International remittance for Myanmar’s value-added gold exports can be made using either Letter of Credit (LC) or Telegraphic Transfer (TT) system, according to the news bulletin 12/2023 dated 3 July released by the Trade Department under the Ministry of Commerce.
Exporters of the value-added gold products, jewellery, gold arts and accessories must comply with the Export/Import Standard Operating Procedure (SOP).
The procedures for SOP activities include registration for exporters/importers, applying for value appraisal, seeking export/ import licence, tax payment and customs clearance procedures.
Those criteria bearing in the news bulletin were effective from 3 July. The news bulletin 10/2020 was cancelled with this one incorporated.
Myanmar is placed on the Grey List by the Financial Action Task Force (FATF), the inter-governmental body that sets anti-money laundering standards. Therefore, the country needs to monitor the gold and jewellery exports and imports in order to ensure there is no illegal income.
As per the news bulletin 10/2020 released by the Ministry of Commerce on 12 August 2020, payment method was changed to LC only.
With the use of LC, payment can take about two months, cost banking service charges by two sides, increase the charges for security matters in transportation and suspend trading amid volatile prices in the spot gold market.
From 30 December 2021, TT system has been allowed for gold exports worth below US$50,000 and LC system needs to be used for exports worth above $50,000.
Gold and other jewellery items are primarily purchased by Japan and the Republic of Korea, and other tourists also buy them, the Yangon Gold Entrepreneurs Association stated. — NN/EM
