Less than a month after implementing a new procedure for calculating customs duties and taxes on imports and exports, the Ministry of Planning and Finance (“MOPF”) has reinstated the Central Bank of Myanmar’s (“CBM”) Reference Exchange Rate for calculating such taxes. Notification 8/2025 dated 24 January 2025 reverses Notification 90/2024, which introduced the Market Trading Rate on 1 January 2025.
From 1 January to 24 January 2025, customs duties and import/export taxes (i.e., specific tax, commercial tax, and advance income tax) were calculated using a Weekly Exchange Rate based on the Market Trading Rate (at USD 1 = MMK 3,593) published by the Customs Department. However, effective 25 January 2025, these duties and taxes will once again be calculated using the CBM’s Reference Exchange Rate, currently set at USD 1 = MMK 2,100.
The decision to revert to the Reference Exchange Rate appears to address concerns from exporters and importers regarding the higher and more volatile Market Trading Rate. These concerns likely arise from the CBM’s requirement for exporters to sell 25% of their foreign currency earnings at the lower Reference Exchange Rate, leading to a mismatch between earnings and payment obligations.
With this change, importers and exporters are encouraged to review their compliance processes to align with this updated procedure.
The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.
