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Selling heavy vehicles and machinery in Myanmar

The regulation for importing heavy vehicle and machines has been updated by the Ministry of Commerce (MOC) on 8 March 2021 pursuant to notification no. 25/2021.

Foreign investors in a joint venture with a Myanmar investor have been permitted to import heavy vehicles and machinery for construction and commercial use since 2017. The import regulations are updated annually by the MOC with the latest update being in March this year.

Some of the requirements stipulated in the notification include:

  • the distributor must be appointed as an official distributor and register the distributorship with the MOC. The approval can be given for more than one brand

  • a tax clearance certificate issued by the Internal Revenue Department confirming that there is no outstanding tax liability must be provided

  • the distributor must make a bank deposit of MMK100 million

  • necessary state or regional approvals must be obtained

  • the imported vehicle or machinery model must not be older than 3 years

  • imports must be paid with a letter of credit or through a telegraphic transfer

  • the quantity imported must not exceed the quantity approved by the MOC and Supervisory Committee

  • vehicles and equipment may not be driven on roads prior to being sold and any vehicles

  • vehicles and equipment using continuous tracks must be transported

  • gross weight may not exceed 60 tons, if the weight exceeds 60 tonnes then the vehicles or machinery must be disassembled for transport with the gross weight including that of the transporter not exceeding 60 tons

  • the distributor must provide aftersales service

  • showroom, storage facility and workshop must cover an area of at least 5000 sq. ft. and the showroom and warehouse must be located in the same state or region

  • the heavy vehicle or machinery must be registered within 3 years of being imported

  • annual reports need to be submitted to the Road Transport Department

What is new?

Regulations distributing heavy vehicles and machinery for commercial use are updated on an annual basis. The requirements for 2021 are similar to those in previous years, the key differences are as follows:

  • a specific requirement to obtain a tax clearance from the Internal Revenue Department

  • the minimum bank deposit has increased from MMK50,000,000 to MMK100,000,000

  • a clause specifying that the deposit can be returned after heavy vehicles vehicles are sold and the ceasing of business operations. Why this was no longer included in unclear

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