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December 2, 2022

Myanmar Announces Rules for Electric Vehicle Importation and Motorcycle Showrooms

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On November 11, 2022, Myanmar’s Ministry of Commerce (MOC) announced a pilot period for importing electric vehicles into Myanmar, which came into force with MOC Order No. 62/2022, issued under the Import and Export Law. A separate order (No. 61/2022) issued on the same day specifies rules for importation of motorcycles by companies that do not have a certificate to open a showroom, as well as rules for opening motorcycle showrooms.

Electric Vehicle Importation

According to the order, which takes effect January 1, 2023, “electric vehicles” includes only battery electric vehicles (BEVs) for both personal use and passenger use.

In order to import electric vehicles into Myanmar without having a certificate to open a showroom, companies must:

  • Be registered as a company, either wholly owned by nationals or a joint venture, at the Directorate of Investment and Company Administration (DICA);
  • Be able to present the purchase and sales agreement for each brand of imported electric vehicles;
  • Receive approval from the National Steering Committee for Development of Electric Vehicles and Associated Businesses, and import according to the quality and quantity of electric vehicles permitted by the committee;
  • Arrange the necessary warranty, spare parts availability, and after-sales service for the imported electric vehicles;
  • Deposit a bank guarantee of MMK 50 million at a bank recognized by the Central Bank of Myanmar; and
  • Apply for a purchase permit at the MOC, for the purpose of registering the imported vehicles with the Road Transport Administration Department.

BEV Tax Exemption

Following MOC Order No. 62/2022, BEVs and their batteries are now exempted from commercial tax and special goods tax, which came into force with the Law Amending the Union Tax Law 2022 (State Administrative Council Law No. 48/2022) dated November 17, 2022. These tax exemptions will be effective from October 1, 2022, to March 31, 2023.

Motorcycle Showrooms

In addition to fulfilling the last three items in the above list for electric vehicle importation, a company wishing to open a motorcycle showroom in Myanmar must have a showroom area of at least 5,000 square feet, and the imported motorcycles must be brand new. Showroom owners are subject to unannounced checks regarding the documents for the motorcycles, arranged by the MOC or any other relevant ministry. Any breach of these rules is subject to legal action under existing laws.

For more details on importation of electric vehicles or any other goods into Myanmar, please contact Tilleke & Gibbins at [email protected].

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