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MYANMAR: Licence Restriction Lifted on Importing Auto-Parts for Domestic Assembly

Licences are no longer required for the import of newly-produced automotive parts for use in new vehicles or in domestic assembly/manufacture, providing they comply with a number of statutory requirements – including conformity with their respective declared HS codes, quantities, weight, brands, sub-brands and identification numbers. In addition, licences will still be required for any automotive components imported for use in foreign-made pre-owned or second-hand models.

The move, announced by the Ministry of Commerce, is intended to boost the country’s vehicle manufacturing sector. It comes in the wake of last year’s decision to approve only left-hand drive cars manufactured post-2015 for import to the country, which effectively ended the long-standing market dominance of second-hand, right-hand drive Japanese cars. That move also spurred a number of overseas investors into establishing vehicle assembly and manufacturing plants in Myanmar.

The development of the country’s automotive industry, however, may well be hampered by a shortage of component manufacturers, a problem this new legislation may help to address.

Content provided by Picture: HKTDC Research
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