Private traders are normally not allowed to export items such as rice, sugar, rubber, and minerals and gems. Because of foreign exchange constraints, stricter import regulations have been imposed. Basically, if a company, either state-owned or private, is a foreign currency earner, it could use the foreign currency proceeds for importation except for restricted items. In the private sector, selling and buying foreign exchange has become a normal practice, and there seem to be no particular restrictions on it. However, an SEE without its own foreign exchange, will have to apply for a foreign currency allocation from the Government.
Import duties are relatively low.
Tariff rates range from 0 to 40 percent, and 68 percent of tariff lines are within the range of 0 to 5 percent. Residents are allowed to open foreign currency accounts, but withdrawals are only in Kyat. Exporters are allowed to withdraw in foreign currencies. In 1998, the Central Bank revoked private commercial banks' license for foreign currency transactions. Therefore, only two state-owned banks are currently allowed to conduct foreign currency transactions.