Exemptions of Customs Duty in LMW

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Raw material and components eligible for duty exemption are as follows:
  1. 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.
  2. 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;
  3. 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:
  1. Fuel Oil;
  2. Building and construction materials;
  3. Office equipment;
  4. Furniture;
  5. Materials for machinery and factory cleaning purpose;
  6. Wearing apparels (uniforms for factory workers).
Machinery Equipment

Machinery equipment required for direct manufacturing process of approved final finished products are entitled to exemption from customs duty and sales tax under Item 88 Customs Duties (Exemption) Order 1988 and Item 83 Schedule B Sales Tax (Exemption) Order 1980.

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