Myanmar’s coffee beans benefit from import duty exemptions in multiple countries

 

THE Myanmar Trade Promotion Organization has announced that Myanmar’s coffee beans have been granted tax exemption by more than 10 foreign countries. Currently, Myanmar’s coffee is exported to 14 countries, including the United States, various European countries, and several Asian nations. Notable countries offering import tariff exemption for Myanmar’s coffee include the US, Japan, Belgium, China, Germany, Viet Nam, the UAE, Singapore, Italy, Saudi Arabia, Russia, France, and Spain. This favourable tax treatment has encouraged the relevant institutions to focus on expanding coffee production and boosting exports to these countries.

The transport of Myanmar’s coffee beans follows different routes depending on the destination. Coffee beans are sent to neighbouring countries like China and Thailand through land borders, while shipments to the US, Canada, Europe, Japan, and the Republic of Korea are transported by sea. The speciality coffee beans from Myanmar are highly sought after due to their exceptional quality and organic production methods. Currently, Myanmar’s speciality coffee beans command a price of US$7,500 per tonne, significantly higher than the usual range of $3,000-4,500 per tonne. The country generates approximately $2.5 million in annual revenue from coffee exports.

According to the Myanmar Coffee Association, there is a total of 50,000 acres dedicated to coffee plantations in Myanmar, with 38,000 acres allocated to highland Arabica coffee and 12,000 acres to lowland Robusta coffee. Shan State serves as the primary producer of coffee beans in the country. The Department of Agriculture notes that Arabica coffee is primarily exported to foreign trade partners. Myanmar aims to achieve a coffee export target of 10,000 tonnes this year, doubling the volume from the previous year (5,000 tonnes), according to the Ministry of Commerce. Myanmar’s coffee plantations are spread across Mandalay Region, Shan State, and Kayin State. The coffee harvesting season is from November to February, with exports to external markets occurring between April and May.

TWA/EM

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