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Indo-Myanmar Border Trade

By Dr. A. Surenjit Singh
Informally from time immemorial, the people along the international border between India and Myanmar (formerly, Burma) were always having some kind of trade relations between them. Myanmar is one of those countries which seem to have been favored by nature. Its area is 6, 76,552 sq km. It soils is rich, producing rice and other food crops in abundance. There are vast forests containing a large variety of trees from which valuable timber is extracted. The ground yields petroleum and many minerals and precious stones including rubies, sapphires, jade etc. Therefore, Myanmar has been beautifully described as an Eastern Paradise of immense riches.

The Government of India had already decided to have border trade with Myanmar as a policy of establishing good economic relationship since 1994. The Indo-Myanmar Border trade agreement between India and Myanmar was signed on 21st January, 1994 to facilitate a congenial trade practice. The border trade at Moreh (India) and Tamu (Myanmar) was opened on 12th April, 1995. The trade is conducted in accordance with the laws, regulations and procedures in force in both countries. Necessary provisions are made available to enable the buyers of either country to inspect and take delivery of goods at the customs posts in the country of the sellers. Though the trade is to be conducted in freely convertible currencies or in currencies mutually agreed upon by the two countries under Article-III of the agreement, the trade is functioning mainly under barter trade mechanism.

The formalities in the trade:

1. An Import Export Code (IEC) number is to be obtained from the office of the Deputy Director General of Foreign Trade, RG Baruah Road, Guwahati. The sample application form is available with the Export Promotion Cell/ Commerce Cell of the State Directorate of Commerce and Industries. A sum of Rs. 1,000 only in the shape of Demand Draft is to be accompanied with the application form and the amount should be drawn in favor of the Deputy Director General of Foreign Trade payable at Guwahati.

2. A contract is to be executed between Indian and Myanmarese traders specifying the items to be traded/ bartered along with the values.

3. Under the simplified norms of documentation system, the required documents for border trade are invoice, packing list, certificate of origin, phytosanttary certificate from the Plant Quarantine Office, Moreh in case of agricultural items. The Certificate of Origin is to be obtained from the Federation of All Manipur Importer Exporter Chamber of Commerce & Industry, Room No. 4 of Hotel Nataraj, near Central Bank of India, MG Avenue, Imphal or the Associated Manipur Chamber of Commerce near Dharmasala, MG Avenue, Imphal.

4. In case the items are under the Negative list of Export-Import Policy (1997-2002), licenses are to be obtained from the office of the Director General of Foreign Trade, Government of India, Ministry of Commerce, Udyok Bhavan, New Delhi.

In order to carry on the border trade profitably by both countries, 22 items have been identified and declared as exchangeable items by the agreement. These items are:

1. Mustard/Rape seed, 2. Pulses and Beans, 3. Fresh vegetables, 4. Fruits, 5. Garlic, 6. Onion, 7. Chillies. 8. Spices (excluding nut-meg, mace, cloves and cassia), 9. Bamboo, 10. Minor forest produce (excluding teak), 11. Betal Nuts and leaves, 12. Food items for local consumption, 13. Tobacco, 14. Tomato, 15. Reed Broom, 16. Sesame, 17. Resin, 18. Coriander seeds, 19. Soya-bean, 20 Roasted Sunflower seeds, 21. Katha and 22. Ginger.

For free movements by the residents of the two sides, Indo-Myanmar Travel passes are issued for visit upto Kalewa/ Kalemyo in Myanmar and upto Imphal on Indian side. These passes on the Indian side are issued by DC Imphal/ DC Thoubal/ DC Chandel or SDO Moreh. Each travel pass entitles a person entry to both sides for a maximum period of seven days allowing the holder to carry foreign exchange of $50 (US Dollar 50) per day. Under the Dawn to Dusk Entry pass system, the Indians have to pay Rs. 10 or 60 kyats to the Myanmar authority as Entry fee for every individual while crossing the border but for entry on Indian side, no entry fee has been charged or asked by the State Government considering the economic condition of the Myanmarese residents along the border.

In order to solve the problems of traders, the State Government have constituted a Counseling-cum-Grievances Redressal Committee headed by the Secretary (Commerce & Industries), Government of Manipur as chairman incorporating officials from Government of India, Ministry of Commerce, Army, BSF, Police, Forests, Taxation, etc. The Deputy Commissioner, Chandel, SDO Moreh and SP/Chandel are also members of the committee. Complaints may be submitted to any of the committee-members.

