Effort to curb rubber smuggling backfires

 

Association secretary Khine Myint told Eleven Media that truck drivers were skirting arrest by telling police at checkpoints on highways to the border that they intended to register their exports at the border. However, once they arrived at border gates they failed to obtain licences, Khine Myint said. 

“Smuggling is higher now than before,” the association secretary said, adding that the illegal trade had increased dramatically along land routes since 2011, as smugglers switched from seaports.

“This damages both state revenues and licensed merchants. We have even heard reports that illegal trade of rubber now extends to Thailand,” Khine Myint said.

More than 90,000 tonnes of raw rubber was exported in FY2010-11. However, despite the fact that rubber plantations have expanded in size and output every year since then, official exports fell more to 80,000 tonnes in the last fiscal year.

Rubber prices have also fallen internationally over this period, while the domestic price has dropped to as little as Ks 740 (about 74 US cents) per pound for RSS 3-type rubber.

Myanmar rubber is exported to China through two main border gates: Muse and Chin Shwe Haw. The Chinese government levies heavy taxes on Myanmar rubber imports to protect its domestic producers, which has encouraged Chinese traders to purchase rubber in Myanmar and smuggle it into China through illegal routes to avoid duties on both sides, industry observers say.

Myanmar’s rubber producers are receiving technical assistance from Japan to upgrade the quality of their product so that it can meet the standards required for sale in the Japanese market, officials have said.