Applying for Import/Export Permit in Malaysia

Applying for Import/Export Permit in Malaysia | Bestar

Malaysia Import/Export Permit Guide

Importing and Exporting in Malaysia

Let's delve into importing and exporting in Malaysia. Understanding the processes for your potential trade with Malaysia is key.

Key Regulatory Bodies in Malaysia

• Royal Malaysian Customs Department (JKDM): They are the primary authority overseeing all import and export procedures, duty collection, and enforcement of customs regulations. Their website (https://www.customs.gov.my/) is a crucial resource.

• Ministry of International Trade and Industry (MITI): MITI issues Approved Permits (APs) for specific controlled goods. Their ePermit system is used for these applications.

• Malaysia External Trade Development Corporation (MATRADE): While primarily focused on export promotion, MATRADE (https://www.matrade.gov.my/) also plays a role in facilitating exports and providing resources for exporters.

• Other Government Agencies: Depending on the nature of the goods, you might need approvals or permits from agencies like the Ministry of Health (for pharmaceuticals), the Department of Agriculture (for plants and animals), SIRIM (for standards compliance), and others.

Essential Steps for Importing into Malaysia

1. Determine if an Import Permit is Required: Not all goods need a permit. Check the Malaysian Customs website or consult with a customs broker. Goods like certain agricultural products, animals, heavy machinery, and vehicles often require permits. MITI's website has a list of goods requiring an import license.

   
   

2. Register Your Company: Your business needs to be registered with the Companies Commission of Malaysia (SSM).

   
   

3. Obtain Necessary Permits/Licenses: If your goods are controlled, apply for the required permits from the relevant authority (e.g., MITI's ePermit system).

   
   

4. Prepare Required Documents: Common import documents include:

   
   

   • Customs Declaration Form (Form K1)

   • Commercial Invoice

   • Packing List

   • Bill of Lading or Air Waybill

   • Certificate of Origin

   • Import License/Permit (if required)

   • Insurance Certificate

   • Other specific certificates based on the goods (e.g., health certificate).

     
     

5. Submit Customs Declaration: Your appointed forwarding agent will typically submit the import declaration electronically to Malaysian Customs using specialized software.

   
   

6. Pay Duties and Taxes: Malaysia applies import duties and a sales tax on most imported goods. Excise duties may also apply to certain items. The rates vary depending on the Harmonized System (HS) code of the goods. Payment is usually made electronically.

   
   

7. Customs Clearance: Once the declaration is approved and duties/taxes are paid, Customs will issue a release status.

   
   

8. Goods Delivery: Your forwarding agent will arrange for the delivery of the goods from the port or airport to your designated location.

Key Steps for Exporting from Malaysia

1. Determine if an Export Permit is Required: Similar to imports, some goods, especially those related to national security, natural resources, or health, require export permits. Refer to the Royal Malaysian Customs Department and other relevant agencies.

   
   

2. Register Your Company: Ensure your company is registered with SSM.

   
   

3. Obtain Necessary Permits/Licenses: Apply for export permits from the relevant authorities. For general exports, MATRADE might be involved. For controlled goods, MITI or other specific agencies will handle the permits. Applications are often done through the MyTRADELINK platform.

   
   

4. Prepare Required Documents: Typical export documents include:

   
   

   • Customs Declaration Form (Form K2)

   • Commercial Invoice

   • Packing List

   • Bill of Lading or Air Waybill

   • Certificate of Origin (especially for preferential tariffs under Free Trade Agreements)

   • Export License/Permit (if required)

   • Other specific certificates (e.g., health certificate, certificate of analysis).

     
     

5. Submit Customs Declaration: The exporter or their agent submits the export declaration electronically.

   
   

6. Potential Export Duties: Malaysia imposes export duties on certain raw materials like crude oil and palm oil. Check with Customs if your goods are subject to these duties.

   
   

7. Customs Clearance: After the declaration is approved and any duties are paid, Customs will clear the goods for export.

   
   

8. Shipment: Arrange for the shipment of your goods to the destination country.

Important Points to Note

• Restricted and Prohibited Items: Malaysia has lists of goods that are prohibited or restricted for import and export. Always check these lists to avoid legal issues.

• Free Trade Agreements (FTAs): Malaysia has numerous FTAs that can offer preferential tariff rates. Understanding these agreements can be beneficial for your trade.

• ePermit System: For goods requiring an Approved Permit (AP), MITI's ePermit system streamlines the application process. You'll need to register for an account.

• uCustoms: The Royal Malaysian Customs Department uses the uCustoms system for online declarations and other customs-related transactions.

• Professional Help: Engaging a reputable customs broker or freight forwarder in Malaysia can significantly simplify the import/export process and ensure compliance with all regulations.

Applying for Import/Export Permit in Malaysia

Applying for an import/export permit in Malaysia involves several steps and may require dealing with different authorities depending on the nature of the goods. Here's a general guide based on the information available:

Key Authorities

• Royal Malaysian Customs Department (JKDM): Oversees customs regulations, import duties, export duties, and the K1 (import) and K2 (export) forms. They also manage the uCustoms system for online declarations and permit submissions.

• Ministry of International Trade and Industry (MITI): Responsible for issuing Approved Permits (APs) for specific controlled goods and handles applications through the ePermit system.

• Malaysia External Trade Development Corporation (MATRADE): Primarily focuses on export promotion and may issue export permits, especially for general goods. They also provide resources and training for exporters.

