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

November 3, 2022

Myanmar Requires Border-Trade Importers to Pay via Bank Transaction

Subscribe to Updates

On October 31, 2022, the Department of Trade in Myanmar’s Ministry of Commerce announced that payments for importation at the border are to be made via bank transaction.

This announcement comes into force with Import/Export Newsletter No. 10/2022, dated October 31, 2022, issued by the Department of Trade, with the purpose of implementing a systematic payment system for import and export at the border, in accordance with a suggestion made by the Financial Action Task Force (FATF), an international financial watchdog. (This follows the recent news that the FATF has blacklisted Myanmar.)

This requirement means that only bank transactions will be accepted for import payments in the border trade. Initially, this system will be applied to trade at the Myanmar-Thailand border only.

The new requirement to pay for imports only via bank transaction states that export earnings and other types of foreign currency earnings (including salary and income remitted by Myanmar workers overseas) will be allowed to be used for imports. Importers are required to make the payments for import goods—using these earnings—via their banks. That is, Importers operating in the border trade must have foreign currency earnings received through official banking channels and must make import payments abroad through official banking channels using those earnings. In contrast to previous practices, they are unable to use other sources of income and are not able to make other payment arrangements that do not involve bank transactions.

The procedures for importation at the Myanmar-Thailand border are as follows:

  • Companies applying to the Department of Trade for an import license must produce credit advice and original bank statements that prove the receipt of export earnings or other earnings into their bank account.
  • The Department of Trade will scrutinize the reported export earnings or other earnings, and approve the import license for an amount not exceeding the bank balance.
  • For items that do not require import licenses, importers must, when filing an import declaration, include the necessary information for the Customs Department by attaching the credit advice and original bank statement showing receipt of export earnings or other earnings into their account.

These procedures are in effect from November 1, 2022. Payments under import licenses that had already been applied for prior to this are excluded from the new requirements. However, for import licenses that had already been approved before that date, importation must be concluded by November 30, 2022. If importation is not complete by then, the import license will be nullified.

In addition, only export earnings and other earnings arriving after April 1, 2022, will be eligible for consideration under these procedures. Exporters that earn export earnings from Myanmar-Thailand border trade can use the earnings to import goods themselves (across any border) or transfer earnings to other companies to import.

For more details on these developments, foreign exchange guidelines, or any aspect of banking regulations in Myanmar, please contact Tilleke & Gibbins at [email protected].

Related Professionals

Practices

Banking and Finance

Compliance and Investigations

Location

RELATED INSIGHTS​ 

January 9, 2025
Thailand’s Fiscal Policy Office (FPO) has released a draft of its planned Financial Business Hub Act, which is in line with the government’s aim of positioning Thailand as a regional financial hub and a critical player in the global economy. The draft act, on which the FPO is accepting comments until January 9, 2025, details the framework for promoting and attracting international financial businesses and related services to operate in Thailand, proposes various incentives, and outlines supervisory guidelines. This article examines key elements of the draft Financial Business Hub Act relevant to financial business operators. Incentivized Financial Businesses The draft act identifies the financial businesses to be promoted and incentivized. These target businesses include: Commercial banking businesses, Payment service businesses, Securities businesses, Derivatives businesses, Digital assets businesses, Insurance and reinsurance brokerage businesses, and Other financial-related businesses as determined by the Committee for the Supervision and Promotion of Financial Centers. Thailand’s finance minister explained that initially, the draft law intends to target businesses using an “out-out” model, which describes the raising of capital abroad for investment abroad, before expanding to an “out-in” model, in which capital is raised abroad for investment domestically. Therefore, the draft law currently specifies that the target businesses must only provide services to nonresidents without soliciting residents of Thailand to use their services. Authorization Targeted financial business operators will need to receive authorization from the Committee for the Supervision and Promotion of Financial Centers. The main eligibility criteria for authorization are the incorporation an entity (e.g., a company registered in Thailand, a branch of a foreign juristic person) with an office in designated areas to be specified in a royal decree (currently expected to be Bangkok and adjacent provinces) and the possession of other qualifications as prescribed in the draft act. Target businesses in Thailand will
Read More
December 11, 2024
On October 16, 2024, Thailand’s Anti-Corruption Cooperation Committee (ACCC) issued a notification to enhance anticorruption standards in public procurement. The new notification (officially “Notification of the Anti-Corruption Cooperation Committee on the Procurement Budget and Minimum Standards of the Policy and Directions for Anticorruption in Relation to Procurement according to Section 19 of the Public Procurement and Supplies Administration Act B.E. 2560”) supersedes previous guidelines and imposes stricter compliance requirements on business entities involved in the government procurement processes. The updates not only align with the goals of Thailand’s Public Procurement and Supplies Administration Act B.E. 2560 (2017) but also reflect the government’s resolution to mitigate corruption, particularly in high-value public contracts. The ACCC’s new notification introduces additional definitions, lowers budget thresholds for compliance, and strengthens business obligations. Key Components The new notification continues the previous guidelines’ requirement that businesses seeking to bid on government procurement projects meet the specified minimum standards—such as communicating and implementing anticorruption policies at all organizational levels, establishing a code of conduct, and providing related training programs to employees. The notification also introduces a number of changes, the most notable of which are detailed below. “Entrepreneur” definition. The definition of this term is narrowed to entities involved in the public procurement bidding process. Previously, the definition broadly applied to all business entities engaged in selling goods or services. Threshold for mandatory compliance. The project budget threshold that necessitates compliance with the minimum standards is  THB 300 million—a reduction from the previous threshold of THB 500 million. Minimum standards to prevent unfair competition. The new notification introduces a specific definition for “disturbing fair competition,” establishing clear parameters around actions that disrupt competitive fairness within public procurement. Continued compliance requirements. Businesses’ compliance with the minimum standards must now extend from the date of bid submission to the
Read More
December 4, 2024
Tilleke & Gibbins has contributed the Cambodia, Laos, Myanmar, Thailand, and Vietnam chapters to Restructuring in Southeast Asia, a comparative guide produced by Drew Network Asia (DNA). The publication outlines the principal debt restructuring processes available to corporate debtors across nine Southeast Asian jurisdictions and provides an accessible overview for lenders, creditors, and companies navigating financial distress in the region. Structured in a question-and-answer format, each jurisdictional chapter addresses the same core topics, allowing readers to compare approaches across markets. The guide covers key issues such as available restructuring mechanisms, court-supervised and out-of-court options, the roles and powers of creditors, and the implications of restructuring on ongoing business operations. As with other DNA resources, the guide aims to provide practical orientation rather than exhaustive analysis. Legislative developments and jurisdiction-specific considerations may affect the applicability of certain procedures, and readers requiring tailored advice are encouraged to contact the practitioners listed at the end of each chapter. The full guide is available for download using the button below or directly from the DNA website.
Read More
December 4, 2024
Thailand Legal Basics, a valuable primer for foreign investors, explores all aspects of living and doing business in Thailand. Written by specialists at Tilleke & Gibbins in Bangkok, it is the only comprehensive English-language guide to the Thai legal system with a focus on the concerns of foreign business and investment.
Read More