Vehicles and parts, aluminium, iron and steel
- 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.
Importation of selected industrial products is subjected to import licensing administered by the Ministry of Investment, Trade and Industry (MITI).
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Licences are categorised into automatic and non-automatic import licensing:
Automatic Import licensing
Passenger and commercial vehicles, motorcycles, auto-cycles (including mopeds), electric powered motorcycles, motorised bicycles and cycles fitted with an auxiliary motor (excluding side cars), chassis and parts thereof for motor vehicles, bodies (including cabs) of motor vehicles, road tractors for semi-trailers (including prime movers), special purpose motor vehicles other than those principally designed for the transport of persons or goods, ships' derricks; cranes, including cable cranes; mobile lifting frames, straddle carriers and works trucks fitted with a crane (excluding palfinger fully hydraulic compact, hydraulic loading crane, gantry cranes and crawler cranes), semi-finished products of iron and steel, including slab, bloom and billets, bars and rods, stranded wire, cables, cordage, ropes, plaited bands and the like, of aluminium wire, but excluding insulated electric wires and cables, flat-rolled products of iron or non-alloy steel, other tubes and pipes, and flat-rolled products of other alloy steel.
Non-automatic Import licensing
Kain sarong batik (by traditional batik process), used brakes and servo-brakes including used brake pad, callipers and brake lining for motor vehicles, all kinds of new reusable batteries (accumulators) for motor vehicles, toxic chemicals and their precursors covered under the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on Their Destruction 1993 (CWC) as listed in part of Schedule 1, Schedule 2 and Schedule 3.
Q3. The system applies to goods originating in and coming from which countries?
The system applies to import of listed goods originating from 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?
Automatic licensing is intended for data collection and monitoring. Imports of CFC are regulated in accordance with Malaysia's obligations under the Montreal Protocol. Imports of Chemicals listed under the Chemical Weapons Convention (CWC) Act 2005 - Schedules 1, 2 and 3 except where such chemicals are controlled by the relevant provisions under the Poison Act 1952 (Revised 1989) and Pesticides Act 1974.
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?
Import licences are issued under the Customs (Prohibition of Imports) Order 2023, which is made pursuant to the powers conferred by subsection 31(1) of the Customs Act Goods subjected to import licensing are scheduled in the said Order.
Is it possible for the government to abolish the system without legislative approval?
By virtue of subsection 31(1) of the Customs Act 1967, it is possible for the Executive to abolish the system without legislative approval since the said provision clearly confers powers to the Executive to prohibit the importation into Malaysia either absolutely or conditionally.
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?
Applications should be made in advance before the arrival of goods.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
Yes, licences can be obtained immediately but only under exceptional circumstances.
Q7.b. Can a licence be granted immediately on request?
Yes.
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.
No.
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?
Yes, MITI is the single administrative organ. However, for the importation of chemicals listed under the Chemical Weapons Convention (CWC) Act 2005, a written approval from the National Authority under the Ministry of Foreign Affairs is required prior the processing of import licence.
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?
Application for a licence may be refused if there is a contravention of any requirements from any other local authorities.
Are the reasons for any refusal given to applicants?
Yes, reasons will be given to the applicant.
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?
In the event a licence is being refused the applicant has the right to appeal to the Director of Export and Import Control Section, Ministry of Investment, Trade and Industry.
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?
Yes.
What persons or firms are eligible to apply for a licence?
All persons, firms or institutions are eligible to apply for licences
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?
Information required in the application for import licences are:
- name and address of importer;
- name and address of supplier;
- description of goods;
- value and quantity;
- customs tariff code;
- country of origin; and
- port of
What documents is the importer required to supply with the application?
Other supporting documents such as written approval and manufacturing licence are also required.
Q11. What documents are required upon actual importation?
Licence Permit is required upon Effective 1 August 2019, all types of licence applications can be applied online through ePermit system.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
No.
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.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
The validity period of an import licence varies between three (3) to six (6) months. Licences can be extended for another three (3) to six (6) months. Applicant can submit their request to the Director of Export and Import Control Section, Ministry of Investment, Trade and Industry.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for non utilisation of a licence.
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?
a) Not applicable.
b) For chemicals listed under the Chemical Weapons Convention (CWC) Act 2005, a written approval from the National Authority under the Ministry of Foreign Affairs is required.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
No.