Temporary Import

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Section 97 of the Customs Act 1967 provides the Director-General of Customs to allow goods to the import temporarily without payment of duty subject to the payment of a deposit equivalent to not less than the amount of duty which would be payable if the goods were imported for home use or security being given to his satisfaction of the payment of such duty. Only guarantee letter issued by local banks will be accepted.

Temporary import facility without payment of duty is given as specified by items 21, 21A, 52, 58, 65, 67, 114, 118 and 119 of the Customs Duties (Exemption) Order 1988 and items 21, 29, 56, 62, 71, 73, 82, 94, 95, 96 of Schedule B, Sales Tax (Exemption) 1980 for sales tax.

Temporary import of machinery or equipment for the purpose of completion of government projects is only given to local companies or jib venture companies which have local equity as the major shareholders, minimum 51% (joint venture companies with majority at least 51%) local shareholders with the conditions as follows:
  1. Offer of tender and contract agreement is based on price excluding taxes on machinery or equipment;
  2. Machinery or equipment to be imported must be specified and specialized job within total project contract;
  3. Machinery or equipment to be imported is certified by the project contract issuing authority required for a period of not more than 3 months;
  4. The department of statutory body - as government company which issue the relevant contract certify that the specific and specialized machinery or equipment is not available locally.
Applications or temporary import facility should be forwarded to the State Customs Director (Pengarah Kastam Negeri) of the specific station through which the importation is intended to.

Approval for temporary import is given for a 3 month period. Extension for temporary import will be allowed only under certain circumstances. Application for further extension has to be submitted to the station that has given the approval for temporary import.

Temporary import facility however is not given for importation of jewellery meant for exhibition.

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