Directive for Recall and Ban of Hazardous Goods and Services (Myanmar)

Key Provisions of the Directive

1. Goods or services that must be recalled

The Directive provides that goods or services must be recalled if they can cause damage. This includes goods or services that (a) have potentially hazardous design flaws that were not clear at the time of manufacture but that may arise during the use of the goods, (b) have defects from the manufacturing process or during transportation or storage before distribution to the market, (c) have faults and defects that prevent use, or (d) possess hazardous criteria or do not comply with the relevant safety standards.

2. Recall and ban of hazardous goods and services by the DOCA

Ban of dangerous goods and services in addition to recall are classified into two classes, temporary and permanent, according to the decision of DOCA based on the level of health hazard involved (risk to the customer). Temporary bans will be imposed when the defect is unlikely to cause serious harm to users. Permanent bans will be imposed when the defect is life-threatening. The business owner will be required to recall the goods and services within the period specified by the DOCA with the supervision of the inspection officer under Rule 58 of the CPR.

3. Voluntary recall

If a business owner finds that their goods or services have a problem or defect, they must initiate a voluntary recall to resolve the issue by submitting voluntary recall submission to DOCA. Voluntary recall submission must include basic information about the goods and services such as the brand name, type of the product, description of the potential danger and damages, the possibility of danger being notified to the consumer, the recall strategy, method of recall from the market, plan for consumer grievances, and the method of communication with distributors. The relevant DOCA office will then decide a certain period for the business owner to voluntarily recall their goods or services and will assign an inspection officer to supervise the recall process.

4. Removing the goods from the market and notification to supply chain partners

The business owner must cease sales of and quarantine all defective goods and services immediately, if goods or services recall is necessary. Business owners must then disclose such defect information to other businesses in the supply chain, such as importers, exporters, retailers, wholesalers, producers, installment sellers, distributors, installers, service providers, and so on.

5. Notification to consumers

The business owner, manufacturer, or importer responsible is required to notify the consumers through all possible mass communication such as media, television, radio, newspapers, journals, or publication for three consecutive days and disseminate the recall information. Such notification must include a basic description and information about the products to be recalled, reason, place, time, methods of recall, recall period of the goods or services, and necessary adjustments for damages resulting from the recall of the goods or services.

6. Notification to DOCA after recall process

Business owner is required to notify the inspection officer assigned by DOCA when the recall process (DOCA-ordered recall or voluntary recall) of their goods or services is completed. Such notification must include the proof of a complete recall of the goods and services, records related to the recall, records of issuing notice to the customers and the supply chain partners. The inspection officer will then inspect all records to ensure compliance with the recall process.

7. Follow up action of recalled goods and services

Business owners must compensate the consumers and supply chain partners who were affected by the recall of the products. With respect to goods which are capable of being repaired, after they have been repaired and are ready to be sold or redistributed to the market, business owners must submit a comprehensive report and supporting evidence to the relevant DOCA office confirming that the irreparable products were properly destroyed, the consumers and other businesses involved in the supply chain were compensated and goods capable of being repaired have been appropriately repaired. If the goods that are recalled, temporarily or permanently banned, are being sold without making the report to DOCA, legal action may be taken against the business owner.

8. DOCA announcement on hazardous goods and services

Notably, DOCA will announce all recalls and DOCA’s actions on temporarily or permanently banning goods or services on the website of DOCA or the ASEAN Consumer Protection Committee or the official news network of DOCA.

Conclusion

Business owners facing product issues and considering recall of their goods or services must ensure the recall is carried out in a procedure in the Directive to avoid any penalties or disciplinary action by the DOCA.