Inordinate delay in procuring import license

Monday, 01 February 2010 22:11 Myo Gyi

Ruili (Mizzima) – Procuring import licenses is taking inordinately long for traders on the Sino-Burmese border, traders at the105-mile border trade zone on Muse highway said.

Earlier, it took only three days to get an import license but now it takes at least 20 days. To make matters worse the license fee for each item has been increased.

“Previously, it took only three days to get an import license. Now it takes about 20 days. It is disconcerting for us,” a trader at 105-mile trade zone told Mizzima.

“We apply for import license on the basis of the quotation rate in the Import Department’s data base. For instance, we apply for paraffin wax at the rate of USD 500 per ton in keeping with the data base. Then it is found to have been increased. The agent has to ponder if he will pay the new increased price or not. If the agent goes by the new price, he will not profit. So it takes more time to get the import license,” he said.

All price quotations of import items have been increasing in the data base of the Import Department in Naypyitaw.

“The actual price quotations remain unchanged but for import license it has been raised. The price of all import items have been increased by varying rates,” another trader from Muse said.

The traders apply for their import license on market demand investing money and time. With procurement of import license taking more time traders are staring at price instability.

“We import the goods in accordance with market demand. If it takes more time in procuring the import license, it becomes difficult because of changes in the market,” the second trader said.

To make matters worse, Thaung Naing, Deputy Director of Border Trade at the 105-mile border trade zone, tightened the rules relating to checking of imported goods in terms of brand and size, troubling importers.

“For instance, if you apply for iron nails of six inches size and if you actually import the five inch and four inch sizes, all the goods will be seized by the government. It is difficult for traders to abide by the strict rules,” he said.

“They have to import different sizes in keeping with the changing market demand. The government will not lose tax revenue because of changes in size and brand of goods imported by traders. So traders have to spend more time in procuring their license given the strict rule in processing their applications. They incur losses in the discrepancy between the actual imported goods and goods mentioned in their application,” he added.


(Edited by Ye Yint Aung)