With the objective of putting deforestation and degradation activities in check, the new Forest Law 2018 (“Law”) was passed on 20 October 2018, replacing the old Forest Law 1992. The Law includes certain objectives to ensure long-lasting forest management and sustainable development. It is directed towards implementation of the forest policy and environmental conservation policy and endeavours to reduce the occurrence of natural disasters in line with international standards.
The Ministry of Natural Resources and Environmental Conservation (“Ministry”) may further issue relevant rules and regulations with the approval of the Union Government. The Ministry and associated Forest Department may also issue Notifications, Orders and Directives, as required. However, any such rules and regulations shall be in line with the Law.
The Law sets out two types of permit that are to be obtained for carrying out the below stated business activities:-
- Extraction of forest produce; and
- Establishment of wood-based industry.
The permit for extraction of forest produce can be obtained from the relevant Forest Department. As currently understood, the extraction of forest produce permit may be approved without use of the competitive bidding system. However the process of application is yet to be tested.
The permit for establishment of wood-based industry can be obtained from the relevant Forest Officer for the purpose of carrying out activities involving sawmills, sawpits, tongue-in-groove mills, plywood mills, veneer mills or wood-based industries.
For any specified forest land and forest-covered land at the disposal of the Government, anyone who wishes to carry out any development work or intends to implement any economic scheme shall obtain the prior approval of the Ministry and of the Director-General or the concerned forest officer.
The Law provides for tougher penal provisions including imprisonment and/or fines for any non-compliance, in line with the Government’s objective of conserving the country’s dwindling forests.
Through our office in Yangon, Duane Morris & Selvam advises corporations on investment, business and regulatory processes in Myanmar. For further information, please contact Mr Krishna Ramachandra (kramachandra@duanemorrisselvam.com), Ms Babita Ambekar (bambekar@duanemorrisselvam.com), Mr Priyank Srivastava (psrivastava@duanemorrisselvam.com), or Mr CN Beilo (CBLo@selvamandpartners.com) or visit www.duanemorrisselvam.com. Duane Morris & Selvam is recognized as a leading law firm for Myanmar related Corporate, M&A and Projects (including Energy) work – The Legal 500 (2017 & 2018).
