Myanmar’s Ministry of Finance and Revenue has introduced new procedures allowing companies to temporarily export raw materials and semifinished goods for overseas processing before reimporting the finished products for domestic sale. The procedures are detailed in Notification No. 143/2025, which was issued on December 23, 2025, taking effect on February 1, 2026.

The new procedures define outward processing as the temporary export of domestically circulating or manufactured goods for manufacturing, processing, treatment, or repair abroad, followed by reimportation. Core elements include the temporary export of the goods, the continuity and identifiability of the exported and reimported items, and the assessment of duties based on the value added abroad.

Upon reimportation, customs duty, commercial tax, specific goods tax, and advance income tax are applied only to the foreign value added, rather than to the full value of the goods. No advance income tax applies at the time of export.

Before these procedures, Myanmar lacked a unified outward processing system. The closest existing practice was the “repair and return” mechanism, used for goods such as machinery parts that required repair abroad. The definition covers a broader range of operations than simple repair.

Eligible Goods and Shipment Points

Outward processing is permitted only for goods that satisfy specific eligibility criteria. The scheme expressly excludes:

• Goods that are prohibited from export or import
• Goods that can be processed domestically within Myanmar
• Precious stones
• Goods that would lose their essential characteristics after processing

Export and reimport activities related to outward processing must be conducted through designated ports, airports, or dry ports located within Yangon Region.

Eligible Companies

Only companies that are legally registered in Myanmar and authorized as exporters or importers—specifically, businesses holding a valid export/import registration certificate—are eligible to engage in outward processing activities. The Myanmar Customs Department serves as the governing authority responsible for administering and overseeing the new procedures.

Application Process and Compliance

To obtain approval for outward processing, companies must submit the prescribed application form with detailed supporting documentation to the Myanmar Customs Department. The notification sets out the procedural framework for both the export and reimport stages, including applicable customs duties and taxes. The rules also specify penalty regimes for noncompliance, including late extension requests, failure to reimport goods within the permitted timeframe, and discrepancies between the exported materials and the reimported goods.

Outlook

The new procedures are a major modernization of Myanmar’s customs regime. They introduce a uniform and transparent approval system, clearer documentation and valuation rules, predictable timelines, and greater consistency with international trade facilitation standards, thereby providing legal certainty and improving the business environment for companies engaged in cross‑border processing and manufacturing.