11 December 2024
Work Coordination Meeting of the Illegal Trade Eradication Steering Committee (5/2024) was held at the conference hall of the Ministry of Commerce in Nay Pyi Taw this afternoon and Chairman of the steering committee Vice Chairman of the State Administration Council Deputy Prime Minister Vice- Senior General Soe Win delivered an address at the meeting.
Also present at the meeting were Union Minister U Tun Ohn, deputy ministers, the chairman of the Revenue Appellate Tribunal, members of Nay Pyi Taw Council, permanent secretaries, director generals, chairmen of organizations and associations and officials while chairman of state and region illegal trade eradication committees joined the meeting via video conferencing.
First, the Vice-Senior General an address, saying a total of 17 meetings have so far been held since the formation of the steering committee and 560 decisions have been made at the previous 16 meetings. Decisions to be implemented immediately and consistently have been carried out. As consumers and domestic entrepreneurs suffer significant losses due to illegal trade, it is necessary to effectively prevent and take action against illegal trade.
Moreover, the country loses significant revenues and incurs costs to combat illegal trade. In the domestic manufacturing sector, products manufactured by local entrepreneurs do not meet their standards due to illegally smuggled sub-standard cheap raw materials and not only harm local consumers but also lose export market shares in the international market.
Cheaply smuggled fake substandard raw materials result in sub-standard finished products in the local market, causing losses. It can be seen that illegal trade conducted through various ways and means not only hampers economic development of the country severely but also leads to losses of revenues necessary for development of the country such as commercial taxes, income taxes and special commodity taxes, forcing GDP to decline. Illegal trade can also decrease the earnings of the country and cause inflation as incomes fail to cover expenditures.
Therefore, the eradication of illegal trade is important and it is necessary for the steering committee, special committees to continue to take action against illegal trade as they are organizations mainly contributing to the interests of the country.
It can be seen that negative consequences of illegal trade affect human resources of the country due to accepting bribes and losing capabilities, integrity, moral and morale of government employees. Therefore, it is necessary to take more effective action against illegal trade, which is mainly hindering the economic development of the country, to accelerate the economic driving force of the country.
Combat against illegal trade must be launched thoroughly and measures must be taken effectively to boost exports, domestic production and trade on the other hand.
All governments in all countries have their own tenures and adopt policies for political, economic and social tasks.
The SAC government has also adopted political, economic and social policies and ministries, state and region governments, organizations and entrepreneurs are required to explore available ways and means to achieve success in respective areas and respective sectors without delays caused by failure to consider how to overcome limits and difficulties in implementing economic policies adopted by the government.
As the country is an agricultural one, it exported US$-14.641 billion worth of goods in the 2023-2024 fiscal year and It can be seen that it mainly exported rice, broken rice, corn, black gram, green gram, pigeon pea, sesame, onions, raw rubber, fishery products and minerals.
As of November in the 2024-2025 fiscal year, the country exported goods worth US$-9.825 billion.
Therefore, relevant departments are required to take measures to provide inputs and quality raw materials for animal feeds in a timely manner to effectively carry out agriculture and livestock breeding tasks in the current 2024-2025 fiscal year in order to boost exports.
A total of 560 decisions were made until the 16th meetings of the steering committee and during the two years and 11 months period from January, 2022 to November, 2024, illegal goods worth about MMK 379.247 billion in 17,258 cases In September, October and November in 2024, Customs Department made the highest number arrests and seizures.
In terms of arrests and seizures in states and regions including Nay Pyi Taw Council, Mandalay region made the highest number of arrests and seizures , followed by Kayin State and Kachin State in the second and third places. In terms of commodity categories seized, raw materials made up the largest volume while unlicenced vehicles and vehicles that transported illegal goods made up the second largest volume and investment materials made up the third largest volume.
In 2024, although monthly seizures of illegal goods improved progressively, a review of export and import records between our county and its neighboring trading partners revealed significant discrepancies.
Therefore, it is evident that the leading committee, special task forces, and relevant authorities responsible for combating illegal trade must intensify their efforts and aim to increase the effectiveness of seizures by approximately fourfold.
Regarding exports, the Prime Minister instructed a doubling of exports. To achieve this, MSMEs and associated domestic producers are urged to increase production. However, illicit trade significantly hinders these businesses from producing quality goods that can compete in the market, leading to potential losses. Additionally, reliable information is critical in combating illegal trade. During September, October, and November 2024, 204 reports were received, of which 79 were false, 4 were delayed, and 121 were accurate.
These reports led to 242 cases with a total seizure value exceeding Ks-5 billion. Efforts must be made to encourage greater public participation in reporting illegal activities.
Myanmar has already enacted laws on trademarks, industrial designs, copyrights, patents, and related agency regulations.
MSME operators are urged to secure intellectual property rights for their products. Relevant agencies must also ensure that application processes are streamlined and completed within designated timelines while taking effective legal action against violators.
Furthermore, issues surrounding intellectual property rights are not only complex but also give rise to transnational crimes.
According to findings by the OECD and WIPO, counterfeit goods trade is estimated at US$- 509 billion annually, accounting for 3 percent of global trade.
The trade of counterfeit and smuggled goods is lucrative and poses low risks, attracting more participants.
To promote export growth, ensure long-term sustainability for MSMEs, protect consumers, and prevent tax revenue losses, effective measures against illegal trade must be implemented.
Relevant departments and agencies must act transparently and free from corruption.
Additionally, collaboration from the public and private sectors is essential to eliminate activities detrimental to the nation and its people.
Following this, Committee Secretary Deputy Minister for Commerce U Min Min explained the decisions made during the Leading Committee Meeting (4/2024) on Combating Illegal Trade and outlined completed activities.
The leading committee office’s task force leader Director General U Aung Thwin Oo, Director General of the Central Equipment Registration and Inspection Department U Han Win Aung, Director General of the Customs Department U Thein Swe, Director General of the Trade Department U Myint Thura, and the Deputy Director General of the Food and Drug Administration Department read out the messages sent to the meeting.
Leading committee members Union Minister U Tun Ohn, Deputy Ministers, Nay Pyi Taw Council members, regional and state-level task force leaders, and other officials discussed findings related to illegal trade, seizures of narcotics, controlled chemicals, illegal timber, vehicles, fuel, food, pharmaceuticals, and cosmetic products. They also addressed enforcement measures, prevention strategies, comparisons of export and import activities and trade flows through trade camps.
The meeting concluded with the Vice-Senior General synthesizing the discussions and providing closing remarks before the meeting came to a close.
#Vice Chairman of SAC #Work Coordination Meeting of Illegal Trade Eradication Steering Committee #mtnews
