WT/TPR/M/293/Add.1  
11 June 2014  
(14-3387)  Page: 1/94  
Trade Policy Review Body 
11 and 13 March 2014 Original: English/Spanish  
anglais/espagnol  
inglés/español  
 
  TRADE POLICY REVIEW 
MYANMAR  
MINUTES OF THE MEETING 
Addendum 
Chairperson: H.E. Mr. Joakim Reiter (Sweden) 
This document contains the advance written questions and additional questions by WTO 
Members, and replies provided by Myanmar.1 
 
 
Organe d'examen des politiques commerciales 
11 et 13 mars 2014 
EXAMEN DES POLITIQUES COMMERCIALES 
MYANMAR  
COMPTE RENDU DE LA RÉUNION 
Addendum 
Président: S.E. M. Joakim Reiter (Suède) 
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses fournies par Myanmar.1 
 
 Órgano de Examen de las Políticas Comerciales 
11 y 13 de marzo de 2014 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
M
YANMAR  
ACTA DE LA REUNIÓN 
Addendum 
Presidente: Excmo. Sr. Joakim Reiter (Suecia) 
En el presente documento figuran las preguntas presentadas anticipadamente por escrito y 
las preguntas adicionales de los Miembros de la OMC, así como las respuestas facilitadas por Myanmar.
1 
                                               
1 In English and Spanish only./En  anglais et espagnol seulement./En inglés y español solamente. WT/TPR/M/293/Add.1 
 
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  Explanatory Note 
 This document contains Myanmar's answers to Members' advance written questions. As roughly one quarter of these questions concerned various aspects of Myanmar's new foreign investment regime, 
particularly the legal framework, rather than provide each Member with similar written answers to 
their questions on this subject, a general answer is found on the next page. With this general answer providing background to recent developments regarding the legal framework, more specific 
individual answers to each Member's questions on foreign investment are then provided elsewhere in 
this document.  
 WTO Secretariat Report:  
General Answer on Investment Myanmar has initiated a broad reform process to improve its legal and regulatory framework since 
the new Government took office in 2011. In line with the wide-ranging reform program of the new Government, there were considerable expectations from stakeholders concerning a rapid 
improvement of Myanmar's investment framework. In order to create a more open and secure 
investment environment, the New Foreign Investment Law (FIL) was enacted in November 2012, followed by its accompanying implementing rules (Notification No 11/2013) as well as Notification 
No 1/2013 in respect of the negative list of prohibited activities (see Table 1 below). The 
investment framework for domestic investors was also updated and enacted in July 2013 with the New Myanmar Citizens Investment Law (CIL). Although the 2012 FIL offers undeniable improvements over the earlier 1988 law, there were shortcomings, notably with respect to 
investor protection and procedures for business entry. 
 
Table  1 Investment-related Laws and Regulations  
Date Investment-related Laws & Regulations 
November 2012 New Foreign Investment Law (FIL) 
January 2013 Foreign Investment Rules, Notification No: 11/2013 
January 2013 Notification No: 1/2013 (Negative list of prohibited activities) 
July 2013 New Myanmar Citizens Investment Law (CIL) (Domestic enterprise
investment) 
January 2014 New Myanmar Special Econom ic Zone Law (Unified law for SEZs) 
[March/April 2014] Revised FIL Notification No: 1/2013 (Reduced list of prohibited activities) 
[March/April 2014] FIL Notification No: 2 (Clarification of conditions attached to tax exemptions)  
[March/April 2014] FIL Notification No: 3 (Clarification of Environmental and Social Impac t
Assessments) 
[May 2014] New Myanmar Companies Act 
[End of 2014] Myanmar Investment Law (Merging the New FIL and New CIL) 
 
In terms of investor protection, some of the core  standards, such as MFN and national treatment, 
expropriation with fair market value compensation  and dispute settlement, remained absent from 
the new legal framework.  
 In view of the urgency in reforming Myanmar' s investment framework, the draft New FIL was 
formulated without the assistance of international technical expertise or a broad-based 
consultation process of stakeholders (other than  Parliament). However, the shortcomings of the 
new legal investment framework were quickly recognized and the New Government welcomed offers of technical assistance from several international organizations, notably the Organization for 
Economic Cooperation and Development (OECD), the Asian Development Bank (ADB), the 
International Finance Corporation of the World Bank Group (IFC), the Japanese and German international agencies (JICA and GIZ) and others. 
 
The ongoing legislative work program on investment is now focusing on: the imminent adoption of three sets of FIL regulations; the formulation of an overall Myanmar Investment Law that will WT/TPR/M/293/Add.1 
 
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  merge the New FIL and New CIL into one coherent investment framework, thereby removing the 
perception that foreign and domestic investors were treated differently; and a New Myanmar Companies Law.  
Concerning the adoption of FIL regulations, three Notifications are awaiting adoption by 
Parliament:  
1)  Revised Notification No.1 aims at addressing a number of weaknesses in the activities that 
were initially reserved for domestic investors and thus prohibited for foreign investors. It is now proposed to reduce the number of activi ties on the "negative list" of prohibited 
activities closed to foreign investors from 21 to 11, thereby considerably reducing the 
scope for discretion. It is also proposed to reduce the scope of economic activities in which 
joint ventures between foreign and domestic partners are required.  
2)  Notification No. 2 aims at clarifying the tax incentives and conditions attached to them. 
3)  Notification No. 3 aims at clarifying the activities subject to environmental and social impact 
assessments. 
 
As regards formulation of an overall Myanmar In vestment Law, several ambiguities have emerged 
as a result of the enactment of two parallel laws: one for foreign investment, i.e. New FIL, and one 
for domestic investors, i.e. New CIL. Myanmar's authorities are now actively working with the 
assistance of international experts with a view to merging these two laws into a single coherent 
investment law that will address the shortcomings of the existing legal framework, notably matters 
concerning MFN and national treatment, expropriat ion with compensation at fair market value, 
transparency, the alleged discretionary authority of the Myanmar Investment Commission, and 
dispute settlement, all of which are under consideration. The aim is to finalize the draft law during 
the fall 2014, carry out consultation with stakeholders and, ultimately, submit the draft law to Parliament at the end of 2014. 
 
The Ministry of National Planning and Economic  Development is also responsible for two other 
important economic laws: the Myanmar Companies Act (1914); and the recently enacted New Myanmar Special Economic Zone Law. 
 
The Myanmar Companies Act of 1914 contains a number  of complicated provisions that are out of 
step with today's operating environment. With ADB technical and financial assistance, 
modifications are underway to align its provisions with the current economic environment and 
comply with international standards. The aim is to finalize the draft in May 2014.  
In respect of Special Economic Zones, two parallel laws, the Myanmar Special Economic Zone Law 
and Dawei Special Economic Zone Law were enac ted shortly before the new Government took 
office in 2011. However, the two laws were found to be deficient in inducing foreign and domestic investors to locate their investments in these SEZs. Moreover, the two laws raised doubts about 
the harmonization of the regulatory framework ac ross zones. Therefore, the two laws have been 
merged into a new Myanmar Special Economic Zone Law, which was enacted in January 2014. 
 
Chapter I. Economic Environment 
 Page 11, para 1.9, Exchange Rate Policy, China Q1-2:  
Are the rules on lifting restrictions on current payments and transfers abroad and those on 
holding and use of foreign exchange applicable to trade in services and other forms of trade? If so, what are those other forms of payments that are permitted for transfers abroad 
besides those transactions through letter of credit? 
 Answer: 
The Foreign Exchange Management Law stipulates as follows: 
Article 2 (1) Payments for current transactions means payments which are not for the purpose of transferring capital: 
 
(i) All payments due in connection with foreign trade, other current business, 
including services, and normal short-term banking and credit facilities; 
(ii) Payments due as interest on loans and as net income from other investments; and WT/TPR/M/293/Add.1 
 
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  (iii) Payments of moderate amounts for amortization of loans or for depreciation of 
direct investments. 
Article 24. No restriction shall be imposed, directly or indirectly, on inward payments and 
transfers for current international transactions. 
Article 25. No restriction shall be imposed, directly or indirectly, on the making of 
payments and transfers for current international transactions. 
 
On the whole, there is no restriction on the current payments and transfers such as 
payments for imported goods and payments for invisibles no matter how the authorized dealers (AD) execute the payments and transfer s. Such payments and transfers like these 
transactions can be conducted after the scrutinizing of the authorized dealers. 
Nonetheless, the transactions like investin g abroad or seeking loans abroad shall be 
subjected to scrutiny by the Central Bank of Myanmar.  
Page 12, para 1.14, Monetary Policy, China Q3:  
Are all market entities, no matter state-owned enterprises or private enterprises or individuals, permitted to purchase foreign exchange according to their needs?  
If so, whether there are any specific foreign exchange requirements on the purchasing 
procedures or maximum quotas?  How long does it typically take to finalize one foreign exchange transaction of such?  
Answer: 
Individual resident may purchase the maximum amount of US$10,000- or equivalent foreign currency from ADs or money changers by showing the identity card, and if an 
individual intends to purchase more than the said amount, he/she may purchase that 
amount by submitting documents relating to the objective of purchasing to the ADs or money changers. As these transactions can be done by the judgment of the ADs or money 
changers, it usually takes very short time. This practice is also the same for all market 
entities and in addition there is no quota or specific amount for business entities to purchase foreign exchange from ADs.  
Page 12, para 1.15, Fiscal Policy, China Q4:  
Please comment on the accessibility of financing services to private sectors in general.  What are those main criteria for the banks to calculate and determine their credit 
extension to private enterprises?  
Are there more stringent collateral requirements to private enterprises, comparing to state-owned enterprises? 
 
Answer: The private sector can seek financing services due to the type and value of collateral and 
their credit worthiness accessed by financial institutions.  
If a private institution applies financing services by using their own real estate, gold, 
Government Treasury Bond, immovable assets or machineries as the collateral, financial institutions will generate loans or other financing services about 70% of appraised value of 
that collateral by the bank officials. 
Although SEEs do not need to apply with secured collateral, private enterprises still need to apply with the said collaterals to get financing services. 
If the SEEs require the working capital, Gove rnment will support the working capital with 
the approval of the Union Cabinet meeting.   
Page 17, para 2.3, NCDP export of ag ri. & pharmaceutical, Argentina Q1: (NPED-
Planning) 
Cuáles son las condiciones para la exportación de productos de los sectores de la agroindustria, tecnología en fármacos y medicina nuclear en el marco del Plan Nacional de 
Desarrollo Global y Nacional (2011-12 y 2030/2031) y del proceso de liberalización de las 
importaciones de Myanmar? Unofficial translation  "What are the conditions for the export of products from the agro-
industry, pharmaceutical and nuclear medical sectors in the context of the National 
Comprehensive Development Plan (NCDP) 2011/12-2030/31 and the import liberalization process of Myanmar?"  WT/TPR/M/293/Add.1 
 
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  Answer: 
National Comprehensive Development Plan (2011/12 to 2030/31) (NCDP) is a framework for a sequence of 4 medium-term and that will specify particular strategies, programs and projects building on each other and intended to take Myanmar to successive stages of 
development and structural transformation.  
The NCDP is being development in two parts. The initial part sets out the scene in the context of development challenges that is being faced by Myanmar and establishes the 
goals and strategic directions. The second part concentrates upon the sectoral and regional 
foundations for Long-Term-Development. Using a participatory approach the NCDP formulation process has involved consultation with private sector, academia, citizens, and international donor partners as well as various 
level of Government. 
Hence, NCDP is under formulation and hoping to be complete in draft by early 2015. It will be published after discussion at Hluttaw (Parli ament) and also available on MNPED website 
www.mnped.gov.mm.  
Concerning Myanmar's import liberalization, the Government made a first significant change to the import license regime in June 2012 by replacing the former non-automatic 
import license regime by a new automatic regime covering all imports. Under the new 
regime, importers must submit: an application on the company's letterhead; the original pro-forma invoice or original sales contract; and, if required, recommendations from relevant Government Departments and/or organizations. Most licenses are now authorized 
within a period of 8 working hours. 
In March 2013, the Government further eased licensing requirements by eliminating import license requirement for 166 commodities classified in over 1,900 HS tariff lines and 
representing about 35% of total import. A consultation process is underway involving the 
Ministry of Commerce, the Customs Department and representatives from the private sector to make recommendations about the identification of additional imported goods for 
which import license requirement will be removed. The Government intends to gradually 
phase out the license regime through a series of announcements in 2014 and 2015 that would each represent about 10 to 15% of total import. By the end of 2015, there will still 
be few products subject to import license requirement.  
Following the election of the New Government in 2011 and the implementation of its 
reform agenda, the Ministry of Commerce removed six items on the restricted list of both land border and sea trade out of 15 items on 23 December 2011. Moreover, on 
4 February 2013, the Ministry of Commerce further reduced the scope of the restriction by 
maintaining only four items subject to import restriction (liquors, beer, cigarette and prohibited products as per existing laws and international conventions) and also a 
temporary restriction items (seasonal fresh fruits) for both land border and sea trade.  
With a view to further the trade liberalization agenda, a consultative process has been established regrouping the Ministry of Commerce, National Planning and Economic Development, the Customs Department and representatives of the private sector, 
including both national and foreign participants. The consultation covers not only the issue 
of import restriction but also related-issues, such as taxation, duties, national treatment and standards for the protection of consumer s. The consultative group is expected to 
submit its recommendations in mid-2014 for future actions by the Government. 
 
Page 17, para 2.5, Legal framework, EU Q1:  
Is the Parliament approval necessary for the conclusion of international trade and 
investment agreements?  Can the government elaborate more on the list and the scope of the laws which are subject to the Parliament's consideration? 
 
Answer: In Sections 21 (a) of the Law amending the law relation to PyidaungSu Hlutaw, 
International Conventions and Agreements, re gional treaties and agreements shall be 
submitted by the President for the decision of  the Hluttaw (Parliament). According to this 
provision, Parliament approval is necessary for the conclusion of international trade and 
investment agreements. 
 WT/TPR/M/293/Add.1 
 
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  Pages 18 & 26, para 2.7 & 2.41, International agreement, EU Q2:  
Can the government confirm that in the country's legal order, international Agreements/ Treaties prevail over the domestic legal framework or is this the case only for bilateral investment treaties as reported in paragraph 2.41 page 26? 
 
Answer: Though in Britain and in the United States, International law is deemed to be part of the 
land, the position is different in Myanmar. Even an international agreement, as such is not 
part of Myanmar municipal law save as may be determined by Parliament . Myanmar legal 
system is practicing the combination of common law and civil law legal system. So, if Myanmar entered into International Convention (or) Treaties, domestic law will be enacted 
to undertake the obligation of this Internat ional Convention (or) Treaties. Therefore 
International Agreements/Treaties cannot prevail over the domestic legal framework.   
Chapter 2. Trade Policy Regime: Framework and Objectives 
 Pages 20-22 and 28-30, para 2.24, 2.51-52 an d Tables 2.2 and 2.6, Notifications, USA 
Q1:  
The Secretariat's report notes many notifications are outstanding and that the Government faces significant capacity constraints, which we recognize. What plans does the Government have for submitting the required notifications?  
Is the Government seeking assistance from the Secretariat or other donors in this regard? 
 Answer: 
The new Government has intention to set up necessary plan for submitting the required 
notifications. However, the Government faces significant capacity constraints as mentioned in the question. In this regard the Government wishes to request WTO's secretariat to 
provide any assistance for us. 
 Pages 22-24, ASEAN chair, New Zealand Q1-4: 
Myanmar is chairing ASEAN this year. 
 
Q1: What are Myanmar's priorities during its chair year in 2014 for the economic agenda 
of ASEAN? 
Answer: 
Priority areas during Myanmar's chairmanship in 2014 for the Economic agenda of ASEAN are as follows: 1) Strengthening regional cooperation for SME development; 2) Enhancing 
public private partnership for infrastructure development; and 3) Moving ASEAN and AEC 
beyond 2015.  Q2: How has Myanmar's membership of ASEAN contributed to its own economic reform 
measures? 
 Answer: 
Myanmar has embarked on a Government-wide ranging reform agenda covering fiscal, 
monetary, trade and investment areas, which has contributed to revitalize the economy and already lead to an increase in foreign direct investment flows. Capacity building 
activities offered under the ASEAN's program designed to narrow the development gap has 
already contributed to make a great support to Myanmar's reform agenda. Therefore, Myanmar participation within ASEAN has been of a great support in the implementation of its reform agenda. 
 
Q3: How will Myanmar as ASEAN chair advance the undertaking of ASEAN members to 
realise the ASEAN Economic Community by 2015? 
 
Answer: Myanmar, as a Chairmanship of ASEAN 2014, has been implementing AEC measures 
incorporated in Strategic Schedule of AEC Bl ueprint which will be revealed and take in 
action 2014-15 that AEM key deliverables and AEC key deliverables for 2014.   Q4: What steps does Myanmar plan to take as ASEAN chair to advance the negotiation of 
the RCEP? WT/TPR/M/293/Add.1 
 
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  Answer: 
According to Section 43 of Foreign Investment Law, if any dispute arises in respect of the investment business:  
a) Dispute arisen between the disputed persons shall be settled amicably; 
b) If such dispute cannot be settled under sub-section (a): 
(i) It shall be complied and carried out in accord with the existing laws of the Union if 
the dispute settlement mechanism is not stipulated in the relevant agreement; 
(ii) It shall be complied and carried out in accord with the dispute settlement 
mechanism if it is stipulated in the relevant agreement. 
The above dispute process also applies in respect of commercial disputes between foreign 
companies and SEEs. In the upcoming Myanma r Investment Law, some dispute settlement 
provisions will likely be modified.  
 
Page 25, para 2.35, Border agreements, Chinese Taipei Q1:  
According to the Secretariat Report, Myanmar has signed five separate border trade agreements with China, India, Bangladesh, Thailand, and Lao PDR. Could Myanmar please 
explain the concrete steps that have been taken by Myanmar to encourage border trade 
with each neighbouring country and specific details of such border trade agreements?  Answer: 
The main objectives of Border Trade agreements are: 1) to enhance bilateral friendship 
with neighbouring countries; 2) to promote trade and keep it on the track of conventional trade; 3) to ensure the full realization of revenues to be levied by the state; 4) to provide 
favourable condition for private businessmen by which to earn reasonable benefit; and 
5) to help facilitate the flow of goods. The Ministry of Commerce (known as Ministry of 
Trade at that time) had issued the Notification for the establishment of the Department of 
Border Trade on 28 August 1996.  
Since that time, Myanmar had signed three border trade agreements with India, Thailand and Bangladesh, one MoU with China and one protocol with Laos. Apart from Laos, Myanmar had opened the respective border trade posts in border areas. 
In order to promote border trade, the Ministry of Commerce has been performing the 
transaction by promulgating the separate vision, mission, strategies and tactics. Generally, opening border trade posts, as expressed in signed agreements, and organizing 
the integrated team called One Stop Services (License, Bank, Tax and Duty, Immigration 
and Police), consisting of the concerned Departments as the initial steps to encourage border trade. Installation of Border Trade On line System (BTOS) has also begun as a trade 
facilitation measure. 
The establishment of border trade related committees, such as Joint Border Trade Coordinating and Cooperating Committee with China in 2006; Border Trade Committee with India in 2012; Joint Working Group Border Trade Official with Bangladesh in 2011 are 
one of the concrete steps taken to discuss border trade-related matters.  
Also annual border trade fairs have been jointly organized with China since 2000. Discussions are ongoing to organize simi lar fairs with other border partners. 
In addition, new border trade posts were established in addition to the designated posts 
mentioned in trade agreements/ MoU and protocol in accordance with the seven fundamental points: (Myeik, Maw Taung and Htee Khee border trade posts in Myanmar-
Thailand border; Chin Shwe Haw, Kan Pyke Tee posts in Myanmar-China border; and 
Sittwe post in Myanmar-Bangladesh border).  
Page 25, para 2.36, Trade disputes  and consultations, EU Q3-5:  
Q3: Are local companies allowed to resolve commercial disputes with foreign companies 
through arbitration and, if so, can they chose the applicable law, the seat of arbitration and the applicable rules (for example, International Chamber of Commerce, Stockholm 
Chamber of Commerce, London Court of Intern ational Arbitration, Singapore International 
Arbitration Court, etc.)?  
Answer:  
Commercial disputes between local companies and foreign companies can be resolved by arbitration. The agreement of contracting parties can chose the applicable law, the place of arbitration, the number of arbitrators and app licable rules. Arbitration between companies 
and person is subject to the Arbitration Act 1944 as a domestic law. The law sets out WT/TPR/M/293/Add.1 
 
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  provisions dealing with appointment of arbitr ators, the enforcement of award in the civil 
court and appeal from an award to the Supreme Court. As a matter of commercial disputes and consultations, the Methods of settlement of dispute are referred to UNCITRAL Rules, 
Singapore International Arbitration Centre and other international Arbitration rules which 
are agreed by the parties to the Contract. In practice at the present time, some disputes 
between the contracting parties in Myanmar are settled by the UMFCCI in Yangon, when both parties of the dispute are members of the UMFCCI. 
 
Q4: What is the legal framework applicable to resolve commercial disputes between 
foreign companies as well as commercial disputes between foreign companies and State-Owned Economic Enterprises (SEEs)? 
 
Answer: According to Section 43 of Foreign Investment Law, if any dispute arises in respect of the 
investment business: 
a) Dispute arisen between the disputed persons shall be settled amicably; b) If such dispute cannot be settled under sub-section (a): 
(i) It shall be complied and carried out in accord with the existing laws of the Union if 
the dispute settlement mechanism is not stipulated in the relevant agreement; 
(ii) It shall be complied and carried out in accord with the dispute settlement 
mechanism if it is stipulated in the relevant agreement. 
In the upcoming Myanmar Investment Law, some dispute settlement provisions will likely 
be modified.  
Q5: Does the government plan to become a signatory to International Convention for the 
Settlement of Investment Disputes in order to increase investors' confidence? If not, why? 
 
Answer:   
Myanmar has become the 149th State party to the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards, or the New York Convention, having deposited its instrument of accession on 16 April 2013. The New York Convention entered 
into force on 15 July 2013. So far, we have not yet prepared to access the International 
Convention for the Settlement of Investment Disputes (ICSID).  
Page 25, para 2.37, New York Convention, EU Q67:  
"In April 2013, Myanmar became a party of the New York Convention" (New York Convention on the Recognition and Enforcem ent of Foreign Arbitral Awards). What 
measures has the government taken or considers taking to ensure that arbitral awards can 
be recognised and enforced promptly and effectively? Please detail.  Answer: 
Myanmar's accession to the New York Convention demonstrates the Government's intention 
to establish a friendly environment for foreign investment by enabling foreign investors to resolve commercial and investment-related disputes offshore and enforce foreign arbitral 
awards within Myanmar. Office of the Union Supreme Court is drafting domestic law to 
enforce foreign arbitral award.  
 
Page 25, para 2.38, Foreign investment regime, EU Q6-7:   
Q6: Are there any restrictions in foreign capital remitted into/ repatriate outside Myanmar? 
If the answer is yes, what are they?  
Answer:   
There are no restrictions on repatriation outside Myanmar. Provisions of the right to transfer the foreign currency mentioned in Ch apter XVII of Foreign Investment Rules. In 
the upcoming Myanmar Investment Law, some re lated provisions will likely be modified. 
 Q7: Does the government consider establishing more transparent conditions as to what is 
restricted in terms of FDI and what is allowed? 
 Answer:   
See General Answer on Investment. WT/TPR/M/293/Add.1 
 
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  Page 26, para 2.42, Foreign investment, China Q5-6B:  
Q5: Comparing to previous FIL (Foreign Investment Law), what are those exact sectors or 
activities on which the new FIL lessen its restrictions or lift its bans?  
Answer: 
The previous Foreign Investment Law of 1988 uses a positive list and the new Foreign Investment Law uses a negative list. The list of those activities is available from the 
following website: http://www.dica.gov.mm/ includes/FIL-notific ation%20_English_%20 
A4.pdf.  Q6A:  Whether there are any measures taken to reduce equity restrictions and/or grant 
more tax incentives to foreign investors? 
 Answer: 
According to Foreign Investment Law, only prohibited or restricted activities have equity 
restrictions. If the volume of investment is increased and the original investment business is expended during the permitted period, exem ption or relief from custom duty or other 
internal taxes or both may be granted on machinery, equipment, instruments, machinery 
components, spare parts and materials used in the business which are imported as they are actually required for use in the business expanded. If the goods produced for export are exported, exemption or relief from commercial tax. If investor invests in the region 
where the economy is less developed and difficult to access, he is allowed to enjoy extra 
land lease period for a maximum of 10 years than the use term for the investors who has invested in the region where the economy is less developed and difficult to access. 
 
Q6B:  Does the Government have plans to increase the list of restricted or prohibited 
sectors, or to impose more equity restrictions in future? 
 
Answer: We are revising Notification No. 1/2013. It is  envisaged that about half of the existing 
activities will be eliminated from the existing negative list. 
 
Pages 26 & 63, para 2.44 & 4.72, Foreign investment, China Q18:  
Please clarify that what is the definition of traditional medicine in the law of Myanmar, and 
whether FDI are allowed to deal with traditional medicines that do not originate from 
Myanmar, for instance Chinese traditional materia medica  and Chinese traditional 
medicine? 
 
Answer: Traditional drug means a local concoction for use either directly or indirectly, whether internally or externally, in the diagnosis, pr evention and treatment of diseases, promotion 
of health or for any beneficial effect in human begins and animals. This expression also 
includes substance determined as a traditional drug by the Ministry of Health by notification from time to time. 
Traditional medicine means medicine for the physical well-being and longevity of people in 
accordance, with anyone of the four naya (systems) of traditional medicine, namely: Desana naya (systems); Bethitsa; Netkhata veda naya; and Vissadara naya.  
 
Pages 25, 26, 48, para 2.43-44, 4.8,  FIL agriculture products, EU Q8:   
Could the authorities provide details as to the extent of this reservation and whether it covers the transformation and processing of agricultural or plantation goods? 
 
Answer:   
In the proposed revision to Notification No. 1/2013, it is envisaged that these prohibited 
activities will be liberalized. 
 
Pages 25-26, para 2.38, 2.40, 2.43, FDI, New Zealand Q5:  
New Zealand welcomes Myanmar's efforts to increase inward FDI. We commend Myanmar 
on the promulgation of a new Foreign Investment Law in 2012 and the shift of its approach from a positive list to a negative list of sectors where investment is allowed. What further measures does Myanmar intend to introduce to further increase FDI and remove 
restrictions on the sectors open to foreign investment? WT/TPR/M/293/Add.1 
 
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  Answer: 
It is envisaged that about half of the existing activities will be eliminated from the existing 
negative list.  
Page 26, para 2.43-44, Investment, ASEAN Q1:  
We applaud Myanmar for the significant change of the foreign investment regime from the 
positive list approach for the sectors allowed for foreign investors to the current list 
indicating prohibited sectors for foreign investment. Does Myanmar plan to further open its 
investment regime by reducing the list of prohibited sectors or adjust other rules and restrictions with regard to foreign investment?  
Answer: 
Yes. Myanmar has plans to further open its investment regime. It is envisaged that about half of the existing activities will be eliminated from the existing negative list. 
 
Pages 26-27, para 2.44-45, Myanmar ci tizens & MIC Notification, EU Q9: 
How does Myanmar reconcile the two sets of list and which one prevails in case of 
contradiction? 
 Answer:   
In the context of revised Notification No. 1/2013, it is envisaged to remove these 
inconsistencies. In the case of reserved joint venture activities for Myanmar Citizens, these 
activities will be eliminated. Moreover, in any event, the Foreign Investment Law takes precedent over other Laws.  
 
Page 27 para 2.45, MIC notifications, EU Q10-15 (no Q11 ): 
Q10:  Could the authorities provide details as to the scope of this prohibition and what is to 
be considered an "environmentally hazardous activity"? 
 Answer:   
In the context of revised Notification No. 1/2013, it is envisaged to remove this restriction.  
 
Q12:  What are the sectors in the reserved list in which the authorities have allowed or 
plan to allow Joint Ventures with the private sector, including with foreign companies? 
 
Answer:   
Rules 7, 8, 9 & 10 of Foreign Investment Rules (Notification No. 11/2013) prescribe 
reserve activities for local citizens. So far, Myanmar has no plan to allow those activities to 
joint ventures with private sector. This Notification No. 11/2013 is available from the following website: http://www.dica.gov.mm/ includes/FIL%20Rules English%20Versions__ 
31.5.13__Latest_.pdf. 
 
Q13:  How can foreign investors be aware of the opening of a given sector? Are legal 
services supplied by foreign providers allowed? If so, under which modalities? 
 
Answer:   
MIC Notification No. 1/2013 provides details lists of economic activities for foreign 
investors. This MIC Notification No. 1/2013 is available from the following website: 
http://www.dica.gov.mm/includes/FIL-n otification%20_English_%20A4.pdf. 
 Q14:  In the State-owned Economic Enterprises (SEEs) reserved list, "extraction and sales 
of teak may be permitted for a JV between SEEs and foreign entities (up to 80%) in the 
interest of the government of Myanmar". However, according to Foreign Investment Rules (11/2003), activities related to natural forest is permitted only to Myanmar citizens. 
 
Answer:   
Extraction and sales of teak is a different activity from the administration and maintenance 
of natural forest activity. The second activity is reserved to Myanmar Citizens. Whereas 
extraction and sales of teak activity is co vered by the SEEs Law and therefore it is 
reserved for the Government. However, the Go vernment may enter into joint venture with 
private participants whether or not there are foreign or national. Moreover, both activities 
are subject to the Environmental Conservation Law and the Forest Law. WT/TPR/M/293/Add.1 
 
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  Q15:  The EU is interested to obtain clarification on the inconsistencies between the 
reserved list for the SEEs and the restricted list under the MIC Notification 1/2013, for example for postal services; exploration, extr action and exports of metal; exploration, 
exploitation and production of oil and gas;  electricity generating services and etc. 
 
Answer:   
Once the proposed revised Notification No. 1/2013 is approved, the negative list under FIL 
will be very similar to the reserved list under SEEs Law. 
 Page 28, para 2.46, Sectors rese rved to the State, EU Q16-18: 
Q16:  Are these sectors reserved to the State consistent with the prohibited sectors listed 
in the MIC Notification 1/2013 and Foreign Investment Rules or are these sectors 
additional areas of activities that are reserved to the State?  
Answer:   
Banking and Insurance Service, Broadcasting  and Telecommunication Service under SEEs 
Law are different activities from MIC Notification No. 1/2013. Banking and Insurance 
Service is targeted to be allowed for foreign investors by 2015. 
 Q17:  What are the criteria applied to determine whether an investment is considered to be 
"beneficial to the citizens and particularly the ethnic nationalities"?  
What are the criteria applied to determine those "large foreign investment projects" which 
are considered to bring "substantial benefit to public security, improve surrounding areas and the living conditions of citizens and will require the approval of the Union Parliament". 
 
Answer:   
Myanmar has no specific criteria for determining the national interest or the substantial 
benefits. However, that project must be consis tent with the national interest as expressed 
by local people and Parliament.  Q18:  Could the Government provide examples of  such past, present and foreseen large 
foreign investment projects and the process leading to their approval or rejection? 
 Answer:   
Until now, there is no project that has been rejected on the ground of national interest. 
 
Page 28, para 2.48, FIL & MIC, Korea Q1: 
The government of Myanmar made efforts to improve foreign investment environment by 
enacting the new FIL and implementing regulations during 2012 and 2013. But, we see that the new FIL and its implementing regulations still lack of specificity with regard to the wide-ranging discretionary authority of the Myanmar Investment Commission (MIC) by 
which investment projects are evaluated. We would like to call for the Government of 
Myanmar to clearly delineate the Commission's powers and procedures in the new FIL implementing regulations. 
 
Answer: Under the revised Notification No. 1/2013, the alleged MIC discretion will be reduced in 
line with the substantial reduction proposed in the negative list. Further reductions are 
likely to be considered in the context of  the preparation of the upcoming Myanmar 
Investment Law.  
Page 28, para 2.50, Minimum ca pital requirement, EU Q19: 
What is the rationale for the minimum capital requirement and does the government intend to adjust those requirements to attract more FDI? 
 
Answer:  
Under the new Foreign Investment Law (2012), there is no minimum capital requirement. 
However, for company incorporation, foreign investor needs to bring capital brought in 
US$150,000 for manufacturing, construction and hotel business and US$50,000 for services business. This amount may be paid by two instalments.  WT/TPR/M/293/Add.1 
 
- 12 - 
 
  Page 29, para 2.52, Tax & tariff exemption, Singapore Q1:  
Singapore notes that the Myanmar authorities offer various tax incentives to attract foreign investment. The new Foreign Investment Law (FIL) allows tax incentives for up to five years (three years under the previous Law), with the possibility of extension. We 
would appreciate it if Myanmar could share additional details on incentive programmes 
which grant import tariffs exemption?  Specifically, (a) how would companies be able to qualify for such incentives, and  
(b) would the import tariff exemptions apply to imports regardless of origin or would the 
import tariffs exemption apply only to imports of certain origin?  Answer: 
We don't have any additional incentive programs to grant import tariffs exemption. 
According to Foreign Investment Law, investors can benefit from the following exemptions but these exemptions are not available fo r cutting, making and packaging (CMP) 
investment project: 
 a) Exemption or reliefs can be enjoyed for importation of machineries and equipments 
which are actually required for use during the construction period; 
b) Exemption or reliefs can be enjoyed for 3 years for import of raw materials for 
production after the completion of construction of business; 
c) Exemption or reliefs can be enjoyed if the volume of investment is increased with the 
approval of the Commission and the original  investment business is expanded during 
the permitted period. 
 
Page 29, para 2.52, Tax & tariff exemption, China Q7:  
Please explain how to make the judgment on whether one investment is "beneficial to the State'' or not, and provide concrete and detailed criteria, if any. 
 
Answer: Myanmar has no specific criteria for determining the national interest or the substantial benefits. However, that project must be consis tent with the national interest as expressed 
by local people and Parliament. 
 
Page 30, Sub 2.7.2, Investment procedures, China Q8:  
As to foreign investment admittance, what are those new amendments to the examination 
and approval procedures in the FIL (2012)?  Are there any plans to simplify and streamline the procedures in general in future? 
 
Answer: Yes, we are preparing to merge the Foreign Investment Law and Domestic Investment Law. The unified Law will likely be simpler with more streamlined procedures. 
 
Page 30-31 para 2.58, Foreign company and trade license, EU Q20-22:  
Q20:  Could Myanmar indicate how it determines that a foreign company is "engaged solely 
in trade" and when it considers that that company is "a manufacturer of finished goods for 
export"?  
Answer: 
Foreign companies cannot "engage solely in trade" means that foreign companies cannot import the goods and distribute and sell them into the domestic market. Also foreign companies cannot export the goods by purchasing from domestic production. Foreign 
company registered as a service company under Myanmar Company Act 1914 has been 
allowed to import the necessary equipments for doing their services business as of 15 October 2013. The Government is currently considering measures that would allow 
foreign companies to engage in wholesales service in the domestic market. 
 Q21:  What is the duration of the exporter/importer licence?  
Under what procedures and conditions can it be revoked or withdrawn? 
 WT/TPR/M/293/Add.1 
 
- 13 - 
 
  Answer:   
The duration of the exporter/importer registration card is five years. It is continuously extendable for another five years term. If th e company does not continue the operation of 
the business, they can return the exporter/imp orter registration card. Under the following 
conditions, the company will be revoked or withdrawn the registration card: 1) the 
registration card which are no more validity extension or renew as the Ministry's regulation; and 2) the company which infringes the existing regulations of the Ministry.  
 
Q22:  What possibilities does the foreign company have to challenge any decision relating 
to the granting/rejection/withdrawal of the licence?  
Answer: 
As the present, there are no appeal procedures. However, we intend to seek international assistance to study this matter.  
 
