The State Law and Order Restoration Council
The Myanmar Gemstone Law
(The State Law and Order Restoration Council Law NO. 8/95)
The 6th Waxing of Thadingyut, 1357 ME.
(29th September, 1995)
The State Law and Order Restoration Council hereby enacts the following Law:-
Chapter I
Title and Definition
1. This Law shall be called the Myanmar Gemstone Law.
2. The following expressions contained in this Law shall have the meanings given hereunder:-
(a) Gemstone means ruby, sapphire, jade, diamond, spinel, peridot, chrysoberyl, tourmaline. danburite, aquamarine, zircon, topaz, phenakite, garnet, moonstone, iolite, apatite, epidote, lapis-Lazuli, diopside, amber, F1uorspar or nephrite. The said expression also includes stones of gem quality of the quartz group and substances which may be declared by the Ministry of Mines by notification with the approval of the Government from time to time to he gemstone;
(b) Gemstone Production means all stages of operation for obtaining the naturally occurring raw gemstone:
(c) Jewellery means jewellery comprising polished gemstone;
(d) Jewellery Manufacturing means all stages of operation for making jewellery from polished gemstone;
(e) Permit means a permit issued under this Law to enable gemstone production;
(f) Licence means a licence issued under this Law to enable sale of raw gemstone or finished gemstone or jewellery in foreign currency by opening a shop;
(g) Royalty means tax imposed under this Law for gemstone production or for sale of raw gemstone, finished gemstone or jewellery;
(h) Company means a company formed as a Myanmar company under the Myanmar Companies Act or a company formed solely with Myanmar citizens under the Special Company Act, 1950;
(i) Society means a Primary Co-operative Society, Co-~operative Syndicate, Union of Co-operative Syndicates or Central Co-operative Society registered under the Co-operative Society Law;
(j) Central Committee means the Central Gemstone Supervisory Committee formed this Law;
(k) Valuation Body means the Gemstone Valuation Body brined under this Law.
Chapter II
Objectives
3. The objectives of this Law are as follows:-
(a) to establish and develop a hundred percent gemstone andss jewellery market within the country in respect of gemstone produced in Myanmar;
(b) to permit companies and co-operative societies- to operate freely production and marketing of gemstone in accordance with the market oriented economic system;
(c) to open and maintain gem markets in order to sell gemstone and jewelleries freely at all times:
(d) to eradicate illegal production of gemstone within the country and to prevent and suppress taking out unlawfully and sale of gemstone abroad
Chapter III
Designation of Gemstone Tract
4. The Ministry of Mines-
(a) may. when information is received or when there is discovered an area where gemstone can he produced on a commercial scale designate such area as a gemstone tract by notification, with the approval of the Government;
(b) shall form and assign duties to a committee consisting of skilled personnel to inquire into the affected rights of the public in the area already designated as Gemstone tract and to enable them to receive reasonable rights and benefits and to carry out the demarcation of the gemstone tract.
5. The existing gemstone tracts designated by notification before the enactment of this Law shall be deemed to he gemstone tracts designated under this Law.
6. The Ministry of Mines may, with the approval of the Government revise or cancel the designation of the whole or a portion of the gemstone tract.
7. All naturally occurring gemstone found either on or under the soil of any land, in which an individual or an organization has the right of cultivation, right of possession, right of use and occupancy, beneficial enjoyment, right of succession or transfer or all naturally occurring gemstone found in any continental shelf under the existing law shall be deemed to be owned by the State.
Chapter IV
Designation of Gemstone Blocks
In order to permit gemstone production, the Ministry of Mines-
(a) shall designate areas within the gemstone tract where gemstone can be extracted as gemstone blocks;
(b) may, with the exception of the gemstone tract designate other fallow and vacant land where gemstone can be extracts as gemstone blocks in co-ordination with the Ministry concerned.
Chapter V
Gemstone Production Permit
The Ministry of Mines shall
(a) determine the tenure of a permit for each gemstone block designated
under section 8; -
(b) determine the floor price for each gemstone block for which tenure of a permit has been determined;
(c) invite competitive bids in accordance with bidding terms for the gemstone blocks for which the floor price has been determined.
10. A company desirous of carrying out gemstone production shall have the right to operate such gemstone production according to its Memorandum of Association or if a society according to its bye-laws. In addition, it shall also be in conformity with the conditions prescribed by the Ministry of Mines.
11. A company or society which is in conformity with the provisions of section
10 has the right to submit bids for one or more gemstone blocks in accordance
with the stipulations when competitive bids for the issuance of a permit are
invited by the Ministry of Mines.
12. The Ministry of Mines shall issue the gemstone production permit to the company or society which has submitted the bid with the highest price.
13. The Ministry of Mines shall-
(a) redetermine the tenure of a permit for each gemstone block whenever the tenure of a permit expires;
(b) redetermine the floor price for each gemstone block for which the tenure of a permit has been redetermined;
(c) invite bids in accordance with the stipulations for the gemstone blocks for which the floor price has been redetermined.
14. (a) The Ministry of Mines shall from time to time designate by notification areas where discovered blocks for gemstone production operation would he permitted;
(b) If a person who, under the existing law has the right of cultivation. right of possession, right of use and occupancy, beneficial enjoyment. right of succession or transfer of a land which is situated within the designated area under sub-section (a), is desirous of carrying out gemstone production on the said land, application may be made to the Ministry of Mines in accordance with the stipulations for the issuance of a permit for the discovered block.
15. The Ministry of Mines shall-
(a) scrutinize the application made for the discovered blocks in accordance with the stipulations and if it is of the opinion that ii should be permitted shall fix the tenure of a permit and the price;
(b) issue the permit if the applicant pays the determined price;
(c) redetermine the tenure of a permit and the price for each discovered block whenever the tenure of a permit expires.
Chapter VI
Duties and Rights of Company or Society Holding a Permit
16. A company or society holding a permit shall-
(a) abide by the rules, procedures, orders and directives issued under this Law;
(b) abide by the conditions contained in the permit;
(c) show the raw gemstone produced to the relevant Valuation Body and register them in accordance with the stipulations;
(d) pay royalty in accordance with this Law;
(e) not sub-lease or in any way transfer the permit obtained;