A SPECIAL taskforce began inspecting all incoming containers at Yangon ports in mid September, an official from the Directorate of Trade said September 22.

The specially-formed group comprises officials from the Ministry of Commerce, the Myanma Port Authority and the Customs Department and began inspections in the second week of September, U Myint Thu, an authorised customs clearance agent and member of Myanmar Customs Brokers Association (MCBA), told The Myanmar Times.

Every imported item in containers was being inspected to ensure it matched accompanying paperwork, in an effort to stamp out illegal trade and tax evasion.

“In the past, imported items inside containers were examined with X-ray machines at the ports, not by opening the containers,” U Myint Thu said.

“It takes a little longer to withdraw containers from ports than it used to,” he said.

The decision to intensify scrutiny of imports followed a September 11 meeting of the Committee to Ensure Smooth Handling of Cargo to its Fullest Capacity (CESHCFC) and authorised customs clearance agents.

At the meeting, committee vice chairman Major General Tin Ngwe warned that those found to be importing items without a licence would be blacklisted from further trade.

The inspection groups were assigned to Thilawa, Bo Aung Kyaw, Myanmar Industrial and Asia World ports in Yangon.

“Some traders would import consumer goods illegally without the proper import licences or they would alter invoices,” said an official from the import section of the Directorate of Trade. “For example, although an import licence might only mention fertiliser, which has a very low tax rate, the trader may bring in high-tax items like luxury goods (without declaring them) in order to avoid paying taxes.”

A crackdown on tax evasion at Yangon ports over the past several months resulted in a large backlog of containers at the ports as importers failed to collect items for fear they would be found to be have been avoiding due taxes.