The Myanmar Timber Merchants Association claims that illegal logging incurs costs Myanmar US$ 200m every year. The most affected areas in Myanmar are Kachin and Shan states near the Myanmar-China border as well as Kayin and Kayah states near the Myanmar-Thai border.

Myanmar’s Ministry of Commerce has revealed that US$ 17 million worth of timber was recently found to have been smuggled from Myanmar to China via illegal routes avoiding official checkpoints along the road to Muse, Myanmar's border town with China. Most of Myanmar’s trade is with China and Thailand and with Chinese import restrictions on some agricultural products from Myanmar, local exporters find it difficult to get health recommendations from China for their exports, creating a growing illegal trade.