Page 31, para 2.60, MIC decision, Thailand Q1:  
Under the new FIL, how can foreign investors challenge a decision of the MIC in the event 
of denial of the application or the issuance of an approval adverse to the interests of a 
foreign investor under Myanmar law?  Answer: 
Section 18(d) of the Foreign Investment Law mentioned that submitting to the 
Commission to re-scrutinize and amend in order to obtain the rights which he is entitled to enjoy fully in accord with the existing law. In case, if investor is denied his rights (e.g. tax 
incentives) given by Foreign Investment Law, he can request MIC to re-scrutinize. This 
matter is likely to be addressed in the context of the upcoming Myanmar Investment Law.  
Page 31, para 2.60, MIC decision, EU Q23:  
Could Myanmar clarify if and how investors can challenge a decision of the MIC, including with regard to a land lease or extension to a land lease?  
Answer:   
Section 18(d) of the Foreign Investment Law mentioned that submitting to the Commission to re-scrutinize and amend in order to obtain the rights which he is entitled to 
enjoy fully in accord with the existing law. In case, if investor is denied his rights (e.g. tax 
incentives) given by Foreign Investment Law, he can request MIC to re-scrutinize. This matter is likely to be addressed in the context of the upcoming Myanmar Investment Law. 
 
Pages 31 & 51, para 2.61 & 3.54, Mergers & Acquisition, EU Q24:  
Will the new competition law cover mergers and acquisitions including when one of the parties concerned is not a national company (given that the new law on FDI does not cover 
mergers and acquisitions)? 
If not, what would be the legislative framework covering mergers and acquisitions involving a foreign entity? 
 
Answer:   
In accordance with Myanmar's commitments in the context of the ASEAN Blueprint, a draft 
competition law is under preparation with a vi ew of its promulgation in 2015. Some of the 
main objectives of the draft are: 1) to protec t and prevent arrangements that injure public 
interests through monopolization or manipulation of prices to endanger fair competition in the economic; 2) to control unfair competition upon internal and external trade and 
economic development; 3) to protect and prevent abuse of dominant position; 4) to review 
mergers and acquisitions for their potential anti-competitive impacts; and 5) to investigate and eliminate restrictive agreements or arra ngements among business operators. It is 
envisaged that all economic sectors will be subject to the law and a Competition 
Commission would be established to enforce it. So far, Myanmar has not received international assistance in preparing the draft law. Alleged anti-competitive dimensions of 
mergers and acquisition involving foreign investors could be investigated under the review 
provisions and also under the prevention of abuse of dominance provisions. There will be M&A provisions in the upcoming New Myanmar Companies Act. Under the existing New Foreign Investment Law, only foreign investors can sell shares to any other WT/TPR/M/293/Add.1 
 
- 14 - 
 
  foreign investor or Myanmar citizen, with the approval of the Myanmar Investment 
Commission.  
Page 31 para 2.62, Mergers & Acquisition, Singapore Q2:  
Singapore notes that neither the old nor the new FIL contains provisions on mergers and 
acquisitions by foreign investors, and it is not possible for foreign investors to acquire shares from local companies. The Implementing Rules of the new FIL allows a foreign 
investor to acquire shares from a Myanmar shareholder in foreign-invested companies 
(and vice versa). Any such transfer is subject to the approval of the MIC as are the foreign equity limits (if any). We would like to know if Myanmar has any plans to create laws that govern the mergers and acquisitions by foreign investors in Myanmar? 
 
Answer: In accordance with Myanmar's commitments in the context of the ASEAN Blueprint, a draft 
competition law is under preparation with a vi ew of its promulgation in 2015. Some of the 
main objectives of the draft are: 1) to protec t and prevent arrangements that injure public 
interests through monopolization or manipulation of prices to endanger fair competition in 
the economic; 2) to control unfair competition upon internal and external trade and 
economic development; 3) to protect and prevent abuse of dominant position; 4) to review mergers and acquisitions; and 5) to investigate and eliminate restrictive agreements or arrangements among business operators. It is envisaged that all economic sectors will be 
subject to the law and a Competition Commission would be established to enforce it. So 
far, Myanmar has not received international assistance in preparing the draft law. Alleged anti-competitive dimensions of mergers and acquisition involving foreign investors could 
be investigated under the review provisions and also under the prevention of abuse of 
dominance provisions.  
Chapter 3. Trade Policies and Practices by Measure 
 Page 32, para 3.1 & 3.4, Import procedures, China Q9-10:  
Q9: Please explain the major difference between the Sea Customs Act  and Land Customs 
Act, and clarify how the two laws are coordinated in implementation within the customs 
territory of Myanmar.  
Answer: 
The Sea Customs Act was enacted in 1878 and only covered sea trade. It is in 1924 that land border trade was covered into a law, the Land Customs Act. To insure consistency of 
customs procedures, Section 9 of the Land Customs Act referred to the Sea Customs Act. 
So in terms of implementation, both Acts follow the same procedures.  Q10:  Please list all those governmental institutions that will get involved in the 
implementation of the "ASEAN single window" an d also identify the lead agency in charge 
of task coordination in this regard.  
Answer: 
The National Single Window Steering Committee was established and it is headed by the Customs Department of Ministry of Finance and it is composed of 24 other Government 
Agencies such as: Directorate of Trade and Department Commerce and Consumer Affairs 
of the Ministry of Commerce, Myanmar Port Authority, Forest Department, Livestock Breeding and Veterinary Department, Department of Fisheries, Department of Historical Research, National Museum and Library, Department of ASEAN Affairs, Department of 
Agricultural, Central Bank of Myanmar, Myanmar Foreign Trade Bank, Myanmar 
Investment and Commercial Bank, Myanmar Econ omic Bank, National AFTA Unit, Myanmar 
Investment Commission, e-National Task Force, Department of Food and Drugs 
Administration, Department of Public Health and Laboratory, Department of 
Telecommunication, Central Association of preventing and controlling from the risks of Narcotic Drugs and Myanmar Gems Enterprise.  
 WT/TPR/M/293/Add.1 
 
- 15 - 
 
  Page 32, para 3.2, Trade laws, USA Q2:  
According to the Secretariat's report, only nationals may engage in trade and import into the country. Please explain the Government's plans to expand this authority so that non-residents, including corporations, are authorized to import. 
 
Answer:   
Foreign companies cannot "engage solely in trade" means that foreign companies cannot 
import the goods and distribute and sell them into the domestic market. Also foreign 
companies cannot export the goods by purchasing from domestic production. Foreign company registered as a service company under Myanmar Company Act 1914 has been allowed to import the necessary equipments for doing their services business as of 
15 October 2013. The Government is currently considering measures that would allow 
foreign companies to engage in wholesales service in the domestic market.  
Page 32, para 3.3, Trade Laws, USA Q3:  
The Secretariat's report notes, "In April 2013, import licensing requirements were abolished for 166 import commodities, corresponding to more than 1,900 tariff lines." The 
loosening of some import approval requirements is welcome. 
 Q3A:  Please share more information on the government's plans to further liberalize these 
restrictions. Is there a timetable? 
 
Answer: With respect to the import license regime, the Government made a first significant change 
to the import license regime in June 2012 by replacing the former non-automatic import 
license regime by a new auto matic regime covering all imports. In March 2013, the 
Government further eased licensing requirements by eliminating import license 
requirement for 166 commodities classified in over 1,900 HS tariff lines and representing 
about 35% of total import. A consultation process is underway involving the Ministry of Commerce, the Customs Department and representatives from the private sector to make recommendations about the identification of additional imported goods for which import 
license requirement will be removed. The Government intends to gradually phase out the 
license regime through a series of announcements in 2014 and 2015 that would each represent about 10 to 15% of total import. By the end of 2015, there will still be products 
subject to import license requirement. 
 Q3B:  Regarding remaining restrictions – is the licensing process transparent and non-
discriminatory, with licenses available to all interested applicants? 
 Answer:   
The license procedures are applied on a non-discriminatory basis and are available on the 
website in Myanmar language at the following site:  
http://www.commerce.gov.mm/my/categor y/%E1%80%9E%E1%80%BC%E1%80%84%
E1%80%B9%E1%80%B8%E1%80%80%E1%80%AF%E1%80%94%E1%80%B9%E1%80
%9C%E1%80%AF%E1%80%95%E1%80%B9%E1%80%91%E1%80%B6%E1%80%AF%
E1%80%B8%E1%80%9C%E1%80%AF%E1%80%95%E1%80%B9%E1%80%94%E1%80%8A%E1%80%B9%E1%80%B8-%E1%80%86%E1%80%AD%E1%80%AF%E1%80% 
84%E1%80%B9%E1%80%9B%E1%80%AC-%E1%80%B1%E1%80%80%E1%80% 
AC%E1%80%80%E1%80%B9%E1%82%8F%E1%80%AF%E1%80%90%E1%80%B9%E1%80%81%E1%80%BA%E1%80%80%E1%80%B9 The Ministry of Commerce also publishes in Myanmar language a weekly journal 
"Commerce Journal" and the monthly booklet "Trade News". 
 Q: Are some licenses restricted to preferred companies and/or trading partners? 
 
Answer: Whoever applies for an import or export lice nse and meets the specified requirements shall 
be granted the relevant license.  
 WT/TPR/M/293/Add.1 
 
- 16 - 
 
  Q: Are licenses for the same commodities priced differently for different applicants? 
 Answer: When some commodities were subject to pr ice control measures, it was part of the 
procedure to verify declared prices. Since 2011,  there are no more procedures to verify 
declared prices for import license purposes.   
Q3C:  What is the role of domestic business associations in the licensing process? 
 Answer:  
Before 2012, the Domestic Business Associations issued the recommendation for holding of 
stocks on some commodities such as rice, pulses & beans. Starting from 2012, they have 
been no more involved in the licensing proc ess due to the liberalization process of the 
Government.  
 
Q: Is it a potential conflict of interest for local industry to have a role in determining 
whether import license applications are granted or denied? 
 
Answer: May be. Up to the present, we have not rece ived any case. We have intention to get the 
international assistance to study such kind of possible conflict and solution. 
 
Page 32, para 3.2/3.4, Containe rs & Single window, EU Q41-43:  
Q41:  There has been indication that the Government intends to implement a new 
regulation that would require all goods imported into Myanmar to be taken out of the 
container. Can the authorities confirm such intention?  If so, what would be the rationale and the proportionality of such measure if it were to 
apply to all shipments rather than on basis of risk analysis? 
 Answer:   
Although Myanmar Customs has not yet applied an automated system, since 2013 a risk 
management System has been introduced manually by using three channels, namely 
green, yellow and red. Daily throughputs of containers are 70% by the green channel is 70%, 20% by the yellow, 10% by the red. 
 
Q42:  What is the state of play of the Nation al Single Window project and what is its 
scope? 
Will it be a complete electronic system integrating e-certification and e-licensing? 
 Answer:   
In order to implement the NSW, the Myanmar Automated Cargo Clearance System 
(MACCS) has been developed since July 2013, with technical assistance provided by JICA 
Grant Aid. Monthly discussions between Myanmar Customs and Japanese technicians have been conducted since June 2013. The Brief Design was finished at the end of the 2013 and 
the Detailed Design was introduced at the beginning of 2014. 
 Q43:  What are the intentions of the government regarding Authorised Economic Operators 
(AEOs)? 
 Answer:  
Although Myanmar Customs, as a member of WCO, signed the SAFE Framework 
Agreement, the AEO standard cannot yet be implemented. Nevertheless, Myanmar 
Customs has been learning the AEO guidelines and seeking the technical assistance in this regard. 
 
Page 32, para 3.2/3.4, Pre- arrival & License, EU Q44:  
Can the authorities give more explanation on  the pre-arrival pre-departure information 
required on products entering and leaving the country? 
How does this fit in the framework of the regime of import licensing and export licensing/export authorisations?  WT/TPR/M/293/Add.1 
 
- 17 - 
 
  Answer:  
Myanmar Customs is in the process of establis hing a system of advance rulings. Pre-entry 
classification has been applied since 1998 upon  the request by the importer; pre-arrival 
valuation is approved by Myanmar Customs. In  addition, Pre-Arrival Processing Procedures 
(PAPP) are allowed especially in the case of importation of fuel oil (diesel, petroleum). In 
terms of pre departure procedures, customs clearance has to be processed before shipment. 
 
Page 32, para 3.2/3.4, Trade fa cilitation and Bali, EU Q45-46:  
Q45:  The Secretariat reports that currently custom clearance requires about three days. 
However various reports including the WB's Doing Business Report points to long 
procedures and heavy documentation requirements. Are there plans to remedy the 
situation and reduce the administrative burden on import and export?  
Answer:   
In the context of the Government wide refo rm process, trade-related Ministries were 
instructed to review their procedures affecting international trade with a view to minimize 
the administrative burden and transaction cost on trade operators.  
A manual risk management system has been established in March 2014 with technical assistance provided by the ADB. A Time Rele ase Study will be conducted with a view to 
speeding up customs clearance. The MACCS System, which is expected to launched by 
2015, will also expedite customs clearance of cargo. 
 Q46:  What are the intentions of the government regarding the implementation of the 
Trade Facilitation agreement of Bali? 
 Answer:   
In the context of WTO commitments, it is necessary to establish a National Committee on 
Trade Facilitation. In preparation for the WTO Bali Conference, representatives from relevant ministries have met but the formal establishment of this coordination structure has not yet been finalized. 
 
Page 32, para 3.4, CV & Single window, Korea Q2-3:  
Q2: Korea notes that customs valuation in Myanmar is based on the "real value" set by the 
authority, rather than the provisions of the WTO Customs Valuation Agreement. Does 
Myanmar have any plans to apply the WTO Agreement to ensure more fair and uniform system for the valuation of goods for customs purposes? 
 
Answer: Myanmar has a plan to apply the WTO Customs Valuation Agreement. For the time being, 
we are using the Sea Customs Act 30 (a and b). The revised legislation is on the way to 
enactment waiting for the approval of higher authority. (www.myanmarcustoms.gov.mm) 
 
Q3: According to the Secretariat report, Myanmar intends to implement the ASEAN Single 
Window by 2015. What steps are the Myanmar authorities taking to meet this goal? 
 Answer: 
The Customs Department is now implementing the MACCS (Myanmar Automated Cargo 
Clearance System) with assistance of JICA and Japan Customs NACCS (Nippon Automated Cargo and Port Consolidated System) which is a vital step for the National Single Window. 
 
Page 32, para 3.4, Customs valuation, USA Q4:  
According to the Secretariat's report, the Government does not apply the WTO Customs Valuation Agreement. What are the Government 's plans for implementing the Agreement?  
Will new legislation or regulations be required?  
Is the Government seeking assistance from donors in this regard?  
Answer: 
Myanmar has a plan to apply the WTO Customs Valuation Agreement. For the time being, 
we are using the Sea Customs Act 30 (a and b). The revised legislation is on the way to enactment subject to approval of Parliament. (www.myanmarcustoms.gov.mm) 
 WT/TPR/M/293/Add.1 
 
- 18 - 
 
  Page 32, para 3.4, Customs valuation, Chinese Taipei Q2:  
Does Myanmar have any plan to implement the WTO Customs Valuation Agreement? If so, could Myanmar please elaborate on its plan and anticipated schedule?  
Answer: 
Myanmar has a plan to apply the WTO Valuation Agreement. For the time being, we are using the Sea Customs Act 30 (a and b). The revised legislation is on the way to 
enactment waiting for the approval of Parliament. (www.myanmarcustoms.gov.mm) 
 
Page 32, para 3.5, Import appeal procedure, China Q11-12:  
Q11:  Please clarify whether there are any restrictive conditions or external supervision 
mechanism put in place to prevent the abuse of power during the course of modifying, 
reversing or upholding of decisions and orders in ways as mentioned above. If any, what are those restrictive conditions, checking mechanisms, and procedures? 
 
Answer: Appeals procedures against customs decisions or orders are clearly stated in section 191 of 
the Sea Customs Act. According to section 191(2b), the President of the Union may, at any 
time and on application or otherwise, request th e record of any case disposed of by any of 
customs or the financial commissioner for the purpose of satisfying himself as to the correctness, legality or propriety of any decision order made and may make such an order 
as he thinks fit. (The financial commissioner is now the Minister of Finance.) 
 Q12:  If such actions to previous decisions and orders do occur, please confirm whether 
the new decisions and orders are retrospective to previous customs-related cases and 
actions.  
Answer: 
This is done on a case-by-case basis.  
 
Page 33, para 3.8 & GR page 17, para 5.3, Tariffs, EU Q25:  
For which categories of products is the government considering to bind its tariffs and by 
what timeline?  
Answer: 
Myanmar is willing to bind more of its tariff lines for various categories of products in the DDA negotiations, provided mutually sa tisfactory results can be achieved. 
 
Page 33, para 3.9, Ta riffs, Canada Q1:  
Could Myanmar please explain the discrepancy  between the Secretariat's assessment and 
Myanmar's assessment of the number of tariff lines where applied rates exceed bound 
rates?  
When does Myanmar anticipate that these tariffs will be rectified to be within its WTO commitments? 
 
Answer: With regard to the 32 tariff lines where applied MFN rates appear to exceed bound rates, 
some brief historical background concerning the Myanmar Customs Tariff (MCT) may help 
clarify this matter. Prior to adopting the Harmonised System (HS) code in accordance with Myanmar's WTO commitments, the Burma Customs Tariff (BCT) was used, which consisted of 193 tariff lines. However, as a result of Myanmar becoming a Member of the WCO on 
25 March 1991, Myanmar Customs correlated and transformed these 193 tariff lines into 
the HS on 1 April 1992. At that time, it would appear that Myanmar Customs overlooked some of the tariff commitments concerning bound rates made at the WTO in 1988. When 
the WTO Secretariat brought this oversight to the Government's attention while 
undertaking this Review, Myanmar Customs directly correlated the MCT with the HS tariff and found that for two of the 32 tariff lines, namely 2620.1900.00 and 8708.9910.00, the 
applied rates of 1% did exceed the bound rate s of zero. The Government intends to reduce 
these two applied rates to zero very soon.  
As regards the other 30 tariff lines (nearly half of which are also subject to applied rates of only 1% and the rest mostly 5%), Myanmar does not agree with the Secretariat's 
assessment. Accordingly, while attending th e upcoming TPR Meeting in Geneva, Myanmar WT/TPR/M/293/Add.1 
 
- 19 - 
 
  will seek to resolve this matter with the WTO Secretariat. In the event that there are any 
other breaches in Myanmar's tariff bindings, these too will be rectified as soon as possible.  
 
Page 33, para 3.10, Tariff binding, Korea Q4:  
Myanmar has been keeping the bound tariff rate at a relatively high level, while 
maintaining its applied MFN tariff rate at a relatively low level (5.5% on average, as of 2013). Also, its binding coverage is less than 19% of all tariff lines, giving the authorities 
considerable scope to raise tariffs, which may undermine tariff predictability. Korea would 
like to ask if Myanmar has plans to expand its binding coverage.  Answer: 
Myanmar is willing to bind more of its tariff lines, provided mutually satisfactory results 
can be achieved in the DDA negotiations.  
Page 33, para 3.12, Tax, duty and license, EU Q26-27:  
Q26:  Can the authorities confirm their intention to reform the licensing regime and the 
rates of taxation, duties?  
If so, can the authorities elaborate on the content of the reforms under consideration? Has 
the government considered ensuring that any proposed reforms avoid price shocks, taking into consideration the possibility of exacerbating informal/illicit markets?  
Answer:   
The Government is still under consideration and consultation with the relevant lined Ministries and relevant stakeholders for the rates of taxation and duties. The Government 
is considering quality control, adjustment of domestic production, import and consumption, 
prevention of illegal import and negative effect on Public Health to put in the content of the reforms.  
With respect to the import license regime, the Government made a first significant change 
to the import license regime in June 2012 by replacing the former non-automatic import license regime by a new automatic regime covering all imports. Under the new regime, importers must submit: an application on the company's letterhead; the original pro-forma 
invoice or original sales contract; and, if required, recommendations from relevant 
Government Departments and/or organizations. Most licenses are now authorized within a period of 8 working hours. 
In March 2013, the Government further eased licensing requirements by eliminating 
import license requirement for 166 commodities classified in over 1,900 HS tariff lines and representing about 35% of total import. A consultation process is underway involving the 
Ministry of Commerce, the Customs Department and representatives from the private 
sector to make recommendations about the identification of additional imported goods for which import license requirement will be removed. The Government intends to gradually phase out the license regime through a series of announcements in 2014 and 2015 that 
would each represent about 10 to 15% of total import. By the end of 2015, there will still 
be few products subject to import license requirement.  
Q27:  What are the government's intentions regarding the current ban on import of 
alcoholic beverages other than for the duty free market and luxury hotels?  What are the intentions regarding taxation i ssues and duties for alcoholic beverages?  
Would the government consider alternatives such as a transparent liquor licensing and 
investment regime and enter into constructive discussions with stakeholders with the view to reform the tax and licensing regime?  
Answer:   
Following the election of the New Government in 2011 and the implementation of its reform agenda, the Ministry of Commerce removed six items on the restricted list of both 
land border and sea trade out of 15 items on 23 December 2011. Moreover, on 
4 February 2013, the Ministry of Commerce further reduced the scope of the restriction by maintaining only four items subject to import restriction (liquors, beer, cigarette and 
prohibited products as per existing laws and international conventions) and also a 
temporary restriction items (seasonal fresh fruits) for both land border and sea trade.  With a view to further the trade liberalization agenda, a consultative process has been established regrouping the Ministry of Commerce, National Planning and Economic 
Development, the Customs Department and representatives of the private sector, WT/TPR/M/293/Add.1 
 
- 20 - 
 
  including both national and foreign participants. The consultation covers not only the issue 
of import restriction but also related-issues, such as taxation, duties, national treatment and standards for the protection of consumer s. The consultative group is expected to 
submit its recommendations in mid-2014 for future actions by the Government. 
 
Page 37, para 3.17, Import licence, Korea Q5:  We acknowledge the efforts of the government of Myanmar in 2012 to ease import 
licensing requirements for 166 commodities. Still, most goods imported into Myanmar 
require import licenses. Does the government of Myanmar have a plan to ease the licensing requirements for a greater number of commodities?  
Answer: 
The Government made a first significant change to the import license regime in June 2012 by replacing the former non-automatic import license regime by a new automatic regime 
covering all imports. Under the new regime, importers must submit: an application on the 
company's letterhead; the original pro-forma invoice or original sales contract; and, if required, recommendations from relevant Gove rnment Departments and/or organizations. 
Most licenses are now authorized within a period of 8 working hours. 
In March 2013, the Government further eased licensing requirements by eliminating import license requirement for 166 commodities classified in over 1,900 HS tariff lines and representing about 35% of total import. A consultation process is underway involving the 
Ministry of Commerce, the Customs Department and representatives from the private 
sector to make recommendations about the identification of additional imported goods for which import license requirement will be removed. The Government intends to gradually 
phase out the license regime through a series of announcements in 2014 and 2015 that 
would each represent about 10 to 15% of total import. By the end of 2015, there will still 
be few products subject to import license requirement. 
 
Page 37, para 3.17, Import licence, New Zealand Q6:  
New Zealand welcomes Myanmar's decision to ease import licensing requirements for 166 commodities (1,900 tariff lines). Does Myanmar have any plans to extend this to all 
import products? 
 Answer: 
The Government made a first significant change to the import license regime in June 2012 
by replacing the former non-automatic import license regime by a new automatic regime covering all imports. Under the new regime, importers must submit: an application on the 
company's letterhead; the original pro-forma invoice or original sales contract; and, if 
required, recommendations from relevant Gove rnment Departments and/or organizations. 
Most licenses are now authorized within a period of 8 working hours. In March 2013, the Government further eased licensing requirements by eliminating 
import license requirement for 166 commodities classified in over 1,900 HS tariff lines and 
representing about 35% of total import. A consultation process is underway involving the Ministry of Commerce, the Customs Department and representatives from the private 
sector to make recommendations about the identification of additional imported goods for 
which import license requirement will be removed. The Government intends to gradually phase out the license regime through a series of announcements in 2014 and 2015 that 
would each represent about 10 to 15% of total import. By the end of 2015, there will still 
be few products subject to import license requirement.  
Page 38, para 3.19, Prohibition, Thailand Q2:  
The Ministry of Commerce of Myanmar issued a list of 15 items of prohibited imports 
through border trade between Thailand an d Myanmar, most of which are consumer 
products. Even though Myanmar has recently removed 7 items of products from the list, 
Thailand would like to know the reasons behind Myanmar's maintaining of the list of the 
remaining 8 items of import prohibitions from Thailand. Does Myanmar expect to remove the remaining 8 items of products? 
 
Answer: Following the election of the New Government in 2011 and the implementation of its reform agenda, the Ministry of Commerce removed six items on the restricted list of both 
land border and sea trade out of 15 items on 23 December 2011. Moreover, on WT/TPR/M/293/Add.1 
 
- 21 - 
 
  4 February 2013, the Ministry of Commerce further reduced the scope of the restriction by 
maintaining only four items subject to import restriction (liquors, beer, cigarette and prohibited products as per existing laws and international conventions) and also a temporary restriction items (seasonal fresh fruits) for both land border and sea trade.  
With a view to further the trade liberalization agenda, a consultative process has been 
established regrouping the Ministry of Commerce, National Planning and Economic Development, the Customs Department and representatives of the private sector, 
including both national and foreign participants. The consultation covers not only the issue 
of import restriction but also related-issues, such as taxation, duties, national treatment and standards for the protection of consumer s. The consultative group is expected to 
submit its recommendations in mid-2014 for future actions by the Government. 
 
 
Page 38, para 3.22, Drug im ports, Japan Q2: (MOH-FDA) 
According to the Secretariat report, all drugs and medicines to be imported must be 
registered with the Department of Food and Dr ug Administration. The report also mentions 
that the importer must provide a drug importat ion approval certificate, a drug wholesaler's 
license and drug registration certificate for the issuance of the import license. Are there 
such restrictions for import medical devices?  Answer: 
National Drug Law was promulgated in 1992 and the Ministry of Health subsequently 
issued the Notification for registration, manufacturing, importation, sell & distribution of pharmaceuticals. Chapter V states that a person desirous of manufacturing, importing, 
exporting, storing, distributions & selling pharmaceutical raw material of drug shall 
registered the relevant drug with the Board of Authority in the prescribed manners. Import regulations of medical device and test  kits are prescribed in accordance to ASEA 
Medical Device Directive (AMDD). Importers ha ve to apply for an import recommendation 
(or) notification of the medical devices. Imports of disposal medical devices and rapid diagnostic test kits are also subject to an import recommendation requirement. The Department of Food and Drug Administration  takes about 3 to 4 weeks to complete the 
recommendation process. This process includes document assessment and laboratory 
testing.  Myanmar is going to endorse the AMDD in 2014 and Department of Food and Drug 
Administration will promulgate the Myanmar Medical Device rules and regulations 
accordingly.  
 
Page 38, para 3.23, Seasonal imports, Thailand Q3:  
Thailand is interested to learn whether Myanmar imposes import restrictions on the certain fruits depending on their production periods, as indicated in the paragraph, from ASEAN Member countries? In another word, are ASEAN Member countries subject to the import 
restrictions indicated under the paragraph? 
 Answer: 
No. It is applied to all countries. 
 
Page 38, Sub 3.1.5, Re-exports, China Q13:  
Please confirm that the seven eighths of th e customs duty, that paid on goods can be 
easily identified, is a fixed rate of refund , or can be adjusted once deemed necessary. 
How to define the "goods that can be easily identified"?  
Answer: 
It means that it is a fixed rate of refund. Easily identified goods are those that are re-exported and whose classification is consistent 
with the imported inputs (such as chassis, model year, engine number etc.) 
 
Page 39, para 3.27, Trade remedy law, USA Q5:  
According to the Secretariat's report, authorities have stated that they are in consultations 
with various donor agencies, with a view to introducing antidumping, countervailing duty and/or safeguard legislation in the near future. Please provide more specifics as to the status of introducing proposed legislation, th e contents of such proposed legislation, and WT/TPR/M/293/Add.1 
 
- 22 - 
 
  an expected timetable in which the President's Office, Cabinet and Parliament may 
consider that proposed legislation.  Answer: 
With the implementation of ASEAN-related tariff reductions and other liberalization 
measures, Myanmar should have WTO-consistent trade remedy authorities to deal as need be with potentially injurious trade situation. In this connection, Ministry of Commerce is 
building up its understanding of trade remedy measures and it is currently receiving 
technical assistance notably from UNESCAP on the drafting of safeguard provisions. With limited human resources and significant wo rk load in implementing autonomous 
liberalization measures and in following up on existing multilateral, regional and bilateral 
trade commitments, work on drafting WTO-consistent anti-dumping and countervailing 
measures has so far not received high priority. Recognizing our limited capacity, the drafting of trade remedy laws is an area where Myanmar would welcome additional 
international technical assistance. 
 
Page 40, para 3.30, Construc tion, Chinese Taipei Q3:  
Q3A:  In order to facilitate a foreign company's participation in construction projects, could 
Myanmar consider eliminating the recommendation by the Embassy of Myanmar requirement?  
Answer: 
Requirement for the recommendation of the Em bassy of Myanmar was applied in the past 
however it was abolished in early 2014. 
 
Q3B:  Is the bid bond amount of US$500,000 a fixed sum for all construction projects 
regardless of the value of any given project? 
 
Answer:  Bid bound amount is varied on the cost of the project and maximum amount is US$500,000. 
 
Page 40, para 3.30, Construction, Thailand Q4:  
With respect to bidding for construction projects, Thailand is interested in learning how the 
Myanmar Government administers the process of selecting bidders for certain projects?  
What are the criteria in the selecting process under the law or regulations?  
Answer:  
Bidder for construction must provide a certificate of registration, company profile, past performance project records, total value of co nstruction work performed according to the 
project, particular experience concerning the project and a bid security. The amount of 
total value of past construction work and bid security (bid bond) will vary according to the 
cost of the project. The companies or enterpri ses listed in Specially Designated Nations are 
not eligible bidders.  
The process of selecting bidders for certain projects are: 1) the related Ministry (or) client 
(or) auction house will determine the price floor and the price ceiling; 2) it will be cancelled the higher and lesser prices than the determin ed price; and 3) the tender committee will 
consider only within the determined price. 
The selection criteria of bidders under the law or regulations are as follows: 1) number of professional engineers, Senior and registered  engineers and their experience work for the 
company; 2) the company-owned machines, equipment and vehicles in hand; 3) the 
company's working capital/money in circulation; 4) company's previous experience and its 
achievements; 5) the recommendations and rejections of previous jobs in the ministry and corresponding comments; and 6) the level of the company's position based on Myanmar 
Engineering Council classification. 
 
Page 40, para 3.30, Registration, Singapore Q3:  
Singapore notes that Myanmar requires bidders for public sector construction projects to 
provide a company profile, bank account details, certificate of registration, certificate of manufacturer, certificate of supplier, record of past performance and in the case of a 
foreign company a recommendation by the Embassy of Myanmar. The report does not 
mention whose certificate of registration (home country or host country) is required as WT/TPR/M/293/Add.1 
 
- 23 - 
 
  part of the bid submission. We would appreciate it if Myanmar could clarify the following 
questions:  Q3A:  If it is the host country's certificate of registration which is required, which Myanmar 
authority issues the certificate and what are the criteria used for registering the 
companies?  
Answer:  
In April 2013, President Office issues Directives (1/2013) relating to Tender Rules for permission of investment activities and business activities. Since then, investor needs to follow the tender rules. It is available in Myanmar language from the following website: 
http://www.dica.gov.mm/includes / Investment%20 Tender.pdf. 
 Q3B:  What is the rationale/basis for the requirement of the Myanmar Embassy's 
recommendation for a foreign company to participate in the bid?  
And on what basis would the Myanmar Embassy issue the recommendation?  
Answer: 
Requirement for the recommendation of the Em bassy of Myanmar was applied in the past 
however it was abolished in early 2014.  
Q3C:  Is there a need for foreign consultants such as architects and engineers to be 
registered with the Myanmar Authorities?  If so, which authorities are they and what are the registration criteria? 
 
Answer: There is a need for foreign consultants such as architects and engineers to be registered 
with the respective Myanmar Professional Regu latory Authorities to ensure that they are 
eligible to practice in the respective profession field and to ensure that they take the liability. The Professional Regulatory Authority for En gineering is the Myanmar Engineering Council. 
According to the ASEAN Mutual Recognition Arrangement on Architectural Services signed 
on 19th November 2007, the Ministry of Construction is the Professional Regulatory Authority (Architecture), regulating the Architectural Professional in Myanmar. 
According to the Ministry of Construction Notification No.175/2013 of 
19
th September 2013, Board of Architects of Myanmar is an authorized agency of the 
Professional Regulatory Authority. 
Myanmar Architect Council Law that will govern  the Architectural Profession is in the 
approval stage. The foreign Architects who wish to practice in Myanmar need to have a valid license for practicing architecture in his or her own country and need to have a local counterpart who 
is a senior licensed architect in Myanmar. It is a common practice agreed upon by the 
ASEAN Architect Council and practiced throughout ASEAN. The reason for having a local counterpart is to ensure that local rules and regulations as well as culture  is respected. 
 
Page 40, para 3.30, Construction, EU Q28-29:  
Q28:  Can the authorities give clarification on the margin of preference and explain the 
rationale for it and its functioning?  
Are the fields mentioned in the Secretariat report the only fields where the margin applies?  Could the authorities indicate which legislation provides for such preference and whether the preference applies to all procurement activities in these fields mentioned by the 
Secretariat? 
 Answer: 
The President's Office has recently issued a directive with rules that Departments need to 
follow with respect to tenders. According to  the rules under Directive No. 1/2013, Ministry 
of Education carried out public procurement and construction in the education sector. 
The tender rules provide for the need for tran sparency, accountability, responsibility and 
the possibility to inspect the conduct of the respective investment activity and economic activity by Departments and governmental organisations. WT/TPR/M/293/Add.1 
 
- 24 - 
 
  The rules set forth a number of general rules that the Departments must follow with each 
tender they organise, whether it is for purchasing goods or services, construction projects or allowing an economic activity by enterprises.   
Q29:  I t  i s  r e p o r t e d  t h a t  t h e  E m b a s s y  o f  M y a n m a r  i n  a  g i v e n  c o u n t r y  h a s  t o  g i v e  a  
recommendation to allow foreigners from that country to bid for construction projects. Can the authorities elaborate on that condition and on its implementation? 
 
Answer:   
Requirement for the recommendation of the Em bassy of Myanmar was applied in the past 
however it was abolished in early 2014. 
 
Page 40, para 3.32 & GR page 8, para 3.13, Public procurement, EU Q30:  
What are the intentions of the government regarding the legislative framework for public 
procurement in particular regarding the current lack of appeal possibilities for bidders in 
case they witness an irregularity as in the EU view, the law on anti-corruption cannot be a substitute to a law on public procurement? 
 
Answer: At present, Myanmar does not have any specific legislation that governs public procurement. However, all government agencies must adhere to notification issued by the 
President's Office on 2 June 2012 and 5 April 2013, which stipulate that every government 
agency must use the open tender system. All government agencies/departments as well as, sub-central entities must submit their recurring expenditure requirements for the 
construction works and procurement of machinery, equipment and vehicles to the Budget 
Department of the Ministry of Finance and th eir capital expenditure requirements to the 
planning department of the Ministry of National Planning and Economics Development. 
According to the procedure, public procurement system is concern with the Ministry of 
Finance. Tender /Auction selection committee was formed to conduct invitation. The invitation for bids need to be published in two local papers and the government website. 
The committee reviews the proposals of each company and invites qualified ones to the 
tender opening. Sealed bids are opened in the presence of all qualified bidders and the 
lowest bid is selected and sent to the minister  for approval. After approval by the minister, 
the respective agency can proceed with the procurement. 
Bidders for construction projects need to provide a company profile, bank account details, 
certificate of registration, certificate of manufactures, certificate of suppliers and record of past performance. Bid bound amount is vari ed on the cost of the project and maximum 
amount is US$500,000. 
Anti-Corruption Law has been enacted on 7 August 2013 by Union Parliament Law No. 23 and came into force by President's Office notification No.73/2013 on 17 September 2013.That Law has been related not on ly to public sector but also to private 
sector. The law can also take legal action of the member of director, member of 
committee, authorized personnel or representatives of the public organization, joint venture companies, boards, corporations or other organizations.  
At present, Myanmar does not have any specific legislation that governs public 
procurement. However, all government agencies must adhere to Notification issued by the President's Office on 2 June 2012 and 5 April 2013, which stipulate that every government 
agency must use the open tender system. All government agencies/departments as well 
as, sub-central entities must submit their recurring expenditure requirements for the 
construction works and procurement of machin ery , equipment and vehicles to the Budget 
Department of the Ministry of Finance and th eir capital expenditure requirements to the 
Planning Department of the Ministry of National Planning and Economics Development. 
Accordingly, the Ministry of Finance has esta blished public procurement procedures, such 
as: 1) each agency and entity establish a Tender /Auction Selection Committee was 
formed to conduct invitation; 2) the invitation for bids need to be published in two local 
papers and the Government website; 3) the committee reviews the proposals of each company and invites qualified ones to the tender opening; 4) sealed bids are opened in the 
presence of all qualified bidders and the lowest bid is selected and sent to the relevant 
Minister for approval; and 5) after approval by the Minister, the respective agency or entity 
can proceed with the procurement. Bidders for construction projects need to provide a company profile, bank account details, 
certificate of registration, certificate of manufactures, certificate of suppliers, record of past WT/TPR/M/293/Add.1 
 
- 25 - 
 
  performance. Bid bound amount is varied on the cost of the project and maximum amount 
is US$500,000. The newly enacted Anti-Corruption Law of August 2013 replaces the former law on the suppression of corruption of 1948. The law provides for the establishment of the 
Anti Corruption Commission which is mandated notably to scrutinize the nature, 
mechanism and procedures of Government Agencies and non-Government Agencies, to dispel and devoid bribery within Government Agencies. It has been enacted on 
7 August 2013 by Union Parliament Law No.23 and came into force by President's Office 
notification No.73/2013 on 17 September 2013. The Law relates not only to public sector but also to private sector. The law can also take legal action of the member of director, member of committee, authorized personnel or representatives of the public organization, 
joint venture companies, boards, corporations or other organizations.  
 
