Myawaddy car MarketThe Myawaddy Car Market
Second-hand car import through Myawaddy frontier up
There has been an increase in the number of vehicles that have been formally brought into Myawaddy via the Friendship Bridge, mainly those used for touring, such as minibuses and pick-up truck. "A car that is being brought into Myanmar requires a customs declaration from Thailand and a Thai road authority certificate. Myanmar's car, which has been purchased from Thailand, may be a little more costly, but it is less costly than Myanmar," said a business man.
The majority of models for official cross-frontier imports are Xtra Cab, Open Cab, Smart Cab,, Express Bus, Mini Bus, Light Truck, Truck, Pick Up, Farm Truck and road works equipment. In order to bring a car into the domestic market, five per cent CT trade income taxes, three per cent CD duties, two per cent prepayment of taxes by the corporation and 0.125 per cent of the CIF value in the Myawaddy Trade Zone must be PAY.
Businessmen who do not own a firm, it will cost about 400 US$ as a firm license charge, according to the vehicle used. "Some Thais usually buy a car in Thailand from the car firm with a loan system and sell the car on the Myanmar frontier. Once they have paid a certain amount of money back to the corporation, they return the car keys by saying that the car was taken by the Myanmar residents, so they no longer have to buy it.
A car purchased by Myanmarers is robbed and confiscated if it is used within Thailand. Myanmar's proprietor also has to face charges," said a car dealership on the Myawaddy/Branorder.
Cars and machines detained at Myanmar's border.
The recent import barriers on cars and equipment from China and Thailand to Myanmar are a headache for lease and logistic operators. In recent few month, the German federal administration has made it much more difficult for businesses to transport cars and machines across the country's property-border. Restriction began about four month ago, in part in reaction to massive quantities of lorries and other kinds of machines coming to Myanmar from China, said businessmen from the automotive, leadership and logistic sectors.
"There was chaos and no way to keep track of it," said John Hamilton, CEA Project Logistics Project Management. In December last year, the Kachin state Kan Pike Tee frontier post was shut down for car and machine importation after it was claimed that illegal import of large machines was being used in the Hpakant Huge Mine, leading to an increase in fatal muds.
The regulation of trafficking at some Thai checkpoints was also a problem, said U Khin Tun, CEO of Capital Automotive - the only Ford car dealership in Myanmar. According to industries, the government's answer was to make it much more complicated to bring cars and machines to these frontiers.
Business people licensed by the Myanmar Investment Commission to buy a particular product are not affected, and growers can continue to buy and sell tractor equipment, although not large-sized. However, major issues are faced by companies in the fields of finance, transportation and logistic. Mr Hamilton said before the frontier controls that he could have asked a commercial enterprise to buy a fork-lift truck in Bangkok and obtain a clearance to cross the frontier within four working day.
However, the Muse and Myawaddy frontier points - the major trade points with China and Thailand - are now closed to most types of heavier machines and trucks, he said. I just purchased a trailers that will be finished in June, so I need to find out how I will take it to Myanmar," he said.
Logistic and lease enterprises do not have imported licenses, i.e. they are dependent on commercial enterprises or traders with shop licenses for the introduction of cars and machines. It is still possible to make purchases through Yangon harbours, but the authorities have also increased barriers to allow the importation and limited logistic and lease operators to only 10 of a particular car or engine series.
Although show license distributors can still buy devices and cars, there are not many of them. "Since the end of January we have a Thai trailer that we can't introduce because we can't find anyone with an exhibition license for import," says Allan Davidson, General Director of the Yoma Fleet Group.
Just two HGV retailers with shop licenses - Scandia Trucks retailer Scandia Myanmar and Mercedes retailer Cycle & Carriage Automobile Myanmar - could name the sector number. Mitsubishi, which has a relationship with Yoma Strategic Holdings, recently obtained a license for a displayroom and an order for imports has landed in the Yangon harbor, he added.
SUZUZUki has a production facility in Myanmar, which means that cars can be shipped to Yangon in just five working day, he added. Capital Automotive CEO U Khin Tun said that tighter frontier checks had not affected his operations as his company imported its cars by ship to Yangon. It is not the case that all logistic operators are affected by the barriers to trade, which primarily apply to businesses wishing to buy special, high-quality or brand-specific devices.
As far as lorries and trailer are concerned, the domestic logistic market is indeed over-served, said U Ni Moe Aung, General Director of Kerry Logistic Myanmar offices. Companies have sought to safeguard import before the Chinese New Year in February and the New Year in Myanmar in April, while governments generally want to use their budget before the end of the financial year on March 31.
However, for more demanding jobs - such as the transport of very heavier goods - machines and trucks are difficult to safeguard. He said that limit limits were an important topic for these ventures. "It' right that the domestic logistic market is totally oversupplied," said Mr. Davidson of Yoma Fleet. However, although the limitations mainly affect companies that want to bring in "best quality", they could also start to rectify some of the excess supply if it lasts long enough, he added.
Mr U Ni Moe Aung said that although the new government's policies on frontier import are not yet clear, he expected them to ease constraints and show a certain amount of flex.