The gang is comprised of 138 people, most of whom are Chinese nationals. They were arrested in January in Kachin State for timber smuggling.
They have been charged under the Public Property Protection Act and the Immigration Act.
The Kachin State government has reported to the Ministry of Home Affairs that may face many years in prison.
"If they're convicted of smuggling, they may be sentenced to 20 years in prison," said an official from the Kachin State government.
An official from the Forestry Department said the Chinese smugglers had been smuggling huge amounts of timber every year.
So far, the department has seized 16,121 logs, or approximately 3,121 tonnes, around Waingmaw Township, Kachin State. Authorities also seized equipment used in the illegal venture, including a digger, three tractors, two cranes, 436 timber transport trucks, four cars and nine motorbikes.
China has commented on the issue, urging for the protection of the rights of its citizens.
Officials from the Forestry Department say Chinese nationals have been smuggling natural resources, including timber, from Myanmar since 2012. Nearly 40,000 tonnes of hardwood were confiscated in Myanmar last year. Most of the smugglers are Chinese.
About US$7 billion in illegal wood is smuggled into China annually, and 90 per cent of it is from Myanmar, according to a study presented at a forum of the Myanmar Forest Association.
In the past, Chinese nationals were generally fined and deported for smuggling natural resources from Myanmar, despite the official maximum prison sentence of five years for violating immigration and forest laws.