Logistics, Trade Administration and Supply Chain

The Customs Duties (Exemption) [No. 2] Order 1988 provides for various persons or organization to be exempted from payment of customs duties on specified goods imported by them and subject to the conditions contained therein as specified. Powers to Exempt Customs Duties and Goods' Value Assessment Section 14 of the Customs Act 1967 provides for the Finance minister to exempt specific persons or organization or classes of goods from Customs duties. For the purpose of determining the import or export duties payable on ad valorem basis, goods will be valued in accordance with the definition of value in Section 2 of the Customs Act 1967. Briefly, the price envisaged by the definition of value is the price at which the goods are sold freely in the open market by the seller to any buyer not associated in business with him. Thus, if the seller sell or offers to sell his goods to any independent buyer, then the price which the seller charges for the said goods will be accepted as the open ...

Import/export licences are issued by the Ministry of International Trade and Industry (MITI) on behalf of the Director-General of Customs. For the convenience of importers/exporters, MITI has set up various branch offices and the areas covered by them: Pegawai Ekonomi Pulau Pinang who covers all Northern States and Teluk Intan Pengarah Cawangan Perdagangan, Kuching for Sarawak state Pengarah Cawangan Perdagangan, Kota Kinabalu for Sabah state Penolong Pengarah Cawangan Perdagangan Johor Bahru who covers Malacca and all Southern States Penolong Pengarah Cawangan Perdagangan Kelantan covering states of Kelantan and Terengganu Importers/exporters from area mentioned above should submit their applications to the respective branch office. Importers/exporters from areas other than those mentioned above should submit their applications to the following: The Secretary-General of the Ministry Domestic Trade Division MITI Block 10, Government Offices Complex Jalan Duta 50622 Kuala Lumpur Applica...

Where duties are applicable on imported goods all relevant duties must be paid before such goods can be released for consumption. Where export duties are liable such duties must be paid before the goods are allowed to be exported. The following types of duties are liable on goods imported into this country: Import Duties Sales Tax Import Duty The rate of import duty varies according to the type of goods imported. The rate applicable to each category of goods is indicated in columns no. 4 of the First Schedule of the Customs Duties Order 1988. Sales Tax The rate of Sales Tax liable as stated in the Sales Tax (Order) 1977. Sales Tax have three rates of duty at 5%, 10% and 15% on gross value on all goods imported except those which are exempted. Goods exempted from Sales Tax have listed in the Sales Tax (Exemption) Order 1988. The following goods liable to a Sales Tax of 15% are as follows: Beer, Ale, Stout and Porter, Intoxicating beverages falling under tariff code headings from 2205.10...

Goods may be imported or exported by land, air or sea only at prescribed place as shown in the First Schedule of the Customs Regulation 1977 Declaration All goods to be imported or exported whether or not subject to import/export duties must be declared in writing on prescribed customs forms. Customs 1 is for duties must be declared in writing on prescribed forms. Customs 1 is for goods to be imported and Customs 2 is for goods to be exported. All declarations should indicate a full and true account of the number and description of packages, of the description, value, weight, measure or quantity of all such goods. In the case of goods being imported, the country of origin should be clearly stated and in the case of goods to be exported, the final destination. Declarations must be submitted to the Customs station at the place where the goods are to be imported or exported. Customs Agents The Customs Act provides for the importers and exporters to appoint agents to act on their behalf. O...

Under Article 48 of the Uniform Customs and Practice (UCP) No. 500, describes a transferable credit as "A transferable credit is a credit under which the beneficiary (first beneficiary) may request the authorized bank to pay, incur a deferred payment undertaking, accept or negotiate (the "transferring bank"), or in the case of a freely negotiable credit, the bank specifically authorized in the credit as a transferring bank, to make the credit available in the whole or in part to one or more other beneficiary/ies (second beneficiary/ies)". A credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. A nominal credit may not be transferred. If a credit bears the terms = divisible, assignable or transmissible, such terms do not render the credit as transferable. Even if a credit designates as transferable, the transferring bank is under no obligation to such transfer, but if it does consent to the transfer it shall...

A documentary credit is a flexible payment instrument. I has became increasingly popular as an universally accepted method of payment. In fact, over the years, it has developed and earned the respect, trusts and confidence of the international trade community and bankers as well. There are other variations of a documentary credit, depending on the wordings, terms and conditions incorporated into the said credit. Standby Credit Standby credit was not specifically mentioned until the 1983 revision of the UCP No. 400. In the united States, the bankers are not permitted to issue guarantees under the Federal Law. Standby credit was introduced in the 1920s to overcome the problem of the prohibition. A standby credit may be utilized for various transactions, for example to guarantee the repayment of a loan, for payment of services rendered, for goods sold, etc. Revolving Documentary Credit A buyer or importer may need to import X tons of Y products every month. Instead of requesti...

Article 10 of the UCP No. 500 states that a documentary credit must clearly indicate whether it is available by sight payment (sight documentary credit), by deferred payment (deferred payment documentary credit), by acceptance (acceptance or term documentary credit) or by negotiation (negotiation documentary credit). Thus a documentary credit may state that payment is to be effected upon presentation of the stipulated documentations and compliance with the terms and conditions of the credit or after a certain period e.g. 60 days from the date of presentation of documents, from date of bill of lading or from the date of invoice. Sight Documentary Credit A documentary credit may provide for sight payment (sight documentary credit). This means that the beneficiary may present a sight bill of exchange (called for in the credit) together with the other supporting documentations and payment would accordingly be effected. Deferred Payment Documentary Credit A deferred payment docume...