Indo Myanmar Border Trade Agreement 1994

Indo Myanmar Border Trade Agreement 1994

Goods exempted from Imports from China by Border Trade to India: It advocates a maximum easing of the movement of traders, since the existing land passport, issued by the Myanmar authority, is usable due to the limitation of Moreh`s land travel to other parts of Myanmar. Border trade will be freed from the chains of the trading system and may take place in the usual form of general international trade. The list of positions to be negotiated should not be limited to the points covered by existing border agreements, but should be extended to all positions authorized by bilateral and multilateral trade agreements between the two countries. Trade is officially allowed in the merchant exchange rate. The transit of products from third countries is openly authorized, in accordance with the rules established in multilateral trade agreements or in the regional trade agreement that will come into force in the coming years. Given that WTO obligations have already sharply reduced tariffs in India and that the member states of the future regional trading bloc still need to be reduced, the transmission of existing informal import flows through formal channels should not be a problem. The problems of legal relocation of existing informal exports from India to Myanmar must be resolved. While the legal export of industrial products such as machinery and medicines should not be a problem, products such as kerosene and fertilizers, which are heavily subsidized for Indian users and are not subsidized for exports, will pose some difficulties. Prospects for trade growth between North-East India and Myanmar: if the trade and exchange rate policy issues discussed in the previous section are resolved, will Indo-Myanmar border trade prosper? It is possible to extend official border trade with the sorting of factors limiting trade and the introduction of a legitimate transit trading system. First, incentives for illegal informal trade will be reduced. In view of the gradual reduction in tariffs, economic incentives for smuggling should also be reduced.

The undersigned should refer to the Ministry of Commerce OM No. 9/3/2009-FT (EA) of 28.9.2010 on this matter and report that the Moreh and Zawkhathar Land customs posts were notified in accordance with Section 7 of the Customs Act in 1962, with no restrictions on the type of negotiation. Communication 9/95 inches, as amended by notification 62/2010, authorizes a reduced duty rate of 5% ad valorem only for 40 items indicated in the return. However, normal trade can be carried out in accordance with the existing provisions of foreign trade policy and the payment of duties at the applicable rates through the aforementioned LCS.” There is a demand for transportation subsidies and more facilities for importers and exporters, especially those dealing with Myanmar. A special economic zone should be created to facilitate bilateral trade. The gap has helped divert trade to informal channels where exporters can achieve value at the unofficial exchange rate. The overvalued official exchange rate is not only a deterrent to conducting business activities in the official channel, but also does not provide many opportunities for banks to manage foreign exchange transactions. The lack of participation of banks and other financial institutions appears to be a weakness in the trading system.

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