Page 40, para 3.34-3.39, SPS, EU Q31:  
Can the authorities clarify the role of the Ministry of Livestock, Fisheries and Rural 
Development in the area of SPS controls?  
Answer: 
Department of Fisheries under the Ministry of Livestock, Fisheries and Rural Development inspects and certifies the export of fish and fishery products. It ensures the quality and safety of concerned products to protect consumers and to meet importing country 
requirements and also to comply to international standards, guidelines or 
recommendations, such as CODEX standards and ASEAN regional guideline.  Under the Livestock Breeding and Veterinary Department, the Research, Animal Feed and 
Veterinary Medicine Section (Formerly refe rred to Veterinary Assay Laboratory) is 
responsible for analyzing maximum residue limits of pesticides, chemical and veterinary drug in meat, milk and egg in accordance to the guidelines of Codex Alimentrius 
Commission.  
 
Page 40, para 3.34-3.39, Standards, EU Q32:  
How are standards enforced and monitored on imported and domestically produced goods? 
 
Answer: Under the Science and Technology Development Law (1994), Myanmar Scientific and 
Technological Research Department (MSTRD) is responsible for conducting: 1) 
standardization and specifications of weights and measures, equipment and machinery, raw materials and finished goods; and 2) conformity assessment and metrology 
infrastructure. MSTRD is the focal point of National Quality Infrastructure of Myanmar. 
For TBT matter, the Ministry of Commerce is the WTO contact point of Myanmar and Ministry of Science and Technology is the WTO/TBT contact point of Myanmar, Regarding with Technical Barrier to Trade of Myanmar, it can be divided into two parts such as 
standards and technical regulation. Director General of the Myanmar Sciences and 
Technology Research Department is the contact person of WTO/TBT.  
For the standards matter, the Ministry of Science and Technology has prepared a draft 
Myanmar Law Standardization Law and carried consultation with stakeholders. The draft 
Law has was submitted to Parliament for approval. The draft Law provides for the establishment of the Standardization National Standard Council, the National Standard 
Committee and 19 Technical Committees. Some of the technical committees have already 
drafted some Myanmar National Standards in ad vance of the approval of draft law. Shortly 
after its enactment, these standards would be approved as Myanmar Standards. Myanmar will use the ISO/IEC Guide 21-1 and 2-2005 as a national guide to adopt 
international standards as national standards or technical regulations. Once Myanmar's 
first TPR is completed, the GOM intends to turn its attention to notifying these as well as other measures to the WTO as soon as possible, in so far as its limited capacity permits. 
The GOM would be very grateful for any TA from the WTO in providing this and other 
outstanding notifications.  
 
Page 40, Sub 3.1.10, Labelling, Honduras Q2-4:  
Q2: The Government of Honduras understands that a tobacco control proposal by the 
Ministry of Health would require 90% of the packet of cigarettes/tobacco products to be 
covered by Graphic Health Warnings (GHW). The Government of Honduras would 
specifically like to seek the view of the Go vernment of Myanmar with regard to this WT/TPR/M/293/Add.1 
 
- 26 - 
 
  proposal, which we believe will amount to quasi plain packaging for tobacco products. 
Specifically, has the Government of Myanmar considered the compatibility of this legislation with both the TBT Agreemen t and the TRIPS Agreement of the WTO? 
 
 Answer:   
Being the member country of WHO Framework Convention on Tobacco Control and for promoting and preventing the public health, the Ministry of Health has implemented the 
tobacco control measures base on the WHO FC TC and its Guidelines. To alert and remind 
the public about the health risk associated with tobacco, it is proposed to have the pictorial health warning covering 90% of the principal display area of tobacco packets and packages. Myanmar's pictorial health warning is based on internationally-agreed standards 
and is compatible with the TBT Agreement. In respect of its compatibility with the TRIPs, 
until proved otherwise, we have no reasons to believe that the propose measure is incompatible with the TRIPs Agreement. 
 
Q3: The Government of Honduras actively participates in the Framework Convention for 
Tobacco Control and we fully share the object ive of protecting public health through 
effective tobacco control measures. We also believe that tobacco control measures have to 
meet the criteria set out in the TBT and TRIPS Agreement of the WTO. In that context, has 
the Government of Myanmar considered less trade restrictive alternatives that still meet the FCTC minimum requirements of 30% Graphic Health Warning for tobacco products? 
 
Answer:   
According to Article 11 of the WHO FCTC, the pi ctorial health warning sign should be 50% 
or more of the principal display areas but shall not be less than 30% of the principal 
display areas. As an ASEAN member country, Myanmar has also learned from other countries' best practices. Our review shows th at for Singapore, Thailand, Vietnam, Brunei 
and Malaysia, the pictorial health warning cover between 50 and 85% of the principal 
display areas. In Indonesia, who is not a WHO FCTC member country, its pictorial health warning covers 40% of the principal display areas. We also noted that for Honduras the concerned percentage is 50%. The Guideline for Article 11 mentioned that the 
effectiveness of health warnings and massages increases with cover more than 50% of the 
principal display areas and aim to cover as much of the principal display areas as possible. So, Myanmar is planned to implement the effective health warnings as much as possible.  
 
Q4: Honduras has initiated WTO dispute settlement proceedings against a similar measure 
implemented by Australia (plain packaging for tobacco products). In light of the foregoing, 
we would respectfully request Myanmar to review its decision on the implementation of 
extreme graphic health warnings for tobacco products and delay the implementation of similar measures until the WTO has had the opportunity to assess and review the legitimacy of plain packaging in the context of the WTO. 
 
Answer:  Myanmar became the 11
th member country of the WHO FCTC in April 2004 and the 
relevant provisions entered into force in 2005.  Article 11 of the FCTC specifies that the 
member country should adopt and implement effective health warnings within a period of three years after entry into force. In effect, Myanmar's implementation has already 
exceeded the prescribed delay. 
 
Page 41, para 3.42, SPS certificates, USA Q6:  
The Secretariat reports states, "The Plant Protec tion Division of the Ministry of Agriculture 
and Irrigation is the competent authority to issue SPS certificates, as provided for under 
the Plant Pest Quarantine Law of 1993." Please confirm that this refers to the recommendation from a relevant government d e p a r t m e n t  n e e d e d  t o  o b t a i n  a n  i m p o r t  
license as noted in 3.41.  
Is a Pest Risk Analysis (PRA) for such products required?  If so, what will be the policy with regard to  ongoing imports of these products that have 
been established without a PRA? 
 WT/TPR/M/293/Add.1 
 
- 27 - 
 
  Answer: 
With regard to the question, Plant Protection  Division (PPD), Department of Agriculture 
issues the import certificate not only to obtain an import license but also to import the seeds, plant and plant products. Commodities under no license requirement regime 
necessary to have the certificate of SPS fr om competent authority of the exporting or 
importing country need to show the certificate at the customs clearance. Pest Risk Analysis (PRA) is required. The requirements for import regulatory system are as 
follows: 1) Pest list of respective country / exporting country; 2) Phytosanitary certificate 
of country origin; and 3) Inspection of imported products at entry points by plant quarantine inspectors according to the import procedures. At current situation, PPD restricts quarantine pests entering to importing country by 
following the import procedures that is attached. 
 
Page 41, para 3.43, Inspection permits, USA Q7:  
The Secretariat report says that "Import inspection permits are also needed for imports of 
live animals, animal products, and animal feed and veterinary drugs." Please confirm that this refers to the recommendation from relevant government departments needed to 
obtain an import license.  
If so, please confirm that, consistent with international practices, importers are not required to obtain shipment-specific health certificates from the exporting country prior to the issuance of this recommendation. 
 
Answer: The consignment of animals shall be accompan ied by a valid import licence issued by 
Government authority of Myanmar, import in spection permit of competent authority of 
Myanmar, certificate containing a full description or identification of the animals and the veterinary health issued by a competent vete rinary officer of the Government veterinary 
authority of the country of export. 
 
Page 43, Tables 3.6 & 3.7, Teak exports, Japan Q3: 
Please explain why "Teak and conversions" and "Timber and conversion" are listed in 
parallel in Table 3.6 while Teak is a kind of wood species. 
 Answer: 
Under the Paragraph 3.51, Table 3.6 & 3.7, "Teak and conversions" and "Timber and 
conversion" are listed in parallel while Teak is a kind of wood species. It is because that T e a k  m e a n s  " t e a k  l o g "  w h i l e  " c o n v e r s i o n s "  r e f e r s  t o  t e a k  s a w n  t i m b e r s .  S i m i l a r l y ,  a s  
mentioned in parallel, "Timber" means as Hardwood log (Non teak wood) while 
"conversions" represents Hardwood sawn timbers. Thus the former one means to Teak and the latter is intended to other hardwood (Non teak wood). That is why "Teak and 
conversions" and "Timber and conversion" are listed in parallel. 
 
Page 43, para 3.54, Export license details, Thailand Q5:  
As the Report indicates that Myanmar is restructuring its export licensing regime and 
152 types of goods no longer require export licences, Thailand would like to learn some 
detail of what are the goods which longer require export licenses from 2013?  
Answer: 
Our export policy is mainly to extend and ex plore the foreign market by utilizing natural 
and human resources effectively and to promote the export of traditional and value-added products.  
Regarding export licensing, exporters require to get export license except 152 types of 
goods (983 tariff lines). Moreover, Ministry of Commerce intends to liberalize export licensing requirement for the rest goods except so- called sensitive commodities such as 
national food security and emergency needs,  the protection on exhaustion of natural 
recourse, the protection of environmental da mages and deforestation, and prevention of 
traditional and cultural art. For this intention, we are learning legal basis and practice of 
international and regional especially in current transformation period. In this connection, 
we need technical assistance for our further policy considerations and legal basis to maintain current export licensing regime. This is the link to check the list of commodities available in Myanmar language.  
http://www.commerce.gov.mm/si tes/default/files/docume nts/2013/08/ 16-2013.pdf. WT/TPR/M/293/Add.1 
 
- 28 - 
 
  Page 44, para 3.60, SEZ, Thailand Q6:  
Does Myanmar set up target timeframes for the three special economic zones (SEZs) to be completed and operationalized?  If so, could you please share with us the information?   
Furthermore, does Myanmar provide investment incentives and/or privileges for investors 
in the special economic zones? If so, please also share with us the detail.  
Answer: 
The new Myanmar Special Economic Zone Law was enacted on 23rd January 2014. Myanmar currently has three SEZs: Kyauk Phyu SEZ; Dawei SEZ; and Thilawa SEZ.   
The investor is entitled to the following income tax exemptions and reliefs: 
(a) for investment business in the free zone or the free zone business, there shall be 
income tax exemption for the first seven years from the commencement of the 
commercial operation; whereas for investment business in the promotion zone or other 
businesses in the boundary of the special economic zone, there shall be income tax exemption for the first five years from the date of commencement on commercial 
operation; 
(b) The investment business in the free zone and promotion zone shall be entitled to 50% 
relief on the income tax rate stipulated under the existing law for the following five years; 
(c) The investment business in the free zone and promotion zone shall be entitled to 50% 
relief of the income tax rate stipulated under  the existing law for the subsequent five 
years on the profit which is obtained from the business and reinvested within one year 
in the business after keeping it as a separate fund. 
The developer is entitled to the following income tax exemptions and reliefs: (a) income tax exemption for the first eight years from the commencement of the 
business operation; 
(b) 50% relief on the income tax rate stipulated under the existing law for the following 
five years and  
(c) 50% relief of the income tax rate stipulated under the existing law for the subsequent 
five years on the profit which is obtained from the business and reinvested within one 
year in the business after keeping it as a separate fund. 
Regarding the Dawei Special Economic Zone, it has been carrying out to compete from 
investor and developer in project area in accordance with the tender procedures. 
Regarding the Thilawa Special Economic Zone, basic infrastructures are being carried out in first stage of 400 hectares and it is expe cted to commercialize by 2015. To establish 
Kyauk Phyu Special Economic Zone, it has been arranging to invite tender for developer. 
 
Page 44, Sub 3.2.4.3, Expo rt Finance, China Q14:  
Please confirm whether the Government plans to extend sovereign guarantee in future, if 
so, to whom and in which sectors or fields? 
 Answer: 
On behalf of the Government, the Ministry of  Finance has extended sovereign guarantees 
to some SEEs borrowing from ab road (notable in connection with hydro-electric projects). 
 
Page 44, paras 3.59 & 3.74, WTO notification, USA Q8:  
The Secretariat report identifies various tax and duty reductions or exemptions for businesses located in special economic zones under the Special Economic Zone Law of January 2011. What are the Government's plans for notifying these incentives, as well as 
additional tax incentives identified in paragraph 3.74, under Article 25 of the SCM 
Agreement?  
Answer: 
Once Myanmar's first TPR is completed, the GOM intends to turn its attention to notifying these as well as other measures to the WTO as soon as possible, in so far as its limited 
capacity permits. The GOM would be very grat eful for any TA from the WTO in providing 
this and other outstanding notifications.  
 WT/TPR/M/293/Add.1 
 
- 29 - 
 
  Page 45, Sub 3.3.1.1, Company Ac t & Investment Law, EU Q33:  
Can the government confirm that the Companies Act and Investment laws are to be revised? If so, by what timeframe and if so, what consultations are considered for stakeholders? 
 
Answer:   
Yes, see General Answer on Investment. 
 
Page 46, para 3.69, National treatment, Korea Q6:  
According to Schedule 1 of the Commercial Tax law, 70 items are exempt from commercial tax if they are produced domestically, while a 5% tax is levied on imported goods. Korea 
would be grateful if the Myanmar government could clarify how this aligns with the 
obligation of national treatmen t and identify these 70 items. 
 
Answer: 
While the TPRM "is not intended to serve as a basis for the enforcement of specific obligations" under the WTO agreements, the GOM is nonetheless glad to clarify the 
rationale for these exemptions from commercial tax. These exemptions apply mainly to 
primary agricultural products, including Myanmar species, sold by farmers directly to consumers. Their main purposes have been to simplify administration of the tax and alleviate the compliance burden on farmers and owners of small enterprises, many of 
whom are not sufficiently literate and have very small farms or businesses. These farmers 
and owners of small enterprises have not been entirely exempt from commercial tax, however, as such taxes may nonetheless be levied on the agricultural and other inputs, 
such as fertilizer and tools, that they need to purchase, and cannot receive credits for the 
taxes paid on such inputs, as in the case of a value-added tax (VAT), for example. In accordance with international best practices,  a VAT usually involves a threshold, whereby 
small producers may be exempted from the tax on administrative and compliance grounds.  
In the medium term, with the assistance of th e Fiscal Affairs Department of the IMF, the 
World Bank, the ADB and Myanmar's other development partners, the GOM aims to reform the existing commercial tax so as to bring it into line with international best practices with 
respect to internal consumption taxes. This will involve converting the commercial tax, 
which is a hybrid of VAT and excises, into a broadly-based VAT on goods and services supplemented by a special commodities tax on excisable products on selected goods and 
services. Both of these taxes will apply equally to imported and domestically-produced 
goods and services.  
 
Page 46, para 3.69, National treatment, Canada Q2:  
Under Schedule 1 of the Commercial Tax Law, 70 items are exempt from commercial tax (Table A3.2) if they are produced domestically , while a 5% tax is levied on the imported 
goods, indicating different treatment for dome stically produced and imported goods. Could 
Myanmar please elaborate on how this measure is consistent with GATT Article III? 
 Answer: 
While the TPRM "is not intended to serve as a basis for the enforcement of specific 
obligations" under the WTO agreements, the GOM is nonetheless glad to clarify the rationale for these exemptions from commercial tax. These exemptions apply mainly to 
primary agricultural products, including Myanmar species, sold by farmers directly to 
consumers. Their main purposes have been to simplify administration of the tax and alleviate the compliance burden on farmers and owners of small enterprises, many of 
whom are not sufficiently literate and have very small farms or businesses. These farmers 
and owners of small enterprises have not been entirely exempt from commercial tax, 
however, as such taxes may nonetheless be levied on the agricultural and other inputs, such as fertilizer and tools, that they need to purchase, and cannot receive credits for the 
taxes paid on such inputs, as in the case of a value-added tax (VAT), for example. In 
accordance with international best practices,  a VAT usually involves a threshold, whereby 
small producers may be exempted from the tax on administrative and compliance grounds.  
In the medium term, with the assistance of th e Fiscal Affairs Department of the IMF, the 
World Bank, the ADB and Myanmar's other development partners, the GOM aims to reform the existing commercial tax so as to bring it into line with international best practices with respect to internal consumption taxes. This will involve converting the commercial tax, 
which is a hybrid of VAT and excises, into a broadly-based VAT on goods and services WT/TPR/M/293/Add.1 
 
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  supplemented by a special commodities tax on excisable products on selected goods and 
services. Both of these taxes will apply equally to imported and domestically-produced goods and services.  
 
Page 46, paras 3.69 & 3.70, Tax in centive & notification, USA Q9: 
The Secretariat's report identifies exemptions under the Commercial Tax Law that appear to favour domestic goods over imported goods. Please explain these incentives in light of 
the provisions under Article 3.1(b) of the SCM Agreement regarding subsidies contingent 
upon the use of domestic over imported goods?  What are your plans for notifying these incentives under Article 25 of the SCM Agreement?  
Answer: 
These exemptions from commercial tax apply mainly to primary agricultural products, including Myanmar species, sold by farmers di rectly to consumers. Their main purposes 
h a v e  b e e n  to  s i m p l i f y  a d m i n i s t r a t i o n  o f  t h e tax and alleviate the compliance burden on 
farmers and owners of small enterprises, many  of whom are not sufficiently literate and 
have very small farms or businesses. These farmers and owners of small enterprises have 
not been entirely exempt from commercial ta x, however, as such taxes may nonetheless 
be levied on the agricultural and other inputs, such as fertilizer and tools, that they need to purchase, and cannot receive credits for the taxes paid on such inputs, as in the case of a value-added tax (VAT), for example. In accordance with international best practices, a 
VAT usually involves a threshold, whereby small producers may be exempted from the tax 
on administrative and compliance grounds.  
In the medium term, with the assistance of th e Fiscal Affairs Department of the IMF, the 
World Bank, the ADB and Myanmar's other development partners, the GOM aims to reform 
the existing commercial tax so as to bring it into line with international best practices with respect to internal consumption taxes. This will involve converting the commercial tax, 
which is a hybrid of VAT and excises, into a broadly-based VAT on goods and services 
supplemented by a special commodities tax on excisable products on selected goods and services. Both of these taxes will apply equally to imported and domestically-produced goods and services. 
 
Page 48, para 3.78, Bankruptcy law, EU Q34:  
Given that the absence of a bankruptcy law may have an impact on foreign operators, is 
the intention of the Government to remedy situation by adopting related legislation? 
 Answer:   
It has Insolvency Act rather than out date d and GOM has intern to modify this law 
hopefully with technical assistance.  
Page 48, para 3.79, Business re gistration, New Zealand Q7:  
What measures does Myanmar intend to take to further improve the business 
environment, particularly in the area of regist ration of companies, settlement of claims and 
the cost of registering a business? 
 
Answer: Myanmar has already liberalized registration process (in 2011, temporary company 
registration certificate was issued and after finishing necessary internal procedure, original 
company registration replace the temporary one. Since 25th November 2013, five years terms of company registration certificate are being issued within three days), tenure of Company (in November 2011, the tenure of company was three years and since 
February 2013, it was extended to five year s). Previously, cost of register (US$2,500) 
used to be paid to bank. Now, cost of register  (Kyat 1 million) has to be paid to Directorate 
of Investment and Company Administration. 
 
Page 48, para 3.82, SEEs, China Q15:  
As to privatization of business sectors reserved for the State, whether the government has 
explicit plans and timetable? 
 Answer: SEEs which have under capacity and could not efficiently use inputs will be priority for the 
privatization. There are 42 Nos. of SEEs and those are fully owned by the government. WT/TPR/M/293/Add.1 
 
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  Now, there is no special treatment for import, purchase and sale of SEEs. The followings 
are the list of 42 SEEs;  
Name of Ministry Name of SEEs 
Ministry of Information Printing and Publishing Enterprise 
 News and Periodicals Enterprise 
 Myanmar Motion Picture Enterprise 
Ministry of Agriculture and Irrigation Myanmar Agricultural Development Bank 
Ministry of Environmental Conservation 
and Forestry Myanmar Timber Enterprise 
Ministry of Finance Myanmar Economic Bank 
 Myanmar Investment and Commercial Bank 
 Myanmar Foreign Trade Bank 
 Myanmar Insurance Enterprise 
Ministry of Finance Myanmar Small Monetary Inspection Enterprise 
Central Bank of Myanmar Central Bank of Myanmar 
Ministry of Construction Public Construction Work 
Ministry of Livestock, Breeding, and 
Fisheries Livestock, Feedstuff, and Dairy Products Enterprise 
Ministry of Communications and 
Information Technology Myanmar Posts and Telecommunications Department  
Ministry of Labour, Employment and 
Social Security Social Security Board 
Ministry of Mines No. (1) Mining Enterprise 
 No. (2) Mining Enterprise 
 No. (3) Mining Enterprise 
 Myanmar Gems Enterprise 
 Myanmar Salt and Marine Chemical Enterprise 
 Myanmar Pearl Enterprise 
Ministry of Cooperatives Cooperative Export Import Enterprise 
Ministry of Transport Inland Water Transport 
 Myanmar Port Authority 
 Myanmar Shipyards 
 Myanmar Airways 
Ministry of Hotels and Tourism Myanmar Hotels and Tourism Services 
Ministry of Industry No. (1) Heavy Industrial Enterprise 
 No. (2) Heavy Industrial Enterprise 
Ministry of Industry No. (3) Heavy Industrial Enterprise 
 Textile Industries Enterprise 
 Pharmaceutical and Foodstuff Enterprise 
 Paper and Home Utility Enterprise 
Ministry of Rail Transportation Myanmar Railways 
 Road Transport 
Ministry of Energy Myanmar Oil and Gas Enterprise 
 Myanmar Petrochemical Enterprise 
 Myanmar Petroleum Products Enterprise 
Ministry of Electric Power Hydro Power Generation Enterprise 
 Myanmar Electric Power Enterprise 
 Electricity Supply Enterprise 
 Yangon City Electricity Supply Board 
 
Myanmar Privatization Commissio n was established in 1995 and carried out the duties of 
the privatization of state owned enterprise s in order to achieve the purpose of the WT/TPR/M/293/Add.1 
 
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  commission based on the adopted policy. At present, the new Myanmar Privatization 
Commission was re-established and headed by the Vice-President of the State. Private Public Partnership (PPP) methods will be used in privatizing SEEs to upgrade the roles of both SEEs and privatization. The commercialization and corporatization are going to be 
started in Myanmar and the public owne d companies will also be started.  
The Government's current policy towards public enterprises is as follow: 1) to encourage 
the development of State and regional organiza tions, cooperatives, joint venture, private 
entrepreneurs, partner with foreigners, public companies for the economic development of 
the State; 2) to focus more on the public services; 3) to maintain the enterprises which should be kept under the guidance of the government for public interest without transferring to private; 4) to include the Public-Private Partnership method in privatization 
process; and 5) to continue the original business of the privatized enterprises without 
changing to another kinds of business in order to maintain the public interest. If changing is required for some purpose, the analysis should be taken. 
772 entities have been transferred to private sector between 1995 and 2011. The 
remaining 42 SEEs left to be privatized are being planned to include in the new procedure of privatization process. The procedures to be used the following methods: 1) franchise; 
2) sale; 3) PPP; 4) Joint Venture; 5) sharing system; and 6) contracting out for 
transferring of SEEs to private parties.  
Page 52, para 3.99, Copyright, USA Q10:  
The Secretariat's report states that "[t]he Co pyright Act, dating back to 1914, does not 
appear to provide effective copyright protection . It is not clear whether copyright must be 
registered to be protected, or for how lo ng copyright is protected under the current 
legislation. There is no specific policy on copyright protection on the internet. "Please 
describe how the proposed copyright legislation currently under consideration will address these issues. In particular, please clarify the Government's interest in addressing 
obligations from the two WIPO Treaties (W CT and WPP, mentioned above), both which 
provide international standards for copyright protection in the digital age.  Answer: 
Under the Copyright Act (1914), there is no Copyright Registration System and the term 
for which copyright shall subsist, except as ot herwise expressly provided by this Act, be 
the life of the author and a period of 50 years after his death. 
Under the proposed copyright legislation, the registration of copyright is voluntary. Any 
author or owner of copyright, if desirous, may file an application to obtain a certificate from the Myanmar IP Office to be established. In case where the copyright owner needs to 
demonstrate its rights in Courts, he can use its IP Certificate as a Prima Facie Evidence.  
Regarding with the copyright protection in the digital age, Myanmar is not a party to two WIPO treaties (WCT & WPPT) and, hence, is under no obligation to implement these provisions.  
 
Page 52, para 3.100, Patent, Japan Q4:  
The Secretariat's report states that there is currently no legislation on patents in Myanmar. 
Could Myanmar explain when a new Patent Law is likely to be introduced? 
 Answer: 
The objectives of the draft Patent Law are as fo llows: 1) to contribute to the creation of a 
competitive and more efficient business environment and to utilize the patent system as a power tool for economic development; 2) to contribute to the promotion of technological innovation and to the transfer and dissemination of technology; 3) to facilitate access of 
the Republic of the Union of Myanmar to in ternational markets and promote free trade and 
foreign direct investment; 4) to discourage commercial parasitic and unfair practices; and 5) to implement the provisions in respect of patents contained in conventions, treaties and 
agreements relating to intellectual property for which the Republic of the Union of 
Myanmar is responsible to implement in accordance with this Law. Infringements of Patent rights are enforced only by Civil Procedure. The Intellectual 
Property Court established by the Supreme Court of the Union or any other Court 
competent to adjudicate cases arising from this Law shall have the authority to order prompt and effective provisional measures on the enforcement of infringement of IPRs. Depending on the merits of the case, the Court will impose penalties for patent 
infringements on a case by case basis. WT/TPR/M/293/Add.1 
 
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  Myanmar has obtained WIPO technical assistance throughout the formulation of the draft 
Patent Law. It is envisaged that the Patent Law will be enacted in 2014.  
Page 52, para 3.101-2, Trademarks, EU Q35-36:  
Q35:  H o w  w i l l  t h e  G o v e r n m e n t  e n s u r e  t h a t  t r a d e m a r k s  f u l f i l  t h e i r  e s s e n t i a l  f u n c t i o n  o f  
distinguishing products and services?  
Answer: 
Trademarks fulfil their essential functions of distinguishing products and services by the provisions stating in the Trademark Law and the following up regulation. For example, in the drafted Trademark Law, it includes some definitions of mark, trademark, service mark, 
certification mark, trade name, etc. Other necessities will be followed up in regulation. 
The objectives of the draft Trademark law are as follows: 1) to develop trade and 
commerce by protecting the marks, trade names and well-known marks; 2) to give 
protection to the interests of the owner of the marks, trade names  and well-known marks; 
3) to take effective action on infringement of the rights in marks, trade names  and 
well-known marks under this Law; and 4) to implement the provisions in respect of the 
marks contained in conventions, treaties and agreements to which Myanmar is a party.  
The right holder who has sufficient grounds for suspecting that the importation of alleged counterfeit trademark goods into the territory of Myanmar is taking place or has taken place, may submit a written request for the su spension to the Customs authority. Customs 
may issue suspension order that the importation of alleged counterfeit trademark goods 
into the territory of Myanmar. Infringements of  trademark rights will be enforced by Civil 
and Criminal Procedures. 
Myanmar has obtained WIPO technical assistance throughout the formulation of the draft 
Trademark Law. It is envisaged that the Law will be enacted in 2014.  
Q36:  How will the government organise the examination of the re-application for the 
existing trademarks under the new law within its new Intellectual Property office?  Answer:   
Trademarks fulfil their essential functions of distinguishing products and services by the 
provisions stating in the Trademark Law and the following up regulation. For example, in the drafted Trademark Law, it includes some definitions of mark, trademark, service mark, 
certification mark, trade name, etc. Other necessities will be followed up in regulation. 
After examination of the application with grounds for refusal under New Trademark Law, if consistence, it can be used continuously, if not, its name or something should be changed 
according to the new law. 
In examining the application for the registration of marks under the proposed Trademarks Law, the original owner of the mark must rere gister its mark. If the mark is identical or 
similar to the previous mark, the Registrar will issue the receipt of acknowledgement to 
the original owner. There are transitional provisions in the proposed Law and details will be 
elaborated in subsequent regulation.  
Page 52, para 3.101-2, Trademarks, Honduras Q1:  
The Government of Honduras would like to commend the Government of Myanmar for the reforms it is undertaking especially in the context of its review of trademark legislation, 
amongst other reforms. In this context, coul d the Government of Myanmar reassure that 
in formulating legislation, across a variety of product and service categories, it will provide strong IP protection which will in turn ensure that trademarks fulfil their essential function of distinguishing products and services? 
 
Answer: Trademarks fulfil their essential functions of distinguishing products and services by the 
provisions stating in the Trademark Law and the following up regulation. For example, in 
the drafted Trademark Law, it includes some definitions of mark, trademark, service mark, 
certification mark, trade name, etc. Other necessities will be followed up in regulation. 
The objectives of the draft Trademark law are as follows: 1) to develop trade and 
commerce by protecting the marks, trade names and well-known marks; 2) to give 
protection to the interests of the owner of the marks, trade names  and well-known marks; 
3) to take effective action on infringement of the rights in marks, trade names  and WT/TPR/M/293/Add.1 
 
- 34 - 
 
  well-known marks under this Law; and 4) to implement the provisions in respect of the 
marks contained in conventions, treaties and agreements to which Myanmar is a party.  The right holder who has sufficient grounds for suspecting that the importation of alleged counterfeit trademark goods into the territory of Myanmar is taking place or has taken 
place, may submit a written request for the su spension to the Customs authority. Customs 
may issue suspension order that the importation of alleged counterfeit trademark goods into the territory of Myanmar. Infringements of  trademark rights will be enforced by Civil 
and Criminal Procedure. 
Myanmar has obtained WIPO technical assistance throughout the formulation of the draft Trademark Law. It is envisaged that the Law will be enacted in 2014.  
Page 52, para 3.101, Trademarks, Japan Q5:  
The Secretariat's report states that there is no specific law on trade marks, or specific provision on the registration of trade mark s in Myanmar. Could Myanmar explain when a 
new Trademark Law is likely to be introduced? 
 Answer: 
The objectives of the draft Trademark law are as follows: 1) to develop trade and 
commerce by protecting the marks, trade names and well-known marks; 2) to give 
protection to the interests of the owner of the marks, trade names  and well-known marks; 
3) to take effective action on infringement of the rights in marks, trade names  and well-
known marks under this Law; and 4) to implem ent the provisions in respect of the marks 
contained in conventions, treaties and ag reements to which Myanmar is a party.  
The right holder who has sufficient grounds for suspecting that the importation of alleged 
counterfeit trademark goods into the territory of Myanmar is taking place or has taken 
place, may submit a written request for the su spension to the Customs authority. Customs 
may issue suspension order that the importation of alleged counterfeit trademark goods 
into the territory of Myanmar. Infringements of  trademark rights will be enforced by Civil 
and Criminal Procedure. Myanmar has obtained WIPO technical assistance throughout the formulation of the draft Trademark Law. It is envisaged that the Law will be enacted in 2014. 
 
Page 52, para 3.103, Copyright, USA Q11:  
The Secretariat's report notes that "[t]he authorities state that most copyright problems 
are solved through coordination by the parties concerned rather than through legal 
procedures." Please state whether the IPR laws currently under consideration include legal procedures for the resolution of copyright disputes, and, if so, please describe those 
procedures. 
 Answer: The objectives of draft Copyright Law are as follows: 1) to encourage more development of 
the literary and artistic works, performances, producing phonograms and broadcastings; 
2) to give protection on the copyright of lite rary and artistic work of the author and the 
owner of copyright in accordance with Law; 3) to protect the related rights of performer, 
producer of phonogram and broadcasting organization; 4) to implement the provisions in 
respect of copyright contained in conventions, treaties and agreements relating to intellectual property to be implemented by  the Republic of the Union of Myanmar in 
accordance with this Law; and 5) to contribute to the protection and promotion of 
traditional cultural expressions and folklore. The right holder who has sufficient grounds for suspecting that the importation of alleged pirated copyright goods into the territory of Myanmar is taking place or has taken place, 
may submit a written request for the suspension to the Customs authority. Customs may 
issue suspension order that the importation of alleged pirated copyright goods into the 
territory of Myanmar. Infringements of righ ts of Copyright are enforced by Civil and 
Criminal Procedure. The Intellectual Property  Court established by the Supreme Court of 
the Union or any other Court competent to adjudicate cases arising from this Law shall have the authority to order prompt and effective provisional measures on the enforcement 
of infringement of IPRs. Offences and penalties related to copyright  shall be punished with 
imprisonment for a term not exceeding 3 years or with fine or with both in respect of initial offences and longer imprisonment terms in instances of subsequent conviction.   WT/TPR/M/293/Add.1 
 
- 35 - 
 
  Page 52, para 3.103-5, Illegal imports, EU Q37:  
Customs are reported as responsible for detecting illegal imports of IPR related goods. The Secretariat notes that data are not available on enforcement of IPR protection. What steps 
does Myanmar take/considers adopting to improve the situation in terms of enforcement?  
Is the Government considering harmonising IPR laws and the Customs Act taking into 
account that certain legal framework in this area is already embodied in the Sea Customs?  
Answer:   
Myanmar will take the drafting Registration against IP infringement as the first step to improve the situation in terms of enforcemen t on IPR protection. Then, the enforcement 
will be implemented according to the following outline: 
(1) Administrative Enforcement: 
(a) IP office, Ministry of Science and Technology: To administer IP rights in Myanmar, a national IP Office will be established under one Ministry and it will be 
responsible for all operations related to IP. As Ministry for IP, currently, an IP Section 
under MOST will be submitted the proposed IP Office Organization to parliament together with the IP legislations. The IP office will conduct various activities to prevent 
and suppress infringement upon IPRs in coop eration with the police, other government 
agencies and right holders. (b) The Custom department: Customs seizes goods infringing on IPRs, as per Part III, Section 4 of TRIPS Agreement. The provis ions in our draft IP Laws and existing 
Laws allow Customs to provide an effective and efficient level of IPR protection and 
enforcement at its borders. These provisions  are included in the following laws: Draft 
Trademark Law; Draft Copyright Law; Sea Customs Act; Land Customs Act; Specific 
Relief Act. To protect a right holder from importation/exportation of goods infringing 
on its IPRs, the right holder, or in some cases an authorized person, must submit a written request for the suspension of release to the Customs authority. 
(2) Judicial Enforcement (Civil): 
(a) The Court: IP Court means IP Court established by the Supreme Court of the Union or any other Court competent to adjudicate cases arising from this law. The Court has the power to adjudicate both civil and criminal cases regarding IP. The Court 
was established by the Act of Judiciary Law, 2010. 
(b) Primary proceedings regarding civil remedies: Payment of damages and injunctions will be the primary remedies against the infringement of IPRs. Before the 
plaintiff files a lawsuit seeking a remedy, he can file a request for a tentative 
injunction, under section 80 of draft Trademark Law that are established according to section 50(1)(a) of the TRIPs Agreement. 
(3) Judicial Enforcement (Criminal): 
(a) IP Court: Means IP Court established by the Supreme Court of the Union or any other Court competent to adjudicate cases arising from this law. The Court has the power to adjudicate both civil and criminal cases regarding IP. The Court was 
established by the Act of Judiciary Law, 2010. 
(b) Investigation Authorities: The Police Department is under the Ministry of Home Affair in Myanmar. The organization of prosecutors in Myanmar is under the Union 
Attorney General Office and is comprised of  township level, district level and State 
level. Moreover, there are many tasks planned to be done to improve enforcement in 
Myanmar including: education people regarding IP related issues; training of officials 
from Customs, judge and police department; conducting other seminars, workshops and meeting relating to IPR enforcement; learning IPR enforcement systems of other countries; and setting up a plan to improve Myanmar's enforcement system. The 
Government is also considering harmonizing IPR Laws and Customs Acts, such as the 
Sea Custom Act and the Land Custom Act.  
Page 52, para 3.105, Counterfeit, USA Q12:  
The Secretariat's report states that law enfo rcement has the authority to detain and seize 
imports and exports of goods bearing counterfeit trademarks. 
Q12A:  Please describe the processes and procedures involved with such enforcement 
actions and provide examples of recent enforcement actions.  WT/TPR/M/293/Add.1 
 
- 36 - 
 
  Answer: 
The Ministry of Science and Technology is the WIPO focal point for IP matters. Under the current enforcement rules, civil action can be taken by demanding perpetual injunction and the criminal action can also be used under the Penal Code, Sections 478 to 489. 
 