• Other Government Agencies: Depending on the type of goods, you might need permits from other agencies such as the Department of Agriculture (for plants and animals), the Medical Device Authority (MDA), SIRIM QAS International (for standards compliance), and others.

General Steps for Applying

1. Determine if a Permit is Required: Not all goods require import or export permits. Check the Royal Malaysian Customs Department's website or consult with a trade expert to see if your goods are controlled or restricted items.

   
   

2. Identify the Relevant Authority: Based on the type of goods, determine which government agency issues the necessary permit (e.g., MITI for APs, MATRADE for general exports, specific departments for regulated goods).

   
   

3. Register Your Business: Ensure your company is legally registered with the Companies Commission of Malaysia (SSM) and has a valid business license.

   
   

4. Gather Required Documents: The specific documents vary depending on the goods and the issuing authority. Common documents include:

   
   

   • Company registration documents (Certificate of Incorporation, Forms 24, 49, 9).

   • Business license.

   • Sales contract or agreement (for exports).

   • Commercial invoice.

   • Packing list.

   • Certificate of Origin.

   • Import Declaration Form (Form K1) or Export Declaration Form (Form K2).

   • Product specifications or brochures.

   • Other supporting documents specific to the goods (e.g., health certificates, halal certification, phytosanitary certificate).

     
     

5. Submit Your Application:

   
   

   • Online: Many applications are now submitted online through systems like uCustoms (for customs-related permits) or ePermit (for MITI). You'll likely need to register for an account on the respective portal.

   • Manual: Some agencies might still require manual submissions using specific forms. Check the agency's website for the correct forms and submission procedures.

     
     

6. Pay Applicable Fees: There may be processing fees associated with the permit application. Check with the relevant authority for the fee structure.

   
   

7. Await Approval and Processing: Processing times vary depending on the agency and the type of permit. Online systems often offer faster processing. MITI's ePermit system aims for faster processing, with import permits potentially taking 3-5 working days and export permits around 2 working days. SIRIM import permits applied through their e-Permit system can be approved within 24 hours.

   
   

8. Compliance and Renewal: Ensure you comply with the terms and conditions of your permit. Permits are usually valid for a specific period and may need to be renewed.

Important Considerations

• Restricted and Prohibited Goods: Be aware of goods that are prohibited or have specific restrictions for import or export in Malaysia. The Royal Malaysian Customs Department has a list of these items.

• Transshipment: Malaysia is increasingly vigilant about transshipment practices to prevent the circumvention of tariffs by other countries. Ensure all documentation accurately reflects the origin of goods.

• Free Trade Agreements (FTAs): Malaysia has FTAs with various countries, which may offer preferential treatment in terms of tariffs and customs procedures. Understanding these agreements could benefit your import/export activities.

• Professional Assistance: If you find the process complex, consider engaging a customs broker or a trade consultant to assist with your application and ensure compliance.

By following these steps and carefully checking the specific requirements of the relevant Malaysian authorities, you can navigate the process of applying for import and export permits. Remember to always refer to the official websites of the involved agencies for the most up-to-date information and procedures.

You might find it helpful to connect with trade associations or consultants that specialize in trade with Malaysia. They can provide specific guidance based on the goods you intend to import or export.

How Bestar can Help

Engaging Bestar can be incredibly beneficial when navigating the complexities of import and export, especially when dealing with a different country like Malaysia. Here's how we can help:

1. Navigating Regulatory Landscapes:

• Expert Knowledge of Malaysian Regulations: Bestar possesses up-to-date knowledge of import/export policies, customs procedures, tariffs, taxes (like Sales and Service Tax - SST), and any specific regulations related to your goods. This helps you avoid costly errors and delays.

• Identifying Required Permits and Licenses: We can accurately determine which permits and licenses you need from authorities like MITI, Customs, MATRADE, or other specific Malaysian agencies, saving you time and potential penalties.

• Understanding Free Trade Agreements (FTAs): Bestar can advise you on how to leverage Malaysia's FTAs to potentially reduce or eliminate tariffs, making your trade more competitive.

2. Streamlining Processes and Documentation:

• Accurate Documentation: We ensure all your import/export documentation (invoices, packing lists, certificates of origin, customs declarations, etc.) is correctly prepared and compliant with Malaysian requirements, minimizing the risk of customs delays or rejections.

3. Risk Management and Compliance:

• Customs Compliance: Bestar helps you adhere to all Malaysian customs regulations, minimizing the risk of audits, penalties, and legal issues.

• Risk Assessment: We can identify potential risks in your import/export operations and advise on mitigation strategies.

• Staying Updated on Regulatory Changes: Trade regulations can change. Bestar keeps abreast of these updates and inform you of any necessary adjustments to your processes.

4. Market Entry and Expansion Strategies:

• Market Research: Bestar offers market research services to help you understand the Malaysian market for your products.

• Partner Identification: We can assist in identifying potential distributors, agents, or partners in Malaysia.

• Cultural and Business Practices: Bestar can provide insights into local business culture and practices, helping you build stronger relationships.

In essence, Bestar acts as your expert guides and partners in navigating the complexities of international trade with Malaysia. We bring specialized knowledge, experience, and a network of contacts that can save you time, money, and potential headaches, allowing you to focus on your core business activities.

For someone looking to trade with Malaysia, engaging Bestar who understands the nuances of Malaysian trade regulations and business practices can be particularly valuable for a smoother and more successful venture.

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