On 9 August 2024, the Directorate of Trade under the Ministry of Commerce (MOC) issued Announcement 11/2024, relating to businesses involved in online sales in Myanmar. This announcement supplements earlier regulations requiring registration of such businesses.
Online sales regulation in Myanmar began with the Union Government’s Notification 5/2023, issued on 4 July 2023. It recognised online sales as an essential service according to the Essential Supplies and Services Law, empowering the MOC to regulate the sector. Following this, the MOC released Notification 50/2023 on 21 July 2023, mandating online businesses to obtain a registration certificate.
Key Points to know
Mandatory Registration for Online Sales
Effective January 2024, all businesses selling goods and services online must be registered. This applies to businesses of all sizes, from large companies to individual sellers.
Enforcement of the Registration Requirement
The announcement emphasises that operating an online sales business without securing this certificate can face legal action under section 5 of the Essential Goods and Services Law. Penalties for non-compliance include a prison sentence of six months to three years and a fine of up to five hundred thousand Kyats.
The introduction of these regulations mark a significant shift in how online sales are governed in Myanmar. So far it appears that many businesses operating online have not yet registered with limited enforcement actions from the authorities. There also remains uncertainty as to the scope of businesses which must register as the regulations are broad enough to catch any business promoting a good or service online, or how this affects sellers using an online sales platform to sell goods.
The fact that the MOC has issued this announcement reminding businesses that they have to register may be an indication that the MOC may soon checking compliance more vigorously.
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