
Others
(please
specify)
Q11. What are your main sources of information about import/ export regu-lations and procedures?
28 Annex
Entirely Mainly Only partly Not at all
Q12. How complete is that information?
Q13. How accurate is that information?
Q14. How up-to-date is that information?
Very Easy Easy
Moderately
Easy DiZcult Very DiZcult
Q15. How easy is it to obtain information about import/ export regulations and procedures?
Very Easy Easy
Moderately
Easy DiZcult Very DiZcult
Q16. How easy is it to understand that information?
Nearly Always Mostly Sometimes Rarely Hardly Ever
Q17. Does Customs provide adequate information when regulations and procedures are changed, or introduced?
Q18. Are you able to obtain advance rulings from Customs about regulations and procedures?
Q19. Please make one sug-gestion that would improve your experience with obtaining information about regulations and procedures.
Section 4: Customer service
Very Helpful Helpful
Moderately
Helpful Unhelpful
Very
Unhelpful
Q20. How helpful are Customs ogcials when you need information about customs regulations and procedures?
5. Annex 29
Very Well Quite Well Not Very Well Hardly At All
Q21. How well do Customs ogcials understand your requirements when you request information about customs regulations and procedures?
Very Useful Useful
Moderately
Useful
Not
Particularly
Useful Useless
Q22. How useful would it be if Customs were to or-ganise regular meetings to provide briefings on regula-tions and procedures?
Section 5: Your suggestions
In the box below, please oter any suggestions for ways in which trade facilitation could be improved in [specify country]
Thank you very much for completing this questionnaire!
This report presents the findings of a trade survey conducted in Myanmar in February and March 2015, under ADB’s regional
technical assistance ‘Strengthening Trade Facilitation in the Greater Mekong Subregion (GMS) through Partnerships with the Private
Sector’. We hope that these findings will prove to be useful for multiple organisations’ and development partners’ work in
supporting trade and trade facilitation, both in Myanmar and elsewhere in the GMS.
ာbbrevၦ၏ၦons
အ အ ည ႊ ည
အ ဖ အ အ အ အ ဖ အ အ ဖ ည ည ည အ အ အ ဖ အ အ ဖ အ
အ အ
C
Abbreviations
ACH Asia Cargo Highway
ADB Asian Development Bank
AEO Authorised Economic Operator
ASEAN Association of South East Asian Nations
BCP Border Crossing Point
CTB-MoF Customs and Tarif Bureau, Ministry of Finance, Japan
EDI Electronic Data Interchange
FDA Food & Drug Authority
GATT General Agreement on Tarifs & Trade
GMS Greater Mekong Subregion
HS Harmonised System
IFCBA International Federation of Customs Brokers Associations
JICA Japan International Cooperation Agency
MACCS Myanmar Automated Cargo Clearance System
MCBA Myanmar Customs Brokers Association
MIFFA Myanmar International Freight Forwarders Association
MoC Ministry of Commerce
PCA Post-clearance Audit
RKC Revised Kyoto Convention
R-PATA Regional Policy Advisory and Technical Assistance
TA Technical Assistance
UMFCCI Union of Myanmar Federation of Chambers of Commerce & Industry
WCO World Customs Organization
WTO World Trade Organization
i
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1
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ည အ အ ည အ ည ည ည အ အ ည
ည အ ည အ အ ည အ ည ထာsၦ၏ ၏rၤo ၦၤၥw၏y – ာဒ အ အ ည
အ ည ည ာ အ ည အ အ အ ဌ ထ၂ဖoေဒ အ ထာဒ ၻ
အ အ ထ၅ျဒ ည အ အ ည ာ အ ည ည
အ ည ၂ဖoေ ာ ၅ျ ည ၻ အ ဖ ၁ ၦme rele၏se sdၦes အ ာ
အ အ အ ည ည ည အ ည ည ထRဖြာ၂ာဒ ည ာ အ ၚ ည ၁ အ
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ညRဖြာ၂ာ ည “ ၢ
အ အ အ ည ” ထ၂ာ 87မ7 ညညႊ ညဒ အ ည ည ၁ အ အ အ အ
အ ည ည အ ည အ အ ည အ အ အ
ၢ 2
ဌ အ ည အ အ ဘအ ည ည
ၢ အ ၚ အ ည ည ည
အ ည အ ည ညႊ အ ၚ အ အ အ အ အ အ ည ည ညႊ
၂ာ 87မ7 အ ၁ ၢ ည အ အ အ အ အ အ အ
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အ ႊ အ ည ထြဒ ည ထ ည ဒ ထ ည ဒ အ ည အ ည ည ည ၁ အ ည
ႊ ည အ အ ထအ ည ည ည အ ထေောဒ အ အ ထာဒ
ည ည အ ထ၃ေဒဒ ည အ အ ည ည အ ည အ ည
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အ ၂ာ 87မ7 ည အ အ ည ည ည
3
ႊ ည အ ည ႊ ထ ဒ ည ည အ
အ ည ည
• အ ည ည အ အ ည
• ည ည ည အ ည အ အ အ အ
• ည အ အ ည ည
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• အ အ အ အ အ
• ည အ ည အ ၚ
အ ည အ အ ည အ အ ည အ ည ည
4
အ ဖ အ အ အ ဖ ည ည ထ ညအ အ ဒ
ည အ အ
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အ အ ည အ အ ည အ အ အ အ ည အ အ
အ ၚ ည အ အ ည
အ အ
Customs Broker Transport Operators Warehousekeepers
Importer Exporter Freight Forwarders
အ အ
ည
5
ဖ ည ဘ ည ည ဘ ဘ ည ထအ ဒ
ည အ ည ဖ
ာsၦ၏ ၅orld အ ၂၂ အ ဖ အ
ထ ည ဒ
အ ည ည
ည အ ည
Source: Asian Development Bank.
ၢ 6
ဖ အ အ ည ည ညအ အ ဘ ည
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ဖ အ အ ည ည ဘ ည ဘ ည
ည အ အ ည
ည
အ ည
အ ည
ထ ဒ
ည ႊ အ ည
Source: Asian Development Bank. 15-2557B World ABV
This map was produced by the cartography unit of the Asian Development Bank. The boundaries, colors, denominations, and any other information shown on this map do not imply, on the part of the Asian Development Bank, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries, colors, denominations, or information.
