Wheat flour
- 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.
The importation of wheat flour is subjected to Certificate of Approval (COA) issued by SIRIM QAS International Sdn. Bhd. (SIRIM) while the Ministry of Domestic Trade and Costs of Living (KPDN) is the custodian for policy decisions regarding the importation of wheat flour.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
COA is required to ensure the imported wheat flour adhered to the mandatory Malaysian Standard (MS85).
Edible wheat flour
Edible wheat flour is used for human consumption. There are eight (8) types of edible wheat flour that has to adhere to MS85 which are:
i. White flour;
ii. High protein flour;
iii. Wholemeal flour;
iv. Self-raising flour;
v. Enriched flour;
vi. Protein-increased flour;
vii. Atta flour; and
viii. Chlorinated flour.
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?
It is to ensure all imported wheat flour adhered to the Malaysian Standards (MS85) and safe for consumption.
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):
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. Importers will have to apply for Letter of Approval (LOA) from KPDN prior to application of certificate of approval (COA) from SIRIM.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
LOA will be issued within 7 to 14 working days while COA will be issued within 3-10 working days subject to the type of test conducted. Importation without COA will not be allowed.
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.
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?
Importers have to approach KPDN for LOA application and approach SIRIM for online COA application.
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 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?
Information pertaining to the requirements of COA application is published in the KPDN's official website at https://www.kpdn.gov.my. Basic information required:
- details of the applicant - the name of the company, type of business, address of company, ownership;
- details of the importation - quantity, why required, source of supply; port of arrival, the purpose of importing;
- categorization letter from customs; and
- Invoice/Purchase order of the said product.
Q11. What documents are required upon actual importation?
Upon actual importation, importers may be required to submit Bill of Lading/Airway Bill together with COA from SIRIM 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?
No fees for LOA application.
What is the amount of the fee or charge?
Fees for COA application are as follow:
(i) Processing and issuance fee - RM200;
(ii) Verification and sampling fees (excluding incidental cost) - RM500;
(iii) Testing fees vary from RM500 to RM1,500 depending on the type of flour and test applied.
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?
COA validity period:
(i) Shipment via sea/air using Method 1 and Method 2 - 1 month;
(ii) Consignment by road using Method 1 - 2 weeks;
(iii) Shipment via sea/air and by road using Method 3 - 1 month
The validity period of COA cannot be extended.
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.