Standard Operation Procedure for Retail/Wholesale ......exporter/ importer registration certificate....
Transcript of Standard Operation Procedure for Retail/Wholesale ......exporter/ importer registration certificate....
Ministry of Commerce
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Standard Operation Procedure for
Retail/Wholesale Registration Process by
Notification (25/2018)
Articles included in the Notification No(25/2018)
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• Objectives (Article 2)
• Definitions and Right to Sell (Article 3 and 4)
• Prescribed Conditions for Foreign Investors(Article 5 and 9)
• Exemption for Myanmar Citizen Companies (Article 6 and 16)
• Compliance for Registration Process (Article 7)
• Prohibitions (Article 8, 9 and 10)
• Tax Compliance (Article 11)
• Supervision (Article 12, 13 and 14)
• Opening of New Outlets (Article 17)
• Amendment in accordance with the needs (Article 18)
Objectives (Article 2)
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❖ To afford better prices and more choice to consumers through
increased competition among retail and wholesale distributers
❖ To improve quality and volume of goods and services, and
technology [employed] through increased inputs to domestic goods
and services of sales and distribution enterprises
❖ To further development of Small-and-Medium Enterprises due to
expanding market share by domestic goods
❖ To enable operation under rules and regulations to prevent
uncompetitive practices between distributors in exploitation of
consumers
❖ To increase employment opportunities of citizens in supply chain by
increasing foreign investment inflow
Definitions and Right to Sell
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• Definitions (Article 3 )
➢ Retail means the sale of goods to the public in small quantities
for consumption and not for re-sale; and,
➢Wholesale means the sale of goods in large quantities to retailers
for resale, or to manufacturers to use as input in production.
• Right to Sell (Article 4)
➢may engage in retail/wholesale for domestically produced or
imported goods, other than restricted/prohibited goods.
➢may engage in retail/wholesale in any State/Region
Development Committee.
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Conditions for Foreign Investors
Note; Article 5 and 9
Type of
Business
Initial Investment
Amount
Type of investor Floor Area
Wholesale US $ 5 million and
above
100% foreign owned company
And
company where the equity ration of
citizen is less than 20%
US $ 2 million and
above
Company where the equity ratio of
citizen is more than 20%
Retail US $ 3 million and
above
100% foreign owned company
And
company where the equity ration of
citizen is less than 20%
929 square
meter and
above
US $ 700,000 (7
lakh) and above
Company where the equity ratio of
citizen is more than 20%
929 square
meter and
above
-Shall not operate retail including a minimart or convenience store with a floor area of less
than 929 square meters.
Supervision
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❖ the Ministry of Commerce cooperating with relevant departments may
monitor as the following –
❖Compliance of the aforementioned Terms & Conditions,
❖Adherence to their business plan
❖ Retail and wholesale operators shall cooperate and provide necessary
data and evidence toward effective monitoring.
Article 12,13,14
Standard Operating Procedure (SOP) for
Retail/Wholesale Registration Process
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Categories of Companies
• The four categories are:
Category A: 100% foreign owned and joint venture companies that are
incorporating for the first time in Myanmar and who wish
to register as a wholesaler or retailer.
Category B: Established foreign or joint venture companies in Myan-
mar but that currently do not have the right to wholesale or
retail goods and who wish to register as a wholesaler or
retailers.
Category C: Established foreign or joint venture companies currently
permitted to do wholesale or retail business (including
under MIC permit or through a previous notification
allowing wholesale or retail activities to foreigners).
Category D: Domestic companies carrying out wholesale and retail bu-
siness covered by this Notification.
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Standard Operating Procedure(SOP) for
Retail/Wholesale Registration Procedure
• Company Category A:
Company Registration1
Recommendation from the respective regions for selling
Retail/Whole Business Registration
2
3
DICA
YCDC (or) MCDC, Regions/ States City Development Committee
Department of Trade under Ministry of Commerce
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Standard Operating Procedure(SOP) for Retail/Wholesale Registration Procedure
• Company Category B:
Recommendation from the respective regions for selling
1
Retail/Whole Business Registration2
YCDC (or) MCDC, Regions/ States City Development Committee
Department of Trade under Ministry of Commerce
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Standard Operating Procedure(SOP) for Retail/Wholesale Registration Procedure
• Company Category C:
1 Retail/Whole Business Registration
1
Department of Trade under Ministry of Commerce
• Export/Import Office (Yangon)
• Export/Import Office (Mandalay)
• Department of Trade under Ministry of Commerce
• Company Category D:
Retail/Whole Business Registration
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➢Inclusion
only at a shop or location that is designated for such operations .
➢Exclusion
through moveable distribution and door-to-door distribution services.
other services, including food and beverage services such as restaurants
and cafes.
➢ Rights of the Registered Wholesaler/Retailer
can import goods for sale and distribution, it can do so by obtaining an
exporter/ importer registration certificate.