The volume of trade as per record from the Land Customs Station, Moreh with effect from 12th April, 1995 upto 15th September, 1997 was to the tune of Rs. 99,06,32,896 of which the value of export of Indian items into Myanmar was Rs. 56,78,88,009 and its corresponding import was Rs. 42,27,44,887.

The main items of exports were wheat-flour, bicycle and its parts, bleaching powder, fenugreek seeds, Ani seeds, Cumin, Soyabari, dry chillies, Agarbatti, Suman Rose Powder, Pea, Garlic, Stainless Steel etc.
The main items of imports were Betal nuts, Turmeric, Red Kidney beans (Rajama), Kuth roots, Grams, Resin, Reed-brooms etc.

Promotion of Indo-Myanmar Border Trade:

i). The State Government will have to take positive steps to optimize the advantages offered by the opening of the border trade with Myanmar at Moreh in Chandel district.
ii) An Export Cell in the Directorate of Commerce and Industries will be the nodal agency which, interalia, will:
- educate, train and guide traders/entrepreneurs in international trading.
- conduct and export potential survey.
- undertake measures to promote trade-motivated industrial activity
- optimize use of agricultural/ horticultural/ forest resources across the border.
- facilitate setting up of trade centers with integrated and in-house basic facilities.

Suggestion for increasing the approved list of exchangeable items:

The officials as well as traders have suggested increasing the 22 items in the list of exchangeable commodities since most of these items except say five items are found to be viable and profitable on import of Myanmar's origin. The following items are proposed for inclusion, 1. Cardamon (small), 2. Coconut oil. 3. Ground nut seeds and oil, 4. Peanuts, 5. Rice, 6. Silk cocoons and yarns, 7. Teak (Raw cotton and mats), 9. Bamboo caps and bamboo bases household items, 10. Poppy seeds, 11. Plastic granules/ materials, 12. Paraffin wax, 13. Cashew nuts, Mace (Javitri), Nutmeg and Cinnamon, 14. Gems and Jewellery items, 15. Agar-wood, 16. Myanmar's origin stationary items, Toilet soap, washing powder, cosmetic etc. 17. Animal skin, skin hides and 18. Third country product/ items like blanket, dress materials, specified items of electronic goods etc.

Some suggestions for improvement:

1. Banking: As per Border Trade Agreement between India and Myanmar the Border trade at Moreh would be serviced by UBI on the Indian side. On Myanmarese side, the banking arrangement at Tamu would be serviced by Myanmar Economic Bank (MEB). So, far, UBI's contributor in development of border trade is not upto the desired level and its needs improvement.

2. Road: Road is the golden path of the trade. The existing road between Imphal and Moreh needs major improvement. The road is too narrow and it should be double-lane road. It should be broadened and kept black topped throughout the year. Improvement of road communications from Pallel to Moreh particularly Tengnoupal to Khudengthabi is a must.

3. Communication: Improvement of telephone/Fax service at Moreh is required immediately. The plan for laying of optical fiber line between Imphal and Moreh may be taken up expeditiously to meet the urgent need of the traders. Fax services are required immediately. The present postal service at the border town of Moreh also requires strengthening or prompt delivery of documents. Speed-post facilities should be introduced.

4. Model town: Construction of a model town at Moreh is highly required in view of the development across the border in Tamu. Moreh town is required to improve the existing outdated market.

5. Transportation: At present, means of transportation is private carriers on the road like bus, trucks, Tata sumo, etc. Uninterrupted transport service is required for which proper security arrangement along the roads and proper maintenance of roads is a must. Construction of railways line upto Moreh may also be kept for long-term plan. The system for issuing of transport pass system by the Taxation Department is to be introduced for accelerating and improving the easy movement of import cargos.

6. Law and order: The law and order situation is highly unsatisfactory. Government should put improvement of law and order problem as top priority. Insurgency problem and frequent looting of bus and trucks along the road between Imphal and Moreh and in the Moreh town itself should be effectively checked.

7. Black marketeers: Particularly black marketeers should be checked and liquidated. Abundant quantities of Heroin no. 4 is smuggled and brought from Myanmar illegally by black-marketeers. It causes drug problem. Among the black-marketeers, many have contact with police personnel for this business. And all the police stations starting from Moreh to Imphal collect huge amount of money from the smugglers and small traders particularly who are coming from Moreh by bus/ truck etc. The collected amount is entered in their own pockets. Therefore, all the black-marketeers as well as corrupt police personnel should be checked immediately.

(Courtesy: The Sangai Express)

 

 

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