Q12B:  Do authorities have similar authority to seize imports and exports of pirated goods? 
 
Answer: 
Myanmar Customs is implementing the Sea Customs Act of which Section 18(d) is dealing counterfeit trademark and false trade description. Myanmar Customs do not allow imports and exports of goods bearing counterfeit trad emarks and without trademarks goods. When 
goods with counterfeit trademarks or withou t trademarks are found, Customs detain and 
seize them. The National Police is also author ized to seize imports and exports of pirated 
goods. 
The Ministry of Science and Technology is the WIPO focal point for IP matters. Under the 
current enforcement rules, civil action can be taken by demanding perpetual injunction and the criminal action can also be used under the Penal Code, Sections 478 to 489.  
 
Q12C:  Is there a process for a trademark or copyright owner to request such action from 
border enforcement authorities (commonly known as an application for action), and if so, please describe it. 
 
Answer: In the proposed Copyright and Trademarks Laws, the right holder who has sufficient 
grounds for suspecting that the importation of pirated goods into the territory of Myanmar 
is taking place or has taken place, may submit a written request for the suspension to the Customs authority. 
 
Q12D:  The report further states that persons invo lved in any such offence are liable to pay 
a fine. Are there other penalties including criminal penalties associated with such enforcement actions? Please provides examples if any. 
 
Answer: Myanmar Customs is implementing the Sea Customs Act of which Section 18(d) is dealing 
counterfeit trademark and false trade description. Myanmar Customs do not allow imports 
and exports of goods bearing counterfeit trad emarks and without trademarks goods. When 
goods with counterfeit trademarks or withou t trademarks are found, Customs detain and 
seize them. The National Police is also author ized to seize imports and exports of pirated 
goods. The Ministry of Science and Technology is the WIPO focal point for IP matters. Under the current enforcement rules, civil action can be taken by demanding perpetual injunction and 
the criminal action can also be used under the Penal Code, Sections 478 to 489.  
 
Chapter 4. Trade Policies by Sector 
 
Page 53, para 4.3, Agricultural programs, Canada Q3:  
Could Myanmar give more information on the types of measures carried out by the 
Government to achieve these policy objectives, more specifically those related to 
maintaining a positive annual growth rate of value-added for agriculture?  Answer:   
The Government intends to carry out to achieve agricultural policy objectives according to 
following measures: To Increase the use of high-yield variety (HYV ) and high-quality seeds: 1) dedicate more 
of MOAI's registered and certified seed production to high-quality varieties, such as 
Pawsan and Immayebaw, as a critical source of quality seed supply to the rice farmers; 2) Invest in best-practice infrastructure at MOAI's seed farms, including irrigation, 
drainage, and the segregation of nursery land from normal farm land; 3) Use 
public-private partnerships as another means of setting up companies to supply quality seed, matching private best practices and public development goals; 4) Switch seed varieties through campaigns to raise farmers' awareness of the yield- labour and price-
related advantages of better seed varieties; 5) Expand MOAI's seed distribution network WT/TPR/M/293/Add.1 
 
- 37 - 
 
  by engaging farmers in each village to produc e certified seeds in all regions; 6) Conduct 
investment promotion activities, particularly investor outreach to attract foreign seed companies to establish sales offices and manufacturing plants in Myanmar, as a way of increasing supply of the quality seeds, quality fertilizer, pesticide, and insecticide available 
to farmers; and 7) Attract foreign manufacturers of farm machinery to establish sales 
offices and manufacturing plants in Myanmar. To Increase production and use of fertilizer and pesticide: 1) Conduct awareness-raising 
campaigns among farmers for the types, benefits, procurement channels, and proper 
application of fertilizers and pesticides; and 2) Invite joint ventures in the fertilizer production. To Increase farm mechanization: 1) Open training centres for mechanized farming across 
the major rice-producing regions; 2) Set up Mechanized Farming Service Stations to 
support mechanization across the major rice-producing regions; and 3) Attract foreign manufacturers of farm machinery. 
To Expand and upgrade infrastructure for irrigation, drainage, and electricity in producing 
regions: 1) Conduct feasibility study to determine irrigation needs and options for major producing areas, including irrigation types, technologies, and costs; 2) Mitigate harmful 
flooding by (i) repairing drainage pipes severed by new roads and (2) implement policy of 
preserving drainage systems when laying new roads; and 3) Engage with MOEP and the World Bank-led project to devise a national electrification strategy. Prioritize electrification of the producing areas of Ayeyarwady, Yangon, and Bago Divisions, which account for 83% 
of rice production, as a way of facilitating farm mechanization, drying, and milling without 
relying on costly generators. To develop new markets and new higher value-added rice products: 1) Provide sector with 
market research (price, quality standards, etc.) on regional markets for high-quality; 
2) Facilitate market entry for inexperienced processors and exporters by sharing the costs 
of innovation through a public-private centre  for the design, research, and development of 
rice products; 3) Invest in training and equipment for greater R&D capacity at MOAI and 
state agricultural institutes to support processors in the production of higher value-added and more innovative products; and 4) Invest in training and resources for greater capacity at MOAI to provide the sector with internationally recognized organic certification. 
 
Pages 54-55, para 4.11 & 4.14, Rice, Canada Q4-6:  
Q4: Could Myanmar elaborate on the mechanism whereby the National Rice Reserves 
Supervisory Committee purchases rice, such as how the purchase price is determined and 
factors used to determine the volume of purchases?  
Answer: 
The main objective of the Rice Reserved Supervisory Committee is to maintain the stability of domestic rice price and to release rice at the time of emergency in the states/regions. The Rice Reserved Supervisory Committee sets up the bidding rules and regulations and 
determines the region where rice will be purchased, and the price and volume to be 
purchased by region. The Committee considers the lowest purchase price based on production cost of farmers, and upon considerat ion of this price, bidding floor price is set 
as the purchase price. The volume of reserved  rice to be purchased is considered upon 
yield and market price of local and neighbouring countries. At the present, The Committee does not authorized import or export transaction of rice. 
 
Q5: Are these purchased stocks sold to consumers at market prices or is there a 
government subsidy to consumers? Answer: 
Reserved rice is sold to the population in disaster area at the purchase price plus overhead 
cost. In order to prevent the deterioration of rice in stocks, there is a need to rotate the quantity in the stocks, this is performed by selling and buying on the basis of "fifo" stock 
management method, i.e. first in first out. Th ese transactions are performed at prevailing 
market price condition.  
Q6: At what price are these purchased stocks exported?  
Does the National Rice Reserves Supervisory Committee export its surpluses?  WT/TPR/M/293/Add.1 
 
- 38 - 
 
  Answer: 
Rice Reserves Supervisory Committee has never considered disposing rice surplus on the export market.  
Page 55, para 4.16, Agriculture support, Canada Q7:  
Could Myanmar provide further details regarding research and extension services being made available to producers, including specific programs and their respective policy 
objectives, and the average yearly levels of funding attributed to them? 
 Answer: According to the data in 2002, Myanmar had only 619 full time researchers and spent 
US$8 million on agricultural research activities. Ministry of Agriculture and Irrigation 
(MOAI) allocated less than 1% of its total budget to research and education purpose until 2006-07, or approximately US$131 million. It increased to 1.36% in 2007-08, but 
10 years average budget allocation for researches and education is still less than 1% from 
2001-10. Yezin Agricultural University (YAU) which is under the admi nistration of MOAI 
gives sound weight on academic researches and course works. The role of Yezin 
Agriculture University (YAU) in research and extension is to deliver research-based 
knowledge to the students who will become  professional in agriculture, and rural 
development. All final year students and graduate students involve in current research activities and many faculties also involve in doing researches which are being funded by 
the government or by the international organizations such as ACAIR, JICA or by the local 
NGOs or by their own budget. YAU conducts laboratory to form approach for the most efficient applied researches. Annual total budget increase is 86% from 2005-06 to 
2013-14. Budget allocation for research expenditure was less than 1% annually until 
2011-12. However, the research expenditure shared 3.5% of total budget in 2012-13.  
Pages 56 & 43, para 4.23 & 3.52, Log export, Japan Q6:  
Please explain how the log export prohibition, starting from 1 April 2014 with a view to encouraging domestic small and medium-siz ed manufactures of wood-based products, 
conforms to the WTO rules (especially GATT article 11). 
 
Answer:  While the TPRM "is not intended to serve as a basis for the enforcement of specific 
obligations" under the WTO agreements, the GOM is nonetheless glad to clarify the 
rationale for this ban on exports of round logs. The main purpose of this export ban is to preserve Myanmar's rapidly dwindling forests. In particular, teak forests that covered 
about half of the country in 2005 now occupy le ss than a quarter of it, and[, according to 
the Environmental Investigation Agency (EIA),] will virtually disappear within the next 
decade if logging continues at its current pace. Indeed, Myanmar is currently the only country without such an export ban (which is arguable more transparent than a prohibitive 
export tax) on virgin teak. Although this export ban may not be the best way to achieve 
this objective, given the urgency of preserving Myanmar's remaining forests, it is a measure that the GOM can implement relatively easily and quickly with a view to 
eventually evaluating its effectiveness (compared to an export tax, for example) in 
achieving this objective. The ultimate aim i s  t o  d e s i g n  a  f o r e s t r y  m a n a g e m e n t  a n d  
resource tax system that harvests Myanmar's remaining forests in a sustainable way, 
hopefully with the help of international expertise.  
It is true that the ban, like the 50% export ta x it will replace, could also assist domestic 
small and medium manufacturers of wood-based products, and thereby develop a sustainable and competitive hardwood timber export industry in the near future. After all, 
Myanmar's teak processing ("milling") indust ry, for example, has been declining rapidly 
from 37% of production in 1995-96 to a mere 4% in 2005-06, while exports increased from 49% to 90% during the same period.  
 
Page 59, para 4.41, Energy laws, Singapore Q4:  
Singapore notes that Myanmar's main laws and regulations governing petroleum and 
natural gas include the Petroleum Act 1934, the Petroleum Rules 1937, the Oilfields Act 
1918, the Oilfield Rules 1936, the Essential Supplies and Services Act 1947, the Oilfields (Labour and Welfare) Act 1951, the Petroleum Resources (Development Regulation) Act 1957, the Law Amending the Petroleum Resources (Development Regulation) Act 1969, 
and the Myanmar Petroleum Concession Rules 1962. In accordance with the State-owned WT/TPR/M/293/Add.1 
 
- 39 - 
 
  Enterprise Law, the Government has the sole right to carry out exploration, extraction, and 
sale of petroleum and natural gas, and production thereof. We would appreciate it if Myanmar could share if it is considering updating the existing laws and regulatory frameworks to manage the increased explorat ion activities and the development of its 
energy infrastructure. 
 Answer: 
The Ministry of Energy is updating the ex isting Laws, Rules, Acts, etc. The Myanmar 
Petroleum Act 1934 has already been drafted, for the time being it's under process to submit the parliament. Moreover, the Petroleum Rules 1937; the Petroleum Resources (Development Regulation) 
Act 1957 and the Law Amending the Petroleum Resources (Development Regulation) Act 
1969 are still drafting. The Oilfields Act 1918 and the Oilfields Rules 1918 are starting to amend in line with the existing situation. 
The essential Supplies and Services Act 1947 has already been enacted by Parliament in 
2012. After that, the Ministry of Energy will co ntinue to update the Oilfields (Labour and 
Welfare) Act 1951 and the Myanmar Petroleum Concession Rules 1962. 
 
Page 60, para 4.50, FDI power, Chinese Taipei Q4:  
Myanmar allows foreign investors to invest in power generation, subject to the conditions and procedures established by the Government. We would like to know the differences in 
the approval procedures and conditions between those applied to foreign investors and 
those to domestic private investors, as well as the causes of these differences. To our understanding, administrative procedures re quired to complete foreign investment 
application seem to be too complicated. Is there any possibility of simplification in the 
future?  
Answer: 
There are no differences in the approval procedures and conditions between foreign investors and domestic private investors. Future plan is related to Ministry of Electric Power.  
Upon reviewing the existing procedures, the more easy way to follow the procedures may 
be revised in future if necessary.   
Page 61, para 4.60, FDI approval, Thailand Q7:  
"Under the Foreign Investment Law 2012, FD I is restricted in "manufacturing and 
marketing of most food products, any kinds of spirits or beer, drinking water, plastics, 
rubber, leather, paper, certain chemical products and raw materials for medicines and 
pharmaceuticals". Prior approval is required for FDI in production/distribution of soft drinks, mineral water, and beer. FDI is allowed only in the form of joint ventures in: the production/distribution of certain foodstu ff (biscuits, noodles, chocolates); and the 
production of paper, pharmaceuticals, plas tic, and packaging. FDI is not allowed in: 
production of traditional food; manufacture of religious materials and equipment; manufacture of traditional and cultural materials and equipment; manufacture based on 
handicrafts; and manufacture of traditional medicines." We would appreciate if Myanmar 
could explain the reasons behind the restriction on FDI under the Foreign Investment Law 2012 in the sectors indicated under the paragraph.  
Why are particular sectors subject to prior a pproval and others subject to the requirement 
of investment to be formed  only as joint ventures? 
 Answer: 
The main reason is to protect our traditions, our environment and our indigenous people. 
Depending the types of business and Ministries concerned, prior approval is required and 
F D I  m u s t  b e  i n  t h e  f o r m  o f  j o i n t  v e n t u r e s .  I n  a  t r a n s i t i o n  e c o n o m y ,  i t  i s  n e c e s s a r y  t o  
nurture infant industries and to give time to small enterprises to improve their productivity 
so that they can eventually compete with larger domestic and foreign enterprises. 
 
Page 62, para 4.71, Services, China - Q-16 - 17:  
Q16:  Does the Government of Myanmar have any plan to further open its service sector to 
allow deepened involvement of private sector s and foreign enterprises in the development 
of Myanmar's economy? 
 WT/TPR/M/293/Add.1 
 
- 40 - 
 
  Answer: 
Myanmar is willing to expand its list of commitments pertaining to those service sectors covered by the GATS, provided mutually satisf actory results can be achieved in the DDA 
negotiations.  
 
Q17:  If any, please elaborate on policy considerations contained in the plan and its 
proposed timetable for implementation. 
 
Answer:  
Myanmar is willing to expand its list of commitments pertaining to those service sectors covered by the GATS, provided mutually satisf actory results can be achieved in the DDA 
negotiations.  
 
Page 63, para 4.73, GATS adjustment, ASEAN Q2:  
The report indicates that Myanmar made spec ific commitments in two out of 12 major 
sectors in its GATS schedule in 1994. Does Myanmar have a plan to expand the list of its specific commitments?  
If so, what will be such sectors? 
 Answer: Myanmar is willing to expand its list of commitments pertaining to those service sectors 
covered by the GATS, provided mutually satisf actory results can be achieved in the DDA 
negotiations.  
 
Page 63, para 4.74, Foreign bank services, Japan Q7:  
According to paragraph 4.74., there are very few foreign-owned financial services providers. We would like to know how many foreign-owned financial services providers are 
operating in each sector of banking, finance, and insurance in Myanmar. 
 Answer: At the present time, there is no bank, fina nce and insurance company owned by foreign 
institutions in the financial sector of Myanmar. But there are five foreign-owned micro 
finance companies among 189 microfinance companies and institutions. Among these microfinance companies and institutions, there are 84 local companies, 
5 foreign-owned companies, 75 cooperatives, 19 Non-government Organizations (NGO, 
i.e. owned and organized by local people) and 6 International Non-government 
Organizations (INGO, i.e. owned and organized by International Organizations, e.g. PACT, 
GRET). As these institutions and companies have different objectives and are also 
registered with the various Ministries and Departments, the structure of microfinance sector is quite complex. Anyway, the Microfinance Law was adopted in November 2011 and then allows local and foreign investors as well as other institutions to establish 
microfinance institutions legally.  
 
Page 63, para 4.74, State owned banks, Japan Q8:  
According to paragraph 4.79., regulatory regime is the same for state-owned banks and 
private banks. With regard to this statement, Japan would like to seek the clarification whether state-owned banks would have advantages over private banks. 
 
Answer: Although the state-owned banks and the privat e banks are on the equal terms, there are 
some advantages of state-owned banks over private banks such as the banking 
experience, numbers of correspondent banks, experienced staff. In addition, state-owned 
banks are not complying with some prudential measures such as the accumulation of foreign currency more than the appropriate position limit due to their base capital. 
However, the Central Bank has become an independent entity since the new Central Bank 
Law was enacted on 11th July 2013, and in addition, the new Financial Institutions Law will be promulgated during this year, and thus th e banks will be regulated and supervised by 
the Central Bank on an equal footing. 
 
Pages 63-64, paras 4.76 & 4.85, FDI in banks, New Zealand Q8:  
What does Myanmar consider to be the key challenges facing its domestic banking sector 
and the process towards further liberalisation in this sector? WT/TPR/M/293/Add.1 
 
- 41 - 
 
  Answer: 
Although there are a lot of exertions to mo dernize and liberalize the banking service in 
Myanmar, there also has inadequate harmonization among all stakeholders. In addition, most of Myanmar people did not have sufficient confidence in the banking system because 
some people regarded that the service in the banking sector were both inefficient and 
corrupt. It was because some customers of private commercial banks experienced a lot of trouble with the liquidity crisis in the banking sector in 2003.  
Therefore, it is essential for the Central of Myanmar to build the relationship based on trust 
and understanding among the banking system an d the people of Myanmar. To this end, 
the capacity and efficiency of the banking service have to be enhanced; moreover the 
banking sector has to facilitate the customers quick and easy access to the required 
service; all stakeholders in the banking sector  must have expertise in banking, affability 
and enthusiasm for the development of the banking service.  
Page 64, Table 4.1, State owned banks, Japan Q9:  
According to Table 4.1, the total assets of State-owned banks between 2012 and 2013 
increased dramatically. We would like to know the background of this. 
 
Answer: Previously, the foreign currency assets of the State-owned banks were converted into Kyat (MMK) with the SDR-pegged rate, i.e. 1 US$ = 6 MMK, for valuation. However, the 
Managed-float Exchange Rate regime was adopted on 1 April 2012 and thus the average 
Central Bank's Reference Rate in FY 2012/13 reached to 1 US$ = 856 MMK which has also been used as the exchange rate for valuation. That different exchange rate for valuation 
contributed to the surge of the State-owned banks' assets. 
 
Page 64, para 4.85, Foreign banks, Hong Kong, China Q1:  
We note that the CBM intends to develop the banking sector in three phases. We are 
interested to know the latest development of this initiative. Has the CBM made any decision or plan on this initiative? If so, what are the details of this initiative?  
Answer: 
According to the banking sector development master plan and foreign banks entry plan, 
the establishment of foreign banks inside the domestic banking sector will be allowed by 
the CBM by the end of this year (2014).  
The model and format among three categories: joint venture, subsidiary and full branch 
has not been clearly decided yet by the CBM as there still needs to make sure that the 
forthcoming model or models are to comply with the existing laws. The Financial 
Institutions of Myanmar Law stipulates that the financial institutions can be established as a financial institution with foreign capital or as a branch of a foreign bank. However, that Law did not mention the joint venture model or equity participation of foreign banks in the 
domestic banks. On the whole, the Banking and Financial Institutions Law (new) has 
already been drafted by the CBM with the TA of  the World Bank and to be submitted to the 
Parliament in the near future. Hopefully, this new law will be promulgated during this year 
and provide room for any model of foreign banks entry, and thus the entry of foreign 
banks can be commenced by the end of this year (2014).  
Page 64, para 4.85, Master plan & foreign banks, Australia Q9:  
Q9A:  Can the Government of Myanmar provide more information on its master plan for 
the development of the financial sector and the re-write of the Financial Institutions of Myanmar Law Chapter? What is the expected timeframe for completion? 
 
Answer: According to the banking sector development master plan and foreign banks entry plan, 
the establishment of foreign banks inside the domestic banking sector will be allowed by 
the CBM by the end of this year (2014).  The model and format among three categories: joint venture, subsidiary and full branch 
has not been clearly decided yet by the CBM as there still needs to make sure that the 
forthcoming model or models are to comply with the existing laws. The Financial Institutions of Myanmar Law stipulates that the financial institutions can be established as a financial institution with foreign capital or as a branch of a foreign bank. 
However, that Law did not mention the joint venture model or equity participation of WT/TPR/M/293/Add.1 
 
- 42 - 
 
  foreign banks in the domestic banks. On the whole, the Banking and Financial Institutions 
Law (new) has already been drafted by the CBM with the TA of the World Bank and to be 
submitted to the Parliament in the near future. Hopefully, this new law will be promulgated during this year and provide room for any model of foreign banks entry, and thus the entry 
of foreign banks can be commenced by the end of this year (2014). 
 Q9B:  What are the Government of Myanmar views on the net effect to date of increased 
investment flows on economic development and growth? 
 Answer: Whereas inward FDI amounted US$1.4 billion in FY 2012/13, during the first 11 months of 
FY 2013/14 (beginning on 1 April) it more than doubled to reach US$3.6 billion (of which 
roughly half flowed into manufacturing and 20% into the telecommunications sector). Real GDP growth has accelerated from 5.1% in fisca l year (FY) 2009/10 (year ending March) to 
an estimated 6.4% in FY 2012/13 and 6.8% in FY 2013/14. 
 Q9C:  Can the Government of Myanmar provide more details on its plan to develop the 
banking sector in three phrases? What are some  of the practical examples of that plan's 
implementation?  Answer: 
According to the banking sector development master plan and foreign banks entry plan, 
the establishment of foreign banks inside the domestic banking sector will be allowed by the CBM by the end of this year (2014).  
Although there are three models or formats: joint venture, subsidiary and full branch, the 
Central Bank of Myanmar still needs to make sure that the forthcoming model or models are to comply with the existing laws. The Financial Institutions of Myanmar Law stipulates 
that the financial institutions can be established as a financial institution with foreign 
capital or as a branch of a foreign bank. In addition, that Law does not mention the joint venture model or equity participation of foreign banks in the domestic banks and so do the Myanmar Company Act. Therefore, other two models rather than joint venture or equity 
participation will be allowed at the present time according to the Laws. Hopefully, the entry 
of foreign banks will be commenced by the end of this year (2014) in accordance with the 
provisions of the existing laws. On the other hand, the Banking and Financial Institutions 
Law (new) has already been drafted by the CBM with the TA of the World Bank and to be 
submitted to the Parliament in the near future  and will be promulgated during this year 
and could provide room for any model of foreign banks entry. 
 
Q9D:  How many new licences will be granted to foreign banks wanting to establish either 
wholly owned locally incorporated subsidiaries or open direct branches?  
Answer: 
As things stand, the CBM has determined the models for the participation of foreign banks in the domestic banking sector and been co nsidering the application procedure and the 
number of new licences to be granted to foreign banks. 
  
Page 64, para 4.85, Mast er plan, Japan Q10:  
According to 4.85., the CBM intends to develop the banking sector in three phases. We would like to know what the expected timeline for the transition from one phase to another is. 
Answer: 
According to the banking sector development master plan and foreign banks entry plan, 
the establishment of foreign banks inside the domestic banking sector will be allowed by the CBM by the end of this year (2014).  
Although there are three models or formats: joint venture, subsidiary and full branch, the 
Central Bank of Myanmar still needs to make sure that the forthcoming model or models are to comply with the existing laws. The Financial Institutions of Myanmar Law stipulates 
that the financial institutions can be established as a financial institution with foreign 
capital or as a branch of a foreign bank. In addition, that Law does not mention the joint venture model or equity participation of foreign banks in the domestic banks and so do the WT/TPR/M/293/Add.1 
 
- 43 - 
 
  Myanmar Company Act. Therefore, other two models rather than joint venture or equity 
participation will be allowed at the present time according to the Laws. Hopefully, the entry of foreign banks will be commenced by the end of this year (2014) in accordance with the 
provisions of the existing laws. On the other hand, the Banking and Financial Institutions 
Law (new) has already been drafted by the CBM with the TA of the World Bank and to be 
submitted to the Parliament in the near future  and will be promulgated during this year 
and could provide room for any model of foreign banks entry. 
As things stand, the CBM has determined the models for the participation of foreign banks 
in the domestic banking sector and been co nsidering the application procedure and the 
number of new licences to be granted to foreign banks. When it comes to the commencement of the stock exchange, the most crucial item i.e. 
legal framework has been adopted. The Securities Exchange Law was enacted on 
31
st July 2013 and provides the concrete measures, procedure and practices of a typical 
stock exchange. On the other hand, the Daiwa Institute of Research Ltd. with the 
cooperation of Tokyo Stock Exchange Group has supported the necessary TA and IT 
infrastructure to develop a full-fledged securities market. As things stand, the 
transformation of private companies (family bu sinesses) to the public listed companies, 
knowledge sharing activities and developing the IT infrastructure for settlement have been 
already kick started. All things being equal, a new securities market will be inaugurated by 
the end of 2015.  
Page 64, para 4.85, Foreign ba nks & Stock market, EU Q38:  
What is the estimated timeline for the start of the entry of foreign banks in Myanmar?  Is it correct to understand that Myanmar envisage a sequencing of the opening up or 
would it give investors a choice on which model to choose (subsidiary, joint venture, or 
direct branching)?  Can the authorities inform about any possible set-up of the Stock Market? 
 
Answer: According to the banking sector development master plan and foreign banks entry plan, 
the establishment of foreign banks inside the domestic banking sector will be allowed by 
the CBM by the end of this year (2014).  
Although there are three models or formats: joint venture, subsidiary and full branch, the Central Bank of Myanmar still needs to make sure that the forthcoming model or models 
are to comply with the existing laws. The Financial Institutions of Myanmar Law stipulates 
that the financial institutions can be established as a financial institution with foreign capital or as a branch of a foreign bank. In addition, that Law does not mention the joint 
venture model or equity participation of foreign banks in the domestic banks and so do the 
Myanmar Company Act. Therefore, other two models rather than joint venture or equity participation will be allowed at the present time according to the Laws. Hopefully, the entry of foreign banks will be commenced by the end of this year (2014) in accordance with the 
provisions of the existing laws. On the other hand, the Banking and Financial Institutions 
Law (new) has already been drafted by the CBM with the TA of the World Bank and to be 
submitted to the Parliament in the near future  and will be promulgated during this year 
and could provide room for any model of foreign banks entry. 
As things stand, the CBM has determined the models for the participation of foreign banks in the domestic banking sector and been co nsidering the application procedure and the 
number of new licences to be granted to foreign banks. 
When it comes to the commencement of the stock exchange, the most crucial item i.e. legal framework has been adopted. The Securities Exchange Law was enacted on 31
st July 2013 and provides the concrete measures, procedure and practices of a typical 
stock exchange. On the other hand, the Daiwa Institute of Research Ltd. with the 
cooperation of Tokyo Stock Exchange Group has supported the necessary TA and IT infrastructure to develop a full-fledged securities market. As things stand, the 
transformation of private companies (family bu sinesses) to the public listed companies, 
knowledge sharing activities and developing the IT infrastructure for settlement have been already kick started. All things being equal, a new securities market will be inaugurated by 
the end of 2015.  
 
Page 65, para 4.93, Foreign insurance, Japan Q11: 
According to 4.93, currently the IBSB only accepts applications for insurance from 
domestic companies. We would like to know what the reason for this is and whether WT/TPR/M/293/Add.1 
 
- 44 - 
 
  Myanmar has any concrete plan for allowing investors from non-ASEAN countries to 
operate insurance business in Myanmar.  Answer:  
At present all domestic private insurance companies are still infant ones so they are not 
ready to compete with financially strong and well-experienced foreign insurance companies. As a result, IBSB needs to nurture them. When the domestic private insurance 
companies become mature to some extent, th e IBSB intends to allow foreign investors 
from not only ASEAN but also non-ASEAN countries to operate insurance business.  
Page 66, para 4.100, Telecom mobile, USA Q13:  
The Secretariat's report states, "Currently only the MPT is authorized to provide mobile 
services." However, in paragraph 4.105, it is noted that under the Foreign Investment Law of 2012, 100% foreign ownership is allowed in telecommunications services. According to 
the Government report, the Government awarded licenses to Telenor (Norway) and 
Ooredoo (Qatar) for mobile telephone operations in June 2013. The Secretariat report notes that authorities envision allowing two further licenses to international operators and 
another local operator for mobile services. 
 Q13A:  Please explain how Telenor and Ooredoo will be able to provide mobile services, if 
MPT is currently the only authorized provider. 
 
Answer: Upon acceptance of the license, Teleport Myanmar aims to launch services within eight 
months and Ooredoo Myanmar aims to launch services within six months to provide mobile 
communications services to people across Myanmar.  
Q13B:  When does the Government expect to issue licenses for two additional international 
mobile operators? Will they be permitted to have 100% foreign investment, or must they partner with MPT or 
another domestic telecommunications services provider? 
 
Answer: Ministry of Communications and Information Technology granted Nationwide 
Telecommunications Licence to Ooredoo Myanmar Limited on 30
th January 2014 and to 
Telenor Myanmar Limited on 5th February 2014 respectively.  
100% ownership of foreign company is allowed in telecommunications services. 
 
Page 66, para 4.101, Telecom Law, USA Q14:  
The Secretariat's report notes that a new Communications law is in the process of being drafted. However, it is our understanding that the telecommunications law has now been 
finalized. 
Q14A:  Is our understanding correct? Is the new law currently in effect? 
 
Answer: 
Yes. The Parliament enacted the Telecommunications Law on 8th October 2013, since then the law has been effected.  
 
Q14B:  Can you briefly describe the major changes that are being made pursuant to the 
new Communications law?  
Answer: 
The Telecommunications Law brings out Telecommunications Services that will be able to provide high quality and worthy services to the users by allowing fair and transparent 
competitions from domestic and abroad in the telecommunications sector which is 
developing.  
Q14C:  Does the new Communications law provide for a telecommunications regulator that 
will be independent of the Ministry of Communications and Information Technology (MCIT) and the Myanmar Posts and Telecommunication (MPT)?  WT/TPR/M/293/Add.1 
 
- 45 - 
 
  Answer: 
The Union Government shall establish the independent Myanmar Communications Commission within two years from the date of this Law comes into force, led by an appropriate person at the Union level in order to carry out the functions and duties 
contained in this law regarding Telecommunications Services. 
 
Page 67, para 4.105, Telecommuni cations services, EU Q39:  
The Secretariat report indicates that" 100% ownership is allowed in telecommunications 
services". Is there any foreign control restriction in the sector, such as special composition requirements of the board of directors, or the nation of dominance?  
Answer:  
100% ownership of foreign company is allowed in telecommunications services.  
Page 67, para 4.108 & 4.113, Foreign ai r carriers, Hong Kong, China Q2:  
We note that the Myanmar air transport authorities intend to reduce the foreign equity participation rate to less than 50%. As of July 2013, there was a civil aviation carrier in 
Myanmar with 67% foreign equity participation. What is the reason for reducing the 
foreign equity participation rate? Will the authorities consider granting exemption to the existing civil aviation carrier with 67% foreign equity participation? 
 
Answer: Myanmar's concerned authorities is going to set a limit of 49% on foreign equity 
participation in air carriers, so as to maintain substantial ownership and effective 
regulatory control of the air carriers in the Myanmar nationals' hand by maintaining the said air carriers' ownership and control. Myanmar could: 
- ensure regulatory oversight of its air carriers in terms of safety and security, as 
they are of paramount importance in civil aviation, 
- avoid the risk of losing its traffic rights because of its designated air carrier's 
foreign ownership, as most states still maintain the criteria of substantial 
ownership and effective regulatory contro l by nationals and/or the government. 
- prevent the potential emergence of "flags of convenience" 
- have stable operations which meet public interest requirements.  
The limitation mentioned above will be formally  adopted by the Ministry of Transport very 
soon.  
Page 68, para 4.120 & GR page 23, 6.14, Air services, Australia Q2:  
Will the Government of Myanmar allow foreign companies to provide the auxiliary air transport services, including ground handling? If so, what will be the process?  
Answer: 
According to the Notification (1/2013) issued by the Myanmar Investment Commission (MIC) in exercise of the powers conferred under the New Foreign Investment Law (2012), 
foreign entities will be allowed to provide (18) auxiliary air transport services in Myanmar 
under the specific conditions. If a foreign entity  wishes to provide one of those services, it 
will need to submit a proposal to the MIC thro ugh the Ministry of Transport. Please refer to 
the website posted by the Directorate of investment and Company Administration, 
www.dica.gov.mm, for more information.  
Page 69, para 4.130, Ports, Chinese Taipei Q5:  
There are 9 ports in Myanmar, all of which are permitted to engage in international trade. 
International trade throughput in these ports was 20.7 million tons in 2012, up 19% over 
2011. Could Myanmar please give further comparisons among these ports with regard to cargo throughput, primary contact ports and import and export products? 
 
Answer: 
Comparisons of International Trade by Ports, 2011 and 2012 
 
Sr Port Name 2011 2012  Growth Rate 
Import  
(M'Ton) Export 
(M'Ton) Total  
(M'Ton) Import  
(M'Ton) Export  
(M'Ton) Total  
(M'Ton) Import 
(M'Ton) Export 
(M'Ton) Total  
(M'Ton) 
1 Yangon 11708 5664 17372  13812  6862 20674  17% 21% 19%  
2 Sittwe 9 17 26 6 17 23 (-) 33% - (-) 11%  WT/TPR/M/293/Add.1 
 
- 46 - 
 
  Sr Port Name 2011 2012  Growth Rate 
Import  
(M'Ton) Export 
(M'Ton) Total  
(M'Ton) Import  
(M'Ton) Export  
(M'Ton) Total  
(M'Ton) Import 
(M'Ton) Export 
(M'Ton) Total  
(M'Ton) 
3 Kyauk Phyu 1 - 1 164  1 165 163% - 164%  
4 Thandwe - 11 11 - 6 6 - (-) 45% (-) 45%  
5 Mawlamyine 15 11 26 20  15 35 33% 36% 35%  
6 Dawei - - - 3 - 3 - - - 
7 Myei k 4 - 4 25  - 35 775% - 775%  
8 Kawthaung 35 161 196 43 937 980 22% 481% 400%  
 Total 137 1282 1419  142 1221  1363  3% (-) 4% (-)  3% 
 
Remarks : Among 9 ports, above mentioned 8 ports are operationalized. Exports 
Commodities are Petrol Oil & Lubricants (POL), Rice & Rice Products, Timber, 
Mineral and General Cargo imports Commodities are Petrol Oil & Lubricants (POL), General Cargo. 
 
Page 70, para 4.132, SEZ & Ports, Chinese Taipei Q6:  
Please give a brief explanation of the differences between the Myanmar Special Economic Zone Law and the Dawei Spec ial Economic Zone Law. 
 
