Myanmar, known for its rich tea culture, is a significant contributor to the world's tea market. According to the Trend Economy, Myanmar exported US$3.87 million worth of tea in 2022, up 49% from 2021. Steeped in history, Myanmar's tea not only boasts of its tea origin country heritage but also underscores the nation's traditions.
Now, as the demand for unique flavours rises globally, there's potential for Myanmar to carve a niche in the international market. As the source above notes, China makes up the top importer of Myanmar tea, followed by Thailand, the United States (US), Malaysia and Singapore.
Exporting tea, especially given the flourishing Myanmar tea culture, offers an immense opportunity for growth for local businesses looking to venture abroad. But where do you start?
Types of tea produced in Myanmar
Myanmar is renowned for its diverse tea varieties, each unique in flavour and tradition. Before joining the world’s tea exporters and introducing these delightful brews to global palates, consider the types of tea you’d want to specialise in. Here are some top options:
1. Laphet tea
Laphet tea, Myanmar's signature pickled or fermented tea, is crafted from sun-dried Camellia sinensis leaves, seasoned with salt, garlic, and spices, and then fermented. This results in a unique taste that's a blend of savoury, sour, and umami.
A culinary staple in Myanmar, it's often paired with meals or showcased in dishes like lahpet thoke, a renowned tea leaf salad. Besides its rich flavour, laphet tea is celebrated for health benefits like aiding digestion, bolstering the immune system, and providing antioxidants.
2. Pu erh tea
Originating over 2000 years ago in Yunnan, China, Pu-erh tea has two main varieties: the raw, or sheng, and the ripe, or shou. Unique in the tea world, Pu-erh undergoes fermentation and is often aged for several decades, resulting in its distinctive earthy flavour.
Myanmar contributes to this tradition with its "Burmese Pu-erh," crafted from the Camellia sinensis plant just like its Chinese counterpart. However, Burmese Pu-erh tea is distinct, presenting a more gentle flavour profile that leans towards the fruity side, and is less pronounced in its earthiness compared to the Chinese version.
3. Green tea
Celebrated for its fresh and invigorating taste, Myanmar green tea is a testament to the untouched landscapes where it flourishes. While the tea leaves are harvested from the Camellia sinensis plant, similar to green teas globally, the unique terroir of Myanmar (its specific climate and soil conditions) imparts an unparalleled aroma and flavour to its green tea.
Historical ties suggest that the tradition of green tea cultivation in Myanmar, popularly in the Shan State, may have begun during the reign of the kingdom of Ava (1364-1527). This cherished tea is characterised by robust vegetal, fruity, and mineral undertones. Its smooth texture evolves into a subtle astringency that resonates on the palate.
As a nation where Buddhism is deeply rooted and palm wine the only other notable beverage, green tea holds a special place, standing proudly as Myanmar's de facto national drink.
Requirements when shipping Myanmar tea overseas
Whether you’re keen to export a specific variety of Myanmar tea or want to sell a range, your next step is understanding the logistics aspect of your international venture. To ensure a seamless process of tea shipping overseas, specific requirements need to be met. We dive into them below:
1. Duties & taxes
Begin by understanding the local export taxes. A 2% Advance Income Tax (AIT) applies to the export value, payable either in Myanmar Kyat (MMK) or foreign currency based on the export contract.
Additionally, an 8% commercial tax is levied on most exported goods.
Depending on the type and preparation of the tea, the Myanmar Customs Tariff 2022 indicates that tariffs can range from 5% to 20%. However, the Special Economic Zone (SEZ) Law offers a potential five-year tax exemption on custom duties for approved exports These means if you’re exporting tea from SEZs like Dawei, Kyaukphyu, and Thilawa, you can enjoy tax exemption.
2. Documentation
Accurate documentation ensures a smooth overseas tea shipping process. These include the:
- Export licence*
- Invoice
- Sale contract
- Packing list
- Shipping instructions
- Booking note
- CUSDEC-2 Export Declaration Form
- CUSDEC-4 Customs Valuation Form
- Other documents depending on destination, such as a country of origin and US Food and Drug Administration (FDA) certificates, if you’re exporting to the US, for instance
*The government has liberalised the export licence process, though some tariff lines will require the licence. While tea exports don’t fall within these tariff lines, you’re advised to check with the Department of Agriculture to confirm.
3. Packaging
For successful tea exports from Myanmar, it's essential that packaging meets certain criteria to ensure the product's quality and integrity. Here's a checklist for your tea packaging:
- Name of the food: Clearly specify the type and variety of the tea.
- List of ingredients: Detail all ingredients, especially if it's a blend or has added flavours.
- Net contents: Display the net weight or volume of the tea. If applicable, also state the drained weight.
- Name and address: Include the complete name and address of the exporter or producer.
- Country of origin: Indicate that the tea is from Myanmar.
- Lot identification: Incorporate a batch number or other identifiers for traceability.
- Date marking: Mark the packaging with the production and expiration dates.
- Instructions for use: Offer brewing guidelines or any other relevant usage instructions.
In addition, opt for robust and resilient packaging that effectively shields the tea from any potential harm during transit. Also, use eco-friendly materials that pose no threat to the environment. This can also be part of your goal to achieve your sustainable development goal as a business.