➢Applying
The application form can be downloaded at www.commerce.gov.mm, and
the fully completed application form with two extra copies should be submitted
with supporting documents.
Retail/Wholesale Business Registration
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➢Permission to apply
either retail or wholesale business, or for both retail and wholesale
businesses together.
If a company applies to register for both retail and wholesale
business, the initial investment amount shall be the sum of the initial
investment amount stipulated.
➢Priority List of Goods Allowed to be Sold
A priority list of goods in respect of which foreign companies and
foreign joint venture companies are allowed to conduct retail/wholesale
business has been issued by the Ministry of Commerce.
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Retail/Wholesale Business Registration
1. Company registration certificate (copy );
2. MIC’s permit or endorsement (copy);(only for foreign companies or foreign joint venture companies that are required to obtain MIC’s permit or endorsement);
3. Recommendation from the respective City Development Committee or Region/State Township Development Committee;
4. List of commodity categories for sale by the retail/wholesale distribution business;
5. A 5-year business plan of the company to carry out its retail/wholesale business, which shall include:
a) capital investment amount (both initial investment amount and the plan to inject capital over the next 5years);
b) sales, distribution and management plan;
c) location and size of space;
d) A description of how the company will promote the objectives of the Notification allowing retail and wholesale business, such as job creation, technology transfer, enhancing consumer choice such as through lower prices or better quality, and the promotion of small and medium enterprises.
Supporting Documents to be Submitted for Retail/Wholesale Registration
Company Category A, B and C
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Note: Priority should be given to Myanmar citizens in the employment of staff in operating a retail/wholesale business.
6. The number and location of any intended new outlet(s); (if possible, describe the exact location);and,
7. Evidence of receipt by a local bank of the initial investment amount transferred from a foreign bank to it .
(The MOC will issue only a temporary retail/wholesale registration certificate if a company cannot submit evidence of receipt by a local bank of the transfer of the initial investment amount when applying for the registration, and the MOC will issue a retail/wholesale registration certificate only after receiving such evidence within 30 days.)
Supporting Documents to be Submitted for Retail/Wholesale Registration
Company Category A, B and C
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Supporting Documents to be Submitted for Retail/Wholesale Registration
Company Category D
1. Company registration certificate;
2. A business plan that states how the company will carry out its retail/wholesale business, including:
(i.) a list of commodity categories for sale by the retail/wholesale distribution business;
(ii.) the operating budget of the retail/wholesale distribution for the past year ;
(iii.) sales ,distribution and management plan; and
(iv.) location and size of space.
3. If there are other outlets, provide the number of such outlets along with a list of commodity categories of goods sold in each retail/ wholesale outlet and a business plan .
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Minimum initial Investment amount 50%
Second year
The remaining 30%
Third year
The remaining 20%
Minimum Deposit Required
to submit evidence of thebank deposit within 30 daysfrom the date of applying theretail/wholesale registrationcertificate
First step Second step Third step
The Minimum Initial Investment Amount With Respect to Goods for Sale
Company Category A and B
to submit evidence of thebank deposit no laterthan the last month ofthe second year ofbusiness operation.
to submit evidence of thebank deposit no later thanthe last month of the thirdyear of business operation.
Minimum initial Investment amount
(20%+30%=50%)
Second year
The remaining 30%
Third year
The remaining 20%
Minimum Deposit Required
20% of minimum capitalinvestment when registration (or)To submit within a month and anapproval of bank transfer/inject toany local bank at the end ofsecond year.
First step Second step Third step
The Minimum Initial Investment Amount With Respect to Goods for Sale
Company Category B- (Domestic production and distributioncompany will sell its products and imported products)
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submit evidence of the bankdeposit no later than the lastmonth of second year ofbusiness operation.
submit evidence of the bankdeposit no later than the lastmonth of third year ofbusiness operation.
fulfil the initial investment amount required specific amount of investment on products
Company Category C
(Register period) First Year Second Year Third YearFourth
Year Fifth Year
Submit evidence of theinvestment on the sale ofgoods already made fromthe start of retail/wholesale business to 30days before the date of.
Submit evidence in the form of a bankdeposit of the required initialinvestment amount for the first 5years at the time of submittingapplication to renew the retail/wholesale registration.
The Minimum Initial Investment Amount With Respect to Goods for Sale
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Requirements
Bank deposits/transfers from abroad
(Only register for retail/ wholesale)
Can carry out with any initialinvestment for products
Government bank, Private bank(Citizens/Foreigners) that are allowing Central Bank of
Myanmar
Company Category D
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Specification of Sales Floor Area
Retailer
The individual outlet for a retailer must be of at least
929 square meters; this may include a small office space and storage under
one roof within the outlet. It excludes external office space, external storage,
and car parking.
Wholesaler
Depending on the types of goods
to be sold, the outlet must have
sufficient space to operate a
wholesale business.
Or
In the case of direct wholesale
distribution from a storage
area, the storage area must be
located at an appropriate
place.
