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DOCUMENTATION KIT

 

   License

                                                                       

Manufacturing           

The Industrial Coordination Act 1975 requires person (s) engaging in any manufacturing activity with shareholding’ funds of RM 2.5 million and above and/or employing 75 or more full time paid employees to obtain a Manufacturing License.

  1. Application should be made using the relevant form as follows :

a.      ICA 2 (97) – New Manufacturing Project  

b.                  ICA 2 (97) – Existing manufacturer for being exempted from obtaining 

Manufacturing License.

c.                  ICA 3 ((97) – Expansion and/or diversification by a licensed

manufacturer.

d.                  ICA 4 (97) – New agriculture/integrated agriculture project

e.                  ICA 5 (97) – Expansion and/or diversification of existing

agricultural/integrated agricultural project.

f.                    ICA 6 (97) – Duplicate License

g.                  ICA 8 (97) – New high technologies company

h.                  ICA 9 (97) – Expansion and/or diversification by a licensed high technology company

 

This application should be submitted in three (3) copies to :-

 

            KETUA PENGARAH

            LEMBAGA KEMAJUAN PERINDUSTRIAN MALAYSIA (MIDA)

            TINGKAT 4, WISMA DAMANSARA

            JALAN SEMANTAN

            PETI SURAT 10618

            50720 KUALA LUMPUR.

 

The “licensing Officer” is the Secretary General of the Ministry of International Trade and Industry (MITI).

  

International Procurement Center           

Companies that have a sizeable network of companies outside Malaysia which are well establish and sizeable in terms of assets and employees with a substantial number of qualified professional, technical and other supporting personnel can apply for an approved IPC status. In order to qualify for the incentives offered, the IPC must satisfy the following conditions :

 

a.       locally incorporated under the Company’s Act 1965 with a minimum paid-up capital of RM 0.5 million;

b.      a minimum total business spending (Operating expenditure) of RM 1.5 million per year;

c.       incremental usage of Malaysian ports and airports.

 

Forms and Procedures for Application 

  1. Application, providing information as in appendix for an Approved Procurement 

     Centre should be submitted to :

 

            Secretary General

            Ministry of International Trade and Industry

            Industrial Policy Division

            10th Floor, Block 10

            Government Offices Complex

            Jalan Duta

            50622 Kuala Lumpur

                        Tel : 603-6510033/6516022

                        Fax : 603-6512339

 

  1. Accounts certified by qualified auditors should be submitted together with the   

      application form.

 

      (Please submit the IPC financial report annually)

 

  1. Application for work permits for the expatriates should be applied directly to the  

Immigration Department together with the letter of approval from the MITI, which will indicate the number of expatriate posts approved.

  

Import / Export        

Application procedures for license to import/export goods under the Custom Act 1967

Application for import license have to complete form J.K 69b while applicants for export license have to complete Declaration of Goods to be exported form Custom No 2 (Principal Custom Area) or form Customs No 8 (Licensed Manufacturing Warehouse and Free Trade Zone). The forms can be purchased from Percetakan Nasional Malaysia Berhad or any of its branches.

 

Submission of applications

Completed application together with relevant supporting documentations must be submitted to either MITI Headquarters or any of its branches depending on the type of goods applied for. Applicants are advised to check with MITI Headquarters or nearest MITI branch.  

The import and the export of goods listed  under the Customs Prohibition Act 1967 are controlled to safeguard local manufacturers’ interest, health and plant life and the national security of the country. The Act also takes into consideration Malaysia’s foreign policies and that there should be adequate supply of essential goods.