Answer: The new Myanmar Special Economic Zone Law was enacted on 23rd January 2014. 
Myanmar currently has three SEZs - Kyauk Phyu SEZ, Dawei SEZ and Thilawa SEZ. The 
new Myanmar Special Economic Zone Law was enacted on 23rd January 2014. By enacting this law, the Dawei Special Economic Zone Law and Myanmar Special Economic Zone Law 
(2011) have been revoked. The new Myanmar Special Economic Zone Law is only law for 
SEZs in Myanmar.  The investor is entitled to the following income tax exemptions and reliefs: (a) for investment business in the free zone or the free zone business, there shall be 
income tax exemption for the first seven years from the commencement of the 
commercial operation; whereas for investment business in the promotion zone or other businesses in the boundary of the special economic zone, there shall be income tax 
exemption for the first five years from the date of commencement on commercial 
operation; 
(b) The investment business in the free zone and promotion zone shall be entitled to 50% 
relief on the income tax rate stipulated under the existing law for the following five 
years; 
(c) The investment business in the free zone and promotion zone shall be entitled to 50% 
relief of the income tax rate stipulated under  the existing law for the subsequent five 
years on the profit which is obtained from the business and reinvested within one year 
in the business after keeping it as a separate fund. 
The developer is entitled to the following income tax exemptions and reliefs: 
(a) income tax exemption for the first eight years from the commencement of the 
business operation; 
(b) 50% relief on the income tax rate stipulated under the existing law for the following 
five years and  
(c) 50% relief of the income tax rate stipulated under the existing law for the subsequent 
five years on the profit which is obtained from the business and reinvested within one year in the business after keeping it as a separate fund. 
 
Page 70, para 4.134, Maritime transport, Hong Kong, China Q3:  
Can you share with us the details of any initiative regarding private sector participation in 
the port reform? 
Are there any plans to encourage foreign participation? In addition, what are the criteria to select partners to form joint ventures? 
 
Answer: With regard to the such initiative for private sector participation in the port reform, Myanmar Port Authority (MPA) has invited local and foreign investors who were interested 
to newly develop port facilities and operate po rt business at Yangon and Thilawa port area 
depending on available water front land area and back-up area especially for international port by Build, Operate and Transfer-BOT sy stem and/or Joint Venture-JV system. MPA 
thoroughly evaluated and scrutinized proposed port development project proposal whether 
their proposal are basically met MPA requirements in term of investment amount, land WT/TPR/M/293/Add.1 
 
- 47 - 
 
  rental amount to be paid to MPA, past port operation experience, enhancement of more 
employment opportunities and so on. MPA selected most appropriated project proposal and submitted selected project proposal to Myanmar Investment Commission for granting and issuing of permit to be enjoy exemptions and reliefs from taxes in accordance with 
Myanmar Citizen Investment Law and Foreign Investment Law respectively. 
In some cases, local and foreign investors who were interested to newly develop port facilities and operate port business, are welc ome to propose for signing of Memorandum of 
Understanding-MOU with regard to conducting of feasibility study firstly, based on their 
interested such as development of deep sea port where potential areas are available.  In fact new Foreign Investment Law has already adopted in 2012. The new Foreign Investment Law (FIL) 2012 has been giving more incentives and attraction such as more 
tax holiday and longer land lease period compare to previous FIL for encouraging of 
foreign participation. The criteria and basic principles for selection of partners to form joint ventures are: 
1) acquisition of high and modern technolo gy; 2) causing to support for enabling to 
exchange the information and technology; 3) not affect the sovereign power and public security; 4) intellectual enhancement of citizen; and 5) amount of investment to be 
injected to the port business and profit sharing ratio to be payable. 
 
Page 70, para 4.139, Hotel permit, Hong Kong, China Q4:  
In order to operate a hotel business or logging-house business, hotel operators need to 
obtain licence from the Government. Licence is not transferable without the permission of 
the authorities. What are the requirements of hotel licence? Did the Myanmar authorities refer to any international practices or standards in 
formulating the requirements? 
How long does an application for a licence usually take?  
Answer: 
Myanmar enforced a range of minimum standard requirements for Hotel business. For example, hotel must contain at least 20 be drooms and each bedroom, bathroom and toilet 
must meet specified minimum size and ceiling height dimensions. Various security and fire 
prevention requirements must be met by ap plicants. In formulating its requirements, 
Myanmar has followed by good practices set by international and regional organizations, including those of the World Tourism Organization.  
A completely filled-up application together with necessary supporting documents, is 
typically dealt with in about one week from the date of its official receipt. More detailed information about the law, procedures and license application can be downloaded at 
following website: 
http:// www.myanmartourism.org/abouts/htlaw.htm. 
 
Page 70, para 4.139, Hotel permit, Canada Q8:  
Please explain the criteria used by the Ministry when reviewing applications for ministerial 
permission to operate a hotel business or lodging-house business.  
Answer: 
The main criteria considered by the Ministry of Hotel and Tourism when reviewing application for prior permission to make Hotel and lodging-house construction and 
renovation works are as follows: 1) Regional development; 2) Prospects of new 
employment opportunity; 3) Increase in indivi dual and family income; 4) Supporting and 
assisting State economy; 5) Cultural and environmental conservation; 6) Reference for the business and financial standing; and 7) The documents of company formation and others 
necessary documents.  
 
Page 70, para 4.139-41, Tourism, EU Q40:  
Are any environmental criteria taken into account before licenses are granted to hotel 
businesses, tour operators or tour guide businesses?  How does Myanmar envisage promoting sustainable tourism? 
 
Answer:   
Environmental conservation measures to be undertaken in the establishment of hotel businesses are already parts of the procedure. The promotion of sustainable tourism is an WT/TPR/M/293/Add.1 
 
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  integral element of Myanmar's tourism policy. More details about Myanmar's Responsible 
Tourism Policy can be downloaded at: http://www.tourismtransparency.org/news-a nd-reports/myanmars-new-responsible-
tourism-policy 
 
  
GOVERNMENT REPORT (G/293) 
 Chapter 1. Overview  
Pages 4 & 21, para 1.1 & 6.7, FESR, Philippines Q1:  
With respect to the Framework for Economic and Social Reforms (FESR), adopted in late 2012, could Myanmar provide additional or supplementary information on how these 
reform agendas intersect with the priorities of the ASEAN Economic Community? 
 Answer:  
Although Myanmar has highlighted 10 priorities in FESR as a quick win strategy, Chapter 9 
of FESR has set outline strategies for Myanmar to reposition herself in the international community through strategic engagements with neighbouring economies as well as the ASEAN Economic Community (AEC). Under the liberalization of trade and investment, it is 
clearly mentioned that the AEC targets and objectives for 2015 are an important driver of 
further reforms. In addition, it is identified in FESR that on e of the short and long-term goals are the full 
implementation of economic integration with ASEAN in accordance with its AEC 2015 
schedules. At the same time, FESR has stressed that the highest priority to working with other ASEAN 
countries is attached by government to achieve an integrated AEC by 2015. Similarly, it is 
mentioned that the remaining works like acro ss all of the pillars between now and 2015, 
including ensuring that already signed ASE AN-wide agreements are integrated into 
national laws and that there are no further delays in the implementation of specific 
initiatives. 
The government is committed to speeding up these processes ahead of Myanmar's 
chairmanship of ASEAN in 2014 and indeed the government's overall reform strategy and 
the measures outlined earlier in FESR will all be of great help in ensuring that Myanmar is 
able to meet its obligations according to the AEC timeframe. Moreover, it is clear stated that intensive work will be required across many different 
government ministries and agencies. To facilitate this work and ensure that it is completed 
on time, the Ministry of Foreign Affairs, Ministry of National Planning and Economic Development and Ministry of Culture have taken responsible with the coordination of the work required to meet the AEC targets and objectives. 
The government also recognizes and appreciates the flexibility granted to Myanmar and a 
number of other lower income ASEAN countries with respect to the timetable for implementation of some of the agreed measures and believes that this flexibility combined 
with the efforts under the initiative for ASEAN integration to provide specific support to 
Myanmar and other lower income ASEAN countri es will further enhance the benefits to 
Myanmar from the formation of the AEC. 
The above factors are strongly related to the reforms agenda and the priorities of ASEAN 
Economic Community.  
Chapter 3. Transparency and ot her institutional Developments 
 
Page 7, para 3.7, Website for laws & regs, Chinese Taipei Q7:  
Q7A:  Myanmar is gradually opening up and transparency really helps investors to 
understand the relevant laws and regulations of government policies. We appreciate 
Myanmar's efforts toward transparency. As described in paragraph 3.5, the Ministry has set up two websites (www.commerce.go v.mm and www.myanmartradenet.com.mm) 
where business people can obtain trade information. We would like to know if there are 
any other websites through which we can understand the various laws and regulations of Myanmar.  WT/TPR/M/293/Add.1 
 
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  Answer:  
All promulgated Laws are uploaded on the website of AGO. Laws enacted before 2012 can be available in both Myanmar and English Language. But, the law enacted after that period, it is only available in Myanmar Language. www.uago.gov.mm.  
However, regulations can be available in Myanmar Language which are uploaded on the 
website of the relevant Ministries.  
Q7B:  The Secretariat's report 2.12 (page 18) states that Myanmar is preparing other 
trade-related laws such as a competition law, a comprehensive IP law, a standardization law, a metrology law, a consumer protection law, an SME law and a telecommunications law. Does Myanmar have any future plans to establish a website of all the laws and 
regulations?  
Can we search this information in English so that all stakeholders can better understand the policies? 
 
Answer: As an ASEAN member country, according to the Article 13 of ATIGA, member has to 
establish National Trade Repository-NTR to li nk with ASEAN Trade Repository. When after 
the project has been carried out, all trade related laws, regulations and information will be available.  
Page 7 & 20, para 3.2/3.4/3.7 & 5.27, Upcoming laws, EU Q49-53:  
Q49:  Can the government inform on the roadmap for the adoption of upcoming laws and 
their state of preparation? 
 
Answer:  
The government informs the procedure of upcoming laws at the press conference and 
government newspapers from time to time. 
 Q50:  Can the government confirm that for all draft laws there is a framework ensuring 
consultations with relevant stakeholders, including foreign investors, and/or the public at 
large?  
If so, at which stage are the draft laws subject to such consultations? If not, for which sectors would this policy not apply and for what reasons? 
 
Answer:   
In the stage of draft law, it is confidential stage for government office. So, Ministry which 
carries out the draft law can consult their legal consultants. However, the Bill is pressed to 
public, in this stage foreign investors and stakeholders can review and consult upon that Bill.  
Q51:  Is there an obligation to publish implementing regulation and "procedural rules"? 
 Answer:   
Most of laws provide that to issue rules and regulations for implementation of the laws. 
Mostly it is mentioned in the miscellaneous of that law. The relevant Ministry is conferred power to issue the rules and regulations by th at law. Under the law, the Ministry shall 
obligate to publish regulation and procedural laws for the implementation of that law with 
the approval of Union Government.  Q52:  If relevant, can the authorities give all the references to access the draft laws that 
have been published? (in particular for the IP R area, for the new laws on land reform, the 
draft law on national standards, the new SEZ law, the future competition law and the future agency for competition, the law on public and private partnership that are 
mentioned in the Secretariat and the Government reports). 
 Answer:   
The authorities can give all the references to access the draft laws that have been 
published.  Q53:  What concrete measures does Myanmar intend to take to guarantee the 
independence and impartiality of the judiciary? 
 WT/TPR/M/293/Add.1 
 
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  Answer:    
The presence judicial system was adopted under the Union Judiciary Law, 2010 and the 
Constitution of the Union of Myanmar 2008. The Constitution of Myanmar provided the 
principles of separation of powers and independence of judiciary. In order to take 
guarantee the independence and impartiality of  judiciary, the Supreme Court of the Union 
has instructed that all levels of judges have to decide the cases without paying attention any interference and have to try all cases impartially according to law without fear or 
favour. In order to prevent corruption, actions against corruption are being taken strictly 
by the Supreme Court. Then, the Supreme Court of the Union is paying attention upon the 
ethics if the judges, judicial officers and court staffs by taking methods of reward and punishment and, supervision. 
 
Page 7, para 3.10, Extractive Industry  Transparency Init iative, EU Q54:  
Can the government provide an update on plans to apply to join the Extractive Industries 
Transparency Initiative, particularly on efforts to develop effective collaboration with civil 
society?  
Answer:  
Progress of Myanmar Extractive Industry Transparency Initiative (MEITI): 
 Multi Stakeholders Group (MSG) formation is finalized and ready to announce by 
Government Notification in March 2014; 
 MSC is composed of 6 representatives from Government, 9 representatives from 
Civil Society Organizations and 6 representatives from Private Sector- total 21 members;  
 1st MSG meeting was conducted at Naypyitaw on 8 February 2014; and 
 MSG TOR and work plan preparation is under the process of finalize the draft to 
2nd MSG meeting in first week of March. 
Process of MEITI implementation is creati ng enabling environment for all stakeholder 
engagement and CSO selected and nominated their representatives freely in their own. Focal person from MEITI coordinator office, support and participate with the events and meeting organized by CSO as awareness giving training, seminar and developing work 
plan and TOR in collaboration with different st akeholders from MSG representatives. In this 
aspect, throughout the process of MEITI implementation, it tries to build good relationship and mutual understanding among different st akeholders by improving coordination and 
working together to finalize the work plan and TOR including preparation for requirements 
for submitting application by the end of March 2014.  
Page 8, para 3.14, Appraisal Task Force, EU Q55:  
It is stated that "The Public Services Performance Appraisal Task Force gathered information from business groups, consumers and bureaucrats. Some 70 key business representatives were gathered for a day session on customs, commercial tax and other 
trade problems such as export and import lic ence. What are the main areas where the said 
Task Force has developed conclusions in particular on trade and investment issues which may impact on the Government's road map and priorities in the future?  
What are the recommendations from the said Task Force that the government has 
implemented or/and intends to implement?  
Answer:   
The GOM has established Task Force in order to  find out reasonable solutions and policy 
formulation stage by stage. For the first stage,  the Task Force prioritizes political reform 
area by soliciting public opinion and feedback  on service essential delivery. And then the 
Task Force explores in the area of social reform by ensuring effective and efficient delivery 
public services that generate tangible and concrete benefit to the citizen as the second stage. Finally, the Task Force goes to the area  of governance reform by facilitating public 
administrative restructuring and service reform. The Task Force is trying to support 
regional and international economic integration by stream-lining liberalization and reform measure to the international standard while achieving the rightful ranking of Myanmar in 
the international comparative indices. 
The recommendations from the Task Force that the Government has implemented or/and intends to implement are as follow: 1) To review trade and investment policies, rules and regulations; 2) To take action on public opinion and feedback; 3) To facilitate trade; 4) To 
liberalize matter related to bank transition and foreign investment; 5) To improve trade WT/TPR/M/293/Add.1 
 
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  procedures; 6) To coordinate among government agencies in order to be smooth flow of 
trade and capacity building activities; and 7) To support domestic procedure to be 
compatible with international practices. 
Page 9, para 3.19, BIMSTEC, Chinese Taipei Q8:  
Could Myanmar please indicate the goals of BIMSTEC and the concrete steps that have 
been taken by Myanmar and other BIMSTEC me mbers concerning the level of progress in 
areas such as preferential tariff, trade facilitation, investment and technical cooperation? 
 
Answer:  
BIMSTEC member countries agreed to establish the BIMSTEC Free Trade Area Framework Agreement in order to stimulate trade and investment in the parties, and attract outsiders to trade with and invest in BIMSTEC at a higher level. The Trade Negotiating Committee 
(TNC) was set up in September 2004 and its negotiation agenda covers trade in goods and 
services, investment, economic cooperation, as well as trade facilitations and also technical assistance for LDCs in BIMSTEC. It was agreed that once negotiation on trade in goods is 
completed, the TNC would then proceed with negotiation on trade in services and 
investment. Agreement on two MoAs and one MoU have been reached during the 16th BIMSTEC 
Summit held in Myanmar on 1st March 2014: the MoA on the establishment of the 
BIMSTEC Permanent of Secretariat; the MoA concerning establishment of BIMSTEC Centre for Weather and Climate; and the MoU on the BIMSTEC Cultural Industries Commission and BIMSTEC Cultural Industries Observatory. 
The TNC met for the last time in July 2012 and since then it has not been able to complete 
the Tariff Schedule Commitments. It is envisaged that the commitments on the Tariff Schedules will be discussed at its next meetin g that shall be held shortly. Regarding the 
BIMSTEC Services and Investment Agreemen ts, negations are slowly progressing.  
 
Page 9, para 3.19 & SR pages 18-19, para  2.3.2, Policy formulation, EU Q56:  
Do the authorities consider establishing a national inter-ministerial committee on trade 
policy formulation and implementation to ensure consistency across the many policy areas that are impacted by the international commitments taken by Myanmar in particular but not only in the WTO? 
 
Answer:   
Inter-ministerial coordination on trade policy and implementation issues in Myanmar is 
usually carried out on a project by project basis. The ongoing WTO TPR project has 
however demonstrated the necessity and usefulness of the inter-ministerial committee for dealing effectively with the multi-dimensional issues across a range of ministerial 
departments and related stakeholders. In the co ntext of the post-TPR project, the Ministry 
of Commerce intends to further its consideration about how best Myanmar's trade policy interests could be formulated effectively. As example of the project-based inter-ministerial coordination structure, there are the following:  
EIF National Steering Committee: In April 2013, Myanmar became one beneficiary country 
under the Enhanced Integrated Framework (EIF). The National Steering Committee has 
not yet been established. Decisions to that effect shall be done in the near future. 
WTO TPR Committee: Following the decision to  be reviewed under the WTO Trade Policy 
Review (TPR) exercise, an inter-ministerial committee was established and it is chaired by 
the Deputy Minister of the Ministry of Commerce. It is composed of 55 members 
representing both ministries and relevant private associations.  
ASEAN Coordination Committee: To coordinate ASEAN economic related implementation 
issues, a Committee has been established and chai red by Union Minister of the Ministry of 
National Planning and Economic Development. Main objective of the Committee is to fully 
participation to implementation of AEC Blue print targets and oversees a structure of 
15 working Committees each dealing with specific policy coordination issues. The Committee members are Deputy Ministers who are chaired of 15 Working Committees. The 
15 Working Committees are as follow: 
(1) Free Flow of Goods Working Committee 
(2) Free Flow of Services Working Committee 
(3) Free Flow of Investment Working Committee 
(4) Freer Flow of Capital Working Committee 
(5) Free Flow of Skilled Labour Working Committee WT/TPR/M/293/Add.1 
 
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  (6) Competition Policy Implementation Working Committee 
(7) Consumer Protection Working Committee 
(8) Intellectual Property Rights (IPRS) Implementation Working Committee 
(9) Infrastructure Development Working Committee 
(10)  Taxation Working Committee 
(11)  E-commerce Working Committee 
(12)  SMEs Development Working Committee 
(13)  Initiative of ASEAN Integration (IAI) Working Committee 
(14)  Integration into Global Economy Working Committee 
(15)  Statistics Working Committee 
The monthly coordinating meeting is regularly held and discussed respective outstanding 
issues. The meeting is also exchanged views and solved cross cutting issues. National Export Strategy (NES): The NES was established in 2013 and it is chaired by the 
Director-General from the Department of Trade Promotion of the Ministry of Commerce. It is composed of 13 core team members and 74 national strategy team members.  National Trade Facilitation Implementation Plan: In the context of WTO commitments, it is 
necessary to establish a National Committee on Trade Facilitation. In preparation for the 
WTO Bali Conference, representatives from rele vant ministries have met but the formal 
establishment of this coordination structure has not yet been finalized.  Foreign Aid Management Central Committee: This Committee chaired by the President was 
set up as a state body to manage aid coordination (as noted in the Secretariat Report, paragraph 6.6). The Foreign Economic Relations Department (FERD) of NPED serves as the secretariat for the Central Committee. 
 
Chapter 4. Recent Macro-Economic & Structural  Page 10, para 4.3, Exchange rate, Korea Q7: 
Myanmar's exchange rate system has made a remarkable change to be connected again to 
the world's financial system. Yet, many foreign banks have been slow to update their internal prohibitions on conducting businesses in Myanmar given the long history of its 
financial isolation. What is Myanmar's plan to solve such incongruity? 
 Answer: According to the banking sector development master plan and foreign banks entry plan, 
the establishment of foreign banks inside the domestic banking sector will be allowed by 
the CBM by the end of this year (2014).  Although there are three models or formats: joint venture, subsidiary and full branch, the 
Central Bank of Myanmar still needs to make sure that the forthcoming model or models 
are to comply with the existing laws. The Financial Institutions of Myanmar Law stipulates that the financial institutions can be established as a financial institution with foreign 
capital or as a branch of a foreign bank. In addition, that Law does not mention the joint 
venture model or equity participation of foreign banks in the domestic banks and so do the Myanmar Company Act. Therefore, other two models rather than joint venture or equity participation will be allowed at the present time according to the Laws. Hopefully, the entry 
of foreign banks will be commenced by the end of this year (2014) in accordance with the 
provisions of the existing laws. On the other hand, the Banking and Financial Institutions Law (new) has already been drafted by the CBM with the TA of the World Bank and to be 
submitted to the Parliament in the near future  and will be promulgated during this year 
and could provide room for any model of foreign banks entry. As things stand, the CBM has determined the models for the participation of foreign banks 
in the domestic banking sector and been co nsidering the application procedure and the 
number of new licences to be granted to foreign banks. 
 Page 10, para 4.3, Foreign exchange, China Q19:  
Please explain "the auction mechanism" and its way of operation. 
Please elaborate on the main contents of the new Foreign Exchange Management Law , its 
date of effect, as well as its impact on the international balance of payment and foreign 
reserves of Myanmar. 
 WT/TPR/M/293/Add.1 
 
- 53 - 
 
  Answer: 
The Central Bank of Myanmar has established the Foreign Exchange Auction Mechanism since 2 April 2012 just after switching to the Managed- float Exchange Rate Regime from the SDR pegged system on 1 April 2012. With  the aim to determine the daily CBM's 
reference rate and intervene when needed, the CBM conducts the FX auction, i.e. the 
auction of US$ in MMK (Kyat) every business day at 9 sharp. An auction team has been also organized with the participation of departments concerned from CBM namely: the 
Foreign Exchange Management Department, th e Monetary Policy Affairs Department, the 
Financial Market Department, the Payment and Settlement Department, the Information, Inspection and Survey Department and the Financial Institution Supervision Department.  These team members meet thirty minutes before the FX auction and discuss about the 
situation of the domestic market and the international market, the trend US$ of against 
the crucial foreign currencies and the role of the CBM whether to intervene or not. At the auction time, the team members open the sealed envelopes submitted by the ADs in which 
ADs present the bid/offer rate and the desired amount of US$ to purchase or/and sell. 
After compiling the data of the banks, the team members sort the bids in a list in 
descending order (highest bid price to lowest bid price), with bids to buy foreign exchange 
and bids to sell foreign exchange in separa te columns. The team then discusses on the 
exact level and volume of its own participation in the auction based on the findings of initial discussion, whether to buy or to sell US$; this will determine the cut-off price for the auction. And then the auction teams decides the cut-off rate and thus bids to buy US$ at 
or above the cut-off rate, or to sell foreign exchange at or below the cut-off price, are 
satisfied. This cut-off rate is announced to the public as the CBM's Reference Rate. Based on the CBM's reference rate, cross exchange rates of other 37 foreign currencies are 
described on the CBM's website at www.cbm.gov.mm. 
The main contents of the new Foreign Exchange Management Law are as follows: 
 Foreign exchange operations; 
 Holding of foreign currency and opening and using of a bank deposit account in 
 foreign currency;  International payment and transfer of Kyat; 
 Foreign exchange dealers and authorized dealers; 
 Bringing foreign currency and jewellery in or out of the country; 
 Payments and transfers for current transactions; 
 Payments and transfers for capital transactions; 
 Administrative of Central Bank; and 
 Prohibitions.  
As the new Foreign Exchange Management Law liberalizes the current transfers and 
payments, the current account deficit became inevitable. However, the overall balance as 
well as international reserves has remained po sitive due to other types of foreign exchange 
inflow.  
Page 13, para 4.21, Minimum wage, Chinese Taipei Q9:  
We would appreciate it if Myanmar could provide an update and details on its laws concerning regulatory minimum wages. In this regard, please kindly provide us with 
relevant information in English. 
 Answer: 
Minimum Wage Law has been enacted as Pyidaungsu Hluttaw Law No.7/2013 on 22 March 
and its Rules have also been issued by the Union Minister for the Ministry of Labour, Employment and Social Security on 12 July 2013. The following schedules have been laid down to prescribe the minimum wage for the workers: 1) Formation of the Committees to 
prescribe the minimum wage for the workers;  2) Holding the workshops and meetings, 
and conducting surveys relating to the facts which should be based in determining the minimum wage; 3) Collecting advices fo r the determination of minimum wage; 
4) Declaring the proposed rates of minimum wage; and 5) Publishing the notifications on 
minimum wage. As for the first schedule, Notification Co mmittee has been formed by President's 
notification, on 20 December 2013, in order to prescribe the minimum wage for the 
workers with representatives of the relevant Government departments and organizations, representatives of worker and employer, an d other persons who are expert in minimum 
wage prescribing matters in fair way. Union Territory Committees, Region Committees and 
States Committees comprising the representative of the Government department and WT/TPR/M/293/Add.1 
 
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  organizations, representatives of worker and employer and experts will also be formed 
during these months. As for the second schedule, the consultation workshops were conducted in Yangon, Mandalay, Sagaing and Bago Division with th e representative of workers and employer 
during the period from October 2013 to January 2014. 
The First Meeting of National Committee was also held on 16 January 2014 and the discussions were made for laying down the ways forward. Moreover, a workshop on 
concepts of minimum wage was held on 7 February 2014, to share the knowledge 
experience of ILO Regional Wage Specialist. In parallel, Myanmar Development Resource Institute (MDRI), in cooperation with International Labour Organization (ILO), has conducted the surveys to analyse the living wa ges, which should be based in determining 
the minimum wage, in Yangon, Mandalay and Ba go. In addition, the ILO has assigned the 
Myanmar Market Research Development (MMRD) to conduct surveys in the same areas to observe the full picture of garment sectors. 
Third schedule in collecting advices for the determination of minimum wage, fourth 
schedule in declaring the proposed rates of minimum wage, and fifth schedule in publishing the notifications on minimum wage will also be carried out accordingly during 
2014. 
Update of Minimum Wage Law can be found on the Ministry of Labour, Employment and Social Security website of http://www.mol. gov.mm/mm/wp-content/uploads/downloads/ 
2013/05/ MinimumWagesLawenacted.pdf. 
 
Page 13, para 4.21, Labour law, USA Q15:  
The report notes that the Ministry of Labour , Employment and Social Security drafted and 
presented to Parliament a law on Employment and Skill Development.  
Q15A:  What is the current status of the law?  
How long will it take for the process of appr oval and the final enacting of this law? 
 
Answer: The Employment and Skill Development Law is already enacted on 30th August 2013.  The objectives of this Law are to manage and maintain the facilities and measure to help 
for selection of employment, obtaining employment for employment seeker suitable 
according to his age, energy; persistency in employment and skill development, and to help employers for obtaining suitable wo rker. Update of Employment and Skill 
Development Law can be found on the Ministry of Lab our, Employment and Social 
Security website.  
Q15B:  In addition, the Ministry also has drafted a new Foreign Labour Law with the 
assistance of the ILO. What is the current status of this law? Is the government open to consultations with other international stakeholders in developing the law? 
 
Answer: The Situation after discussing about Alien Worker Law (draft) drafting Committee is 
organized to draw foreigner labour law (draft). That law (draft) had been discussed four 
times by leading Union Minister office of the Ministry of Labour, Employment and Social Security and five times by leading deputy Mini ster of the Ministry of Labour, Employment 
and Social Security. That law was discussed by inviting the delegators of respective 
departments and got their advices. We submitted to the cabinet concerned with that draft on 30 April 2009 and discussed by inviting respective ministries. On 30 July 2010, we discussed by meeting with Attorney General Office. We submitted to 
Attorney General Office on 1 August 2012 af ter discussing with Directors General from 
respective Department and lawyers on 11 May 2011. On 14 September 2012, it was supplemented with adjustments and discussions after with 
Lawyers and Directors at the Department of Labour. On 21 August 2013, we had discussed 
on the Alien Worker Law (draft) till chapter (4) by leading Union Minister and further discussions are being made in 2014. 
 
Page 13, para 4.21, Labour law, Australia Q3:  
Can the Government of Myanmar provide further information on what will be covered in the proposed Foreign Labour Law? 
 WT/TPR/M/293/Add.1 
 
- 55 - 
 
  Answer: 
The objectives of Alien Worker law are: 1) To provide production and economic development of the nation; 2) To develop the sk ill level of national workers; and 3) Not to 
lose the rights of foreign labours and to ob ey the Principles and customs of the nation. 
 
Page 13, para 4.21, Labour law, EU Q57:  
There is a real lack of skilled labour in some important sectors where the government 
wishes to attract FDI. Given the obligation for investors to recruit local employees, 
operators are concerned in specific sectors that the current lack of skilled labour force may deter FDI. Would the government consider reviewing the existing obligations in consultation with stakeholders? 
 
Answer:   
The government would consider reviewing the existing obligations in consultation with 
stakeholders. 
 
Page 13, para 4.21, Education, EU Q58:  
How does the government envisage to strengthen its human resources base, particularly in 
terms of primary education, vocational training and higher education?  Answer: 
In term of basic education, vocational training and higher education the government 
envisages to strengthen its human resources development as follows: To be reformed education sector systematic ally, Comprehensive Education Sector Review-
CESR (2012-14) is being implemented. Now phase 1 Repaid Assessment and Phase 2 In-
depth Analysis has been completed and Phase 3 Development of Costed Education Sector Plan is ongoing. This CESR will support th e achievement of the vision of Ministry of 
Education. To create education system that will generate a learning society capable of 
facing the challenges of the knowledge age. According to the result of CESR the whole education sector reform will be carried out. In basic education sector, free compulsory primary education and free lower secondary 
education are being implemented. The basic education structure reform from existing 
KG+4-4-2 to KG+5-4-3 will be implemented near future based on the readiness for the implementation. Basic on the basic education structural reform, basic education curriculum 
reform is also being implemented. 
In term of vocational training, Technical, Vocational Education and Training-TVET is one of the key sectors in CESR, based on the CESR findings, TVET sector will be reformed in 
accord with the present conditions of  Myanmar and requirement of Myanmar. 
For the Higher Education Sector reform is being implemented based on the recommendations of CESR Phase 1 and Phase 2 reports. The Forum for Pragmatic Reform in Education Sector was held on 7
th October 2013 at 
MICC, Nay Pyi Taw. According to the result of this forum, Education Promotion 
Implementation Committee-EPIC was formed. Under this committee Special Taskforce, Advisory Board and 18 sector working groups we re formed and opened the EPIC office in 
Diamond Jubilee Hall in Yangon. These 18 work ing Groups are working on the development 
of policies, finding out the activities to be carried out urgently and the activities to be carried out for the long run. The consultation meeting with Development Partners on the 
policies and activities coming out from the wo rking groups in each and every sub-sector 
was conducted on 16
th December 2013 and the consultation meeting with Rectors from 
Universities and Degree Colleges and Education Colleges was also conducted 17
th December 2013 in Ministry of Education Nay Pyi Taw. These 18 working Groups are 
working for pragmatic reform of education sector until the finalization of the draft policies 
and activities for short term and long term.  
Page 14, para 4.22, Labour Union Law, USA Q16:  
The Government report notes that the Labour Organization Law was recently adopted, which grants labour groups the right to freely establish trade unions and representative 
associations while guaranteeing basic rights  of workers. The creation of the legal 
framework allows the establishment and operation of trade unions. Q16A:  What plans does the Government have in terms of implementing this law and 
ensuring its enforcement? For example, are there administrative changes that are being WT/TPR/M/293/Add.1 
 
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  implemented to facilitate the legal establishment of unions and changes to labour 
inspection protocols to ensure the new law is enforced?  Answer:   
After Myanmar transformed into a Democratic country and at the time of new  Government, 
the Labour Organization Law was enacted at Pyidaungsu Hluttaw Law No.7 dated 11
th October 2011 in accord with section 24 of the Constitution of the Republic of the 
Union of Myanmar, in order to protect the righ ts of the workers, to have good relations 
among the workers and between the employers and workers and to enable to form and 
carry out the Labour organizations systematic ally and independently. Rules of this Law 
were issued on 29-2-2012 by Notification No.1/ 2012 by the Ministry of Ministry of Labour, 
Employment and Social Security. 
 Q16B:  What plans does the government have to protect employees from potentially 
punitive measures from their employers in  the event they form or join unions? 
 Answer:  
Under the Labour Organization Law 2011, (1004) Labour Organizations were registered up 
to date. A Chief Technical Advisor from the ILO was appointed to assist concerning with Freedom of Association Convention (87) at June 2012 in Myanmar. Freedom of Association Programme 
has been implementing cooperation with him.  The total (46) awareness raising workshops 
has been held tripartite workshops for government officials, employers and workers and bipartite workshops for employers and workers. 
The Settlement of Labour Dispute Law was enacted at Pyidaungsu Hluttaw Law No.5 dated 
28th March 2012 in accord with the Constitution  of the Republic of the Union of Myanmar. 
Labour disputes issues are settle by the trip artite system of government, employer and 
employee according with the Labour Dispute Law. 
 
Page 14, para 4.23, Infrastructure priorities, EU Q59:  
Can the authorities elaborate on the longer term strategy and program for infrastructure 
development and what will be the main priorities?  
It is reported that Myanmar does not have enough capacity in its harbour to address more import or export volumes. Could the Governme nt indicate whether there are intentions to 
address this problem and if so which measures are being contemplated in that respect? 
 Answer: 
For infrastructure development, the line ministries which are responsible for transport, 
electricity, education, Health and water are preparing their master plans respectively. To be economic development especially for fr ee flows of goods and resources, the Ministry 
of Construction will give priority to build infrastructure projects for regional connectivity 
like ASEAN Highway, local interstate highway which connect various parts of the country to 
the economic center and rural-city connection for regional equality. Regarding the Dawei Special Economic Zone, it has been carrying out to compete from 
investor and developer in project area in accordance with the tender procedures. 
Regarding the Thilawa Special Economic Zone, basic infrastructures are being carried out in first stage of 400 hectares and it is expe cted to commercialize by 2015. To establish 
Kyauk Phyu Special Economic Zone, it has been arranging to invite tender for developer. 
 At present, The National Transport Developm ent Master Plan is being formulated by the 
assistance of Japan, JICA with the objectives ; to formulate, long term visions, goals, 
strategies of transport sector development, realizing integrated and harmonized transport 
network with good connecting among different  modes to meet the demand, to achieve 
security and safety of transportation, to reduce the environmental negative impacts, to achieve an efficient allocation of funds/resources and enhance private sector participation. 
It will be completed at the end of this year. After that, development workshop including 
participants from relevant departments, private organizations, international donors and investors will be conducted. According to the Master Plan, necessary transport 
infrastructure across the nation will be upgraded with the cooperation of private 
organizations, donors and investors from inside and abroad. In parallel with the Master Plan Formulation, two new port terminals are being constructed in Thilawa port area with Japanese ODA Loan. 
 WT/TPR/M/293/Add.1 
 
- 57 - 
 
  Page 14, para 4.23, Private Public  Partnership framework, EU Q60:  
What is the state of preparation of the legal framework on PPPs?  Answer:   
There is no legal framework on Private Public  Partnership (PPP) and it is not yet decided 
which Ministry leads to this matter.  
Page 14, para 4.27, Energy & power, Singapore Q5:  
Singapore notes that a master plan is being prepared concerning power supply, which is one of the most pressing economic challenges facing Myanmar. Singapore understands that Myanmar's National Energy Management Committee (NEMC) is drafting a national 
energy policy to address its growing domest ic energy demand. Could Myanmar share the 
considerations, areas of focus, timeline and stakeholders involved for the conceptualisation of this policy? 
 