Company Category A,B and C
Shopping Mall
the space must be above 929 square
meters and be suitable for a mall. The owner of the
mall or a mall operator must apply for registration but
individual shop owners that are
operating in the mall will not be required
to apply for registration.
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To inform opening a new outlet
Whole/Retail registered company
Outlets
To wish to open a new outlet, they must inform to the MOC 90 days in
advance.
-Department of
Trade, Nay Pyi
Taw
- Export/Import
Office(Ygn and
Mdy)
- Location and space to
open
- Shop name with
Business Plan
- Recommendation from
the Respective City
Development
Committee (Municipal
Office)
To Director General,
Department of Trade
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Registration and Extension Fees
Registration Fees5 years from the date of
registration(period )
MMK 50,000
Extension of registration Fees
Apply 2 months in advance before the expiry date of the
existing registration
MMK 50,000
1. Company Letter Head
2. List of company directors
3. List of shareholder
4. a business plan for 5 years
(5) years
(5) years
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Expired Penalty Fees
Penalty Fees
MMK 20,000
2 months after the expired date
After the expired registration date
MMK 30,000
4 months after the expired date
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Suspension of Retail/Wholesale Registration Certificate
Does not renew the registration within four
months after the expiration date
The retail/wholesale registration will be suspended
The right to import
retail/wholesale goods will also be
suspended.
Fails to provide evidence of receipt of the minimum investment amount by a local bank within 30 days from
the date of receiving temporary registration
such temporary registration will be
cancelled.
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Sanctions for Non-Registered Business
Retail/Wholesale
company with
specific investment
amount
Warning to register
- First time
- Second time
Exporter Importer Registration Certificate
After the warning
period
Foreign Company
(Or)
Local Company
Registration certificate will be suspended and importing of goods will be terminated
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Sanctions for failing to deposit the initial investment amount
Retail/Wholesale
Company
Warning to register
- First time
- Second time
Exporter Importer Registration Certificate
After the warning
period
Foreign Company
(Or)
Local Company
Registration certificate will be suspended and importing of goods will be terminated
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1. Consumer Goods(Including Clothing, Clock and Watch, Cosmetics Products)
2. Foodstuff including the following categories of commodities-
✓ Agricultural produce(except prohibited commodities for importing and selling due
to the needs of the country)
✓ Marine Products
✓ Animal Products
✓ Instant Foods
✓ Soft Drinks
✓ locally produced beverages
3. Household Goods (Ceramics, Pottery, Glass including glassware products)
4. Kitchenware
5. Medicine and Medical Products, Hospital Equipments
6. Animal Feed and Veterinary Medicine
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The Priority List of Categories of Products on Wholesale and Retail distribution for foreign companies and joint venture companies
7. Stationery
8. Furniture
9. Sports Goods
10. Communication Devices(Including Camera and Phone)
11. Electronic Goods
12. Construction material and Equipment
13. Electrical Goods
14. Chemical for Industrial Use
15. Seeds, Agricultural Inputs and Products used for Agriculture
16. Agricultural Machinery and Equipment
17. Machines, Mechanical Appliances and Parts
18. Bicycles
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The Priority List of Categories of Products on Wholesale and Retail distribution for foreign companies and joint venture companies
19. Motorcycle, Accessories and Parts
20. Automobile Parts, and Parts of Machinery and their accessories
21. Toys
22. Home Decoration Products and accessories (Including Flowers and Plants)
23. Souvenir and Handicrafts Products
24. Art Materials, Musical Instruments and Accessories (excluding Antiques)
Remark:
✓ When selling the listed items under a retail/wholesale registration certificate, they
must prioritize local products to sell by adding values to the products.
✓ When importing goods from abroad, companies shall comply with the laws,
regulations, procedures and rules of relevant Ministries as may be applicable to
the goods.
✓ The Priority List of products groups may be amended as necessary.
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The Priority List of Categories of Products on Wholesale and Retail distribution for foreign companies and joint venture companies
Applying Companies for wholesale/Retail License
No Company Name Company Category Type of Registration
1 MYCARE Unicharm Co.,Ltd.100% foreign
Wholesale
2 Pacific Andaman (SEA) Co.,Ltd.,
JV
Wholesale
3 AEON Orange Co.,Ltd., JV Retail
4 City Mart Holding Co.,Ltd100% Myanmar citizen
Retail
5 SUZUKI (MYANMAR) MOTOR Co.,Ltd100% foreign
Applying
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List of Companies that Retail /Wholesale business registration card issued
Applying Companies for wholesale/Retail License
No Company Name Company Category Type of Registration
1 Myanmar Convenience Store Co.,Ltd. 100% myanmar citizen Retail
2 Denko Trading Co., Ltd. 100% myanmar citizen Wholesale/Retail
3 Thiri Cosmetic Co.,Ltd. (Mistine) 100% myanmar citizen Wholesale/Retail
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List of Myanmar Companies that are not eligible for retail/wholesale
business according to investment amount is less than US $ 700,000 (7 lakh)
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