-Incoterms
-Exporter has a list of potential palm oil sellers.
1.Importer requests a quotation from potential exporters. 2. Exporter prepares the quotation (price and sales terms). 3.Importer reviews the quotation and determines if the quoted price and sales terms are acceptable. If the quoted price and sales terms are not acceptable, importer negotiates with the exporter about revising the quoted price and/or sales terms. 4. If the quoted price and sales terms are acceptable, importer confirms the purchase of goods with a purchase order. 5. Exporter acknowledges the receipt of the purchase order and confirms that the palm oil will be delivered according to the agreed price and sales terms by sending the importer a proforma invoice. In addition, the exporter prepares the delivery of goods. 6.Importer receives the proforma invoice.
-National Food Law (1997)
-Importer and exporter have already concluded sales contract and agreed on contract terms.
The import recommendation process is the first step in the import process. It is in fact a pre-approval to ensure that the goods imported fulfill health requirements in Myanmar. The importer (or representative) applies for the import recommendation only once the sales contract is concluded and if the importer does not have already an import recommendation. The import recommendation for palm oil is valid up to one year and does not need to be obtained again if the product specifications and supplier are the same. In order to prepare for the application, the importer needs from the exporter the following: - Health certificate of the originating country (copy) - Certificate of Analysis (copy) - Exporter’s factory registration or the manufacturing license (copy) - Certificate of specification - Palm oil sample (3 liters) All documents and the sample are sent via courier service. There are no costs incurred in this step (the exporter pays for the courier service). The whole process takes normally two days. 1. Importer asks exporter to send sample and documents for Import Recommendation application. 2. Exporter sends a 3-liter sample product and the documents requested (by Courier service). 3.Importer receives sample product and documents.
-Export and Import Law, 2012
-Required documents including Import Recommendation from FDA.
1. Importer prepares required document and submits online application at Myanmar trade net website. 2.Public access center (PAC) at MOC receives the submitted documents. 3.PAC checks accuracy and completeness of the online application. 4.If submitted documents meet all requirements, PAC gives order to make e-payment at Myanmar Citizen Bank (MCB). 5.Importer completes the e-payment. 7. Import section of MOC receives notification (or receipt) of e-payment. 8. PAC issues a hard copy of the online application and makes it available to the exporter. 9.Importer brings the hard copy of the Import License application to the Import section of the Ministry of Commerce in Nay Pyi Taw. 10.The Import section assesses the current market price of the products based on records of the Myanmar Edible Oil Association 11. Importer pays Import License fees via e-payment. 12.MCB receives the Import License fees. 13.MOC receives notification of Import License duty payment from MCB. 14.Import section of MOC issues Import License. 15. Importer collects the Import License. All documents required for the application are also submitted to the PAC. Those documents are: - Cover letter - Sales contract (original) or pro-forma invoice (original) - Statement of usage - FDA import recommendation - Health certificate from the exporting country - Representative card
1.To apply for an import license, the importer (or a representative) can submit an online application via Myanmar Trade Net at the PAC of the MOC. All documents required for the application are also submitted to the PAC. Those documents are: - Cover letter - Sales contract (original) or pro-forma invoice (original) - Statement of usage - FDA import recommendation - Health certificate from the exporting country - Representative card 2.The application and required documents are then reviewed by representatives of the MOC for their accuracy and completeness. If the documents are complete and accurate, an e-payment order is issued to make the payment at the MCB. 3.Once the importer completed the payment, the bank notifies the MOC of the receipt of the money. 4.As soon as the MOC receives the payment notification, it issues a hard copy of the online application submitted to the PAC and makes it available to the importer, who in turn, brings the documents to the Import section of the MOC located in Nay Pyi Taw. The Import section assesses the current market price of the products, based on records of the Myanmar Edible Oil Association, to minimize undervaluation and duty fraud by the importer. The Myanmar Edible Oil Association sends therefore market prices twice a week to the respective section. 5. If no objections, the importer pays the Import License fees via e-payment. 6. Once the MOC receives notification about the payment from MCB, the Import section will issue the Import License. The Import License can then be collected by the importer (or a representative).