Goods under the ACT which requires an export license by MITI are listed as follows:

1.      Milk and milk products

2.      Oils and fats of palm oil excluding margerine, imitation ghee shortening and palm kernel oil

3.      Cement clinker

4.      Portland cement

5.      Slags, dross, scalings and similar waste of iron and steel, zinc

6.      Scrap and other waste of iron and steel, copper, nickel, lead, zinc, tin, magnesium

7.      Tin slag and hardhead of tin

8.      Zinc dust, powders and flakes

9.      Naptha

10.  Cinematograph film exposed but not developed of 16mm or 35mm

11.  Roofing tiles

12.  Waste paper and paperboard and scrap articles of paper fit only for use in paper making (Other than over issued newspaper)

13.  Textiles to EEC, USA, Canada, Sweden, Norway, Finland and Austria

14.  Military clothing and equipments

15.  Bricks

16.  unwrought tin, unalloyed (Tin ingot)

17.  Sugar

18.  Billets of iron or non-alloy steel

19.  bars and rods, of iron or non-alloy steel

20.  All goods (to Israel)

21.  Stainless Steel Vessels, pumps of medium or large capacity and drivers (gas turbines and electric motors) designed for used in transportation of crude oil and natural gas and equipment designed for use in crude oil export terminals (to Libya)

Goods under the Act which requires an import license from MITI are listed as follows :

1.      All goods from the Federal Republic of Yugoslavia (Serbia and Montenegro)

2.      Sugar

3.      Natural barium sulphate

4.      Magnetic tape webs for video and sound recording

5.      Arms and ammunition as defined under the Arms Act 1060

6.      safety helmets expect as worn by motorcylists or motorcycle pillion riders

7.      Automatic cassette or cartridge loaders or parts thereof

8.      All single colour copying machines, all multi colour copying machines and colour toner cartridge (any colour toner other than black) for photo-copying machines

9.      Motor vehicles for the transport of persons, goods or materials

10.  Motor cycles, auto-cycles and cycles fitted within auxiliary motor

11.  high speed duplicator including master electronic control master playback with or without loop pin and  slave recorder

12.  Film or tape for magnetic recording commonly known as pancakes excluding in cassettes or cartridge

13.  Substances covered by the Montreal Protocol

14.  Liquid milk in any form including flavoured milk recombined or reconstituted

15.  Liquid sterilized flavoured milk including flavoured milk recombined or reconstituted

16.  Cereal flour

17.  Activated clay and activated bleaching earth

18.  kain sarong, batik

19.  Billets of iron or steel

20.  Alloy steel and high carbon steel

21.  Stranded wire, cables cordage, ropes, plaited bands and the like of aluminium wire

22.  Insulated electric wire, cable, bars and  strip and the like of whether ot not fitted with connectors

23.  Polymers of ethylene in primary forms

24.  Polymers of propylene in primary forms

25.  Heavy machinery and parts thereof 

  

GSP          

Application procedures for approval to export under the GSP Scheme. 

  1. Pre-exportation verification of the origin of the product

To determine that the product qualify for a specific GSP Scheme, applicants first have to complete and submit the GSP Scheme Cost Analysis form which could be obtained from MITI Headquarters or any of its branches.

 

  1. Application for a Certificate of Origin

Applicants have to also complete form “A” for a Certificate of Origin after verification of product by MITI. The form “A” for a purchased from the Federation of Malaysian Manufacturers (FMM) Office at the Wisma Sime Darby,  Kuala Lumpur.

 

Submission of Applications 

All completed applications with their required supporting documents must be submitted to MITI Headquarters address stated as follows or any its branches.

 

                        Trade Support Division

                        Ministry of International Trade and Industry

                        Ground Floor, Block 10

                        Government Offices Complex

                        Jalan Duta

                        50622 Kuala Lumpur

 
  

CEPT         

 Application procedures for approval to export under CEPT Scheme 

    1. Pre-exportation verification of the origin of the product

                    To ensure that the product quality for CEPT, applicants first have to complete 

                    and submit the CEPT Scheme Cost Analysis form to MITI. The form could

                    be obtained from MITI Headquarters or any of its branches

 

    1. Application for a Certificate of Origin

After the product is verified by MITI, applicants have to complete application form “D” for a Certificate of Origin. Form “D” can be purchased from the Federation of Malaysian Manufacturers (FMM) Office at the Sime Darby Building, Jalan Raja Laut, Kuala Lumpur.

 Completed applications with supporting documents must be submitted to MITI Headquarters at the address stated as follows or any of its branches. 

                        Trade Support Division

                        Ministry of International Trade and Industry

                        Ground Floor, Block 10

                        Government Offices Complex

                        Jalan Duta

                     50622 Kuala Lumpur

  

Annual Quota Allocation         

Eligible manufacturers have to complete the Annual Quota Allocation application forms that could be obtained from MITI Headquarters or any of its branches.

