Snapshot: Myanmar’s Industrial Zone Law 2020

There are twenty chapters in this law and the titles are as follows.

  1. Name and interpretation
  2. Objective
  3. Formation of Central Committee and its duties
  4. Formation of Regional Committee and its duties
  5. Formation of Regional Committee and its duties
  6. Stipulation of Industrial Zone
  7. Establishment of Industrial Zone
  8. Fund Raising, Maintenance and Use
  9. Powers and duties of developer
  10. Duties of investor
  11. Land Use
  12. Environmental Preservation
  13. Levying of income tax on pay
  14. Granting the rights of industrial enterprises
  15. Managing the industrial zones to be operated successfully
  16. Settlement of administrative disputes of industrial zone
  17. Administrative Penalty and Appeal
  18. Prohibitions
  19. Penalties
  20. Miscellaneous

The Government shall allocate the classification and standard of the industrial zones and announce with the notification. In establishing the industrial zone, the following features of land, percentage and ratio.

  • For Industrial Area, from 60% to 70%
  • For Commercial Area, from 1% to 5%
  • For Public Utilities and Assistant Area, from 20% to 25%
  • For Green Belt, from 9% to 10%

The developer shall receive the approval of Central Committee through the Regional Committee. After concluding the business operating agreement with the Regional Committee, the developer may implement the industrial zone, sublease the land and build the infrastructure in accord with the stipulations. The developer may conduct the maintenance of industrial zone with the supervision of Management Committee. The developer shall complete the construction project of the relevant industrial zone within proposed timeline. If the construction work is not completed within proposed timeline, shall submit the valid reason. If the reason is not valid, the permit shall be revoked in accord with regulations. He may develop the infrastructure himself or contract to other parties. If he provides the service relating to the infrastructure not only in the industrial zone but also outside area, shall comply with the stipulations of the relevant government departments. Regarding to environmental conservation, occupational safety, health and fire safety, shall comply with the relevant laws. The fees payable for land use and the permit shall pay to the Regional Committee as a lump-sum and installments according to the commercial contract concluded with the Regional Committee. Relating to bonded warehouse system within industrial zone, shall comply the custom laws and procedures.

The investor has the right to conduct the following investment businesses in accord with the stipulations.

  1. Manufacturing of finished goods, related goods, packaging materials and value-added goods;
  2. Transportation of raw materials and finished goods, maintenance and upgrading roads;
  3. Other services relating to the investment business;
  4. Domestic and international trade businesses of goods manufactured by the investment business

The investor also shall complete the construction project of the relevant industrial zone within proposed timeline. If the construction work is not completed within proposed timeline, shall submit the valid reason to the Management Committee. If the reason is not valid, the permit shall be revoked in accord with regulations.

The investor shall

  • Register with the relevant departments in accord with existing laws;
  • Implement the business in accord with stipulations of relevant departments and organizations;
  • Submit the investment implementation status to the Management Committee;
  • Comply with the relevant laws and regulations regarding to hazardous raw materials and products that do meet the standards;
  • Comply with the existing laws and rules for the benefits of employees including appointment of employees, wages and overtime payment, leaves, holidays, occupational safety and health matters.

The investor shall comply with the standards of environmental conversation, in addition that shall comply with the laws for safeguarding occupational safety and health matters. Regarding with the commencement of business, locked-out and liquidation, the investor shall notify to the relevant departments and management committee. When the investor transfers the whole or part of the shares to his own business, company or the organization, shall notify to the relevant department and organization. The investor shall report the employment status of local and foreign employees to the Management Committee.

Land Use

The Regional Committee may allow the developer or investor to use the industrial land up to 50 years to implement the investment businesses and related businesses. The term may be extended up to two times for 10 consecutive years if they wish to extend after the previous 50 years expired.

Granting Benefits to Industrial Zones

The investor and the developer are allowed the temporary import of machinery and equipment to be used in initial construction in accord with the procedures of the Sea Customs Act. Import with Regional Committee’s recommendation shall be coordinated by the Ministry of Commerce.

If you are interested in learning more about Myanmar’s Industrial Zone Laws, do reach out to our legal team by emailing your enquiry to social@mravilaw.org.

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