-Required documents, including import license and sale contract.
1.Importer applies for a Letter of Credit (LC) at the importer’s bank. 2.Importer’s bank reviews all submitted documents and evaluates importer’s credit standing. 3. Importer’s bank approves the application, issues LC and forwards it to the exporter’s bank (advising bank). 4. Exporter’s bank receives the LC from his bank and reviews all the terms and conditions. 5.Exporter receives notification of the LC. 6. - Exporter notify the acceptance of LC to exporter’s bank. - The exporter reviews the terms and conditions. If the exporter believes that the importer can meet all terms and conditions, the goods are dispatched. The exporter then sends the shipping documents to the exporter’s bank. 7. - The exporter’s bank receives acceptance of LC from exporter and checks the shipping documents against the LC. - Exporter’s bank received shipping docs from exporter and reviews the shipping docs. 8. - If the documents meet the terms and conditions of the LC, the bank sends the shipping documents to the importer’s bank. - The exporter’s bank gives notification of acceptance to importer’s bank. 9.Importer’s bank receives shipping documents. 10. - Importer’s bank receives and examines the shipping documents. If the documents meet the conditions of the LC, they are released to the importer. - Importer’s bank receives acceptance of the Letter of Credit. 11. - The importer’s bank makes the payment to the exporter’s bank (credit). - The importer provides the shipping documents to the importer. 12. Exporter’s bank receives payment (credit) notification from importer’s bank. 13. Exporter’s bank transfers the payment to the exporter. 14.The exporter receives the payment from his bank.
-Application Letter -Have estimated time of arrival of the ship.
1.Importer (or representative) inquires about storage tank availability . 2. Myanmar Economics Corporation (MEC) responds to the inquiry. 3.If a storage tank is available, MEC provides the storage contract terms. 4. Importer reviews the contract terms. If the contract terms do not meet the importer’s requirement, importer negotiates again with MEC. 5. If storage contract terms meet the importer’s requirement, the importer signs the contract.
-MPA rules
- Delivery Order obtained -Information for tank availability obtained
1.Importer enquires about storage tank availability. 2.Importer requests SAD to arrange berthing once the notice of arrival and enquiry about availability of oil tank has been received. 3. - MPA receives the document from the importer. - MPA requests importer to make conservancy charges. - Asia World Port Terminal requests importer to make wharfage charges. 4. - MPA receives estimated arrival time from the ship (master). - Importer makes a payment for conservancy charges to MPA and wharfage charges to Asia World Port Terminal(AWPT). 5. - MPA checks port disbursement account. - MPA receives payment for conservancy charges from Importer. - AWPT receives payment for wharfage from importer. 6. MPA makes tender notice of readiness for discharging. 7. MPA makes declaration on berthing list. 8.Ship (master) prepares all ship documents for the ship arrival. 9.MPA issues berthing permit to SAD. 10.SAD receives the berthing permit. 11. Once the ship arrives, SAD receives and checks the ship 12.SAD checks the cargo documents of the consignee/shipper. 13. SAD arranges berthing of the vessel at Htee Ten oil storage tank yard.
