Myanmar introduces new barter trade arrangements
On 28 May 2024, the Union of Myanmar Federation of Chambers of Commerce and Industry informed its members via Letter No. 15/2/3/13 (2149) (“Letter”) of the process implemented by the Myanmar Department of Trade (“DoT”) in relation to a new barter trade arrangement (“BTA”). The DoT announcement in this regard is at the time of writing not publicly available. The BTA seeks to facilitate the exchange of goods of equal value between countries without the use of foreign currency.
The Letter informs that companies engaging in the BTA must send the following to the Director General of the Foreign Exchange Management Department (“FEMD”) of the Central Bank of Myanmar:
- Export Bill Receivable Exemption (“EBRE”) form, which seeks an exemption from foreign currency repatriation after exporting goods under the BTA; and
- Import Bill Payment Exemption (“IBPE”) form, which seeks an exemption from the payment of foreign currency for the value of the imported goods, after importing goods under the BTA.
The relevant supporting documents must be submitted together with the above forms, and will include copies of the allowed shipment notification and the release order notification, the export/import licence granted further to the BTA, and the sales contract. The forms and the supporting documents are to be submitted via email at femd@cbm.gov.mm.
The FEMD also issued a notification informing of the above procedure (“Notification”). The Notification provides that an email acknowledging receipt of the EBRE and IBPE forms and supporting documents will be sent to the applicant within one working day. The FEMD instructs that companies should reach out to the FEMD via telephone if they do not receive acknowledgment of receipt.
