Sugar (including cane and beet sugar, chemically pure sucrose, fructose and glucose)
- 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 sugar (including cane and beet sugar, chemically pure sucrose, fructose and glucose) is subjected to import licensing administered by Ministry of Domestic Trade and Costs of Living (KPDN).
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Import permits are required for the importation of sugar (including cane and beet sugar, chemically pure sucrose, fructose and glucose) as listed under Item 2, Second Schedule, Part II of the Customs (Prohibition of Imports) Order 2023.
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?
Import licence is required for quality assurance, monitoring and data collection.
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 1967. 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):
Application of sugar import permits shall be made through the online-based system at http://www.dagangnet.com/ (ePermit) except for refined sugar, a written application to the Controller of Supplies, KPDN is required prior to the online permit application.
See answers 6.1-6.11
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?
Information pertaining to the requirements of the sugar import permit is published in the KPDN's official website at https://www.kpdn.gov.my.
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?
Quota allocation for all types of sugar is issued on a six-monthly basis through approved permit except for raw and refined sugar, quota allocation is on a yearly basis. However, importers of raw and refined sugar are still subjected to import permit applied trough online system on a six-monthly 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.)
Importation of raw sugar is only eligible for local sugar refineries that have the ability to process raw sugar into processed sugar. Unused allocation within the stipulated period will be automatically cancelled. Names of raw sugar importers may be made known to the related parties upon request. Not applicable to other types of sugar.
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?
Sugar permit application is open all year round.
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Online permit application will be processed within 7 working days.
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Applications for import permit can be made and approved well ahead of the actual date for 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?
Permit applications and approvals will be processed by KPDN online through ePermit. Once approved, the Royal Malaysian Customs Department (RMCD) will have to acknowledge the approved permit also via an integrated online system for importers to able to proceed with the importation.
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?
If the demand cannot be fully satisfied, allocations will be based on past performance, warehouse availability and purpose of importing.
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)?
Q7.b. Can a licence be granted immediately on request?
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.
Are there any limitations as to the period of the year during which application for licence can be made? If so, explain
Not applicable.
Are there any limitations as to the period of year during which importation may be made?
There is no limitation on the period for a licence application.
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?
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 based on the current policy.
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 applicants have a 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 Secretary-General of KPDN.
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?
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 pertaining to the sugar permit application is published in the KPDN's official website at https://www.kpdn.gov.my. Information required:
- name and address of importer, type of business, product catalogue, ownership;
- details of the requirement - quantity, the purpose of importation, source of supply, list of clients,
- categorization letter from customs;
- invoice from the supplier, purchase order from client/invoice to the client;
- organic certification letter from the supplier (if the product is organic)
What documents is the importer required to supply with the application?
- other relevant supporting documents.
Q11. What documents are required upon actual importation?
Upon actual importation, importers may be required to submit Bill of Lading/Airway Bill together with the Import Permit and Customs Declaration.
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?
A fee of RM 0.80/kilobyte shall be charged for the issuance of an import permit through ePermit not limited to the number of consignment.
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?
An import licence is valid for six (6) months from the date of approval.
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.