Answer: Under the JICA technical assistance program, NEWJEC Inc is implementing the project for 
formulation on the National Electricity Master Plan in Myanmar in coordination with the 
Ministry of Electric Power. The National Electricity Master Plan is expected to be finished at the middle of 2014. On the other hand, National Energy Management Committee is drafting a national energy 
policy. Energy policy is review ing by NEMC and related ministries, after that it will be 
submitted to the Cabinet and Parliament. We can share these plans after finalization. The National Electricity Master Plan will process like that way. 
 
Page 14, para 4.27, Infrastructure priorities, China Q20:  
How will Government of Myanmar manage to deal with challenges posed by the needs to 
both developing its power industry and protecting the environment now and in future? 
 Answer: For future power development and system stability, Ministry of Electric power is planning 
to implement various kinds of power generation projects. All projects have to be carried 
out of the study of EIA, SIA issues and their impacts at first. According to the study report the government makes the approval for the im plementation of project. The approval for 
the implementation of project depends on overcoming of technical and geological 
challenges and environmental and social impacts.  
 For coal fired power plants, clean coal technology has to be applied.  
 
Page 14, Sub 4.3.3, Power master plan, Australia Q4:  
Can the Government of Myanmar provide further information on its master plan concerning power supply including timeframes for completion? 
 
Answer: Under the JICA technical assistance program, NEWJEC Inc is implementing the project for 
formulation on the National Electricity Master Plan in Myanmar in coordination with Ministry 
of Electric Power. The Master Plan of Power is expected to be finished at the middle of 
2014. After finishing it will be submitted to th e Cabinet and Parliament and we can share it 
to you.  
 
Pages 15 & 21, paras 4.29 & 6.4, S EE & privatization, USA Q17:  
The Government's report notes that state owne d economic enterprises largely or entirely 
control the industries of energy, forestry, construction, telecommunications, fish breeding, 
metal extraction and export, rice, sugar, rubber, cotton, jute and teak. Further, the Secretariat report (paragraph 4.6) notes that all land is owned by the State.  
Q17A:  Please explain any plans the Government may have to liberalize these industries 
further in the future and permit the privatization of some or all of these industries.  
Answer: 
The increasing of private involvement and the reduction of State participation will be carried our simultaneously under the reform of private sector development. The most SEEs have been privatized. Their presence is la rge only in energy, forestry, construction, WT/TPR/M/293/Add.1 
 
- 58 - 
 
  telecommunications, social and public administration. There is no specific plan for the 
privatization.   Q17B:  Please explain how the state-owned economic enterprises take commercial 
considerations into account when making purchases or sales, and how such enterprises 
treat imports.  
Answer: 
Under the SEE Law of 1989, SEEs operate commercial basis and use the market-determined exchanged rate and Commercialization. Now, there is no special treatment for import, purchase and sale of SEEs.  
 
Page 16, Sub 4.3.7, Land reform, Australia Q5:  
Can the Government of Myanmar provide further information on how it plans to overhaul 
its land use policy to allow certainty for foreign investors while addressing the needs of 
local communities?  
Answer: 
In the previous Land Law, the farmers were not allowed to sell, lease, and mortgage. Exchange and gift on the whole or part of the right to use the farmland. As a result, farmland disputes were supposed to be found due to illegal transaction of farmlands. 
However, new Farmland Law (2012) was prom ulgated. According to the section 14 of 
2012, Farmland Law, the person who has the right to use the farmland shall not sell, mortgage, lease, exchange or gift on the whol e or part of t the right to use the farmland 
without permission of the Government to any foreigner or any organization in which the 
foreigner is included. Although the foreigne rs were not allowed to rent, and buy, the 
farmlands, they are allowed to conduct joint cooperation with Myanmar Citizens in accord 
with the section 9, sub –section, (e) and (f). 
The section 9 sub – section (e) of 2012, Farmland Law stated that "the person who has the right to use the farmland shall have the right to use common interest with the investment of village cooperative or with the private in vestors for the development of agriculture in 
the farmland" and the section 9 sub-section (e ) and (f), the person who has the right to 
use the farmland will have the opportunity to cooperate with international and domestic investors. 
 
Page 16, para 4.34, Land reform forest, EU Q63:  
With the expected increase in FDI, and the privatization of land, how will the Government 
ensure that population that is dependent on forest is not marginalised? 
 Answer: The Union of Myanmar Presidents office decreed to plan for safe and secure livelihood of 
the rural people in national scale: who have been living as encroached persons in our 
Forest Reserves Land's for a certain period. For the land managed by the Ministry of Environmental Conservation and Forestry, a plan 
for thorough survey and reallocation of illega l residents in reserved forests and protected 
public forests since many years ago. According to the plan adopted, the concrete data for illegal residents in forest lands were 
recorded by supervision of management committees in State and Region levels through 
collaboration with in line ministries and respective local governments. Illegally occupied land includes village land, paddy field, farmland, home gardens, perennial crop land and religious/ communal land, settled by communities were identified 
and systematically recorded during the survey mission.  
As a first step, 50 households and above which had been nominated by Ministry of Home Affair including village land, paddy field and religious/ communal occupied by communities 
were submitted to the President's office for approval to de-gazette from the forest lands. 
Certificates for Community Forests will be issued for farm lands and home gardens so that they can get permission to use those lands with agro-forestry base CF for 30 years. The 
occupied land with perennial crops/plantations will be legalized and permitted the long 
lease in the forest land according to the existing procedures practiced by the Ministry.  WT/TPR/M/293/Add.1 
 
- 59 - 
 
  Page 16, para 4.34, Land entitlement, EU Q64:  
Recently, much attention has been given to the growing issues on land disputes as a result of "land confiscation" for the use of large-scale projects and investments by domestic/foreign investors. Concerns around the new land laws have been expressed by 
some civil society organisations. They specifically raised concerns that new laws will 
substantially increase the extent of large scale transactions in land to investors and may adversely affect existing land users. How do es Myanmar plan to address this problem?  
What is the current level of land entitlement (percentage of farmers holding a clear land 
title on the land they cultivate) in Myanmar?  Answer: 
Farmland Law 2012, chapter 9 section 26 clearly stated to reduce the issue on land 
confiscation and a rule of the Farmland Law 2012, chapter 8 states the clear procedures. Thus, domestic and foreign investors will be sa fe if they follow the rules and regulations. 
In accord with the 2012 Farmland Law about 8.4 million of farmer holdings have been 
issued the certificate of right to use the fa rmland up to (17.2.2014). The person who has 
the right to use the farmland can get the rights  to sell, mortgage, lease, exchange and gift 
on the whole or part of land use right in compliance with the section 9 sub-section (b) of 
2012, farmland Law. Therefore, the existing land  users will be provided as a liquidity of 
farmland asset in compliance with section 9 sub – section (b) of 2012, Farmland Law.  
Page 16, Sub 4.3.8, Comp etition, Australia Q6:  
Can the Government of Myanmar provide further details on what is covered in its draft competition law, including enforcement measures? 
 
Answer:   
In accordance with Myanmar's commitments in the context of the ASEAN Blueprint, a draft 
competition law is under preparation with a vi ew of its promulgation in 2015. Some of the 
main objectives of the draft are: 1) to protec t and prevent arrangements that injure public 
interests through monopolization or manipulation of prices to endanger fair competition in the economic; 2) to control unfair competition upon internal and external trade and 
economic development; 3) to protect and prevent abuse of dominant position; 4) to review 
mergers and acquisitions; and 5) to investigate and eliminate restrictive agreements or arrangements among business operators. It is envisaged that all economic sectors will be 
subject to the law and a Competition Commission would be established to enforce it. So 
far, Myanmar has not received international assistance in preparing the draft law. Alleged anti-competitive dimensions of mergers and acquisition involving foreign investors could 
be investigated under the review provisions and also under the prevention of abuse of 
dominance provisions.  
Page 16, para 4.36, Environmental protection, China Q21:  
Does the Government have any concrete programs to develop clean energy?  
Are there any law making plans on environmen t protection and clean energy promotion? 
 
Answer: 
The Environmental Conservation Law was prescribed on 30th March 2012 and The Electricity Law is being drawn at present. Clean and Renewable Energy are being used for 
the current Electricity Generation and Clean Coal Technology process is also being used for 
Coal-fired Thermal Power Projects.  
Page 16, para 4.36, Environmental impact & FDI, EU Q61:  
What steps does the government take to ensure that Environmental Impact Assessments 
are effectively embedded into the investment approval process?  What criteria are being used and how are these criteria effectively applied across 
ministries? 
 Answer: 
See the General Answer concerning the upcoming  Notification No.3. The responsibility for 
establishing criteria in respect of environmental and social impact assessments rests on the Ministry of Environment Conservation and Forest.  
 WT/TPR/M/293/Add.1 
 
- 60 - 
 
  Page 16, para 4.37, Illegal log export, EU Q62:  
According to reports from World Food Organisation (WFO) and United Nations Environment Programme (UNEP) Myanmar is the most deforestated country in the region. What concrete measures does the Government intend to take to avoid illegal logging, illegal 
cross border trade of logs, forest degradation and deforestation? 
 Answer: 
To avoid forest degradation and deforestation, Myanmar will implement eradication 
scheme of shifting cultivation and will introd uce the mechanism called "Reducing Emission 
from Deforestation and Forest Degradation (REDD+)" under the United Nations Framework Convention on Climate Change (UNFCCC). The Ministry of Environmental Conservation and 
Forestry has formulated the National REDD+ Roadmap and Strategy, and the 
implementation activities are well underway which will: 1) adopt log export ban and reduce the amount of annual round log production from natural forests starting from fiscal year 
2014; 2) create enabling conditions for private sector to invest in the reforestation scheme 
of the country; 3) create the Dry Zone Greening Department to combat the deforestation in the areas of Central Myanmar where low precipitation is receives; 4) promote 
Community Forestry implementation throughout the country in accordance with 
Community Forestry Instructions prescribed in 1995 with support of Forest Law; and 5) promote international cooperation in institutional strengthening, capacity development and research & development of forestry sector. 
To avoid illegal logging, Myanmar intends to: 1) create forest conservation arm forces 
forest and free so that forest law enforcement is strengthened; and 2) exercise more cooperation and coordination actions with related stakeholders including government 
institutions, business, NGOS, CSOs and local communities. 
To avoid illegal cross border trade of log, Myanmar intends to: 1) consult with neighbouring countries so that cross border logs and forest product poaching is eliminated; 
and 2) strengthen law enforcement activiti es at the areas where illegal cutting and 
poaching is taken place.  
Chapter 5. Trade and Investment Policies 
 
Page 17, para 56, Licence, EU Q47-48:  
Q47:  It is said that the government has eliminated licences on import to cover 1928 HS 
Tariff lines. Could the authorities provide the list of these lines or list the commodities for 
which licensing is no longer required?  
Answer:   
Yes. The authorities can provide the list in the official website. http://www.commerce.gov.mm/site s/default/files/document s/2013/09/H.S%20Code%281
928%2910-9-2013.pdf . 
 
Q48:  Could the authorities clarify if, for these commodities, 100% foreign-owned 
enterprises can be considered as "importers" or do these 100% foreign owned entities 
need to use a Myanmar trade house as an intermediary? 
 Answer:   
At the present situation, Foreign Companies cannot import and resell in domestic market. 
And Foreigners or Foreign Companies cannot export by purchasing from domestic production.  However, if they are registered under the FIL as a manufacturer of finished goods for 
export, they may import machinery and equipment for the establishment of the factory, 
and raw materials for production and export their finished products. Moreover, Foreign Company registered as a service company under Myanmar Company Act 1914 has been 
allowed to import the necessary equipments for doing their services business. 
Other Foreign Company can do import through Myanmar Trading Company.  
Page 17, para 5.6, Export licences, China Q22:  
What are the policy considerations and legal basis for the Government to maintain export licensing regime to sensitive commodities?  WT/TPR/M/293/Add.1 
 
- 61 - 
 
  Answer: 
Our export policy is mainly to extend and ex plore the foreign market by utilizing natural 
and human resources effectively and to promote the export of traditional and value-added products.  
Regarding export licensing, exporters require to get export license except 152 types of 
goods (983 tariff lines). Moreover, Ministry of Commerce intends to liberalize export licensing requirement for the rest goods except so- called sensitive commodities such as 
national food security and emergency needs,  the protection on exhaustion of natural 
recourse, the protection of environmental da mages and deforestation, and prevention of 
traditional and cultural art. For this intention, we are learning legal basis and practice of international and regional especially in current transformation period. In this connection, 
we need technical assistance for our further policy considerations and legal basis to 
maintain current export licensing regime.   
Page 17, Sub 5.2.5, Trade remedy, China Q23:  
Please confirm whether there is a timetable set for the making of remedy laws and regulations. 
Does Government of Myanmar have any requirements regarding the contents and forms of 
capacity building cooperation with other members?  
Answer: 
With the implementation of ASEAN-related tariff reductions and other liberalization 
measures, Myanmar should have WTO-consistent trade remedy authorities to deal as need be with potentially injurious trade situation. In this connection, Ministry of Commerce is 
building up its understanding of trade remedy measures and it is currently receiving 
technical assistance notably from UNESCAP on the drafting of safeguard provisions. With limited human resources and significant wo rk load in implementing autonomous 
liberalization measures and in following up on existing multilateral, regional and bilateral 
trade commitments, work on drafting WTO-consistent anti-dumping and countervailing measures has so far not received high priority. Recognizing our limited capacity, the drafting of trade remedy laws is an area where Myanmar would welcome additional 
international technical assistance. 
 
Page 18, para 5.12, Stat e trading, USA Q18:  
The Government's report states that state trading monopolies were largely abolished in 
November 2011 and that private individuals an d enterprises can now import and export all 
but a few products. Please identify these products and explain why such restrictions 
remain. 
 Answer:   
The increasing of private involvement and the reduction of State participation will be 
carried out simultaneously under the reform of private sector development. Even-though 
in the reserved list of SEEs, the large foreign investment projects are considered to bring substantial benefit to public security, impr ove surrounding areas and the living conditions 
of citizens, the MIC issues the permission to private sector investment after the 
government approval. E.g. The MIC issued the permit for the investment to Telenor and Ooredoo.)  
 
Page 18, para 5.13, SEZ, Chinese Taipei Q10:  
The investors are very concerned about the progress of the SEZs. Could Myanmar please provide updated information regularly along with relevant regulations for these economic 
zones? 
 Answer: 
The new Myanmar Special Economic Zone Law was enacted on 23rd January 2014. The 
rules of said law are being drafted.  
Page 18, para 5.13, SEZ, China Q24:  
Please elaborate on the main features of Myanmar's Special Economic Zones and the major policy preferences applicable to SEZs.  WT/TPR/M/293/Add.1 
 
- 62 - 
 
  Answer: 
The new Myanmar Special Economic Zone Law was enacted on 23rd January 2014. The major policy is to support the main objectives  of the national economic development plan. 
The main features of MSEZ Law are formation of the Central Body, Central Working Body 
and Management Committee, the establishment of Special Economic Zone, prescription of 
Free Zone and Promotion Zone, types of investment business, the duties and the exemptions of the investor, development busi ness types, exemptions and reliefs on the 
import revenue of the developer and the investor, withholding tax, bank and finance 
management and insurance business, matters relating to labour and land use.  
Page 18, para 5.13, SEZ, Australia Q7:  
Can the Government of Myanmar provide further information on progress towards the 
establishment of special economic zones, including development and implementation of relevant legislation? 
 
Answer: Myanmar currently has three SEZs - Kyauk Phyu SEZ, Dawei SEZ and Thilawa SEZ. The 
rules of said law are being drafted. Basis infrastructure such as road, power plant is being 
constructed.  
Page 18, para 5.13, Special Economic Zones, EU Q65:  
Can the government elaborate on the specificities of the new SEZs, compared to the 
previous legal framework?  Are there exemptions from the labour law or la bour legislation, or parts thereof, currently 
in place or foreseen for the SEZs? 
 Answer: 
Compared to previous legal framework, new SEZ Law is more comprehensive. See the 
main differences in the following Table:  
Old SEZ Law New SEZ Law 
Chapter 1(Definitions) Chapter 1(Definitions)  
 - Free Zone, Promotion Zone 
 Activities of Free Zone 
 Other activities 
 Infrastructure 
 Citizens, foreigners 
 Assets, Capital gains 
Chapter 4 (Formation of Central 
body, Central working body 
Management Committees and 
functions and duties thereof) Chapter 3  (Formation of Central body and its 
functions and duties)  
 Chapter 4  (Formation of Central Working body and 
its functions and duties)  
 Chapter 5  (Formation of Management Committees 
and its functions and duties)  
  
Nil Chapter 7 (Descriptions of Free Zone and 
Promotion Zone) 
Chapter 5 (Special Privileges of 
Investors) Chapter 8 ( Investment Activities, duties and 
exemptions of investor) 
  
First 5 years income tax exemption First 7 years income tax exemption in free zone 
 First 5 years income tax exemption in promotion zone 
50% relief of the income tax rate for second 5 years 50% relief of the income tax rate for second 5 years in 
free zone and free zone businesses  
50% relief of the income tax rate for 
third 5 years 50% relief of the income tax rate for third 5 years in free 
zone and free zone businesses WT/TPR/M/293/Add.1 
 
- 63 - 
 
  Old SEZ Law New SEZ Law 
Chapter 5 (Specific duties of 
Developer or Investor)  Chapter 9 (Development Activities, duties and 
exemptions of Developer)  
Exemption on custom duty and other 
taxes for 5 years from 
commencement of commercial 
operation and 50% relief on custom 
duty and other taxes for consecutive 
5 years  
 First 8 years income tax from commencement of 
commercial operation 
nil 50% relief of the income tax rate for second 5 years 
nil 50% relief of the income tax rate for third 5 years 
 Chapter 10 ( exemption and relief on import of 
developer and investor) 
nil Chapter 11 ( Dispute Settlement) 
Chapter 7 (Land Use) Chapter 17 (Land Use)  
30+15+15 years 50+25 years 
 
In 1990, Department of Labour carried out the nation-wide labour Force Survey and will do 
a new Labour Force Survey in 2014 with technical assistance provided by the ILO.  Department of Labour has arranged to esta blish Labour Exchange Office Management 
System (ILO Management System) which are needed for job seekers and Employers. 
The issue of foreign Workers Registration Cards as Permitted By Myanmar Investment 
Commission Permits Foreign Workers Who Entered into Myanmar and work legally as permitted by MIN permits 
are performed Foreign Workers Registration Cards and Revalidation Rapidly in 
Departmental Coordination Group MIC Starting From 10 April 2013.  
Labour Matters 
When employing skilled citizen workers, technicians and staffs, the investor shall send, to the employee, the employment agreement mutu ally concluded between the employer and 
the employee in accordance with the existing labour law and rules. 
For work where expertise is not required, the investor shall hire citizens only. 
Among skilled workers, technicians and staffs, at least 25% must be citizen during the first two years from the commencement of commercial operations; at least 50% must be 
citizens during the second two years; and at least 75% must be citizens during the third 
two years. The work permits for foreign employees who are working in the special economic zone 
shall be issued by the Labour department representative office at the one stop service 
department in the special economic zone. The occupational safety and Health law (Draft) has been discussed with ILO experts and Kosha experts of Korea.  
 
Page 19, para 5.18, FDI, Chinese Taipei Q11:  
Q11A:  The government of Myanmar has gradually established a more open foreign 
investment regime, but there are still many restricted or prohibited items for foreign 
investment, especially in the services sector. Will the government of Myanmar review and revise the foreign investment "negative list" in the future in order to allow foreign 
investment in more sectors? Is there schedule for this? 
 Answer: See General Answer on Investment. 
 
Q11B:  Is there any focal point or reference centre for foreign investors to obtain the 
information regarding the investment issues (laws, regulations and any other public 
notices)? 
 Answer: 
DICA is focal point. 
  WT/TPR/M/293/Add.1 
 
- 64 - 
 
  Page 19, para 5.18, SEZ, China Q25-28:  
Q25:  How effectively has the 2012 Foreign Investment Law worked in attracting foreign 
investment so far?  
Answer: 
Inbound FDI rose sharply from  US$1.4 billion in FY 2012/13 to US$3.6 billion in the first 
11 months of FY 2013/14. Roughly half of this FDI in FY 2013/14 was in manufacturing 
and 20% in telecommunications. 
 Q26:  What are those investment protection measures, if any, applicable to foreign 
investment in mainstream sectors, including agriculture? 
 
Answer:   
Chapter XIII of the Foreign Investment Law guarantees no nationalization or expropriation 
within the term of the contract, no termination during the permitted and extended period, 
and the right to repatriate capital and profits.  
 
Q27:  Please list the sectors or activities that are designated as prohibited or restricted in 
the new FIL.  Answer: 
You can see the sectors or activities that are designated as prohibited or restricted in 
Myanmar Investment Commission Notification No. 1/2013. The information regarding the investment issues (laws, regulations and any other public notices) can be available at 
http://www.dica.gov. mm/includes/FIL-notification%20_English_%20A4.pdf. 
 Q28:  What are the strategic considerations behind the policy shift to liberalization 
reflected in the new FIL from a "positive list" approach to a "negative" one? 
 Answer: To get clear picture, Myanmar change from a "positive list" approach to a "negative" one. 
 
Page 20, para 5.25, Privatization, EU Q66:  
What measures does Myanmar consider or has taken to ensure more open tendering in 
respect of privatisation and other government contracts?  
What are the areas covered by "other government contracts"?  
Answer: 
Cabinet has already instructed to the Ministries and regional governments to follow the rules for the Ministries and regional governments to follow the rules for the tender and contracts. The instruction covered by construction works. Government also instructed to 
do open tender with the transparency.  
Telecom and exploration of oil and gas are also do open tender system.  
 
Page 20, para 5.26, IPR, USA Q19:  
The Government reports it is "taking steps to overhaul its outdated IPR laws and ensure that these laws are enforced. Accordingly, IPR laws in line with the TRIPs Agreement are 
being finalized subject to advice from the Wo rld Intellectual Property Organization (WIPO). 
These laws concern patents, industrial design, trademarks and copyright."  Q19A:  Please provide an update on the current status of this legislative overhaul as well 
as a timeframe of when the text of these new IPR laws will be made public. 
 
Answer: The IP legislation that is being drafted are finalizing now. Some provisions concerning with 
Enforcement and some provisions from the draft Trademark Law are being discussed with 
WIPO experts. After finalizing and translation, these draft laws need to pass the internal 
procedures such as AGO, President Office and Cabinet to get approval. After these steps 
and getting the approval, they need to continue submit the Parliament. 
So, we assume that the above procedures would be during 2014.  Q19B:  Considering that these laws are being prepared with WIPO, please advise whether 
the Government has also asked WIPO to include advice regarding its additional copyright WT/TPR/M/293/Add.1 
 
- 65 - 
 
  treaties, including the 1996 WIPO Copyrigh t Treaty and the WIPO Performances and 
Phonograms Treaty.  Answer: 
Yes, the Government has also asked WIPO to include advice regarding its additional 
copyright treaties, including the 1996 WIPO Copyright Treaty and the WIPO performances 
and Phonograms Treaty. 
Q19C:  The report further mentions that WIPO is assisting the Ministry of Science and 
Technology with "enforcement provisions." Please describe the range of enforcement provisions anticipated (e.g. civil, criminal, bo rder) and whether it is anticipated that these 
enforcement provisions will appear in each of the IP laws, as well as any other civil or 
criminal codes. How does the Government plan to implement the special border measure 
requirements (Articles 51-60) of the TRIPs Agreement?  
Answer: 
Infringement of rights of Trademark and Co pyright are enforced by Civil and Criminal 
Procedure, for Patent and Industrial Design on ly Civil Procedure is applied. Regarding the 
Border Measure, one chapter for Protection on rights by the customs is added in 
Trademark and Copyright Laws in line with the TRIP Agreement, Articles (51-60) for the protection only importation.  
Page 20, para 5.26, Copyright & IPR, Japan Q1:  
According to paragraph 3.3.6.1 of the report by Secretariat, the Copyright Act does not 
appear to provide effective copyright protection in Myanmar. 
Q1A:  Please explain in detail the current status of the Copyright Act amendment. 
 Answer:   
The objectives of draft Copyright Law are as follows: 1) to encourage more development of 
the literary and artistic works, performances, producing phonograms and broadcastings; 2) to give protection on the copyright of lite rary and artistic work of the author and the 
owner of copyright in accordance with Law; 3) to protect the related rights of performer, 
producer of phonogram and broadcasting organization; 4) to implement the provisions in 
respect of copyright contained in conventions, treaties and agreements relating to intellectual property to be implemented by  the Republic of the Union of Myanmar in 
accordance with this Law; and 5) to contribute to the protection and promotion of 
traditional cultural expressions and folklore. The right holder who has sufficient grounds for suspecting that the importation of alleged 
pirated copyright goods into the territory of Myanmar is taking place or has taken place, 
may submit a written request for the suspension to the Customs authority. Customs may issue suspension order that the importation of alleged pirated copyright goods into the 
territory of Myanmar. Infringements of righ ts of Copyright are enforced by Civil and 
Criminal Procedure. The Intellectual Property  Court established by the Supreme Court of 
the Union or any other Court competent to adjudicate cases arising from this Law shall have the authority to order prompt and effective provisional measures on the enforcement 
of infringement of IPRs. Offences and penalties related to copyright  shall be punished with 
imprisonment for a term not exceeding 3 years or with fine or with both in respect of initial offences and longer imprisonment terms in instances of subsequent conviction.  
 
Q1B:  Please provide the information on whethe r copyright must be registered to be 
protected, and whether registration of copyri ght is required for the enforcement of the 
copyright against infringement. 
 
Answer: Regarding with the Registration of Copyright, it is voluntary registration. In case of 
requiring proof, the certificate of registration can be used as a Prima Facie Evidence. 
 Q1C:  Please provide the information on whether there is any legislation or regulations 
stipulating the responsibility of internet serv ice providers in the case of online piracy. 
 WT/TPR/M/293/Add.1 
 
- 66 - 
 
  Answer:   
Regarding with the copyright protection in th e digital age, Myanmar is not a party to two 
WIPO treaties (WCT & WPPT) and, hence, is under no obligation to implement these provisions.  
 
Chapter 6. Sectoral Developments  
Page 21, para 6.6, Rice, Australia Q1:  
How is the Government of Myanmar planning to achieve their national agricultural policy targets, such as increasing rice production and area (19.9% and 52.8% respectively)?  
Answer: 
The Government intends to carry out to achieve agricultural policy objectives according to following measures: 
To Increase the use of high-yield variety (HYV ) and high-quality seeds: 1) dedicate more 
of MOAI's registered and certified seed production to high-quality varieties, such as Pawsan and Immayebaw, as a critical source of quality seed supply to the rice farmers; 
2) Invest in best-practice infrastructure at MOAI's seed farms, including irrigation, 
drainage, and the segregation of nursery land from normal farm land; 3) Use public-private partnerships as another means of setting up companies to supply quality seed, matching private best practices and public development goals; 4) Switch seed varieties 
through campaigns to raise farmers' awareness of the yield- labour and price-related 
advantages of better seed varieties; 5) Expand MOAI's seed distribution network by engaging farmers in each village to produce certified seeds in all regions; 6) Conduct 
investment promotion activities, particularly investor outreach to attract foreign seed 
companies to establish sales offices and manufacturing plants in Myanmar, as a way of increasing supply of the quality seeds, quality fertilizer, pesticide, and insecticide available 
to farmers; and 7) Attract foreign manufacturers of farm machinery to establish sales 
offices and manufacturing plants in Myanmar. To Increase production and use of fertilizer and pesticide: 1) Conduct awareness-raising campaigns among farmers for the types, benefits, procurement channels, and proper 
application of fertilizers and pesticides; and 2) Invite joint ventures in the fertilizer 
production. To Increase farm mechanization: 1) Open training centres for mechanized farming across 
the major rice-producing regions; 2) Set up Mechanized Farming Service Stations to 
support mechanization across the major rice-producing regions; and 3) Attract foreign manufacturers of farm machinery. 
To Expand and upgrade infrastructure for irrigation, drainage, and electricity in producing 
regions: 1) Conduct feasibility study to determine irrigation needs and options for major producing areas, including irrigation types, technologies, and costs; 2) Mitigate harmful 
flooding by (i) repairing drainage pipes severed by new roads and (2) implement policy of 
preserving drainage systems when laying new roads; and 3) Engage with MOEP and the 
World Bank-led project to devise a national electrification strategy. Prioritize electrification of the producing areas of Ayeyarwady, Yangon , and Bago Divisions, which account for 83% 
of rice production, as a way of facilitating farm mechanization, drying, and milling without 
relying on costly generators. To develop new markets and new higher value-added rice products: 1) Provide sector with 
market research (price, quality standards, etc.) on regional markets for high-quality; 
2) Facilitate market entry for inexperienced processors and exporters by sharing the costs 
of innovation through a public-private centre  for the design, research, and development of 
rice products; 3) Invest in training and equipment for greater R&D capacity at MOAI and 
state agricultural institutes to support processors in the production of higher value-added 
and more innovative products; and 4) Invest in training and resources for greater capacity at MOAI to provide the sector with internationally recognized organic certification. 
 
Page 22, Sub 4.2, Mining, Australia Q8:  
Can the Government of Myanmar provide further information on its plans for the mining 
sector, including plans to permit foreign investment? 
 Answer: The Union of Myanmar Mines Law was promulgated in September 1994 and rules relating 
the law followed after in December 1996. Under current rules, all naturally occurring WT/TPR/M/293/Add.1 
 
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  minerals found either on or under the soil of  any land in the continental shelf are deemed 
to be owned by the State. It is the policy of the Ministry of Mines not to make new investment on its own, but to encourage foreign and local investors to invest in the mining sector. Myanmar also practices the production sharing contract system. In the production 
sharing types of agreement the investor shall have to contribute 100% of investment in 
which case the Government would expect a share of the production and a production sharing will be signed with sharing ratio to be agreed upon between the parties. 
At present, Ministry of Mines intends to amend the Myanmar Mines Law with the advice of 
experts and publics with a view to: 1) facili tate the environmental conservation and Green 
Mining; and 2) encourage for investments more easily and trustfully. Father information can get from the website of Mini stry of Mines www.mining.gov.mm. 
 
Page 22, para 6.9, FDI oil & gas, Chinese Taipei Q12:  
Myanmar is currently open to foreign investment in offshore oil and gas exploitation. 
Although MOGE plays a minor role in these businesses, on in-land mining and other 
downstream industries, the government still has the dominant position. To our knowledge, 
Myanmar has allowed domestic private corporations to invest in refining, wholesaling and 
retailing of petroleum products. Is it likewise permitted foreign investment in these 
industries? If not permitted, is there any plan  to further open to foreign investment in 
these areas?  
Answer: 
The development of Myanmar's gas reserves effectively began following the adoption of the 1988 SLORC market-orientation policy, which allowed foreign participation in the 
economy. In 2013, there are four gas consortia in operation, all of which are 
predominantly owned by foreign investors and in which the SEE Myanmar Oil and Gas Enterprise (MOGE) hold a minority stake as elaborated in the Government Report. 
As Myanmar is establishing a new economic system so as to liberalize the trade and open 
up the private sector investment opportunities. To promote more private participation in energy sector, private companies are allowed to operate petrol stations, up to now, a total of 1,127 petrol stations have been opened. The Government allows private entrepreneurs 
to import 92 Ron and Diesel Oil, apply to the Ministry of commerce. Moreover, the Ministry 
of Energy has invited interested local and foreign companies to operate the refuelling service on a joint venture basis. 
The Ministry of energy intends to implement th e No. 1 Thanlyin refinery on a Joint Venture 
between Myanmar Petrochemical Enterprise and interested foreign investors to operate the refinery by using imported crude oil and also to enhance production capacity. 
According to the Section 4 of the SEEs Law, the Government may, by notification, permit 
in the interest of the Union of Myanmar any economic enterprise which prescribed under 
the Section 3, to be operated solely by the Government to be carried out by joint-venture between the Government and any other person or any other organization or under 
conditions by any person or any economic organization subject to conditions. However, 
these industries will gradually be opened beyond 2015 when ASEAN free Trade Area emerged. 
 
Page 23, para 6.11, Architec t & engineer, Singapore Q6:  
We would like to enquire whether there are any specific policies restricting the practice of 
foreign architects and engineers in Myanmar. If so, what would these be? 
 Answer: There is a need for foreign consultants such as architects and engineers to be registered 
with the respective Myanmar Professional Regu latory Authorities to ensure that they are 
eligible to practice in the respective profession field and to ensure that they take the liability. 
The Professional Regulatory Authority for En gineering is the Myanmar Engineering Council. 
According to the ASEAN Mutual Recognition Arrangement on Architectural Services signed on 19th November 2007, the Ministry of Construction is the Professional Regulatory 
Authority (Architecture), regulating the Architectural Professional in Myanmar. 
According to the Ministry of Constr uction Notification No. 175/2013 of 
19
th September 2013, Board of Architects of Myanmar is an authorized agency of the 
Professional Regulatory Authority. WT/TPR/M/293/Add.1 
 
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  Myanmar Architect Council Law that will govern  the Architectural Profession is in the 
approval stage. The foreign Architects who wish to practice in Myanmar need to have a valid license for practicing architecture in his or her own country and need to have a local counterpart who 
is a senior licensed architect in Myanmar. It is a common practice agreed upon by the 
ASEAN Architect Council and practiced throughout ASEAN. The reason for having a local counterpart is to ensure that local rules and regulations as well as culture  is respected. 
 
Page 23, para 6.16, Financial Instit utions & Insurance, Singapore Q7:  
Singapore notes that the Central Bank of Myanmar (CBM) has successfully managed the replacement of the former overvalued foreig n exchange peg rate by a "managed float" 
system in April 2012 and is in the process of obtaining its full autonomy. The CBM is also 
working to map out a master plan for the development of the financial sector and to rewrite the Financial Institutions of Myanmar Law with the assistance of donors. It is 
envisaged that once this new regulatory framework is adopted, financial institutions will be 
able to compete more efficiently with each other in offering financial products, such as credit cards. We would appreciate it if Myanmar could clarify the following questions. 
Q7A:  When the review of the Financial Institut i o n s  o f  M y a n m a r  L a w  i s  e x p e c t e d  t o  b e  
completed?  Answer:   
The New Banking and Financial Institution Law has been already drafted with the TA of the 
World Bank and submitted to the Union Attorn ey General Office and Legal Advisory Team 
of the President's Office with the request fo r legal opinion during the early this year 
(2014). After getting the drafted law back, the CBM will submit the drafted law to the 
Union Government Cabinet's meeting for approval. And then the drafted law will be submitted to the nearest parliament meeting. On the whole, the Banking and Financial 
Institution Law will be promulgated before mid this year. 
 Q7B:  What are the objectives of the new law and what will some of its features be? 
 
Answer: 
The objectives of the new Law are to maintain stability, safety and soundness of financial system; to reduce risk of loss to depositors  and to empower the Central Bank to grant 
license and impose regulations and to promote consumer protections. 
Some crucial features of the new Law are that business decisions of banks and financial institutions can be made at their own discretion; the new Law will ensure the effective 
implementation of Basle Core Principles and other applicable international good practices 
and the new Law provides the comprehensiveness of regulator and supervisory powers for the Central Bank.  
Q7C: Will the Insurance Business Law, which covers the establishment of an insurance 
company in Myanmar, be review as well? If so, what key changes can we expect?  Answer: 
The Insurance Business Supervisory Board and its office will be seceded from Myanma 
Insurance. The establishment of Myanmar will be prescribed. 
The establishment of insurance association will be prescribed. 
Services auxiliary to insurance will be granted permission to do business. Domestic private insurance companies will be granted to establish joint-venture insurance companies with foreign insurance companies.  
 
