The Department of Trade ("DOT") has enforced two measures tightening restrictions prior to the arrival and storage of imported goods and before import licences are obtained. These measures came into effect on 7 June 2024.
Pursuant to the Export-Import Law, DOT's Newsletter No. 3/2024 states that legal action will be taken against goods which arrive at the ports without import licences. This includes restricting the storage of goods without import licenses. In addition, DOT's Newsletter No. 2/2024 eliminated some categories of products to be stored in bonded areas without an import licence. Currently, only goods such as medicines, various electric vehicles and related accessories, industrial raw materials and chemical raw materials for industry, and food raw materials are permitted for storage without an import licence.
On 1 June 2024, the State Administration Council ("SAC") issued Notification 106/2024, stating that the Patent Law enacted as the Pyidaungsu Hluttaw Law No. 7 in 2019 has come into force on 31 May 2024. The effective date of the Patent Law is yet to be announced.
To qualify for patent protection in Myanmar under the Patent Law, an invention must meet three essential requirements, namely (i) novelty; (ii) inventive step; and (iii) industrial applicability. The statutory provisions concerning eligible applicants for patent rights, as outlined in Section 15 of the Myanmar Patent Law 2019, determine who has the right to apply for and be granted patent protection for an invention. These provisions are essential for ensuring that the appropriate parties are recognised and rewarded for their contributions to the invention and innovation process.
As per Section 15 (a), the primary eligible applicant is the inventor, who has the right to apply for patent protection and has hir/her name listed on the patent. Additionally, the rights can be exercised by the licensee (someone who has obtained permission to use the invention) or the transferee (someone who has acquired the rights from the inventor).
Under Section 15 (b), in cases where the same invention is independently invented by multiple inventors, the one who submits the patent application first or legally obtains the earliest date of priority (if there’s a claim for priority) shall be entitled to patent rights. This ensures a fair system for determining priority when multiple inventors come up with the same invention.
The Barter Transaction Agreement ("BTA") was introduced by the Department of Trade under the Ministry of Commerce on 28 May 2024. The BTA seeks to facilitate the exchange of goods of equal value between countries without the use of foreign currency. Companies participating in the BTA must submit specific forms and supporting documents to the Central Bank of Myanmar to get exemptions from foreign currency repatriation and payment requirements.
Additionally, Myanmar and China have signed a Memorandum of Understanding ("MOU") to implement a barter system, primarily through the border trade zone in Muse. The MOU involves trading Myanmar agricultural products for Chinese construction materials, farm implements, and fertilisers. This arrangement aims to boost bilateral trade and reduce dependency on foreign currency transactions, which have become increasingly challenging for Myanmar businesses.
On 1 May 2024, the Intellectual Property Department ("IPD") started its first publication of applications under the Trademark Law (2019), and second and third publications subsequently on 1 June 2024 and 1 July 2024. Applicants are now able to oppose any of the applications for marks in the publications, which is accessible on the IPD's website in accordance with the stipulations of the Trademark Law.
The online publication of the applications provides the details of each mark, applicant, and representative information. In addition, it discloses relevant information such as disclaimers, colour claims, mark translations or transliterations, applicable priority dates, as well as specifications of goods and services under the Nice Classification.
Any person (individual or legal entity) can file an opposition against an application for mark within 60 days of publication by citing significant absolute or relative grounds as specified in the relevant sections of the Trademark Law. Oppositions must use the official form specified in the Trademark Rules and pay the filing fee of MMK150,000 per mark (regardless of the number of classes) plus a MMK300 bank charge. Anyone, including interested parties or their local representatives, can file the opposition on the IPD website.
If an opposition is not filed within the stipulated 60-day period, IPD will proceed with the trademark registration without conducting any substantive examination for similarity or priority. Thus, mark owners, right holders, and other interested parties should closely monitor the IPD's publication of applied-for marks so they can take any necessary actions and potentially file oppositions to protect their rights and interests.
(a) Central Bank of Myanmar Sets New Reserve Ratio and Interest Rate on Average Excess Reserves
On 30 April 2024, the Central Bank of Myanmar ("CBM") issued a new directive which primarily focuses on two aspects: (i) the minimum reserve ratio that banks must maintain in Myanmar Kyat; and (ii) the interest rate that CBM must pay on average excess reserves maintained by banks with CBM. Under the new directive, CBM has increased the minimum reserve requirement ratio for banks in Myanmar Kyat from 3.5% to 3.75%. In this regard, CBM aims to manage the increase in circulating capital and curb the rise in inflation prudently with this adjustment. State-owned banks, private banks (both Myanmar and foreign-owned) must maintain a minimum reserve requirement ratio of 3.75% comprising 3% from the banks' deposits with CBM and 0.75% from cash held by the banks.
(b) Central Bank of Myanmar Limits Digital Payments and Transactions
Effective 12 June 2024, CBM has set new transaction limits in carrying out digital payments and transactions. Banks and mobile financial service providers are to use the Central Bank of Myanmar Financial Network System (CBM-NET), which includes the Real-Time Gross Settlement (RTGS) for large payments, the Automated Clearing House ("ACH") for small payments and a digital payment switch for QR-based transactions. This approach by CBM is to provide non-cash payments and ensure security of digital transactions nationwide.
The revised regulations include directives on the following:
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Person-to-Person (P2P) Payments: Limited to MMK1 million per transaction and a maximum of MMK5 million daily;
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Person-to-Merchant (P2M) Payments: Maximum daily transaction amount of MMK10 million, covering sectors such as gold shops, electronic stores, construction material stores, and healthcare centres;
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Mobile Money Accounts: Maximum balance limit of MMK10 million, with excess funds to be transferred daily to an associated bank account;
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Mobile Banking Payments: P2P and government payments of up to MMK10 million are required to use the CBM-NET ACH Function;
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Large Payments: MMK10 million or more transactions are required to use the CBM-NET System B2B Function; and
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ACH Allocation: Banks are to maintain sufficient Debit Cap funds for uninterrupted access to the CBM-NET ACH Function.
(c) Central Bank of Myanmar Issues Warning against Crypto Trading
On 24 May 2024, CBM issued a warning against the sale, purchase, exchange or unauthorised money transfers through use of digital currencies. A failure to comply will result in the closure of bank accounts, and legal penalties which include imprisonment and fines in accordance with the Anti-Money Laundering Law and Financial Institutions Law. This action is related to CBM's Notification 9/ 2020 which prohibits every individual residing in Myanmar from the unregulated use of digital currencies which include cryptocurrencies such as Bitcoin (BTC), Litecoin (LTD) and Ethereum (ETH), as well as transactions through personal Facebook accounts and websites.
