August 18, 2018
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Foreign car companies barred from local Expo

  • Category: Trade

Dr. Zarni Maung Maung, Managing Director of the Myanmar Professional Services Company Limited said that most foreign car manufacturers are barred from local car expos due to Myanmar’s car export policies.

According to current rules, foreign companies have to be registered as a sub-company and the importers also need to have old vehicle permits or an individual import permit to take part in local exhibitions.

“There are many Japanese car companies that made inquiries for participation when we organize car exhibitions. But it was difficult for them to get into the expo local policies are not clear to them”, said Dr. Zarni Maung Maung.

All foreign companies have to be registered to open branches and cars can be imported only when they have paid taxes.

In addition, local car showrooms do not have permission to exhibitions their products in local expos in accordance with the car showroom ‘Business Permit’.

Dr. Khant Win, Director of ASE car showroom said, “Normally, it is not easy to get into exhibitions even for us. There is a rule that prohibit car showrooms from exhibiting. We are just following the rules. Foreign companies have to open a branch company in Myanmar to take part in expos”.

“Policies are not the only thing that makes it difficult. We need to register and pay taxes if we want to exhibit at the show or sell our products. We can exhibit only after registering and paying tax for the cars, but I wonder if the taxes we paid would be reimbursed if the cars are not sold? We have to deal with such problems as well”, he added.

Foreign companies that are registered to open manufacturing plants in Myanmar are Toyota and Suzuki from Japan and TATA from India.

Companies such as BMW from Germany, Ford from America, KIA from Korea and Nissan and Honda from Japan are not registered to run factories but they operate in Myanmar with official local distribution permit.

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