Page 24, para 6.20, Tourism policy, Canada Q9:  
Could Myanmar provide more information about the types of policies, tools and programs 
being implemented to support Myanmar's tourism development strategy? 
 Answer:   
With a view to address social and environmen tal challenges associated with the ongoing 
rapid tourism growth, the Ministry of Hotels and Tourism (MOHT) has formulated the Myanmar Tourism Master Plan 2013-20. The Government aims to balance economic growth objectives with the wellbeing of host  communities and minimize tourism's negative 
impacts on the social, cultural and environmental fabric of the country. In particular, the WT/TPR/M/293/Add.1 
 
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  Master Plan has adopted the nine aims of the Responsible Tourism Policy as guiding 
principles. These principles seek to: 1) Development tourism as a national priority sector; 2) Promote broad-based local social and econ omic development; 3) Maintain cultural 
diversity and authenticity; 4) Conserve and enhance Myanmar's protected areas and 
natural environment; 5) Compete on product richness, diversity and quality; 6) Ensure the 
health, safety and security of visitors; 7) Strength institutional capacity to manage tourism; 8) Develop a well trained and rewarded workforce; and 9) Minimize unethical 
practices. 
The Master Plan sets out six strategic programs which are interrelated and have equal importance: 1) Strength the institutional environment; 2) Build human resource capacity and promote service quality; 3) Strength safeguards and procedures for destination 
planning and management; 4) Develop quality products and services; 5) Improve 
connectivity and tourism-related infrastructure; and 6) Build the image, position and brand of Tourism Myanmar. 
The formulation of the Master Plan has benefitted from technical assistance from the ADB 
and Norway and the implementation of its stra tegic programs is proceeding with technical 
assistance from the donors' community. The Myanmar Tourism Master Plan can be 
downloaded at the following website; http://myanmartourism.org/latestnews/wp-
content/uploads/2014/02/Myanmar-Tourism-M aster-Plan_English -version-3-2-2014.pdf. WT/TPR/M/293/Add.1 
 
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  Questions from China and its Answers  
Questions based on Report by the Secretariat (WT/TPR/S/293)  
General Answer on Investment  
Myanmar has initiated a broad reform process to improve its legal and regulatory 
framework since the new Government took office in 2011. In line with the wide ‐ranging 
reform program of the new Government, ther e were considerable expectations from 
stakeholders concerning a rapid improvemen t of Myanmar's investment framework. In 
order to create a more open and secure investment environment, the New Foreign Investment Law (FIL) was enacted in November 2012, followed by its accompanying implementing rules (Notification No 11/2013) as  well as Notification No 1/2013 in respect 
of the negative list of prohibited activities  (see Table 1 below). The investment framework 
for domestic investors was also updated and enacted in July 2013 with the New Myanmar Citizens Investment Law (CIL). Although the 2012 FIL offers undeniable improvements over the earlier 1988 law, there were shortcomings, notably with respect to investor protection and procedures for business entry. 
 
Table 1 Investment-related Laws and Regulations 
Date Investment ‐related Laws & Regulations 
November 2012 New Foreign Investment Law (FIL) 
January 2013 Foreign Investment Rules, Notification No: 11/2013 
January 2013 Notification No: 1/2013 (Negative list of prohibited activities) 
July 2013 New Myanmar Citizens Investment Law (CIL) (Domestic enterprise 
investment) 
January 2014 New Myanmar Special Econom ic Zone Law (Unified law for SEZs) 
[Second half of 
2014] Revised FIL Notification No: 1/2013 (Reduced list of prohibited 
activities) 
[Second half of 
2014] FIL Notification No: 2 (Clarification  of conditions attached to tax 
exemptions) 
[Second half of 
2014] FIL Notification No: 3 (Clarification of Environmental and Social 
Impact Assessments) 
[Second half of 
2014] New Myanmar Companies Act 
[End of 2014] Myanmar Investment Law (Merging the New FIL and New CIL) 
 
In terms of investor protection, some of th e core standards, such as MFN and national 
treatment, expropriation with fair market value compensation and dispute settlement, remained absent from th e new legal framework. 
In view of the urgency in reforming Myanmar's investment framework, the draft New FIL 
was formulated without the assistance of international technical expertise or a broad‐based consultation process of stakeholders (other than Parliament). However, the 
shortcomings of the new legal investment framework were quickly recognized and the 
New Government welcomed offers of techni cal assistance from several international 
organizations, notably the Organization for Economic Cooperation and Development (OECD), the Asian Development Bank (ADB), the International Finance Corporation of the 
World Bank Group (IFC), the Japanese and Ge rman international agencies (JICA and GIZ) 
and others.  
The ongoing legislative work program on investment is now focusing on: the imminent 
adoption of three sets of FIL regulations; the formulation of an overall Myanmar Investment Law that will merge the New FIL and New CIL into one coherent investment 
framework, thereby removing the perception that foreign and domestic investors were 
treated differently; and a New Myanmar Companies Law. 
 Concerning the adoption of FIL regulations, three Notifications are awaiting adoption by 
Parliament: 
1) Revised Notification No.1 aims at addressing a number of weaknesses in the activities 
that were initially reserved for domestic investors and thus prohibited for foreign WT/TPR/M/293/Add.1 
 
- 71 - 
 
  investors. It is now proposed to reduce the number of activities on the "negative list" of 
prohibited activities closed to foreign investors from 21 to 11, thereby considerably reducing the scope for discretion. It is also  proposed to reduce the scope of economic 
activities in which joint ventures between foreign and domestic partners are required.  
2) Notification No. 2 aims at clarifying the tax incentives and conditions attached to 
them. Notification No. 3 aims at clarifying the activities subject to environmental and social impact assessments.  
 
As regards formulation of an overall Myanmar Investment Law, several ambiguities have emerged as a result of the enactment of two parallel laws: one for foreign investment, i.e. 
New FIL, and one for domestic investors, i.e. New CIL. Myanmar's authorities are now 
actively working with the assistance of international experts with a view to merging these 
two laws into a single coherent investment law that will address the shortcomings of the existing legal framework, notably matters concerning MFN and national treatment, 
expropriation with compensation at fair market value, transparency, the alleged 
discretionary authority of the Myanmar Inve stment Commission, and dispute settlement, 
all of which are under consideration. The aim is to finalize the draft law during the fall 
2014, carry out consultation with stakeholders  and, ultimately, submit the draft law to 
Parliament at the end of 2014.  The Ministry of National Planning and Economic Development is also responsible for two 
other important economic laws: the Myanmar Companies Act (1914); and the recently 
enacted New Myanmar Special Economic Zone Law.  
The Myanmar Companies Act of 1914 contains a number of complicated provisions that are 
out of step with today's operating environment. With ADB technical and financial assistance, modifications are underway to align its provisions with the current economic 
environment and comply with international standards. The aim is to finalize the draft in 
May 2014.  In respect of Special Economic Zones, two parallel laws, the Myanmar Special Economic 
Zone Law and Dawei Special Economic Zone Law were enacted shortly before the new 
Government took office in 2011. However, the two laws were found to be deficient in inducing foreign and domestic investors to locate their investments in these SEZs. 
Moreover, the two laws raised doubts about the harmonization of the regulatory 
framework across zones. Therefore, the two la ws have been merged into a new Myanmar 
Special Economic Zone Law, which was enacted in January 2014. 
 
Page 10, para.1.4 : Economic Environment 
The Report states that "Myanmar has large potential for growth. However, significant 
impediments remain to modernizing Myanmar's economy and meeting the Government's 
goal of "fostering inclusive broad ‐based growth and poverty reduction"; these include the 
lack of capacity and infrastructure". 
 
Q1: In order to deal with challenges to growth posed by lack of capacity and 
infrastructure, what kind of economic policies, specific measures and/or development programs has the Government laid down?  
Answer : 
Economic Development  
 
Based on our current economic policy framework, the following objectives are laid down; 
 
• To improve the living standard of entire population;  
• To increase per capita GDP;  
• To promote public utilities and social sector development such as transportation, 
 water and sanitation, electric power, education, health and social security, etc.;  
• To create job opportunities; and  
• To conserve natural resources.  
 
Poverty reduction  
Regarding the social and economic chal lenges, Myanmar has implemented poverty WT/TPR/M/293/Add.1 
 
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  reduction and rural development as a national  priority. The eight activities are being 
implemented in various states and regions. These activities are:  Development of agricultural productivity; 
 
Development of livestock, fisheries and socioeconomic life; Development of rural small ‐scale productivity; Development 
of micro saving and credit enterprises; Development of rural 
cooperative tasks; 
 Development of rural energy; 
Environmental conservation; 
 Collection and analysis of rural development and poverty alleviation data and information. 
 
Infrastructure development  
The Government is promoting public utilities and social sector development, such as 
transportation, communication, water and sanitation, electric power, education, health and 
social security activities in cooperation with private sector and relevant institutions. 
To supplement Myanmar's limited resources, the Government is placing more emphasis on education and is actively coordinating with the donors' community in implementing the 
above objectives. 
 Page 12, para.1.14: Monetary Policy   
The Report states that "[i]n order to encourage private sector activity, more flexibility was 
permitted with respect to lending and deposit rates. These may now fluctuate. Restrictions on eligible collateral have also been eased; Private ‐sector credit expansion was about 38% 
in 2011/12 and approximately 55% in 2012/13". 
 
Q2: Please further explain the current policy on lending and deposit rates with respect to 
their "flexibility" and possibility to fluctuate. 
 
Answer:  
The Central Bank of Myanmar has allowed a ll banks to set deposited and lending rates 
within a band. Therefore, at this time, the minimum deposit rate is 8% and the maximum 
lending rate is 13%. 
 Q3: Please confirm whether there are further plans to reform its policy with regard to 
lending and  deposit rates. 
 Answer:  
The CBM began monitoring reserve money to guide its monetary operations and interest 
rate decisions. Current operations rely on deposit and credit auctions (deposit auctions 
only since September 2012) and were developed on the basis of IMF technical assistance. Regulation concerning the auctioning of Treasury Bills was also drafted with the assistance 
of the IMF. The Treasury Department of th e Ministry of Finance is implementing the 
issuance of Treasury Bills by auction. It is expected that a money market will gradually develop in Myanmar following the 
commencement of Treasury securities being issued via auctions. From these money 
markets, the private sector will be able to evolve market driven interest rates across the interest rate curve. To facilitate a more complete move toward market ‐based monetary operations, the CBM's 
monetary tools will need to be gradually improved the interbank market reopened and the 
treasury securities market developed. 
 Page 25, para.2.36: Trade Disputes and Consultations   
The Report states that "[a]rbitration provisio ns are prescribed in the Myanmar Arbitration 
Act 1944, which allows for international arbitration. For commercial disputes between domestic companies, the UMFCCI is the arbitrator… For disputes relating to foreign 
companies, the Arbitration Rules of  the Chamber of Commerce apply". 
 Q4: Does the Act enable a foreign party, under agreement with a domestic party, to resort WT/TPR/M/293/Add.1 
 
- 73 - 
 
  to an  international arbitration institution that locates outside Myanmar for resolution of 
disputes between them?  Answer:  
Concerning commercial disputes and consultations, the methods of settlement of dispute 
are referred to not only Arbitration Act 1944 of Myanmar but also UNCITRAL Rules, Singapore International Arbitration Center and other international arbitration rules which 
are agreed by the parties to the Contract. 
 Q5: Please define the "Arbitration Rules of the Chamber of Commerce" as mentioned in 
the Report  and explain their difference from the arbitration rules of major international 
commercial arbitration institutions, for instance, the International Court of Arbitration of 
International Chamber of Commerce (ICC). If th e two sets of rules are different, please 
confirm whether the Act allows for application of the Arbitration Rules of the ICC when a 
foreign party is involved in the dispute settlement. 
 Answer:  
The Arbitration Committee of UMFCCI endeavours to settle the trade disputes of its 
members based on social ethics and mutual ag reement of disputing parties. Should the 
parties disagree to the settlement of dispute at the committee level they have the liberty 
to proceed to the law court at their own discretion. The arbitration committee settlement 
procedure is not based in Myanmar Arbitration act 1944. 
 
Page 18, para.2.9: Foreign Investment Regime   
That Report states that "[t]he Government has signed the UN Convention against 
Corruption. In order to implement this Convention, an anti ‐corruption law was enacted on 
17 September 2013". 
 
Q6: How has the anti ‐corruption law been implemented so far? 
 
Answer:  
In Myanmar, Anti ‐Corruption Law was enacted on 17th September 2013 and the 
Anti‐Bribery Commission was set up on 25th February 2014 to implement the 
Anti‐Corruption Law. Actions against corruption are being taken strictly by the Anti ‐Bribery 
Commission. Procedures on alleged corruption actions will shortly be elaborated by the 
Anti‐Bribery Commission. 
 
Q7: Does the Government obligate foreign funded companies to set up internal compliance 
system  on compulsory basis to fight against corruption? 
 Answer:  
The Anti ‐Bribery Commission was set up on 25
th February 2014 by Order No. 6/2014. 
Concerning with the implementation of the Anti ‐Corruption Law, the Anti ‐Bribery 
Commission will take measure in accordance with the Anti ‐Corruption law. 
 
Page 15, para.1.27  
The Report states that "[s]ince 2005/06, FDI inflows have been volatile. In 2005/06, there 
was a large investment from Thailand in the power sector for a hydroelectric plant (Chart 1.3). Between 2006/07 and 2009/10, FDI inflow s tapered off and did not exceed US$1 
billion. However, there was a significant upsurge in FDI inflows in 2010/11 as the oil and 
gas, power, and mining sectors attracted considerable investment. FDI fell again to approximately US$5 billion in 2011/12". 
 
Q8: Please explain the possible reasons for the vola tility of FDI inflows during past years, 
particularly  in 2011/12, after the new Government took office in 2010. 
 
Answer:  
In 2010 ‐11, most FDI flows went into large capital intensive resource ‐based projects, such 
as power, oil and gas and mining sectors. Thereafter, Myanmar's huge untapped 
manufacturing and services sectors attracted considerable attention by the world 
community and investment flows have duly reflected Myanmar's opportunities and 
improved investment climate. WT/TPR/M/293/Add.1 
 
- 74 - 
 
  Q9: Are there any policy considerations by the Government to reduce excess volatility, 
including  through a more predictable and transparent policy making process on FDI? 
 Answer:  
In 2011 ‐12, investment from China in power projects amounted to over US$4 billion and 
other approved investment reached about $300 million. For the period 2013 ‐14 (up to 
February), Myanmar received over $3 billion or  about twice the flows recorded during the 
previous year period. For policy considerations, please see general answer on investment. 
 
Page 17, para.2.3  
The Report states that the Government takes enhancing transparency in the public sector one of their priorities. In the meanwhile, on investment liberalization, "the Government is 
considering merging the 2012 Foreign Investment Law with the Myanmar Citizens 
Investment Law, to provide a single investment framework".  
Q10: What is the timeline for the merging of the 2012 Foreign Investment Law with the 
Myanmar  Citizens Investment Law? 
 
Answer:  
See general answer on investment.  Q11: Once merged, will the difference or even contradictions with regard to national 
treatment,  between the two laws be eliminated or not? 
 Answer:  
See general answer on investment. 
 Q12: Please confirm whether the Government will make any substantive policy changes to  
conditions on FDI market access and procedures for administrative appr oval in this regard. 
 Answer:  
See general answer on Investment. The provisions of the unified Law will have likely 
streamlined procedures. 
 
Page 26, para.2.40  
The Report states that "[t]he new Foreign Investment Law (FIL), promulgated in 
November 2012, is a revision of the Myanmar Foreign Investment Law of 1988. Implementing rules of the new FIL were promulgated on 31 January 2013 and 
supplemented by Notification No. 1/2013 of the MIC. The new FIL supports investment 
projects that expand exports or produce import substitution products".  Q13: Please confirm whether the new Foreign Investment Law is retrospective in effect, 
which  enables foreign investments contracted or fulfilled before its promulgation to benefit 
from the tax incentives and other preferential treatment conferred by the Law as well.  
Answer:  
Foreign Investment Rule 173 stipulates that the investor who is performing investment business according to the permit issued by the Commission and formed under the Union of 
Myanmar Foreign Investment Law (State Law and Order Restoration Council Law No. 
10/1988) shall apply to the Commission for the continuity to carry out and enjoying the benefits in accord with the conditions prescribed under the Foreign Investment Law. 
FIL has no retrospective in effect. FIL section 52 said investor is entitled to proceed and 
enjoy continuously in accord with terms and conditions contained in the permit and the 
relevant contract. Also FIL rule 170 specifies that investor has the right to continue to enjoy the exemptions and reliefs if he is still enjoying exemptions and reliefs allowed under 
the Union of Myanmar FIL. 
 
Page 26, para.2.43  
The Report elaborates on the FIL that "[t]he previous law of 1989 adopted a "positive list" 
approach where foreign investors were allowed to invest only in listed sectors. The new law lists certain activities that are restricted or prohibited to foreign investment (Article 4), including: a. businesses that can affect the traditional culture and customs of the ethnic WT/TPR/M/293/Add.1 
 
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  nationalities of the country, and public health…" 
 Q14: Please explain how to define "businesses that can affect the traditional culture and 
customs of  the ethnic nationalities of the country, and public health". What are the legal 
criteria to help make such a judgement? 
 Answer:  
FIL sections 4 and 5 specify that the Myanmar Investment Commission (MIC) shall issue 
the type of economic activities by Notification with the approval of Union Government. In that case, for those activities prohibited or restricted is considered based on Myanmar' traditional customary law and internationally accepted law and regulations. 
 
Page 30, para.2.59  
The Report elaborates that businesses in Myanmar may take the form of partnerships, 
limited companies, or branches/representative offices of a foreign company, and "[f]oreign 
investors must recruit at least 25% of their employees from the local labour force in the first two years. The local employment ratio increases to at least 50% for the third and 
fourth years, and at least 75% for the fifth and sixth years. It may take more years for 
activities in academic areas to in crease the local employment ratio". 
 Q15: Please clarify whether the Government has made or plans to make any evaluation, 
including through cost and benefit analysis to assess the impact of such a local 
employment policy on the efficiency and competitiveness of commercial operations in the country. If necessary, would the Government cons ider relaxing this policy in near future? 
 
Answer:  
In Chapter 1, Paragraph 31 of the Constitution  of the Republic of the Union of Myanmar 
states that "The Union shall, to the extent possible, assist to reduce unemployment among 
the people," and thus, the Government is putting its best effort to promote the local employment opportunities for all its citizens. The said policy has been laid down to harmonize with the Constitution. At the same time, the Employment and Skill 
Development Law has been enacted and the Rules for the Law are under the drafting 
stage, in order to assist the national employment and occupational skill qualification framework for Human Resources development. On the other hand, as a member of ASEAN, 
Myanmar is preparing to facilitate the movement of ASEAN nationals, business persons 
and tourists in the ASEAN region to complement the trade and investment facilitation work. Hence, the Government may not consider  relaxing this policy in near future.  
 
Q16: Please confirm whether the local employment policy with its ratio requirements shall 
apply to all FDI sectors and all foreign funded companies. Are branches, subsidiaries or representative offices set up in Myanmar by foreign companies also subject to those 
employment ratio requirements? 
 Answer:  
In principle, the local employment policy with its ratio requirements apply to all FDI 
sectors and all foreign funded companies and the branches, subsidiaries or representative offices set up in Myanmar by foreign companies are also subject to those employment ratio 
requirements. 
 
Q17: Please clarify whether the requirement on local employment ratio remains at 
min.75% even after the fifth and sixth ye ars with no further upward adjustment. 
 
Answer:  
The requirement on local employment ratio mu st be minimum 75% for the fifth and sixth 
years and it is encouraged to increase percentage of local employment for the further 
years.   
Q18: Please explain in detail the local employment ratio requirements for foreign funded 
businesses  in academic areas. 
 Answer:  
According to FIL Law section 24, in additi on to answer of Question 16, Myanmar WT/TPR/M/293/Add.1 
 
- 76 - 
 
  Investment Commission may increase the suitable time limit for the business based on 
knowledge. Q19: Does the Government have any plan to simplify and streamline its procedural 
requirements on foreign invested companies in the field of business registration, 
investment permit approval, import and export license application and industrial license 
issuance?  
Answer:  
The Government is now working with technical assistance from the Asian Development Bank (ADB) to establish an online registration system and also in revising the Myanmar Companies Act. Work is expected to be completed in 2014. 
 
Q20: Does the Government have any plan to grant the same treatment to both foreign 
funded companies and indigenous businesses in terms of collection of public utility fees, 
and choice of legal currency in which the fares are denominated and collected? 
 Answer:  
Yes. In the upcoming Investment Law, it is likely to have same treatment for both foreign 
and local investors.  Q21: Does the Government have any trade facilitation plan to consolidate its customs 
procedures  and licensing requirements on importation by foreign funded companies? 
 Answer: 
Foreign companies cannot "engage solely in trade" means that foreign companies cannot 
import goods, distribute and sell them into the domestic market. Moreover, foreign companies cannot export goods by purchasing them from domestic producers. However, 
foreign companies registered as service companies under Myanmar Company Act of 1914 
are allowed to import necessary equipments for carrying out their services business as of 15
th October 2013. The Government is currently considering measures that would allow 
foreign companies to engage in wholesales service in the domestic market. 
 
Page 30, para.2.53  
The Report states that "[l]and in Myanmar is owned by the State; thus, foreign investors 
are not allowed to own land. Under the new FIL, foreign investors may lease land for 
50 years (30 years previously), and the land lease may be extended for two consecutive terms of 10 years (15 years previously). Land  lease contracts must be approved by the 
MIC. The MIC may designate another 10 ‐year extension with the consent of the 
Government, for investment projects in the less developed and poor communication 
regions. For investment in the agriculture and livestock sectors, foreign investment may form joint ventures with Myanmar citizens under contract". 
 
Q22: Please clarify that land in Myanmar is owned exclusively by the central government, 
or can be owned either by central or  by local governments respectively. 
 
Answer:  
Land is solely owned by the central Government. According to the type of land, the administration is empowered to the Region/ Division Governments.  
The vacant, fallow and virgin lands are managed by the central committee for the 
management of vacant, fallow and virgin la nds, formed by the President of the Union 
[Vacant Fallow and Virgin Land management Law Section 3 (a)]. 
Farmlands are managed by the central Admini strative Body of the farmland. [Farmland 
Law section 15 (a)]. For the vacant, fallow and virgin lands, the investors who obtained the permission to carry 
out the business of mutual benefit with investors of Myanmar citizen under the Foreign 
Investment Law can apply to the central committee for the management of the vacant, fallow and virgin land in accordance with the stipulation. [Vacant, Fallow and Virgin Land Management Law section 5 (e)]. 
 
Q23: Please confirm whether foreign investors can obtain the right to utilize land pursuant 
to law,  with no necessity to establish joint ventures or to resort to intermediate lease 
agencies.  WT/TPR/M/293/Add.1 
 
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  Answer:  
Regarding the vacant, fallow and virgin land, the investors who obtained the permission to carry out the business of mutual benefit with investors of Myanmar citizen under the Foreign Investment Law can obtain the right to utilize land. 
Regarding the farmland, the person who has land use right shall have right to use common 
interest the farmland in accord with the foreign investment law of Republic of the Union of Myanmar by cooperating with the foreign or the organization in which the foreigner is 
included [Farmland Law, section 9(f)].  
 Q24: Please confirm whether foreign investors must directly submit their application to 
MIC and then sign with the MIC the land lease contracts once approved by it. Besides MIC, 
are there any other governmental bodies also authorized by law to participate in this 
administrative approval process?  
Answer:  
If it is neither resource ‐based nor industry related to SEEs Law, investor can submit 
proposal directly to Myanmar Investment Commission (MIC). If it is resource ‐based and 
industry related to SEEs Law, proposal must come through concerned Ministries. 
MIC gives investment permission only and the investor should follow the land laws to get 
the land use right for farmland and to get the right to utilize the vacant, fallow and virgin lands.  
Q25: During the term of lease, could the land be subleased to a third party? 
 Answer:  
Yes, according to FIL Rules 64, investor shall carry out only obtaining the permission after 
applying to the Commission Office within the permitted term for the permitted leased land and building without any changes of the type of business with the permission from the 
person who has the right to use the land or right to lease the land for sub ‐lease or for 
mortgage. If the type of land is vacant, fallow or virgin land the permission from the Union 
Government shall be attached and submitted.  Regarding the vacant, fallow and virgin land, the person who has land use right shall not 
mortgage, gift, sell, lease or transfer by other means or divide the permitted vacant, fallow 
and virgin land without the permission of the Union Government [Vacant, Fallow and Virgin land Management Law section 16 (c)]. Regarding the farmlands, the person who has land use right shall right to sell, mortgage, 
Lease, exchange and gift on the whole or part of the right to use the farmland in accord 
with the stipulated terms and conditions [Farmland Law section 9 (b)]. But the person who has land use right should not sell, mortgage, lease, exchange and gift 
on the whole or part of the right to use the farmland without permission of the 
Government to any foreigner or any organization in which the foreigner is included [Farmland Law section 14].  
 
Q26: Who should be financially and legally responsible for the demolition, relocation, 
resettlement  and compensation related to the lease of the physical land with appendages 
attached to it? What are the criteria put in place in this regard? 
 
Answer:  
Concerning the relocation and resettlement of land, it is managed by regional/division 
Government.  
The Central Committee of the management of vacant, follow and virgin Land shall have the right to acquire the acquired minimum land area from the permitted vacant, follow and 
virgin lands if one the following conditions arises [Vacant, Fallow and Virgin land 
Management Law section 19 sub ‐section(a)(b)(c)(d)]: 
 
(a) if the ancient cultural heritages are found in the permitted vacant, fallow and virgin 
 lands;  
 
(b) if infrastructure project or special project is required to be implemented for the 
 interest of the State;  
 (c) if different resources other than the permitte d type of metal is found in the permitted WT/TPR/M/293/Add.1 
 
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   vacant, follow and virgin lands for the mineral production business;  
(d) if the mineral resources are found in the vacant, follow and virgin lands permitted to 
 carry out the business contained in Section 4, Sub ‐section(a),(b) and (c). 
 
The Central Committee shall for acquiring the permitted vacant, fallow and virgin lands 
under Section 19, coordinate with the respective department and organizations to enable to obtain the expenditures actually invested by the person who has the right to cultivate or utilize within the appropriate specified period  by calculating the current value with the 
approval of Union Government [Vacant, Fallow and Virgin land Management Law section 
20].  
The Central Committee has the right to confiscate  the original Deposited security fees as 
the State finance and shall also revoke the right to cultivate or utilize if it is found that one of the conditions contained in this law is violated by the person who has the right to 
cultivate or utilize vacant, fallow and virgin lands [Vacant, Fallow and Virgin land 
Management Law section 21].  Notwithstanding contained in any existing law, the Central Administrative Body of the 
Farmland shall coordinate as may be necessary in respect of giving compensation not to 
grieve absolutely for the matters carried out by the person who has the ownership right to use the farmland including the land confiscated for the interests of the State or the public 
interests and development by building on such  land and managing by other means by the 
relevant [Farmland Law section 26]. The person whose right to use the farmland is revoked or the farmland is recovered by the 
Central Administrative Body of the Farmland under Sub ‐Section (d) of Section 17 shall not 
have the right to enjoy compensation [Farmland Law section 27 ]. 
 Q27: How the rent is decided, by market or by government? What are the commercial 
criteria or  governmental guidelines to help produce and calculate the rent? 
 Answer:  
Rent is stipulated in FIL rules 116.  
The Central Committee shall determine the rate of  security fees to be paid by the person 
who has obtained the right to cultivate or utilize the vacant, fallow and virgin lands in accordance with the type of business [Vacan t, Fallow and Virgin land Management Law 
section 13]. 
The Central Committee shall determine the rate of land revenue to be levied for the right to cultivate or utilize the vacant, fallow and virgin lands and the appropriate period to be 
exempted from Land Revenue depending upon  the type of business and kind of crops 
[Vacant, Fallow and Virgin land Management Law section 14]. The Settlement and Land Records Department shall levy and collect the land revenue from the person who has the right to cultivate or utilize the vacant, fallow and virgin lands 
commencing from the day of the expiry of the exempted period of Land Revenue according 
to the type of business and kind of crops [Vacant, Fallow and Virgin land Management Law section 15]. 
Regarding farmland lease contract, it is necessary to negotiate the rent between foreign 
investors and the Myanmar Citizen who has land use right of farmland.   
Q28: Does the law allow the right to lease land be treated as one of the legal forms of 
capital contribution, or collateral as well? If allowed by law, what are the legal procedures for the concerned business parties to follow?  
Answer:  
Yes, according to FIL Rules 64, investor shall carry out only obtaining the permission after 
applying to the Commission Office within the permitted term for the permitted leased land 
and building without any changes of the type of business with the permission from the 
person who has the right to use the land or right to lease the land for sub ‐lease or for 
mortgage. If the type of land is vacant, fallow or virgin land the permission from the Union 
Government shall be attached and submitted.  
The foreign investors are allowed to cooperate with the Myanmar citizen who has land use 
right in accord with the foreign invest ment Law [Farmland Law, section 9 (F)]. 
 WT/TPR/M/293/Add.1 
 
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  The investors who obtained the permission to  carry out the businesses of mutual profit 
with investors of Myanmar citizen under the fo reign investment Law can apply to cultivate 
or utilize vacant, fallow and virgin land [Section 5 (e)].  
The foreign business parties are allowed to lease land cooperating together with Myanmar 
citizen who has land use right.  
Page 31, para.2.60  
The Report states that "[s]ection 18 (d) of the new FIL appears to allow an investor to challenge a decision of the MIC in the event of denial of the application or the issuance of an approval adverse to the interests of a foreign investor under Myanmar law. However, 
section 49 of the FIL provides that decisions of the MIC under the new law are "final". It 
was not clear to the Secretariat how investors can challenge a decision of the MIC".  
Q29: Please clarify the possible contradiction between the section 18 (d) and the section 
49 of the FIL with regard to the right to challenge a decision of the MIC by a foreign investor. 
 
Answer:  
Section 18(d) of the Foreign Investment Law mentioned that submitting to the Commission to re ‐scrutinize and amend in order to obtain the rights which he is entitled to 
enjoy fully in accord with the existing law. In case, if investor is denied his rights (e.g. tax 
incentives) given by Foreign Investment Law, he can request MIC to re ‐scrutinize. This 
matter is likely to be addressed in the context of the upcoming Myanmar Investment Law. 
Section 49 of the Foreign Investment Law mentioned that the decision of the Commission 
made under the powers conferred by this  Law shall be final and conclusive.  
 Q30: Please confirm the existence of any administrative or judicial remedy when the 
decision of MIC is successfully challenged according to the Law. 
 Answer:  
Section 18(d) of the Foreign Investment Law mentioned that submitting to the 
Commission to re ‐scrutinize and amend in order to obtain the rights which he is entitled to 
enjoy fully in accord with the existing law. In case, if investor is denied his rights (e.g. tax 
incentives) given by Foreign Investment Law, he can request MIC to re ‐scrutinize. This 
matter is likely to be addressed in the context of the upcoming Myanmar Investment Law. 
 
Q31:  Does Myanmar plan to join the Convention on the Settlement of Investment Disputes 
between States and Nationals of Other States  (the ICSID or the Washington Convention) 
in future? 
 Answer:  
So far, we have not yet prep ared to access the International Convention for the Settlement 
of Investment Disputes (ICSID). 
 
Page 32, para.3.2  
The Report states that "…only Myanmar nation als are allowed to engage in trade, except 
for imports of inputs and exports of proce ssed goods by manufacturing firms that have 
been registered under the Foreign Investment Law and consequently also registered as an 
importer and exporter with the Directorate of Trade". 
 Q32: Does the Government have a plan to fully li ft its restrictions on rights to trade? 
 
Answer:  
Foreign companies cannot "engage solely in trade" means that foreign companies cannot import goods, distribute and sell them into the domestic market. Moreover, foreign 
companies cannot export goods by purchasing them from domestic producers. However, 
foreign companies registered as service companies under Myanmar Company Act of 1914 are allowed to import necessary equipments for carrying out their services business as of 
15
th October 2013. The Government is currently considering measures that would allow 
foreign companies to engage in wholesales service in the domestic market.  WT/TPR/M/293/Add.1 
 
- 80 - 
 
  Q33: At present, could those foreign funded companies that failed to obtain trading rights 
from the  Government engage in import and export activities through domestic trade 
companies or trade agents?  
Answer: 
Foreign funded companies wishing to do import and export business must enter into contractual arrangements with domestic trading companies. 
 
Page 60, para.4.46 and para.4.49  
The Report states that the Ministry of Electric Power (MOEP) "aims to increase investment in power generation through its own investment , investment by domestic entrepreneurs on 
a build‐operate ‐transfer (BOT) basis, and investment by foreign companies on a joint 
venture (JV) or BOT basis… In accordance with the Foreign Investment Law, FDI is allowed 
in power generation… FDI must be in the form of a joint venture or BOT system; majority 
Myanmar ownership is not required. FDI is prohibited in the "administration of electricity 
systems or trading of electricity"; thus, no FDI is allowed in electricity transmission".  Q34:  As to investment in power generation, pl ease clarify whether joint ventures formed 
between two foreign companies, with no participation of a Myanmar domestic company, 
will also be eligible to engage in power investment in Myanmar pursuant to the law.  
Answer: 
In electric power sector, foreign investor can be allowed 100% foreign-owned investment and foreign investor is also allowed to jointly cooperate with other foreign and local 
investors. However, for invest ment in power transmission, it cannot be allowed so far. 
 Q35:  Does the Government have a reform plan to lift its prohibition on FDI in electricity 
transmission in future? 
 
Answer:  
For the development of generation capacity, more private sector investment is invited to 
participate. For distribution sector improvemen t, especially, Yangon City Electricity Supply 
Enterprise (YESB) which takes the responsibility of power distribution in Yangon region will 
be re‐structured to a corporation model and in other states and regions local private 
companies are allowed to participate in township level power distribution works. At 
present, MOEP prioritizes the participation of private sector investment in power 
generation and distribution areas only and it does not yet consider a reform plan to lift its prohibition on FDI in electricity transmission in future.  
 
Page 32, para 3.4 and GR Page 17, para.5.1: Import Procedures and Customs Valuation 
(Customs)  The Report states that "[c]urrently, customs clearance requires about three 
days; the authorities intend to implement the ASEAN single window by 2015". The 
Government Statement also mentions that "[i]order to expedite customs clearance, the 
GOM has been implementing a National Single Window (NSW) in accordance with the principles of transparency, simplicity, efficiency and consistency with a view to its 
integration with the ASEAN Single Window (ASW) by 2015". 
 Q36: Please explain how the "ASEAN Single Window" will be carried out.   
 
Answer:  
Myanmar is now introducing Myanmar Automated Cargo Clearance System (MACCS) and Myanmar Customs Intelligence System (MCIS) which will be applied based on Nippon 
Automated Cargo and Port Consolidated System (NACCS) by technical assistance from 
JICA and Japan Customs and Tariff Bureau with ODA of Japan Government. The regular bilateral working groups meetings have been organized since July 2013 in order to 
implement ASW through National Single Window in terms of the Protocol on establishment 
and implementation of ASEAN Single Window Article (8) by applying the Information and 
Communication Technology. At the time of fully implementation on MACCS, National Single 
Window will also be achieved entirely as initiatives of ASEAN Single Window by linking with 
Other Government Agencies and Private Sector as well as border trade zones.  Q37: Despite of efforts to implement a National Single Window, what are the other WT/TPR/M/293/Add.1 
 
- 81 - 
 
  measures to be  taken by the Government to ensure the smooth integration of the "ASEAN 
Single Window" into the present import customs regime to achieve optimal operation of the whole customs regime?  
Answer:  
Myanmar is preparing to fully implement National Single Window and to facilitate the operation at the time of the achievement of  ASEAN Single Window by amending, adding 
and updating the current Customs Law into th e International Customs best practice such 
as WTO Valuation, Post Clearance Audit (PCA) and Risk Management. In terms of ASEAN Integration Program, Myanmar Customs is compliance with the (15) Strategic Plans of Customs Development. Moreover, Myanmar Customs regularly 
participates in and cooperates with the ASEAN Single Window Steering Committee 
meeting, ASEAN Single Window Technical Working Group meeting and Legal Working Group meeting. The technical assistance of Legal Gap Analysis on ASEAN Single Window 
Project provided by USAID has been implemented in Laos, Vietnam, Philippine and 
Indonesia. As the same way, USAID legally offered Myanmar to accept the technical assistance of Legal Gap Analysis like other four Countries. In accordance with that offer, 
the legal expert, Professor Bill Luddy from USAID came to Myanmar Customs Department 
from 25th to 30th November 2013 and organized the workshop and discussion relating to the legal analysis to connect each other countries according with ICT technology for the implementation of ASEAN Single Window. 
Myanmar Customs is making efforts on not only amending Law but also the other 
measures such as re ‐organizing the Organizational Structure, conducting the trainings on 
modern Customs procedures for development of personnel's capacity by technical 
assistance from Japan Customs and JICA, China Customs, European Union (International 
Management Group ‐ IMG), USAID, ADB, IMF etc. 
 
