Intoxicating liquor, tobacco and denatured spirit
- Document symbol
- G/LIC/N/3/MYS/16
- Original language
- English
- Published on
- 19/11/2024
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
Under Regulation 42 of the Customs Regulations 2019,
42 (1) No person shall import intoxicating liquor, tobacco or denatured spirit except with a licence granted by or under the direction of the Director General.
42 (2) Where a senior officer of customs is satisfied that the intoxicating liquor or tobacco imported is intended for private consumption of the importer and not for sale, or the intoxicating liquor or tobacco imported is exempted from the payment of customs duty under section 14 of the Act, the intoxicating liquor or tobacco may be imported without such licence.
42 (3) Any person who contravenes subregulation (1) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding one year or to both.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
As a measure to control the leakage of duties/taxes on high-risk cigarette and liquor products, import of intoxicating liquor, tobacco or denatured spirit is prohibited except with a license issued by the Royal Malaysian Customs Department (RMCD).
Q3. The system applies to goods originating in and coming from which countries?
The system applies to all countries.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
No. Licensing is not intended to restrict quantity or value of imports. No other methods of accomplishing the purpose has been considered because the present licensing system is found to be effective enough to control the import activity of the goods in order to prevent smuggling.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
Is the licensing statutorily required?
The control on the importation of liquor, tobacco and denatured spirit are statutory requirements under the Customs Regulations 2019 and Customs (Prohibition of Imports) Order 2023.
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
Not subject to administrative discretion. The legislation does not allow for administrative discretion regarding importation of liquor, tobacco and denatured spirit subject to import controls.
Is it possible for the government to abolish the system without legislative approval?
It would not be possible to abolish the system without legislative approval.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
See answers 7.a-7.d.
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
How far in advance of importation must application for a licence be made?
Application should be made well in advance before the goods are imported.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
Application for a licence cannot be obtained within a shorter time-limit.
Q7.b. Can a licence be granted immediately on request?
No.
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
Licence may be issued in any period of the year.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Which administrative body is responsible for approving application of licences?
Yes. The application for licence to import liquor, tobacco and denatured spirit only involve the RMCD.
Must the applications be passed on to other organs for visa, note or approval?
No.
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
Black listed (those who have committed offences under the law and regulation) applicants may not be considered.
Are the reasons for any refusal given to applicants?
Reasons for refusal will normally be informed.
Have applicants a right of appeal in the event of refusal to issue a licence?
Yes an applicant has the right to appeal.
If so, to what bodies and under what procedures?
Unsuccessful applicants may submit appeal to the Director General of RMCD for consideration.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
Is there a system of registration of persons or firms permitted to engage in importation?
Not applicable.
What persons or firms are eligible to apply for a licence?
All persons, firms or institutions are eligible to apply import permit.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
What information is required in applications?
New application/renewal of licence for liquor, tobacco, denatured spirit and cigarette shall be made in writing to the Director General in the form and manner as the Director General may determine.
Information required include applicant's name, mailing and premise addresses, point of entry, list of goods including brand, quantity, value, country of origin, warehouse information and goods market.
What documents is the importer required to supply with the application?
The applicant is required to submit documents of company information to show status of the company and letter of appointment as agent.
Q11. What documents are required upon actual importation?
Customs Form No. 1, invoices, shipping documents and import licence.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
Is there any licensing fee or administrative charge?
Yes.
What is the amount of the fee or charge?
The amount of the fee is RM2,400.00 for a period of 12 months.
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
No deposit required.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
A licence granted shall be for a period of 12 months. Yes. Renewal is permitted.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
No.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
No.
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
Yes, conditions include the licence being not transferable, specific point of entry, storage facilities and stock records to be maintained. All importers shall comply with the health warning on cigarette packaging:
(i) On each packet of cigarette there shall be printed a health warning consisting of any one of the set texts and images.
(ii) The set texts and images shall be printed with fifty per cent coverage area to be positioned from the top on the front panel and with sixty per cent coverage area to be positioned from the top on the back panel.
(iii) The images shall be printed with resolution not less than 300 dpi ("dpi" or "dot per inch" means the degree of resolution of printing images expressed in terms of number of printed dots per linear inch).
(iv) The set texts and images shall be printed using not less than four colour printing.
(v) The set texts shall be printed, in lettering of Arial of 10 points for each packet, in pure white on a Matt Black background, except the words "AMARAN" and "WARNING" which shall be printed, in bold-faced lettering of Arial of 12 points for each packet, in yellow on a Matt Black background.
(vi) Each packet of cigarette shall have printed health information (on the right or left panel), sale restriction (on the right or left panel), name of manufacture/importers and date of manufacturing (on the ground panel).
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
(a) On each packet of cigarette/intoxicating liquor there shall be affixed a tax stamp as approved by the Director General of Customs.
(b) For packet of cigarette, the tax stamp shall not visually obstruct the health warning and health information.