You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

June 11, 2025

Myanmar Regulates EV Imports and Reduces Fuel Vehicle Customs Duties

Subscribe to Updates

Myanmar’s Ministry of Commerce has established new regulatory measures for importing electric vehicles (EVs) as part of a pilot project running from January 2025 to March 31, 2026, while the Ministry of Planning and Finance has reduced customs duty rates for fuel-powered vehicles manufactured domestically under semi-knocked down (SKD) and completely knocked down (CKD) systems, effective June 1, 2025, to May 31, 2026.

Importation of EVs

On May 29, 2025, Myanmar’s Ministry of Commerce (MOC) issued an announcement regarding the importation of EVs from abroad as part of its pilot project, detailed in MOC Notification No. 40/2025.

The MOC notification establishes the following regulatory measures to support the development of EVs and related businesses:

  • Approval must be obtained from the National-Level Steering Committee for the Development of Electric Vehicles and Related Enterprises.
  • A registration certificate for an EV sales showroom must be secured.
  • Vehicles must be imported in accordance with the permitted number and standards defined by the National-Level Steering Committee for the Development of Electric Vehicles and Related Enterprises.
  • The importing company must provide necessary arrangements for warranties on imported EVs, spare parts, and after-sales services.

For companies wishing to open a sales showroom, the following requirements apply:

  • The company must be a registered national or joint venture entity with the Directorate of Investment and Company Administration.
  • The company must be officially appointed as a distributorship or dealership by the original company or regional office for each brand.
  • A permit from the respective state or regional government and a business license from the respective Municipal Committee must be obtained.
  • The company must provide evidence of tax clearance issued by the Internal Revenue Department.
  • Standards for the showroom, building, and warehouse, as issued periodically by the MOC, must be adhered to, including:
    • Compound area: 10,000 square feet (the total area for the showroom, service center, and waiting room must be 5,000 square feet).
    • Warehouse: 5,000 square feet (with a roof and shelter already constructed, and its contents cleared).
    • Showroom features: The front and sides must feature glass windows and comply with international standards.
    • Signboard: 50 square feet, displaying the trademark of vehicles for which the distributor or dealer has been appointed, in accordance with international standards.
    • Distance from the road: 12 feet.
    • The showroom must be located in a building that does not serve as residential housing.
    • If the compound area meets the standards, the showroom and warehouse may be joined.
    • A 10% deviation from the area requirements may be allowed depending on the location.
  • The showroom and warehouse must be within the same state or region.
  • A bank guarantee of MMK 500 million deposited with the Central Bank of Myanmar is required from the importing company.

The MOC notification specifies that the EVs covered are battery electric vehicles (BEVs), including both cars and buses. It will be effective from January 2025 to March 31, 2026.

Customs Duty Rates for Fuel-Powered Vehicles

On June 4, 2025, the Ministry of Planning and Finance (MOPF) issued Notification No. 39/2025, which reduces customs duty rates for the import of fuel-powered vehicles to be manufactured domestically under SKD and CKD vehicle systems.

The MOPF notification announced the following new customs duty rates for SKD systems:

  • Passenger vehicles of 2000 cc and below: 5% (reduced from 7.5%)
  • Passenger vehicles of 2001 cc and above: 5% (reduced from 7.5%)
  • Three-wheeled motorcycles (passenger): 3% (reduced from 7.5%)
  • Three-wheeled motorcycles (cargo): 3% (reduced from 7.5%)
  • Buses: 3% (reduced from 7.5%)
  • Trucks and trucks for body building: 3% (reduced from 7.5%)
  • Motorcycles: 1.5% (reduced from 3%)

The customs duty rates for CKD systems have been set as follows:

  • Passenger vehicles of 2000 cc and below: 3% (reduced from 5%)
  • Passenger vehicles of 2001 cc and above: 3% (reduced from 5%)
  • Three-wheeled motorcycles (passenger): 1.5% (reduced from 5%)
  • Three-wheeled motorcycles (cargo): 3% (reduced from 5%)
  • Buses: 3% (reduced from 5%)
  • Trucks and trucks for body building: 3% (reduced from 5%)
  • Motorcycles: 1.5% (reduced from 3%)

The reduced customs duty rates for SKD and CKD vehicle systems are effective from June 1, 2025, to May 31, 2026.