Page 39, para.3.28: Government Procurement   
The Report states that "Myanmar is neither party to nor an observer of the WTO 
Agreement on Government Procurement. Myanmar has no specific legislation governing public procurement".  
Q38: Does the Government have any plan to join the WTO Agreement on Government 
Procurement?  
Answer:  
Government issued the Procurement Directive which was in line with the international procurement Practice in 30 April 2013 to the li ne ministries and agencies. All the line 
ministries and agencies have to follow th ese Procurement directives and use the open 
tendering system. Now, we have received technical assistance from the World Bank and introduced the modernization of Public Finance Management Project. The modernization of Government Procurement is included in this project. 
 
Q39:  At present, whether foreign enterprises and foreign funded companies are treated 
equally as domestic enterprises under the current government procurement system, 
including under the current open tender system? Are there any legal instruments existing 
or to be produced in order to ensure national treatment in this regard?  
Answer:  
Myanmar is using two methods in Government procurement:  
(a) Open Tendering domestic buying; and  
 
(b) Open Tendering foreign buying.  
 
For foreign buying, all the foreign enterprise s and foreign funded companies can compete 
in the Tendering process. There is no separation or discrimination on foreign enterprises or foreign funded companies in Tendering process and selection. 
 
Page 44, para.3.60 : Special Economic Zones   
The Report states that "[t]he Government plans to establish three SEZs: Dawei, Kyauk 
Phyu, and Thilawa. Infrastructure is being developed in the Dawei SEZ. A plan for WT/TPR/M/293/Add.1 
 
- 82 - 
 
  infrastructure development in Thilawa is being prepared, and an environmental impact 
assessment is being conducted in the Kyauk Phyu".  Q40: Please elaborate on the comparative advantages, strategic positioning, development 
objectives  and plans of the three zones respectively. 
 Answer:  
There are three SEZs: 1) Dawei SEZ (DSEZ) located in Dawei District, Tanintharyi Region; 
2) Thilawa SEZ (TSEZ) located in Thanlyin ‐Kyauktan Township, Yangon Region; and 
3) Kyauk ‐Phyu SEZ (KSEZ) located in Rakhine State. The Dawei and Thilawa SEZs are joint 
governmental organizations held respectively between Thailand and Myanmar and Japan 
and Myanmar. Kyauk ‐Phyu SEZ is an organization between private business groups. 
 
Myanmar is one of the Asia Regional Hub countries; investors can take the profits of ASEAN Connectivity. Likewise, it is also the main Corridor in Mekong Sub ‐region (GMS) and 
India‐Mekong Economic and so it is the good region to dig up the opportunities for the 
investors. 
 
1) Dawei SEZ (DSEZ):  
Myanmar and Thailand had signed the Dawe i SEZ Memorandum of Understanding on 
23 July 2013 which established the Myanmar ‐Thai Joint High Level Committee and Joint 
Coordinating Committee (JCC) to oversee its implementation Myanmar ‐Thai Joint High 
Level Committee meetings were held twice in Thailand and once in Myanmar. JCC meeting 
were held three times in Thailand and once in Myanmar. Myanmar ‐Thailand–Japan 
Tripartite Meeting was held on 27 September 2013 in Yangon to consider Japan as a 
Strategic Partner. Two framework agreements have been established: 
 Special Purpose Vehicle (SPV ‐1) in accordance with the Agreement between Myanmar and 
Thailand, (SPV ‐1) was formed in Bangkok to invite international investors and developers, 
and  
1) to obtain capital by selling shares in the financial market in Thailand. In the future, 
SPV‐1 will be changed into Public Co. Ltd. and will be easier to find loans for project and 
can be Dual ‐Listing by selling stocks and shares when developing financial market in 
Myanmar. 
2) SPV‐2 will be registered in Myanmar and it will become an operational level company 
closely linkages Dawei SEZ and related projects as a joint venture company. As the 
structure, the authority of SPV ‐1 has been implemented from SPV ‐2 and the branch office 
of SPV‐2 is being planned to open up in Yangon.  
 
2) Thilawa SEZ (TSEZ): 
From Japanese side, Mitsubishi, Sumitomo and Marubeni companies will  make 49% of total 
investment while a Myanmar public company contributes 51% of investment amount. As 
developer, Myanmar Consortium and Japan Consortium signed Joint Venture Agreement on 
29 October 2013 in Tokyo, Japan.  This project is classified into two parts, Class A (400 hectares) and Class B (2000 hectares). As the first phase of Thilawa SEZ, infrastructure construction is being started 
within 400 hectares. It will be embarked to do the day of commence of the project, to 
come out rapidly job opportunities and to  support the development of Myanmar's 
Economic. Myanmar Thilawa SEZ Holdings Public Ltd is now selling out its shares to the 
people in Myanmar currency Kyat, pricing one share at K 10,000 on 3 March 2014. Thilawa 
SEZ shall be in operation in mid ‐ 2015 and only the companies that can do the specified 
business can get long ‐term land lease.  
 
3) 
Kyauk‐Phyu SEZ (KSEZ):  
Kyauk‐Phyu SEZ is located in Rakhine State and composed of three districts: Kyauk ‐Phyu; 
Yanbye; and Man Aung. It is expected Kyauk ‐Phyu SEZ will be developed in three phases. 
Singapore ‐based Creative Professional Groups (CPG) was selected as the consulting firm to 
develop the open ‐tender process. 
 
Page 44, para.3.64; Page 45, para.3.65: Export Operations of State Enterprises, or 
State Trading 
The Report states that"[t]he State has a monopoly on exports of teak, petroleum and WT/TPR/M/293/Add.1 
 
- 83 - 
 
  petroleum products, natural gas, salt and marine chemicals, pearls and pearl products, and 
mineral and metal products" and "the State ‐owned economic enterprises, or private 
enterprises, may be authorized to export these items if permission is obtained from the 
relevant state ‐trading enterprise(s); activities subject to state ‐trading arrangements 
remain opaque". 
 
Q41: Please explain the policy consideration of the above state ‐trading arrangements and 
their implications on market competition and possible impact on foreign participation in 
particular. 
 
Answer:  
To export minerals and metal products, the investment companies need to obtain the 
permission from both the respective enterprise  of Ministry of Mines. Export permit is 
granted when the exporters demonstrates that all relevant taxes have been paid and it has fulfilled the relevant production sharing contract with the Ministry of Mines. So there is no impact on the foreign participation where the State ‐trading enterprises have a 
monopoly on exports. 
Pursuant to Myanmar gemstone law and Rules, Myanmar Gems Enterprise permits production of gemstones, such as Ruby, Sapp hire, Jade, Diamond, other stones of gems 
quality and substances, which may be declared by  the Ministry of Mines by notification with 
the approval of Government from time to time to be gemstone, and exportation thereof.  Following the enactment of 1995 Myanmar Gemstone Law, the Government itself does not 
carry out extraction of raw gemstones, manufacturing of processed gemstones and 
exportation thereof, but is tasked with the followings: 
• Granting permit to citizen, company in corporated as Myanmar Company under the 
 Myanmar Companies Act and Cooperative society registered under the cooperative 
 society law to enable gemstone production;  
 
• Coordinating and overseeing production and exportation of gemstone;  
 • Collecting royalty, organizing Gems Emporiums and opening gems markets in order to 
 sell gemstone and jewelries freely at all times;  
 
• Granting license to enable sale of raw or processed gemstones and jewelries by 
 opening a shop;  
 
• Ministry of Mines may, with the approval of the Government, permit an individual or 
 an organization, desirous of making fi nished gemstone, manufacturing jewelry and 
 selling raw gemstone, finished gemstone and jewelry, with the foreign currency to do 
 so. Thailand VES Group Limited manufactures and sells finished products of  gemstones and Jewelries by cooperating with the Myanmar Gems Enterprise in form of  Joint Venture Company.  
 
Myanmar Gems Enterprise holds Gems Emporiums bi ‐annually and authorizes exportation 
of gemstone through those Emporiums. In addition, gems and jewelries shops holding 
licenses conduct sale of gemstone within the country in Myanmar currency, makes 
exportation in foreign currency throughout the year as well as participating in the 
International Gems and Jewelries Fair in accordance with rules and regulations.  
The modernization of the 1995 Myanmar Gemstone Law is currently underway. 
Q42: Please clarify how to address the possible conflict of interest related to entrusting the  
monopolistic state ‐trading enterprise(s) with the responsibility to authorize other market 
competitors to export the listed items? 
 
Answer: No. (2) Mining Enterprise, Ministry of Mines allows the lists of minerals for Joint Venture or 
100% Investment to the Foreign Investment  Mining Companies in accord with the 
Myanmar Investment Commission's  Notification No. (1/2013). 
 Q43: Does the Government have any plan to relax its state ‐trading policy by enhancing its  
transparency and shorten its list of items under state ‐trading? WT/TPR/M/293/Add.1 
 
- 84 - 
 
  Answer:  
No.(2) Mining Enterprise changes the policies for relaxing of trading by following the Ministry's Policies.  
Page 47, para.3.77: Legal Framework for Business   
The Report states that "[m]ain business ‐related legislation is old (Table 3.11)" in Myanmar, 
with its Company Act dated back to 1914, and other major legislations enacted in years 
ranging from 1930s to 1990s. The Report also highlights that Government takes enhancing 
transparency in the public sector one of their priorities. 
 Q44: Please confirm whether Myanmar has any plan to amend its major business ‐related  
legislations, including the Company Act (1914) in particular. 
 
Answer:  
See general answer on investment. 
 
Q45: What institutional efforts have been made by Myanmar to enhance transparency in 
the course  of business ‐related law making? 
 
Answer:  
See general answer on investment.  
Q46: What measures will be put in place to ensure the accessibility of the public to 
complete,  accurate and timely information of business ‐related legislations in future? 
 
Answer:  
See general answer on investment. 
 
Page 48, para 3.78: The Report states that there is no bankruptcy law in Myanmar. 
Q47:  Please confirm whether there is plan to enact bankruptcy law in Myanmar. Currently, 
absent such a legal instrument, how could ente rprises deal with its problem of insolvency? 
 Answer:  
The word "insolvency" is synonymous with "bankruptcy" in Myanmar. Although there is no 
the bankruptcy law in Myanmar, Yangon In solvency Act (1909) and Myanmar Insolvency 
Act (1920) are existing law in Myanmar. Those laws provided for personal insolvency. 
There is no provision for enterprises deal with the problems of insolvency; however, 
Myanmar Companies Act (1914) is applied for two ways of winding up company only. Therefore, the Supreme Court of the Union has been preparing the drafting process 
relating to the new insolvency law with technical assistance from Japan International 
Cooperation Agency (JICA).  
Page 48, para 3.81: State‐owned Economic Enterprise (SEEs) 
The Report states that certain activities that  range from banking to breeding of fish are 
reserved for the State, and "[i]n the intere st of Myanmar, the Government may permit 
joint ventures between the Government and other persons or economic organizations to conduct business in these reserved activities. In  this case, foreign equi ty must not be more 
than 80% in the reserved activities. The Government may also prohibit or restrict the 
purchase, sale or transfer of products deri ved from or produced by or used by any 
enterprises conducting the reserved activities". 
 
Q48:  Does the Government have regulations or concrete measures made and published to 
serve as legal underpinnings and regulatory criteria to restrict, prohibit and/or permit 
when necessary foreign joint ventures to conduct those "reserved activities" listed in the 
report?  Answer:  
The main reason is, in the transition time, that the Government needs to nurture the local 
industries and give time to compete medium and large enterprises.  WT/TPR/M/293/Add.1 
 
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  Page 50, para.3.72 ‐3.73: Taxation and Incentives   
The Report states that "[t]he Income Tax Law…covers individual income tax and corporate 
income tax….Corporate bodies are taxed at flat rates: 25% for resident companies, 35% for non ‐resident companies" and "[c]apital gains tax is 10% for citizens and resident 
foreigners, and 40% for non ‐resident foreigners". 
 
Q49: How to define resident company and non ‐ resident company? How to define resident 
taxpayer  and non ‐resident taxpayer? 
 
Answer:  
The Income Tax Law extends to the whole of the Republic of the Union of Myanmar and 
shall also apply to all the citizens of the Repu blic of the Union of Myanmar residing outside 
the Union of Myanmar. According to the Inco me Tax Law, the Resident foreigners and 
Non‐Resident foreigners ar e defined as follow; 
 
Resident foreigner means:  
(1) In the case of an individual, a foreigner who resides in Myanmar for not less than one 
hundred and eighty three days during the income year,   
(2) In the case of a company, a company formed under the Myanmar Companies Act or 
any other existing law wholly or party with foreigner share ‐holders,  
 
(3) In the case of an association of a person other than a company, an association formed 
wholly or party with foreigners and where th e control, management and decision making 
of its affairs is situated and exercised wholly in the Union of Myanmar.   Non‐resident foreigner means any foreigner who is  not a resident foreigner in the Republic 
of the Union of Myanmar. 
Although Myanmar could not has a specific plan and time frame to amend tax rate in order to be equal for resident and non ‐resident foreigners, Myanmar has been implementing the 
tax system reform and trying to establishing the international best practices not only for 
tax administration system but also for tax policy. In this regards, Myanmar Tax laws 
including the Income Tax Law are reviewing and amending whenever it is necessary in accord with the reform road map.  
Q50: Does the Government have a plan to amend the Income Tax Law in order to tax 
resident and  non‐ resident companies on an equal basis? 
 
Answer:  
Although Myanmar could not has a specific plan and time frame to amend tax rate in order to be equal for resident and non ‐resident foreigners, Myanmar has been implementing the 
tax system reform and trying to establishing the international best practices not only for 
tax administration system but also for tax policy. In this regards, Myanmar Tax laws 
including the Income Tax Law are reviewing and amending whenever it is necessary in accord with the reform road map.  
Page 62, para.4.71 : Small and Medium ‐sized Enterprises (SMEs) and Assistance   
The Report states that "[t]he authorities state that, as SMEs contribute to employment 
creation, resources utilization, income generation, and investment promotion, the Government pays special 
attention to facilitating their development, so that SMEs become larger and more 
competitive and innovative in the international market". 
 
Q51: Are there any financial benefits or policy support granted by the Government and its 
relevant  agencies to facilitate the development of SMEs? If any, please elaborate those 
policies or measures in detail. 
 Answer:  
Central Committee and Working Committee were formed with the approval of the 
President Office to support and accelerate the SMEs development in Myanmar. Central WT/TPR/M/293/Add.1 
 
- 86 - 
 
  Committee is chaired by the President and Work ing Committee is chaired by Vice President 
(2) at national level.  Ministry of Industry is cooperating and c oordinating with responsible persons from 
concerned Ministers, private institutions and international organizations to reorganize the 
Agencies which are implemented for promoting SMEs in Regional and local level. 
 
National 
Level  (a) 
Central Committee for Development of Small & Medium Enterprises  
 (b) Working Committee for Development of Small & Medium Enterprises  
Regional 
Level  (a) Central Department of SMEs Development 
 (b) Financial Institutio n will start in 2014 
 (c) Credit Guarantee Corporation 
Local Level  (a) SME Service Branches 
 
In order to support SMEs for good environment in policy, law and strategies, capacity building of stakeholders, market extension, access to technology, investment and HRD; 
nine leading groups were set up under the working committee for Small and Medium 
Enterprises Development.  
1. Group for Business start ‐up  
2. Group for Policy Development of the ease of Access to Finance  
3. Group for policy development for market penetration  
4. Group for Access to Information & Research  
5. Group for Human Resources Development  
6. Group for Regulatory of SME and related Laws  
7. Group for Cluster Development  
8. Group for Monitoring and Evaluation  
9. Group for Standardization and Implementation  
 Myanmar Industrial Development Bank was tr ansformed to Small and Medium Industries 
Development Bank (SMIDB) in October 2012 and it supports financial assistance to SMEs. 
SMIDB has already provided 10 Billion Kyats in loans to 62 SMEs.  
Page 63, para.4.76  
The Report states "…. While FDI in banking is not prohibited, there has been no foreign 
investment in the banking sector (subsidiaries, joint ventures, or direct branches of banks established abroad) except for representative offices". 
 
Q52: Please help explain the possible reason for the non ‐existence of foreign investment in 
the banking sector even though FDI is not prohibited? 
 
Answer: 
As foreign investors are not prohibited in the banking sector, the CBM, the sole regulatory and supervisory authority in the banking sector, has already established selection process 
and procedure for foreign banks to apply for banking licenses as of May 2014. In 
accordance with the procedure, the selection board will choose the eligible foreign banks which will be licensed to organize the branch es and exercise the typical operations, like 
wholesale business. It is envisaged that five to ten foreign bank branches are about to 
commence their banking business by the end of this year. 
 Q53: Whether there are any regulatory restrictions that substantively eliminated the 
feasibility of FDI in banking sector? If any, do es the Government have a plan to abolish the 
relevant restrictive policies or measures?  
Answer: 
Banking sector is allowed subject to the approval of Central Bank of Myanmar. According to the banking sector development master plan and foreign banks entry plan, the establishment of foreign banks inside the dome stic banking sector will be allowed by the 
CBM by the end of this year (2014). WT/TPR/M/293/Add.1 
 
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  The model and format among three categories: joint venture, subsidiary and full branch 
has not been clearly decided yet by the CBM as there still needs to make sure that the forthcoming model or models are to comply with the existing laws. The Financial Institutions of Myanmar Law stipulates that the financial institutions can be established as 
a financial institution with foreign capital or as a branch of a foreign bank. However, that 
Law did not mention the joint venture model or equity participation of foreign banks in the domestic banks. On the whole, the Banking and Financial Institutions Law (new) has 
already been drafted by the CBM with technical assistance from the World Bank and to be 
submitted to the Parliament in the near future. Hopefully, this new law will be promulgated during this year and provide room for any model of foreign banks entry, and thus the entry of foreign banks can be commenced by the end of this year (2014). 
 
Page 64, para.4.85  
The Report states "[t]he CBM intends to develop the banking sector in three phases: 
(1) allowing domestic private banks to operate joint ventures with foreign banks; 
(2) allowing foreign banks to establish wholly owned locally incorporated subsidiaries; and (3) allowing foreign banks to open direct branches in Myanmar". 
 
Q54: Does Myanmar have a plan to further open up its banking sector unilaterally? 
 Answer: 
See answer of Q52. 
 Q55: Please provide the timelines, if any, for the implementation of three ‐phase 
development plan. 
 Answer:  
As foreign investors are not prohibited in the banking sector, the CBM, the sole regulatory 
and supervisory authority in the banking sector, has already established selection process 
and procedure for foreign banks to apply for banking licenses as of May 2014. In accordance with the procedure, the selection board will choose the eligible foreign banks 
which will be licensed to organize the branch es and exercise the typical operations, like 
wholesale business. It is envisaged that five to ten foreign bank branches are about to commence their banking business by the end of this year. 
 
Q56: According to the three ‐phase development plan, are there going to be business 
restrictions on  foreign investment in banking sector in future? If any, is the Government 
willing and committed to incrementally lessen those restrictions for further liberalization of 
the sector? 
 Answer:  
As foreign investors are not prohibited in the banking sector, the CBM, the sole regulatory 
and supervisory authority in the banking sector, has already established selection process 
and procedure for foreign banks to apply for banking licenses as of May 2014. In accordance with the procedure, the selection board will choose the eligible foreign banks 
which will be licensed to organize the branch es and exercise the typical operations, like 
wholesale business. It is envisaged that five to ten foreign bank branches are about to commence their banking business by the end of this year. 
 
Page 65, para.4.87  
The Report states "Myanmar Insurance implem ents a deposit insurance scheme, on behalf 
of the Government. The scheme was launched on 1 October 2011; 60% of the insured 
deposit amount will be reimbursed in the event of bank bankruptcy. Myanmar plans to 
establish a Deposit Insurance Corporation as a separate organization in accordance with international practice". 
 
Q57: Please confirm whether the deposit insurance scheme is now or will be applicable to 
branches or subsidiaries of foreign banks in future? 
 
Answer:  
The existing deposit insurance scheme is not now applicable to branches or subsidiaries of foreign banks. Until now, Myanmar Insurance has no plan to have the above ‐mentioned WT/TPR/M/293/Add.1 
 
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  branches or subsidiary effect the deposit insurance with it.  
 
Questions on Government Statement (WT/TPR/G/293)  
Page 10, para.4.3: Foreign Exchange and Monetary Policy 
The Statement says that "…the liberalization of the exchange rate regime starting in 
September 2011 and the subsequent replacement of the overvalued official exchange rate 
p e g ,  … "  i s  a  " m a i n  s t e p  i n  r e m o v i n g  r e s t r i c t i o n s  o n  t h e  p u r c h a s e  a n d  s a l e  o f  f o r e i g n  
exchange for the import and export of goods and services and also in connection with 
Foreign Direct Investment (FDI)… Moreover, in August 2012 Parliament adopted a new Foreign Exchange Management Law, which, once  implemented, will remove all the present 
restrictions on current payments and transfers abroad". 
 Q58: Please clarify whether the present restrictions on current payments and transfer 
abroad are  applicable to both foreign exchanges and Myanmar kyat. 
 Answer:  
Restrictions on current payments and transfer abroad are only applicable to foreign 
exchanges. In addition, all restrictions ha ve been lifted since the Foreign Exchange 
Management Law was promulgated.  
Q59: Please confirm whether the new Foreign Exchange Management Law (2012) has 
been implemented. If not yet, when will the Law be effective? Once implemented, are 
there still any other restrictions or monitoring measures remain with respect to transfer, 
purchase and sale of foreign exchan ge by foreign funded companies. 
 Answer:  
The new Foreign Exchange Management Law was enacted on 10
th August 2012. By 
promulgating that law, all restrictions on current account transactions were totally removed.  
Page 10, para.4.4  
The Statement says that "…Currently, although the CBM is endeavouring to establish an interbank foreign exchange market, the market is too tiny for market intervention to be 
effectively conducted. This situation signals that Myanmar's banking and financial sector 
needs to develop more vigorously".  
Q60: Will the Government take any steps to help expand interbank foreign exchange 
market, and make any moves to promote the competitiveness of its banking industry and financial sector?  
Answer:  
Yes, the Government is now endeavouring to develop the interbank foreign exchange market. This will be done with tech nical assistance from the IMF & JICA. 
 
Page 12, para.4.9 : Fiscal Policy 
The Statement says that "... tax reforms aimed at broadening the tax base and improving 
compliance, including through the planned establishment of a large taxpayer office in 
2014, so as to offset the loss in revenues from trade taxes as a consequence of the abolition the withholding tax on imports and the export tax on key agricultural exports. Furthermore, the MOF has also simplified the commercial tax on domestic sales, 
broadened the tax base by requiring public sector employees to pay income tax, and 
increased the progressivity of the income tax. Limiting tax incentives is also important to prevent further erosion of the tax base". 
 
Q61: Please define 'large taxpayers", and explain the function and mandate of large 
taxpayer office. 
 
Answer:  
The taxpayers, who will meet the criteria developed by IRD, will be defined as large taxpayers and will be under the jurisdiction of  Large Taxpayer Office (LTO). The criteria 
included a review of financial information such as authorized capitals, paid up capital, WT/TPR/M/293/Add.1 
 
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  gross turnover, the most tax payments within 3 consecutive years and specific industry 
sectors such as extractive industries, telecommunications, and airlines, group of companies, public companies and financial instruction. Myanmar will begin implementation of a self -assessment system of taxation with the 
establishment of LTO. Furthermore, the LTO wi ll provide quality customer service to the 
taxpayers. Staffed by tax administration professionals, LTO will work with large taxpayers to enhance their ability to meet the requirements of the tax laws while, at the same time, 
implementing strategies to ensure information submitted by large taxpayers is truthful, 
accurate and timely.  Q62: Please list any other measures that aim to broaden tax base besides those 
mentioned in the  Statement. 
 Answer:  
Myanmar has been implementing the tax reform measure in line with the market 
economy. According to the fiscal policy reform road map, Myanmar laid down the strategies. One of the strategies is to broaden the tax base. At present, Myanmar is 
amending not only the Income Tax Law, but also the commercial tax law. The Income tax 
rates and the commercial tax rates were reduced aiming to meet the objective of broadening the tax base with the lower tax rates. Moreover, before 1 April 2014, only 14 kinds of services were needed to pay co mmercial tax. However, Myanmar has amended 
the commercial tax law and all of the services except 26 services are liable to pay the 
commercial tax.  
Q63: Please confirm whether private sector employees are required to pay income tax as 
their counterparts in public sector. If not, is th ere a plan to change the current policy by 
adding private employees to the tax base in future? 
 
Answer:  
According to the existing Income Tax Law, there is a threshold for salary income and any taxpayer, who earns the salary income over 2 million in local currency per year not only 
from public sector but also from private sector, is liable to pay income tax under the head 
of salary income.  
Page 13, para.4.14 : Main Structural Developments   
The Statement says that "most SEEs have been privatized, with only 42 remaining, so that 
their share of GDP has fallen correspondingly". 
 
Q64: Is there any plan to further privatize the remaining 42 state ‐owned economic 
enterprises? 
 
Answer:  
There is no specific plan for SEEs to do the privatization. Q65: Are there any restrictions or conditions on participation of foreign funded companies 
in the  privatization of Myanmar SEEs? If yes, please elaborate in detail on those 
restrictions. If there are preconditions or spec ific procedures for application and approval 
by FDI, please also explain in detail.  
Answer:  
Even though in the reserved list of SEEs, the large foreign investment projects are considered to bring substantial benefit to public security, improve surrounding areas and 
the living conditions of citizens, the MIC issues the permission to private sector investment 
after the cabinet approval. MIC has more detail clarification for this question. 
 
Page 19, para.5.22 : Investment Policies   
The Statement says that "on 10 April 2013, a one ‐stop service for foreign as well as local 
investors was established in Yangon. Investors who previously had to grapple with red 
tape in five or more different ministries can now get everything done at the new 
Directorate of Investment and Company Administration (DICA)". 
 Q66: Please clarify whether the one ‐stop service in Yangon covers all foreign and local 
investors, as  well as all sectors/industries that locate in any region of the country. WT/TPR/M/293/Add.1 
 
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  Answer:  
One‐stop service in Yangon covers all foreign and local investors, as well as all 
sectors/industries that locate in any region of the country. 
 
Q67: Please provide more information on streamlined foreign investment approval 
procedures at  the one ‐stop service. 
 
Answer:  
One‐stop service (OSS) in Yangon scrutinizes and receives the proposal submitted by local 
and foreign investors and send them to Nay Pyi Taw to submit Project Assessment Team 
and Myanmar Investment Commission. This action is taken place before issuing investment permit.  
After permit, OSS in Yangon issues stay permit, work permit and importation of 
machineries. WT/TPR/M/293/Add.1 
 
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  Follow-up questions and answers 
 Comment raised by the Russian Federation:  
The Russian Federation has some concerns with respect to the few following issues: 
1. Exclusion of a number of significant services  sectors such as retail and leasing from the 
coverage and protection of the Myanmar's Fo reign Investment Law of 2012 provides for 
the possibility to introduce discriminatory measures for foreign investors.  
2. Burdensome expertise requirements applied to services suppliers within the licensing 
procedures hamper seriously the foreign companies' activities in Myanmar including those from Russia, particularly in the sectors related to mining. 3. The practice of applying scientifically unjus tified requirements of environmental impact 
assessments of projects in mining and some other sectors requires close attention of the 
Myanmar's authorities as causing numerous complaints from foreign investors. 4. Russian business also indicates on complicated and unreasonably protracted licensing 
procedures which, we believe, are inconsistent with the Myanmar's obligations under the 
Article VI of the GATS.  
Answer: 
The comment by the Russian Federation raises a number of considerations in respect of t h e  f o r e i g n  i n v e s t m e n t  r e g i m e  o f  M y a n m a r  t h a t  h a v e  a l s o  b e e n  r a i s e d  b y  o t h e r  W T O  members in their advanced written questions. In our written answers in respect of 
Myanmar foreign investment regime, we have provided a general answer on investment 
that outlines recent legislative changes and proposed legislations in respect of the foreign investment regime. Among the immediate actions, it is proposed that three Notifications 
concerning the New Foreign Investment Law (F IL) will be released shortly. These three 
notifications would: 1) reduce the activities on the "negative" list from 21 to 11, thereby 
reducing the scope for discretion; 2) clarify tax incentives; and 3) clarify the circumstance 
in which environmental impact assessments would be required.  
As a result of the emergence of several ambiguities in the New FIL and New Myanmar 
Citizens Investment Law (MCIL), the GOM is now actively working with the assistance of international experts to merge these two laws into a single coherent investment law that 
will address the shortcomings of the two exis ting laws. Accordingly, matters concerning 
MFN and national treatment, expropriation with compensation at fair market value, transparency, the alleged discretionary authority of the Myanmar Investment Commission, 
and dispute settlement are under consideration. The aim is to submit the unified law to 
Parliament at the end of 2014. Procedures under the unified law will be much simpler and more streamlined and should further improve the business climate. 
 
Question raised by Brazil: 
Brazil would like to ask the Delegation of Myanmar if the country intends to extend its reform of the non-automatic license regime, started in 2012, and enlarge the list of 
166 products subject to automatic import license regime, as well as if Myanmar plans 
future actions to facilitate the entry of goods into its territory.  
Answer: 
With respect to import licensing, following th e replacement of former non-automatic import 
license regime with a new automatic regime in June 2012, licensing requirements were 
further eased in March 2013. This latest easing involved the elimination licensing for 166 
commodities covering over 1,900 HS tariff lines and representing about 35% of total import. The intent is to gradually phase out import licensing through a series of announcements in 2014 and 2015 that would each represent about 10% and 15% of total 
imports. By the end of 2015, there will be few products subject to import license 
requirement. In respect of export license, the Government also intends to liberalize export licensing so as to confine it to a few commodities on grounds of national food security and 
emergency needs.  
 
Question raised by the United States: 
 
Page 41, para 3.42, SPS certificates, USA Q6: 
The Secretariat reports states, "The Plant Protec tion Division of the Ministry of Agriculture 
and Irrigation is the competent authority to issue SPS certificates, as provided for under 
the Plant Pest Quarantine Law of 1993." Please confirm that this refers to the WT/TPR/M/293/Add.1 
 
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  recommendation from a relevant government d e p a r t m e n t  n e e d e d  t o  o b t a i n  a n  i m p o r t  
license as noted in 3.41. Is a Pest Risk Analysis (PRA) for such products required? If so, what will be the policy with regard to ongoin g imports of these products that have been 
established without a PRA? 
 
Answer: With regard to the question, Plant Protection  Division (PPD), Department of Agriculture 
issues the import certificate not only to obtain an import license but also to import the 
seeds, plant and plant products. Commodities under no license requirement regime necessary to have the certificate of SPS fr om competent authority of the exporting or 
importing country need to show the certificate at the customs clearance. Pest Risk Analysis 
(PRA) is required. The requirements for import regulatory system are as follows:  
1) Pest list of respective country / exporting country;  2) Phytosanitary certificate 
of country origin; and  
3) Inspection of imported products at entry points by plant quarantine inspectors according to the import procedures. 
 
At current situation, PPD restricts quarantine pests entering to importing country by following the import procedures that is attached.  
Follow-up question:  With regards to PPD regulations and quarantine restrictions, we 
note the response to "the import procedures that is attached." However, there does not appear to be an attachment to the response s. We would appreciate if the Government 
could clarify where such import procedures can be found. 
 Answer:  
Please see diagram below : 
 
  
 
 
   
 WT/TPR/M/293/Add.1 
 
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  Question raised by the European Union: 
 
EU initial Q46: What are the intentions of the government regarding the implementation 
of the Trade Facilitation agreement of Bali? 
 
Myanmar Answer: In the context of WTO commitments, it is necessary to establish a National Committee on 
Trade Facilitation. In preparation for the WTO Bali Conference, representatives from 
relevant ministries have met but the formal establishment of this coordination structure has not yet been finalized.  
EU Follow up to question 46 
 The EU is aware that a new Trade Facilitation  m a s t e r  p l a n  i s  u n d e r  d r a f t i n g  w i t h  t h e  
technical assistance of ADB. Could the Ministry give the EU information as to the 
main elements that the future reform may contain?   
 
Answer for follow up question: 
National Trade Facilitation Implementation Plan is still under elaboration with the technical assistance of UNCTAD. At present, an assessment of trade facilitation measures related to the Trade Facilitation Agreement of Bali is carri ed out in cooperation and coordination with 
all stakeholders. Once this process is completed, we intent to seek technical assistance for 
its implementation from the donor community including the EU.   
Page 7 & 20, para 3.2/3.4/3.7 & 5.27, Upcoming laws, EU Q49-53 on transparency and 
consultation of stakeholders prior to adoption of laws:  
Initial EU Q50: Can the government confirm that for all draft laws there is a framework 
ensuring consultations with relevant stakeholders, including foreign investors, and/or the public at large? If so, at which stage are the draft laws subject to such consultations? If not, for which sectors would this policy not apply and for what reasons? 
 
Myanmar Answer: In the stage of draft law, it is confidential stage for government office. So, Ministry which 
carries out the draft law can consult their legal consultants. However, the Bill is pressed to 
public, in this stage foreign investors and stakeholders can review and consult upon that Bill. 
 
EU initial Q51: Is there an obligation to publish implementing regulation and "procedural 
rules"?  
Myanmar Answer: 
Most of laws provide that to issue rules and regulations for implementation of the laws. Mostly it is mentioned in the miscellaneous of that law. The relevant Ministry is conferred 
power to issue the rules and regulations by th at law. Under the law, the Ministry shall 
obligate to publish regulation and procedural laws for the implementation of that law with the approval of Union Government. 
 
EU initial Q52: If relevant, can the authorities give all the references to access the draft 
laws that have been published? (in particular for the IPR area, for the new laws on land reform, the draft law on national standards, the new SEZ law, the future competition law 
and the future agency for competition, the law on public and private partnership that are 
mentioned in the Secretariat and the Government reports).   
Myanmar Answer: 
The authorities can give all the references to access the draft laws that have been published. 
 
EU Follow up questions to EU initial questions 50-52 The EU notes that there are a number of replies to initial EU questions above mentioned that are not fully consistent with the Government report information provided on the same 
topics (for example in the paragraph 3.7 of the Government report it is stated that WT/TPR/M/293/Add.1 
 
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  "...publication in the government media of the texts of all draft laws and discussions 
thereof since 9 July 2002...") but in the reply to EU Question 49 it is stated that "in the stage of draft law, it is confidenti al stage for government office...".  
 
The EU believes that an inclusive consultation process in the drafting of economic and 
trade laws and policies, including international traders and investors, can be instrumental in improving the quality of legislation an d cementing a good track record in the 
implementation phase by fostering acceptance of economic operators to which legislation 
will be applied.   Is Myanmar consider involving, in a systematic manner, the foreign business 
community in the decision making process in the economic field"? 
 Answer for follow up question: 
With regard to the publication in the governme nt media of the texts of all draft laws, when 
the draft law is submitted to the Parliament, we call this draft law as Bill. At this stage, the Bill is made available to the public. This is the process referred to in paragraph 3.7 of the 
Government report. Thus, foreign investors and stakeholders can review and consult texts 
of draft laws at the Bill stage. Moreover, Myanmar is currently taking advantage from the donor community of technical assistance programs in the elaboration process of various laws with a view to benefit from 
relevant international expertise and best practices. 
 Questions raised by Japan 
 
Report by the Secretariat (WT/TPR/S/293)  
4 TRADE POLICIES BY SECTOR 
4.4 Services 
4.4.2 Banking, finance and insurance 
4.4.2.1 Banking 
 
(Question: Pages 63-64, Paragraph 4.79) As for the explanation "the state-owned ba nks and the private banks are on the equal 
terms," Japan would like to clarify that no more favourable treatment is accorded to state-
owned banks than to private ones in terms of the conditions of competition including tax, subsidies, and license. 
 
Answer: From a practical point of view, state-owned banks are conducting their banking operations on a par with the private banks. Moreover, state-owned and private banks provide similar 
services. However, the authorized capital as well as the paid up capital of state-owned 
banks are relatively lower than that of pr ivate banks. Remembering that state-owned 
banks were established in accordance with the Financial Institutions Law of Myanmar of 
1990, then prescribed authorized and paid up capitals were lower than those of more 
recently established private banks. The CBM is currently drafting a new banking and financial institutions law with technical assistance from the World Bank with the aim to 
adopt international best practices and to set a level playing field in this sector. This new 
law shall be enacted by the end of 2014.   
__________