 

The following are the application forms. Document required as attachments to the completed forms are as stated in the forms.

 

  1. Application for Export Quotas Based On Textile Categories

  2. Previous Years Export Performance

  3. Record of Quota Surrendered

  4. Company Profile

  5. Company’s Factory Profile

 

Adhoc Quota Allocation           

Eligibility 

  1. Bonafide textile and apparel manufacturers

  2. For companies which have already been allocated quotas under the Annual Quota Allocation but wish to apply for additional quantities. The applications must be supported with additional orders from buyers.

Allocation Guidelines 

  1. Manufacturing with good track records of exporting items applied for to markets which do not impose any quota restrictions.

  2. Manufacturers with confirmed orders

  3. Priorities will be given to manufacturers having the following attributes :

    1. items applied for are high value added (as indicated in sales contract/purchase order)

    2. been exporting to other markets for more than 2 years

    3. have surrendered to MITI the unused quota

    4. require additional quota to fulfill orders

    5. are members of the Malaysian textile Manufactured Association

Application procedures

Eligible manufacturers have to complete the Adhoc Quota application form that could be obtained from MITI Headquarters or any of its branches. New applicants for quota allocation are required also to complete the application forms stated under procedures for Annual Quota Allocation.

 

Submission of Applications for Annual Quota Allocation and Adhoc Quota Allocation

All completed applications and their required attachments must be submitted to MITI Headquarters at :

 

                        GSP/Textile/Import-Export/ASEAN PTA Unit

                        Trade Support Division

                        2nd Floor, Block 10

                        Government Office Complex

                        Jalan Duta

                        50622 Kuala Lumpur

Bonded Warehousing        

Applications for licence should be forwarded to the State Director of Customs where the licensed warehouse would be established with copies to the Director General of Customs, Passenger and Warehousing Division at Customs Headquarters. Copies of Registration of Business, Memorandum and Articles of Association and building plans must be enclosed with the applications. Fees for the licence is RM1,200 for a one year period. 

 

Every holder of a public warehouse licence is required to comply with conditions stipulated in the licence and shall be responsible for the payment of customs duties/taxes for all goods stored in the warehouse including those unaccounted for. Security of the warehouse and goods deposited in the warehouse is the responsibility of the licence holder.  

 

Free Zones Procedures         

 

1. Any person wishing to carry out any activity within a free zone shall apply to the Free Zone Authority using a form FZ No. 4.

2. The approval granted shall be in form FZ No. 6.

3. The approval is subject to such terms and conditions imposed by the Zone   Authority.      

       4.   A copy of the approval is to be extended to the Director General of Customs.

 

Licensed Manufacturing Warehouse (LMWs)         

Application to establish warehouse for storage of dutiable goods under Section 65 and to manufacture such goods for production of other dutiable goods under the provision of Section 65A can be made simultaneously. It should be submitted to the State Director of Customs where the proposed warehouse is to be located through the nearest Customs office. All information required in the application form must be fully furnished together with certificates, plans and other supporting documents as required.

Licence under Section 65 and 65A, is issued at the discretion of the Director General of Customs on payment of fees currently fixed at RM2,402 (two thousand four hundred ringgit for licence under Section 65 and a nominal two ringgit for licence under Section 65A). The licence so granted shall be subjected to such conditions as the Director General of Customs may specify. It is for a period of two years subjected to renewal. Application for renewal of licence must be made at least one month before expiry date of the existing licence.

If the product manufactured falls under categories of goods liable to excise duty, an excise licence is required and its fee is as prescribed under the Third Schedule, Excise Regulations, 1977.   

Sales Tax         

Any person engaged in the manufacture of taxable goods is required to apply for a licence. Applications for licence can be made in Form JKED No. 1 to the senior officer of sales tax in charge of the district in which the applicant's principal place of business is located.

A licence will be issued in Form S.T. No. 2.

The sales tax officer may require an applicant to furnish a Bank Guarantee before a licence is issued. Applications for licences are not subjected to any fees.

