CBM Issues Guidelines on the Repatriation of Export Earnings

On 30 June 2025, the Central Bank of Myanmar (“CBM”) blacklisted 197 companies and their directors for not having repatriated their export earnings during the period 2016 to 2020. It also suspended the companies’ export/import certificates. Administrative actions are now being taken against these blacklisted companies and their directors as specified under the Foreign Exchange Management Law (“FEML”) dated 12^th August 2012.

Under Section 32(b) of the FEML, CBM Notification 27/2022, and the latest Notification 27/2023 dated 25 December 2023, export earnings must be remitted to authorized banks (“AD Banks”) in Myanmar within 30 days (if from Asian countries) or 60 days (if from any other country) from the date of the export declaration (“ED”). Action will be taken against companies that do not do so within the prescribed timeframe. According to Section 42(a) of the FEML, any director of a company that does not comply with this is subject to imprisonment of one year or a fine or both.

As a follow up to its blacklist on 30 June, the CBM posted guidelines on its website on the settlement of export earnings. The guidelines specify that non-compliant companies will be given a deadline by which they must settle their export earnings with their respective AD bank, after which their export/import certificate will be suspended and the company blacklisted. Directors of blacklisted companies will be prosecuted by the Ministry of Home Affairs.

It is important to note that settlement under the guidelines require not merely remitting export earnings to the AD banks. Export companies must also reconcile the export earnings amount remitted to their respective AD Bank with the ED amount. Companies must also maintain proper documentation regarding their exports, such as EDs, sales contracts, invoices, bills of lading, and credit advices. Additionally, they should keep evidence of the particulars that might cause a discrepancy between the ED amount and the remitted amount, such as damages to goods during export to ensure smooth settlement processing with the AD bank.

Most companies are unaware of this procedure, leading to unintentional non-compliance. As the word suggests, being blacklisted creates a number of difficulties for companies and their directors—restrictions on banking, business activities, travel into/out of Myanmar, as well as damaging the company’s reputation. The procedure to be removed from the blacklist is quite complicated and time consuming, involving several government authorities, such as the CBM, the Directorate of Company Administration, and potentially, the courts.

Therefore, we recommend that export companies actively monitor their EDs and settle their export earnings with their AD bank as early as possible to avoid unnecessary obstacles to the company’s operations.