By Alinn Yaung (Htun)

The State Administration Council is committed to ensuring that the govern­ment receives its rightful reve­nues through taxes and duties, preventing any loss in tax collec­tion. It also aims to allow local entrepreneurs, particularly those in the production, sales, and trade industries, to operate freely and competitively. Furthermore, the council is working to ensure that consumers have access to safe, secure, and reliable goods. As part of these efforts, the council is actively working towards the complete eradication of illegal trade activities.

Illegal Trade

The World Trade Organiza­tion (WTO) defines illegal trade as the “production, purchase, shipment, transfer, possession, or distribution of goods that are clas­sified as illegal according to inter­national laws, as well as any ac­tivities aimed at facilitating such actions.” It has been observed that governments around the world have been focusing on and implementing various measures to completely eradicate illegal trade, which threatens macroe­conomic stability. In every coun­try, the government, businessmen, and consumers play a crucial role in the successful implementation and functioning of the nation’s economic system.

To Systematically Prevent and Take Action Against Il­legal Trade

Myanmar is focusing on sev­eral key strategies to enhance domestic production and reduce dependency on imports. These in­clude strengthening the capacity of micro, small, and medium-sized enterprises (MSMEs), as well as industrial zones, to produce goods that can substitute imports, en­suring more balanced foreign ex­change income and expenditure, and boosting exports of value-add­ed products, particularly those in supply chains, to increase nation­al income. As developed countries have large-scale production of industrial goods tailored to mar­ket demand, their unit costs of production are lower. This makes their products more competitive in terms of price. However, Myan­mar faces challenges in producing quality industrial goods at scale due to limitations in manufactur­ing capacity, quality control, and economies of scale.

As a result, the prices of local­ly produced goods can be higher, making them less competitive compared to illegally imported goods. This situation poses risks to the local MSMEs and industrial zones as they may struggle to compete with the influx of illegal foreign goods, resulting in poten­tial damage to local businesses. To address this, Myanmar must focus on improving the quality of domestically produced goods to not only meet local demand but also enable exportation. At the same time, efforts should be made to systematically prevent and combat the illegal importa­tion of goods.

To Set It as A National Re­sponsibility

“The consequences of illegal trade include the loss of taxes and duties that the country should collect, the potential for errors in trade-related records and data which can lead to incorrect de­cisions, damage to the national banking system and financial flow systems, instability in foreign cur­rency exchange rates, reduced competitiveness in domestic pro­duction due to illegally imported goods, decreased foreign invest­ment, loss of job opportunities, harm to consumers from counter­feit medicines, food products, and beauty items, as well as expired goods. These adverse effects, in addition to the overall economic and development setbacks caused by damage to key sectors like pro­duction and trade, make it im­perative for all of us to consider combatအing illegal trade as a ‘national duty’. The members of the Anti-Illegal Trade Steering Committee, along with the special teams for combating illegal trade in various regions and states, as well as the customs departments, are actively working in line with the strategies and methodologies set to effectively counter illegal trade.”

The Important Role of Infor­mation Gathering

In the fight against illegal trade, obtaining accurate and timely information plays a crucial role. Based on information pro­vided by informants, the special teams for combating illegal trade in various states and regions have been able to intercept illegal ac­tivities such as the unlawful ex­traction and trafficking of natural resources.

For example, based on in­formation provided by inform­ants, the Customs Department was able to monitor and inspect arriving overseas flights and seize items such as gold, silver, jewellery, communication equip­ment, related materials, and valuable consumer goods that were brought in illegally. These seizures were made possible due to the valuable information re­ceived, and the informants who provided such information were quickly rewarded with appropri­ate cash prizes as recognition for their contributions. It is essential to establish effective networks for sharing information and utilize the received data for enforcement actions, including the systematic investigation and seizure of illegal goods. Furthermore, because of the cooperation among relevant departments locally as well as with the international criminal police organization (INTERPOL) through the exchange of infor­mation, more illegal drugs and narcotics were seized.

Therefore, to effectively re­duce and eventually eliminate illegal trade, it is necessary for all relevant authorities to work together, sharing information and acting in coordination. Similarly, the public, aware of their national duty, should also contribute by reporting any information they receive to the relevant authori­ties. This collective effort will be crucial in tackling illegal trade effectively.