Persons Not Required to be Licensed

Categories of persons not required to be licensed under the Sales Tax Act 1972 are as follows:

  • any person who manufactures solely any of the goods exempted as listed in Schedule A of the Sales Tax (Exemption) Order 1980;
  • manufacturers of taxable goods whose annual sale turnover or sales value does not exceed RM100,000. However such manufacturers need to apply for a Certificate of Exemption;
  • manufacturers as specified in Schedule A of the Sales Tax (Exemption From Licencing) Order 1997, as below :

o        a manufacturer of taxable goods, not being a "contractor" as defined in paragraph (b) below, who satisfies the senior officer of sales tax that the sale value of taxable goods manufactured by him, and which he has sold or otherwise disposed of during the preceding twelve months did not exceed RM100,000 and that the sale value of goods likely to be manufactured and sold or otherwise disposed of by him during the next twelve months is not expected to exceed that sum.

o        A manufacturer of taxable goods, being a "contractor", i.e. a person who performs work on taxable materials wholly supplied by another person, who satisfies the senior officer of sales tax that the total amount charged for such work done by him during the preceding twelve months did not exceed RM20,000 and that the total charges for work to be done by him in manufacturing taxable goods wholly from taxable materials supplied by other persons during the ensuing twelve months are not likely to exceed that sum.

·         manufacturers of taxable goods whose manufacturing operations are exempted from licensing as specified in Schedule B of the Sales Tax (Exemption From Licensing) Order 1997,as below :

o        The developing and printing of photographs and the production of film slides.

o        The engraving of articles with the name of the recipient, his sports record or other circumstances under which the article was donated or awarded.

o        The incorporation of goods into buildings.

o        the manufacture of ready-mixed concrete.

o        The preparation of meals.

o        The preparation of tarred metal, tarred screenings, and hot-mixed preparations of bitumen and metal for roadmaking.

o        The production of copies of documents by the photo-copy or similar copying process.

o        The repacking of bulk goods into smaller packages by a person other than a licensed manufacturer.

o        The repair of second-hand or used goods.

o        The testing of eyesight, the prescription of suitable lenses and the fitting of such lenses into frames.

o        The following operations when performed by a person other than a licensed manufacturer :

                                                         i.            The varnishing and/or polishing of finished pieces of furniture.

                                                       ii.            The fitting of glass tops and/or glass doors to pieces of furniture otherwise complete.

o        The reduction of size and/or changing of the shape of taxable materials without changing the nature of such materials, provided :

That the sizing and/or shaping is not part of the normal process in the manufacture of a separate article, and

                                                         .            that in any dispute as to whether the process performed constitutes a manufacturing operation for the purposes of the Sales Tax Act, the decision of the Director General of Customs and Excise shall be final.

o        The rendering of personal tailoring service but excluding the manufacturing of garments and other textile articles on the basis of bulk and not personalised production by a firm or company engaged in the business of manufacturing garments and other textile articles.

o        The printing of logo only on ready-made T-shirts supplied by another person.

o        The colouring of cloth supplied by another person without changing the size or shape of the said cloth.

o        The manufacture of batik fabrics using traditional techniques of manual block printing, manual screen printing and/or hand drawing/painting and the articles thereof.

o        The installation of air conditioners in motor vehicles.

o        The manufacture of jewellery and goldsmiths wares.

o        The extraction of gold from mineral ores.

o        The recovery of gold from jewellery  and/or the  refining of gold.  

 

Excise Duty         

Excise duties are levied on specific goods manufactured in Malaysia for home consumption. The list of specific goods is published in the Government Gazette and it is called "The Excise Duties Order 1991" (P.U.(A) 381/91). Any person who manufactures in Malaysia any goods appearing in the Excise Duties Order 1991 must apply for a licence from the State Director of Customs where the factory or premise is located in a prescribed application form known as Form JKED No. 1.

Licence Fees

The prescribed fees for licence to manufacture these goods are as follows:

  1. for the manufacture of tobacco (other than cigarettes) :

not exceeding 45 kg per month

RM 5.00 per year

exceeding 45 kg per month

RM 360.00 per year

  1. for the manufacture of other goods - RM 2,400.00 per year 
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