Key takeaways
1. Online sales as essential service: Order 50/2023 issued by the Ministry of Commerce on 21 July 2023 determines that "online sales business" falls under the Essential Supplies and Services Law 2012 and is required to be registered by 21 December 2023. Engaging in online sales without the registration certificate after the deadline is punishable with imprisonment for a term not exceeding three years or a fine not exceeding MMK 500,000 (USD 240).
2. Online Sales Registration Order: "Online sales business" is defined under the Online Sales Business Registration Order (Order No. 51/2023) ("Registration Order") as a business providing the service of selling goods or services via an online system.
The Registration Order regulates unregulated online sales and requires online sales business operators to conduct business in an accountable manner and in strict compliance with the relevant regulations (e.g., FDA's regulations on food, drugs and cosmetics). The business operators must sell only the products and services specified in the application for the registration certificate. It must also provide clear and accurate information with respect to the products, prices, quality, payment methods, and the delivery and return policy. Also, it must not use the online sale platform for any political purpose. Noncompliance may result in the online sales registration certificate being suspended or cancelled. The Registration Order does not contain any provision relating to offshore sales platforms.
3. Registration: Application for the online sales business registration certificate must be made to the Department of Trade via the e-commerce registration system that went live on 2 October 2023.
Both a legal entity and natural person may apply for the registration certificate.
(a) A legal entity must satisfy the following requirements:
(i) Be established under the Company Law or Special Company Act or Co-operative Law or other existing laws
(ii) Have an official website with its own name/identity
(iii) Have a venue where the online sales business is conducted
(b) A natural person must satisfy the following requirements:
(i) Be a habitual resident in Myanmar
(ii) Be at least 18 years of age
(iii) Be able to comply with the stipulations under the Registration Order
(iv) Be of sound mind
(v) Not be on a blacklist of government departments/organisations
(vi) Have a venue where the online sales business is conducted
The application must be accompanied with the following:
(a) Colour photo and national ID of the applicant; in the case of a legal entity, the authorised person of the applying entity and the registration certificate of the entity
(b) Attestation by the government department or ward/village administration office concerned that the venue for business operation actually exists at the address provided in the application
(c) Information and warranties of the proposed goods and services subject to approval
(d) Import or manufacturing information
(e) Permits/licenses of the government department/s concerned, if applicable
The term of the registration certificate is two years, renewable on expiry.
4. Official fees – The registration fees and online service fees have yet to be announced. Registration will not incur official fees until the 21 December 2023 deadline.
We will continue to monitor these developments closely. Should you have questions or concerns, please contact any member of our team.
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