National Food Law (1997)
- Ship berthed at the quay (and has berthing permit) - Importer submitted a request for Inspection to MITS
1. Importer delivers case file with break bulk order to onboard Customs at port and prepares documents required to submit to the Food and Drug Administration (FDA), Post-Harvest Technology Application (PHTA), Myanmar Science & Technology Research Department (MSTRD), and Myanmar Inspection and Testing Service (MITS) (under the control of MOC). 2. Onboard Customs receives case file from importer. 3. Onboard Customs conducts commodity inspection. 4. Onboard Customs officer determines if the inspection result meets the requirements. 5. MITS officer determines if the submitted documents meet the requirements. 6. If the requirements are met, onboard Customs allows the release of the cargo. 7. MITS inspectors take draft survey (quantity) and dry test inspection of the tank. 8. The cargo is discharged to storage tank. 9. MITS, who is an authorized inspector from MOC, issues an Inspection Certificate, and sends a palm oil sample to MSTRD, PHTA and FDA via the importer’s agent. - FDA, MSTRD and PHTA review the documents and sample test, and determine whether the oil (quality) meets all requirements. 10. - MITS seals the oil storage tank bar after taking the sample. - PHTA, MSTRD, and FDA test the goods and determine whether the goods are satisfactory. 11. PHTA and MSTRD issue certificate for cloud point level and color testing. FDA issues Fit for Human Consumption Certificate. 12. - Importer receives Certificate from MSTRD and PHTA. - FDA sends test result to MITS by fax and makes Fit for Human Consumption Certificate available to importer. 13. MITS receives FDA test result by fax. 14. MITS unseals the oil storage tank bar. 15. Importer receives FDA certificate and can start distribution.
Customs Sea and Land Act
- Import License, Proforma Invoice - PAPP application form - Customs Declaration form CusDec 1
1. Importer prepares online application. 2. Customs department checks accuracy and completeness of application at Public Access Center (PAC). 3. Customs department prints the application at the PAC. 4. Importer receives the printed application and attaches other documents. The Customs Declaration is submitted through the PAPP (pre-arrival processing procedure) to central registration section. Documents submitted include Import License (copy), Online application form, Commercial Invoice (copy), Packaging list (copy), Bill of Lading (copy), Country of Original (copy) and Customs Declaration form (1 set = 4 copies - green, blue, brown, black). 5. Customs Import department determines if submitted documents meet Customs requirements. 6. Stamp of Central Registration number by Central Registration section. 7. Documents are sent to Import section for noting (without original B/L). 8. Registering the cargo by HS code at the Classification section. 9. The Principal Appraisal calculates and records the Customs duties at valuation section. The submitted documents are checked at the Assessment department under import/export trade control order and rules and regulations. 10. The Import section compiles the trade volume and other records. 11. Importer receives a payment order for Customs duty and commercial tax based on the value provided in the Import Declaration. 12. The bank issues a payment order for those charges. 13. Importer receives the payment order from the bank and pays the Customs duty and commercial tax into the Customs‘ bank account. 14. The bank receives the payment, issues the payment receipt, and notifies Customs about the received payment. 15. Cash Account section acknowledges the received payment. 16. Customs department seals the Import Declaration and necessary documents. 17. Customs provides the sealed case file to importer. 18. Importer receives the sealed case file and delivers it to Customs at the port.
- Fit-for-human-consumption certificate (issued by FDA) - Original shipping documents (BL, Manifest, etc.)
1. Importer prepares the original documents to submit to the Customs department. 2. Customs department receives the submitted documents and receives the case file from onboard customs after inspection at port. 3. The noting section at the Customs department reconciles the original documents with PAPP’s documents. 4. Final assessment by senior Customs officer. 5. Case file is closed after final assessment. 6. CusDec 1 paper is issued. 7. Importer (or representative) receives CusDec 1 for record.
Myanmar Port Authority Rules
Importer has already applied for approval of terminal usage from Myanmar Economic Corporation.
1. - Importer prepares the Bill of Lading to apply for the Delivery Order at MPA - Shipping Line Agent prepares the Delivery Order 2. The MPA receives the submitted Bill of Lading and e-Delivery Order via the port’s EDI system. Once all documents meet the requirements, MPA releases the e-Delivery Order. 3. Importer collects the e-Delivery Order.
1. Once each party (buyer and seller) has fulfilled its commitments (seller: sending the shipping documents; buyer: making the payment), the pay-process is considered completed.