Import-Export Prohibition, Control, Valuation and Disposal

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If a LMW finished goods are of a class prohibited on import/export he will be allowed to carry on with the manufacturing but the finished goods when released to domestic market or exported will have to be subjected to the prohibition orders.

Import or export license, whichever applicable must be obtained from the International Trade and Industry Ministry and the approval must presented to the Customs at the port/place of import/export.

Control on Premises

Generally, LMW are documentary controlled by the Customs. As such, customs officers will not be stationed at the licensed premises.

Manufacturing process can be carried out without limitation to the time but no dutiable goods shall be brought in or taken out of the licensed premises outside the normal opening hours without due written permission from the State Customs Director where the LMW is located or based at.

Valuation

Dutiable value of the manufactured goods released for home consumption will be determined on the basis of the definition of "value" under the provision of Section 2 of the Customs Act 1967 which is similar to such goods being imported from overseas.

Disposal of Waste/Refuse

Waste or refuse discharge from the manufacturing process which is liable to customs duty may be destroyed upon approval and under the supervision of the customs. The customs duty chargeable shall be remitted.

If the waste or refuse is to be sold, customs duty liveable therein must be paid. The tariff classification for duty purpose shall be based on the identity of the waste or refuse at the time of disposal. Its dutiable value will be determine in accordance with the definition of "value" under Section 2 of the Customs Act 1967.

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