Vice Chairman of State Administration Council Deputy Prime Minister Vice-Senior General Soe Win addresses meeting 1/2021 of Leading Committee to Combat Illicit Trade
Nay Pyi Taw December 23
Leading Committee to Combat Illicit Trade held its meeting 1/2021 at the meeting hall of Ministry of Commerce in Nay Pyi Taw this afternoon with an address by Chairman of the leading committee Vice Chair-man of State Administration Council Deputy Prime Minister Vice-Senior General Soe Win.
Also present were Vice Chairman of the leading committee Union Minister Lt-Gen Soe Htut, and U Win Shein member UnionMinister Dr Pwint Hsan, deputy ministers, member of Nay Pyi Taw Council, permanent secretaries, directors general and officials. Chairmen of region/state special teams to combat illicit trade region and state chief ministers and officials took part in the meeting through video conferencing.
The Vice-Senior General said Global Illicit Trade Environment Index shows Myanmar at the 82nd position among the 84 countries. The four categories of the measurement system are government policy, supply and demand, transparency and trade, and the customs environment. Illicit trade is one of the main factors hampering the economic development of Myanmar. If the illicit trade is large it hinders legal businesses. The drop in border trade volume is connected with illicit trade. A comparison of trade figures shows that the gap between Myanmar and neighbouring countries is huge in illicit trade.
Small and medium enterprises have less capacity to compete with illegal goods coming into the nation through the borders. So, their long-term survival is under threat. So, illicit trade in regions and states which borders other countries must be effectively curbed. Departmental officials at the meeting should suggest policies, strategies, tactics, programs and long-term and short-term plans to effectively eradicate illicit trade.
The relevant ministries will form task forces, subcommittees and special teams based on respective sectors. Nay Pyi Taw Council and regions and states should effectively curb illicit trade with their special teams.SAC has set up the central committee to facilitate trade and commodity flow with Order No. 81/2021 on 20 February 2021. Its mission to prevent the occurrence of illicit trade is stated in para 2(f). The duties and functions of the work committee formed with Order No. 83/2021 are also stated in para 16 (dd).
Consumer protection and severe actions against exposed illicit trade will encourage traders to partake in legal trade. In this way, trade volume will grow and State revenues will increase. Fair market competition of entrepreneurs will help develop the national economy. Additionally, effective actions must be taken against illicit trade. Moreover, the amount of awards must be fixed for the teams that are responsible for investigation, search and apprehension and informants. If the illicit goods are seized without any tipoff, the State must impound them.
Currently, the Customs Department of Ministry of Planning and Finance, together with relevant departments of ministries, has been stopping and inspecting illegal trafficking routes at the Yepu Permanent Checkpoint on the Mandalay-Muse Highway and Mayangyaung Permanent Checkpoint on the Myawaddy-Yangon High-way. In the period from 2016-2017 fiscal year to May in 2020-2021 fiscal year, illegal goods worth of Ks-19,206.499 million in 4,092 cases have been seized at Mayangyaung Permanent Checkpoint and those worth of Ks-27,281.789 million in 2,749 cases at Yepu Permanent Checkpoint.
Similarly, special teams previously formed to eradicate illegal trade in regions and states have seized illegal goods worth Ks-69,663 million in 10193 cases from September in 2018 to
January, 2021. It is Ks-23,221 million in 3,397 cases per year on average in the period of three years. After forming the Illegal Trade Eradication Steering Committee and reforming and rebuilding the previously formed special teams in respective regions and states, illegal goods worth of Ks-6,067 million in 1,516 cases have been seized in the nine-month period from February to October in 2021, over Ks-674 million in 168 cases per month on average.
According to the changed era and system, the State has eased trade-related measures that should be eased on one hand, and on the other hand, it is necessary to take measures to ensure rule of law and reduction in illegal trade and tax evasion. It must be carried out to ensure an increase in State’s re-venue. In the meeting, it is needed to discuss the plans to becarried out by the Steering Committee for constantly monitoring and effectively controlling illegal trade on border trade, maritime and air routes and the plans to work together with region and state governments concerned.
In checking the goods along with relevant papers at the chekpoints, carrying goods in wrong names and paying less tax than acceptable has happened. It is needed to scrutinize them in accordance with the procedures of departments concerned to earn revenue that should be for the State and avoid tax grievances. Regarding the seizedgoods, it is necessary to scrutinize the procedures of the departments concerned so that there will be a speedy and smooth process from the time of seizing the goods to that of auctioning them.
In setting the floor prices of seized goods, the floor prices should be the closest to those on the ground, and cooperation and coordination is to be made in taking the procedures of the departments concerned to avoid damages in transferring the seized goods due to the delays. It is necessary for the departments concerned to am-end the procedures as needed to be able to present rewards to the special teams for illegal trade eradication on the ground as quickly as possible. In conclusion, he stressed the need for the relevant ministries to work together to combat and reduce illegal trade and ensure that the state receives full revenue as the Illegal Trade Eradication Steering Committee has been tasked with the Ministry of Commerce as the focal ministry.
Afterwards, the participants made relevant recommendations on anti-trafficking activities.After that, the Vice-Senior General closed the meeting with concluding remarks.