Logistics, Trade Administration and Supply Chain

Raw material and components eligible for duty exemption are as follows: Customs duty exemption to all raw materials and components used directly in the manufacturing process of approved produce from the initial stage of manufacture until finished goods products is finally packed ready for export. This includes packaging materials and casings. The list of raw materials and components that can be imported and taken to LMW without payment of customs duty is issued together with the LMW license. Addition or deletion to the list can be made from time to time; Goods subject to excise duty incorporated in the final product, e.g. dry cell batteries may be exempted from excise duty. Application for such excise duty exemption should be made to the Treasury for consideration under Section 10 (a) of the Excise Act 1976. Materials or goods that are not eligible for duty or tax exemptions are as follows: Fuel Oil; Building and construction materials; Office equipment; Furniture; Mat

CTPAT stands for Customs-Trade Partnership Against Terrorism is a US Customs and Border Protection (CBP) voluntary business initiative designed to build cooperative relationships that strengthen overall supply chain and border security. The CTPAT initiatives recognizes that CBP can provide the highest level of security to the public and to other stakeholders only through close cooperation with the ultimate owners of the supply chain i.e. importers, carriers, brokers, warehouse operators and manufacturers. With this initiatives, the Customs is asking businesses to ensure integrity of their security practices and communicate their security guidelines to their business partners within the supply chain. Benefits of Participating in CTPAT CTPAT offers trade related businesses an opportunity to play an active role in war against terrorism or any possible threat that may sabotage any countries. By participating in this first ever worldwide supply chain security initiative, companie

The purpose of incorporating Section 65A in addition to Section 65 of the Customs Act 1967 is to allow manufacturing process to be carried out in licensed warehouses. Manufacturing operation therein is subjected to minimal customs procedures. It is primarily intended to cater for export oriented industries. The Licensed Manufacturing Warehouse (LMW) can be set up speedily and anywhere in the Principal Customs Area without any need to be near to ports of entry unlike Free Zones which is established under the Free Zones Act 1990. Industries may thus be induced to be located in rural areas. Raw materials or components directly used in the manufacturing process are exempted from payment of customs duty and sales tax. Location of LMW A company wishing to have LMW facilities should be located in less developed area so as to in line with the government's policy to disperse export oriented and labour intensive industries to less developed areas. However in this respect, a certain degree to

Every holder of the Public Warehouse licence is required to adhere to all terms and conditions as stipulated in the Regulations of the Customs Act. The responsibilities to be executed by every licence holder are: administration of the warehouse; security of the warehouse; keeping of records of goods deposited in and shipped from the warehouse; to provide facilities required in operation of a warehouse such as an office for the Customs officers to work on; payment of duties of unaccounted goods; to furnish a bank guarantee amounting to 10% of the entire amount of duty of goods deposited into the warehouse at any one time; to submit monthly report to the Customs as required under the Regulation. Goods allowed to be deposited in the warehouse The types of goods that could be deposited into a Public Licence Warehouse are as follows: all types of dutiable goods imported or exported; product of Free Zones to be exported of to be consigned locally; products of Licence Manufacturing Warehouse

The establishment of Public Warehouse is based on the concept it is a central storage and distribution of goods in the country and international trade. Facilities in the Public Warehouse is specially for traders who deal with import, export and re-export. to realize the concept of "Gudang Berlesen Awam Lengkap" = Complete Public Warehouse, the Royal Customs Department allows the Public Warehouse licence holder to also act as forwarding agent of the goods stored in his warehouse. This approval is granted under the below situation: Removal of goods from import station to his warehouse only; Removal from his warehouse to another warehouse, to a licensed manufacturing warehouse, to a Free Zone or for export. Application for Licence Application for licence must be prepared in application forms JKED No. 1 in 4 copies and the application should be forwarded to the State Director of Customs where the licensed warehouse would be established with copies to the Director-General of Custo