What Is Border Trade Agreement

The India-Myanmar Border Trade Agreement between the Governments of the Republic of India and the Union of Myanmar was signed on 21 January 1994 with the aim of formalizing border trade practices and making such trade activities enjoyable1. The agreement originally provided for cross-border trade in twenty-two products, mainly agricultural/primary raw materials produced in trading countries (and not products from third countries that dominate informal border trade, as discussed below). In 2001, a few more items were added to the list of exchangeable items. In practice, the agreement does not really go beyond a formal sanction for traditional exchanges between local populations in the border areas of the two countries. But it has an important symbolic value in terms of promoting economic relations between the two countries. The agreement stipulated that trade was to be carried out through the designated customs posts, namely (a) Moreh in India (State of Manipur) and Tamu in Myanmar, (b) Champhai in India (State of Mizoram) and Hri in Myanmar, and (c) other places that could be notified by mutual agreement between the two countries. Following the signing of the agreement, the two land customs posts (LCS) of Moreh and Champhai were notified on Indian soil. However, Champhai Station has not become operational to date and all official or formal border trade between Indo and Myanmar has taken place via the Moreh-Tamu road. Even though the UK has a duty-free trade deal with the EU, companies will have to prove that their product is of UK origin to benefit from it (this usually means that 50-55% of the product must come from local sources). The exact terms of these rules between the UK and the EU have not yet been negotiated. What customs procedures do you follow for trade with non-European markets? Do I need a Customs Deferral Account and a Full Customs Guarantee (CCG) to continue trading with the EU after I leave? Myanmar`s Foreign Trade Act provides for transit trade, after which goods can be imported into Myanmar to be finally delivered to a third country.

The foreign buyer or seller may designate a resident and company of Myanmar as a transit channel. Transit includes the payment of a nominal commission per line, 2.5% in customs, transit transport costs and a service charge to the authorities concerned. To determine the import duty, the price is converted into hard currency at the official exchange rate in Kt (Indian Institute of Foreign Trade, 1995: pp. 43-44). The process results in an artificial drop in the price of goods for buyers at the final destination. The abnormally low price of third-country products imported from Myanmar to India in informal border trade must be attributed in part to this factor. The effects are similar to those of the dumping of the products on the final importer. Therefore, transit trade acts as unfair competition for domestic producers in the country of destination.

Although the Myanmar government also loses in terms of the rate per unit of a property, the loss per unit is likely to be at least partially offset by the larger volume of demand due to the removed price. Therefore, the revenue effect of the mechanism for the Government of Myanmar cannot be determined without having to determine the different elasticities. In recent years, advanced medical treatment facilities have emerged in the region. Currently, most of these facilities are concentrated in Guwahati, the gateway to the region, but the facilities are also used by people from neighboring states. .