Timber and timber products
- 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.
Timber and the timber products that are listed under Item 2, Second Schedule, Part 1 of the Customs (Prohibition of Imports) (Amendment) (No.3) Order 2023, are subjected to import licenses, issued by the Malaysian Timber Industry Board (MTIB).
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
MTIB administers issuance of import licences for the importation of logs, roughly squared or half squared logs and baulks poles and piles of Bakau; sawn timber; particleboard; fibreboard; plywood and veneered panels and similar laminated wood to be further processed in the country (Peninsular Malaysia).
Q3. The system applies to goods originating in and coming from which countries?
The system applies to timber products 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?
MTIB licensing system does not restrict any value or even quantity or value of imports.
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)(Amendment) (No.3) 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):
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 the goods.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
In certain circumstances, import permission can be given for goods which have inadvertently arrived at the point of entry.
Q7.b. Can a licence be granted immediately on request?
Licences may be issued immediately provided that prior approval has been obtained by the importers from the Import/Export Committee of MTIB and properly completed documentations are furnished to MTIB.
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.
Applications for import permit and importation can be made at 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?
For poles and piles of Bakau; sawn timber, particleboard, fibreboard and plywood including laminated veneer are not subjected to the Committee approval.
Must the applications be passed on to other organs for visa, note or approval?
Applications for import licences for logs, roughly squared or half squared logs and baulks are processed by MTIB based on approval obtained through an internal MTIB Committee, i.e. the Import/Export Committee, prior to final approval by the Royal Customs Department of Malaysia.
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?
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 firms and organisations are eligible provided they are domiciled in Peninsular Malaysia.
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?
For permission to import logs or logs, roughly squared or half squared logs and baulks (under Item 2(1), Second Schedule of the Order) application should apply to the Import/Export Committee of MTIB by filling the application form, including the provision of the following information:
- name and address of importer;
- port of entry;
- quantity to be imported;
- species of timber to be imported;
- name of exporter;
- name of buyers and premise for timber processing;
- purpose of importation: to be processed for own use/for re export/domestic trade;
- country of origin of goods;
- Copies of sales agreements/supply contracts made with overseas suppliers and certified by the Malaysian embassies in the respective countries (Thailand, Laos. Cambodia, Vietnam, Singapore, Papua New Guinea, Solomon Islands, Timor Leste) or the authorities/bodies/agencies recognized by the government of that country (Myanmar, the Philippines); and
- Copy of Business Registration Certificate (Form D) under the Business Registration Act 1956 and Business Licence (Form B); or A copy of the Memorandum and Articles of Association, a copy of Form 24 (List of Shareholders) and a copy of Form 49 (List of Board of Directors). Under Company Act 2016, the company could submit (Register of Company) as supporting document.
For permission to import poles & piles of Bakau, sawn timber, particleboard, fibreboard and plywood, veneered panels and similar laminated (under Item 2(3), (4), (5) and (6) Second Schedule of the Order) application should apply to MTIB by filling the application form, including the provision of the following information:
- name and address of importer;
- port of entry;
- quantity to be imported;
- name of exporter;
- name of buyers;
- country of origin of goods; and
- Copy of Business Registration Certificate (Form D) under the Business Registration Act 1956 and Business Licence (Form B); or A copy of the Memorandum and Articles of Association, a copy of Form 24 (List of Shareholders) and a copy of Form 49 (List of Board of Directors). Under Company Act 2016, the company could submit (Register of Company) as supporting document.
What documents is the importer required to supply with the application?
For permission to import logs or logs, roughly squared or half squared logs and baulks: Documents to be furnished to MTIB upon approval from the Import/Export Committee should comprise:
- approval letter from the Import/Export Committee of MTIB;
- import JK 69 Form; and
- import documents – original/copy Certificate of Origin/Form D from the valid exporting country, invoice, packing lists and bill of lading.
For permission to import poles & piles of Bakau, sawn timber particleboard, fibreboard and plywood, veneered panels and similar laminated For permission to import poles & piles of Bakau, sawn timber and plywood, veneered panels and similar laminated Documents to be furnished to MTIB upon approval from MTIB should comprise:
- approval letter from MTIB;
- import JK 69 form; and
- import documents - original Certificate of Origin/Form D from the valid exporting country, invoice, packing lists and bill of lading. For bakau, invoice/manifest/receipt payment/packing lists/other information from the country of export, if available.
Q11. What documents are required upon actual importation?
Actual authorisation will be made by MTIB and Royal Customs Department of Malaysia on the JK 69 Form. Import documents required during inspection are MTIB Approval Letter, original Certificate of Origin, invoice, packing list and Bill of Lading; and The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) export permit from exporting country (if relevant).
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?
Only for CITES import permit, RM 50.00 will be charged per permit.
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?
Import licence issued will be valid for sixty (60) days from the date of issuance. Extension of licence is not allowed. Should the licence expire before actual importation is done, the importer must apply for a new import licence.
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?
No.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
CITES import permit is a requirement for the importation of CITES listed timber species under the International Trade in Endangered Species Act 2008 [Act 686] issued by MTIB. The timber species covered are specified under the CITES Appendices II and III and the types of timber products are given in the respective Annotations.
Starting 1 July 2017, MTIB enforced the requirement for certifying on legality source on import of timber and timber products except bakau whereby any one of the documents are required to be presented during physical inspection besides other documents mentioned in item 10(a) (b) that is:
a) Forest Law Enforcement, Governance and Trade (FLEGT) licence; or
b) Certificate of Timber Certification (FSC, PEFC, MTCS); or
c) Certificate of Voluntary Legality Scheme; or
d) Legality Document issued by recognised Agency/Body/Association related; or
e) Self-Declaration recognised by a Competent Third Party; or
f) Copy of Customs Declaration from exporting country.