Related Professionals

Industries

Automotive

Practices

Customs and International Trade

Location

RELATED INSIGHTS​ 

October 30, 2023
On October 9, 2023, Laos issued Presidential Decree No. 003, which raised excise tax rates for certain goods, effective immediately. The move to increase excise tax rates comes amid the marked depreciation of the Lao kip (LAK). The Lao government is trying to monitor and discourage imports of non-essential products in order to reduce the outflow of foreign currency from the country. Increasing the tax rate for some of these products is part of these efforts. The specific products and excise tax rates are listed in the table below.   This new rate policy is also in line with recent government efforts to encourage avoiding payment in foreign currency to prevent the depletion of foreign currency reserves in Laos. In this regard, commercial banks have already taken action to ration the supply of foreign currency by prioritizing imports of essential goods, such as fuel. The products listed above formalize this impetus to prioritize certain imports and discourage others deemed not essential. In addition, the increased excise tax rates on fuel-powered vehicles show the commitment of the Lao government to move toward electric vehicles, which would also lessen the country’s dependence on fuel imports. For more information on these excise tax changes, or on any aspect of Laos’ international trade regulations, please contact Tilleke & Gibbins at [email protected].
Read More
October 4, 2023
Extended producer responsibility (“EPR”), a strategy whereby producers are held accountable for the environmental impact of their products throughout their entire life cycle, including disposal and recycling, has become more and more familiar to manufacturers in Vietnam. According to the director of the legal department of the Ministry of Environment and Natural Resources, EPR is an alternative financial solution for managing waste and increasing recycling without raising environmental protection taxes and fees, which may help Vietnam to maintain a closed loop of resources in manufacturing. New EPR Regulations Applicable to Producers and Importers In 2020 and 2022, the new Law on Environmental Protection 2020 and its guiding Decree No. 08/2022/ND-CP were promulgated, introducing a legal framework for EPR (“New EPR Regulations”) imposed on not only producers but also importers. Under the New EPR Regulations, producers and importers of certain types of products and packaging are responsible to collect and treat waste and recycle their products and packaging. The responsibility to collect and treat waste took effect on January 10, 2022, while there are different timelines being phased in from 2024 to 2027 for the recycling of products and packaging, depending on the type. For the purpose of compliance with the recycling requirement under the New EPR Regulations, the producers and importers can implement the recycling obligation by themselves, or engage a third party to recycle or organize the recycling, or make a financial contribution to the Vietnam Environment Protection Fund to support the recycling process. This will cause an increase in cost and, hence, an impact on prices of certain products in the near future. Exceptions to the recycling obligation include: Producers and importers of products and packaging for (i) export or temporary import for re-export or (ii) manufacture or import for research, study, or testing purposes. Packaging producers
Read More
May 17, 2023
In Myanmar, a Union Tax Law is enacted each year to announce the rates of tax set out in the Income Tax Law 1974, the Commercial Tax Law 1990, and the Special Goods Tax Law 2016. The Union Tax Law 2023 (UTL 2023) came into force on April 1, 2023. It sets the rates of special goods tax (SGT), income tax (IT), and commercial tax (CT) for the period of April 1, 2023, to March 31, 2024, and exempts certain goods and services from these taxes. The key changes implemented by the UTL 2023 are summarized below. Special Goods Tax The UTL 2023 exempts battery electric vehicles (BEVs) from SGT. At the same time, it increases the rate of SGT on imported liquor. Previously, the rate of SGT ranged from 190 MMK per liter to 60 percent of the per-liter price of imported liquor in the previous fiscal year. The UTL 2023 raises the minimum rate to 209 MMK per liter while leaving the upper rate unchanged. Commercial Tax and Customs Tariffs BEVs imported into Myanmar were made exempt from CT under the Law Amending the Union Tax Law 2022. The UTL 2023 extends the exemption until the end of the 2023–24 fiscal year, along with two- and three-wheeler BEVs, BEV batteries, and related parts for specific use in BEVs. The CT exemption for battery charging services for BEVs, also introduced in 2022, has similarly been extended. Following enactment of the UTL 2023, the Ministry of Planning and Finance (MOPF) issued Notification No. 31/2023, reducing to zero the customs tariffs on imported BEVs, including those imported completely built up (CBU), completely knocked down (CKD), or semi-knocked down (SKD). The tariffs on spare parts and materials for BEVs have also been reduced to zero. In addition to exempting BEVs from
Read More
December 2, 2022
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
Read More