Myanmar junta will not issue import licences to individuals

31 July 2022
Myanmar junta will not issue import licences to individuals

Individuals are not permitted to apply for import licences, according to the junta spokesperson General Zaw Min Tun.

He made the statement at a press conference in Naypyitaw, on 26 July, when a junta-aligned news outlet asked if an individual who brought dollars into the country from abroad would be able to apply for an import licence.

General Zaw Min Tun said: ''Imports are restricted by the economy and the financial system.  We have restricted the products [that can be imported] to save foreign currency. For non-restricted goods you can follow the required procedures. As for prohibited goods, nothing has yet changed.''

The junta has restricted all imports, including vehicles, construction materials, machinery, spare parts, consumer goods and food.

Any business that wants to import products has to obtain a hard-to-get import licence from the government.

They have to buy dollars at about 2,500 kyats to the dollar to pay for their imports, but any dollars made by businesses in Myanmar have to be exchanged with the government at the official rate of 1,850 kyats to the dollar, about 25 per cent less than the market price.

Since the coup the junta has had to use dollars to buy essential goods for the country, buy military equipment and make regular debt payments to pay back the national debt.

But, because of sanctions far fewer dollars have been coming into the country since the coup, causing a shortage of US dollars and making it hard for the junta to buy all the imports it needs.

Because of the dollar shortage and in an effort to save dollars so that the junta can continue to pay its international bills, imports have been restricted since April 2021.

Experts have warned that imported food and consumer products will become scarce and very expensive if the junta does not issue more import permits.