Bonded Warehouse

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Customs Definition

Premise granted a license by the Director-General of Customs to store goods liable to customs duties and any other goods as approved by the Director-General of Customs under Section 65 of the Customs Act 1967.

The establishment of a warehouse is based on the concept of a central storage and distribution of goods in this country and international trade.

Objectives

a) To reduce congestion at the port/airport
b) To expedite the movement of goods
c) To reduce financial liability on importers by allowing a partial payment of customs duty
d) To reduce cost and allow importers to import larger quantity
e) To encourage entreport trading

There are few categories of bonded warehouse in this country which are listed as follows:

a) Public Bonded Warehouse
b) Private Bonded Warehouse
c) Agent Bonded Warehouse
d) Inland Clearance Depot
e) Pekema Bonded Warehouse

Application for License to establish a bonded warehouse:

a) Letter of Application
b) JKED No. 1 Form
c) Application Form
d) Memorandum and Articles of Association (M&A) of the Company
e) Form 24 Return of Allotments of Shares of the Company
f) Form 49 Particulars of Directors and Managers of the Company
g) Form 44 - Registered Office of the Company
h) Location and Premise Plan/Layout
i) Elevation Plan
j) List and Value of Goods
k) Certificate of Fitness
l) Photographs and NRIC copies of Directors and Managers

License Fee and Renewal of License

The license fee is RM1200.00 per year. The renewal of license must be forwarded to the State Director of Customs in application form JKED No. 1 one month before the expiry date of the license.

Transfer of License

Application for transfer of license would be considered for the following reasons:

a) A change of name of the company who held the license
b) The original company has been taken over and acquired by another company

Types of Goods allowed to be deposited in the bonded warehouse

All tyoes of dutiable goods imported or to be exported. Products from Free Trade Zones to be exported or to be consumed locally are also allowed to be stored in the bonded warehouse.

Products manufactured by Licensed Manufacturing Warehouse (LMW) for export market and also local sales.

Besides, products of local manufacturers which are subjected to excise duties are also allowed to be deposited into the bonded warehouse.

Activities permitted in bonded warehouse

a) Public Bonded Warehouse - All types of dutiable goods imported and for export; all types of non dutiable goods imported or to be exported; products of LMW and FTZ factories; products of local manufacturers which are subject to excise duties.

b) Private Bonded Warehouse - All dutiable goods imported and for export purpose; all non dutiable goods imported or to be exported; products of local manufacturers subject to excise duties.

c) Pekema Bonded Warehouse - all used vehicles.

d) Agent Bonded Warehouse - All dutiable and non dutiable goods imported or to be exported.

e) Inland Clearance Depot (ICD) - To decentralize the activities away from the port; to reduce congestion at the port/airport; to facilitate importers and exporters by bringing shipment facilities to their door-steps; all kinds of dutiable and non dutiable goods imported or to be exported.

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