Myanmar Reduces Import Tariffs on Semi-Knocked Down (SKD) and Completely Knocked Down (CKD) Fuel Vehicles for Local Assembly

The Ministry of Planning and Finance of Myanmar has recently issued Notification No. 39/2025, pursuant to Section 3, Subsection (D) of the Customs Tariff Law, with the objective of supporting economic recovery and the development of micro, small, and medium enterprises (MSMEs). The notification provides import duty reductions for fuel-powered vehicles assembled in Myanmar using semi-knocked down (SKD) or completely knocked down (CKD) kits.

According to the 2022 Myanmar Customs Tariff Schedule, the previous tariff rates for passenger cars with engine displacement of 2000cc or below were 7.5% for SKD vehicles and 5% for CKD vehicles. Under the new policy, these have been reduced to 5% for SKD and 3% for CKD vehicles.

For passenger cars with engine displacement above 2001cc, the duty has also been lowered from 7.5% (SKD) and 5% (CKD) to 5% and 3%, respectively.

For personal three-wheelers, the previous tariffs of 7.5% (SKD) and 5% (CKD) have been reduced to 3% (SKD) and 1.5% (CKD).

In addition, the import duties for truck and truck bodies, construction vehicles, commercial three-wheelers, and bus components—previously set at 7.5% (SKD) and 5% (CKD)—have been uniformly reduced to 3% for both SKD and CKD.

Tariffs on motorcycles have also been cut, from 3% (SKD and CKD) to 1.5% for both SKD and CKD.

This policy is effective from June 1, 2025, and will remain in force until May 31, 2026.